So this is starting to look incredibly dangerous now - I'll be labelled a downramper by the usual tw*ts but it's important to start looking at what is going on here a bit more critically. This price action is not retail and long-term insto - this is setting up for a dump - would be interesting to see broker data to see if Credit Suisse has been getting involved like they do with lots of other big run-ups. There are a few glaring issues which investors should be asking for clarification on:
1) Suppliers - people heaped sh*t on the AFR article, but it raised a hugely important point - where exactly are these genuine products coming from, if the brands have not authorised their supply? The simple quote below says it all:
“We have no formal relationship with them,” a Zimmermann spokesman told AFR Weekend. ”Cettire are not authorised to sell Zimmermann products and we could not confirm the authenticity of the products they are selling.”Cettire have Zimmermann products listed right now - if they are selling genuine, new products and do not have an agreement with Zimmermann, where did the product come from? It sounds like Cettire don't have agreements with many brands and similarly, are unable to confirm how they have managed to get hold of genuine, new luxury product.
2) Reviews - the article accused them of having negative reviews removed from trustpilot - maybe they did, maybe they didn't. The company certainly hasn't managed to have negative reviews removed from this review site:
https://www.reviews.io/company-reviews/store/www.cettire.com1.98/5.00 from 215 reviews. Shockingly bad and completely inconsistent with the messaging from the company.
There are many, many other red flags here - I know some investors think it's cute the founder doesn't make himself known or public, but it's not - it's grossly unprofessional for a publicly-listed company. The fact that legitimate queries from media outlets get ignored/not engaged with is also not a great sign.
It's clear what will happen here - the brands will eventually step in and likely through legal action force Cettire to stop selling their products altogether, or, if they magically do seem to have an agreement with some of them, force them to charge an equal amount as they charge on other sites. Farfetch and Net-a-Porter are not going to just sit back and let Cettire take its market share - they'll likely contribute to the legal action to shed light on where exactly Cettire is sourcing its material. What people forget is that the large luxury brands of the world don't need Cettire - they won't be forced into supplying Cettire with genuine product, they'll simply enact legal action to force Cettire to stop selling products with its brand name on them.
Before you all scream downramper, I will never buy this stock - but if I was up several hundred % in a company that cannot confirm how it is sourcing its genuine, new luxury products, I would f*cking sell in a heartbeat. Also be very wary of stocks that have like 4-6 main posters that simply continuously upramp - that's usually a good sign that instos are f*cking with the price in the background and have their people posting here to maintain positive sentiment.
All the company has to do is explain, with no formal relationships with companies like Zimmermann, where is it sourcing this genuine, new product from? Should be a very simple 2-3 sentence response. Further, explain how is it that posters on trustpilot seem to love your company, whereas the posters on reviews.io seem to be having a nightmarish experience.
(20min delay)