SKO - Serko. (Travel industry SAS)

[Left Field]

Fisher Funds have increased their investment in SKO with on-market purchases of 1.3 mill shares.

Good sign of optimism.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKO/396102/375582.pdf

[Shareguy]

It's raining again so have been researching this company.  Gosh feel sorry for holders given the decline.  Have plenty of cash. Fishers like it and seem to be averaging down, they also took a position in facebook which has not worked out. Overheads increasing dramatically with revenue growth modest at best.  No insider buying but deal with booking.com could lead to huge growth. Also plan of an acquisition which has failed to materialise. 

Thoughts...?

 

[KW]

Thoughts...?

 

Chart says no 

see below LOL

[Shareguy]

Chart says no 

see below LOL

You were so right. Glad I stayed away from this one. Might be time soon though.....

[Left Field]

Results out...... not bad considering Covid's impact on travel. Breakeven due in FY25.

https://www.nzx.com/announcements/402827

• Total income $19.4 million, up 106%
• Segment revenue $20.3 million, up 106%
• Average revenue per booking $7.85, up 54%
• Total travel booking volumes 2.3 million, up 73%
• Completed room nights on Booking.com for Business 454,000, up 432%
• EBITDAF $16.9 million, an increase of 44%
• Net losses after tax $19.7 million, an increase of 30%
• Cash and short-term deposits $102.9 million
• Average monthly cash burn $3.6 million
• Serko targeting return to cashflow positive during FY25
• FY23 revenue guidance affirmed

[KW]

You were so right. Glad I stayed away from this one. Might be time soon though.....

Chart still says no.  Momentum investing requires patience, but at least you can get 5% on your cash in the bank while waiting, whereas "value investors" get to watch their capital go down the toilet on a daily basis.  Never underestimate the returns on a good night's sleep with no stress   

[Basil]

Need to lock your money away for a year on term deposit to get 5%, 3.90% on call with Direct Broking is not too shabby though.  Value has spanked growth as a sector this year and I think the chances of a repeat in 2023 are very good.
As for companies like this that are losing money, please wake me up if their business model ever works and they actually make money lol

[Left Field]

Good upgrade out today.

https://www.nzx.com/announcements/405634

Total income is expected to be in the range of $42 million to $47 million. The guidance range for total income represents an increase of between 123% and 149% respectively on total income of $18.9 million for the 12 months to 31 March 2022.

GLH

[winner (n)]

Good upgrade out today.

https://www.nzx.com/announcements/405634

Total income is expected to be in the range of $42 million to $47 million. The guidance range for total income represents an increase of between 123% and 149% respectively on total income of $18.9 million for the 12 months to 31 March 2022.

GLH

Revenues seem lot higher than pre-covid

Should see share price start tracking back to previous highs over next couple of years and we'll be able to say always good buying in the 200's

[Hectorplains]

Good upgrade out today.

https://www.nzx.com/announcements/405634

Total income is expected to be in the range of $42 million to $47 million. The guidance range for total income represents an increase of between 123% and 149% respectively on total income of $18.9 million for the 12 months to 31 March 2022.

GLH

The shame is they again restrict themselves to revenue guidance only .  In May 2022  they said revenue would double in FY2023.  Which gave a figure around $39m.  So this up on that but not exponentially.  They offered no profit/loss guidance in May either- (then siting Covid and Ukraine uncertainties.) The month cash burn for FY2022 was $3m.  If they haven't got this under control that projected revenue is going to be eaten up pretty quickly.

[Left Field]

The shame is they again restrict themselves to revenue guidance only .  In May 2022  they said revenue would to double in FY2023.  Which gave a figure around $39m.  So this up on that but not exponentially.  They offered no profit/loss guidance in May either- (then siting Covid and Ukraine uncertainties.) The month cash burn for FY2022 was $3m.  If they haven't got this under control that projected revenue is going to be eaten up pretty quickly.

FWIW In their last report they said;

"Cash and short-term deposits $102.9 million
Average monthly cash burn $3.6 million
Serko targeting return to cashflow positive during FY25"

[lorraina]

That burn could be called a bonfire.$86 mil over 24 months.?

[Hectorplains]

That burn could be called a bonfire.$86 mil over 24 months.?

Hmmm that'd be all of the $85m capital raise, and no materialization of the acquisition tease that accompanied that.

[Left Field]

NZX a bit sleepy today, slow start.....Wellington on holiday.

Going to be interesting to see what the ASX thinks.

[Hectorplains]

Finished at 2.25 on the NZX (+0.18 or 8.70%) vs 2.03 AUX (+0.14 or 7.41%.)  Much of a muchness - a bit more lethargic over there. The Markets are buying their story for now.