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27 January 2024
By Maynard Paton
Fashion website Sosandar provides a fascinating dilemma for small-cap growth investors.
Bulls will highlight the online retailer’s very rapid expansion and bold ambition to raise profits to £10 million which, if achieved, would make its £37 million market cap extremely attractive. The story is also backed by keen co-founders and net cash.
Bears will note the £10 million profit ambition is based upon creating a chain of shops alongside continuing to sell clothes online. Sosandar’s website currently makes little profit and the fashion industry — whether selling online or through shops — is blighted by poor economics.
Let’s take a closer look.Read my full SOSANDAR article for SharePad >>