Rather than stewing about it I decided my goose was getting cooked, sabman, and jumped back out of the pot so as to (hopefully) preserve capital for a re-entry lower down.
Not that I understand the nuances of TA or much else including what it is that will turn the prices forward again.
Cheers and see you again I hope
And FWIW from the AFR a while ago ….
There’s a slew there with more confidence and cash who are stewing not in the least!
A slew of wealthy Australians have invested in luxury selling platform Cettire, including Tony Gandel, Alex Waislitz, Colin Bell and Penelope Seidler.
The online fashion retailer, which holds no inventory and sells designer brands from Burberry to Alexander McQueen, recently posted a four-fold increase in sales in its first year as a public company, smashing its prospectus estimates.
It has grown to more than 1700 brands and more than 200,000 products, and does offer some in-season products. Most of its sales are generated offshore, and it ships to 53 countries. Orders are sent directly from suppliers and fulfilment is fully automated.
Online retailer Cettire, which sells luxury goods such as Gucci, Burberry, Fendi and Dolce & **bana, reported a maiden loss but sales rose four-fold.
Founder and chief executive Dean Mintz’s paper wealth has jumped to $876 million, given he controls 65.9 per cent of Cettire, which is seeking to gain a bigger slice of the personal luxury goods industry worth about $460 billion.
Cettire shares have continued to climb since it presented its full-year results on August 31 – gaining about 35 per cent in the past two weeks to $3.47 each, seven times its December 2020 issue price.
Its market capitalisation has ballooned to $1.32 billion – well beyond much larger online player Kogan at $1.11 billion and triple that of Myer at $407 million.
Cettire has managed to gain early backing from some high-profile investors pre-IPO – some of whom remain shareholders, such as Tony Gandel (son of billionaire property developer John Gandel) and ex-investment banker David Tozer (who runs Tozer and Co with his twin brother).
Others, such as Bell Potter Securities chairman Colin Bell, appear to have sold out.
The list of society names are likely reflective of the top client list at Melbourne broker Bell Potter which handled the Cettire float.
A few offshore institutions such as TA Associates Management recently joined the register.
The second biggest shareholder after Mr Mintz is hedge fund Cat Rock Capital Management, which controls 6.635 per cent, followed by Regal Funds Management at 4.37 per cent.
Listed investment firm Washington H. Soul Pattinson owns 1.44 per cent of Cettire.
Mr Tozer is the largest private shareholder and has continued to add to his holding. He said in a recent letter to investors that be believed Cettire was one of the most compelling technology platforms with superior end-to-end infrastructure.
“It is a pure play of online direct to customer thematics which have accelerated with COVID.
The advanced platform will allow for the most contemporary analytics and machine learning for a variety of activities,” he said.
Mr Tozer added that Cettire is valued at less than global comparable companies and offers higher growth potential as it is still in its early days.
Backers of Mr Mintz say he is delivering, and because of his unique technology, Cettire is a natural partner for the fashion brands.
However, several fund managers that spoke on background believed that the fashion houses will ultimately define the terms and minimum pricing structure if they form a relationship directly with the company, and therefore it will not be able to offer such steep discounts.
Mr Mintz briefly spoke to investors on August 31, when he said discussions with brand owners were in the early stages, and he was being “very selective” in terms of the direct brand relationships being set up.
“We’ll be looking to leverage as much of our core technology as possible,” he said. “There’s quite a great deal of complexity with cost-pricing modelling with brands, but also with our third-party suppliers, and a lot of that is handled through the integration that we have.
“We’ve also developed new technology capabilities on the pricing side to support requirements on both ends.”
Mr Mintz prefers to keep a low profile, but he did splash out $14.5 million in February for a five-bedroom house in Melbourne’s Toorak.
(20min delay)