Jump to content

MADE.com shares collapse after strategic review


Recommended Posts

Online furniture retailer MADE.com's share price has lost another 25% this morning after the company said it was undertaking a strategic review involving every possible cost saving measure.


 Jeremy Naylor | Writer, London | Publication date: Friday 23 September 2022

MADE.com's strategic review

The online furniture retailer in the UK, Made.com Group PLC, has decided to undertake a formal strategic review of its various options in the market.

The group says it will implement additional cost reductions, including a headcount review, within the next few weeks and also the possible sale of the business. Now, we've seen the stock down 25% as a result of this news today.

Share price chart

Let's take a look at the share price chart, which shows clearly the big declines that we've seen on the far left hand side of this chart going all the way back to mid-June 2021.

We saw this company list on the market for 200 pence a share - £2 a share. Since then it's been pretty much one way traffic. We're down now at 4.7 pence a share. We're down at the moment by margin of 19%. We had been down as much as 25% today.

Yesterday, the FT was reporting that MADE.com will shed more than a third of its workforce. Now, while this was not specifically mentioned by MADE.com today, it did say that deteriorating market conditions force it to either seek a buyer or raise more cash.

Well, that in itself is made near impossible because of the collapse in the market value. Shares are down heavily again today. Now, it is a consequence of the business model, where supply chains are spread far and wide around the globe, including China, where COVID restrictions have forced a lot of businesses with vulnerable margins to rethink their sourcing of materials and labour.

And this company is really a business that looks, at the moment at least, to be in total failure. It is currently down at 4.7 pence, will it find a buyer at these levels?

One has to wonder whether they will, because obviously within the consumer sector, other companies like DFS Furniture Ltd, Sofa World, Sofology, are all in a little bit of a tight corner with regard the consumer. Are they the ones to come to the rescue of MADE.com? We'll have to see what happens.




IG Group.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 29/09/22 05:18
  • Posts

    • PayPal Holdings Inc.,Elliott Wave Technical Analysis PayPal Holdings Inc.,(PYPL:NASDAQ): Daily Chart,September 29 2022 PYPLStock Market Analysis:It looks like we have a three wave structure to the downside which makes us believe the count is moving as expected. Waiting for confirmation level to be broken. PYPLElliott Wave count:{c} of 2. PYPLTrading Strategy:Lookinga break of the green line and then a three wave pullback. PYPLTechnical Indicators:We are trying to go back above the 20 EMA. TradingLounge Analyst: Alessio Barretta Source Tradinglounge.com Get trial here!     PayPal Holdings Inc.,PYPL: 4-hour Chart,September 29 2022 PayPal Holdings Inc.,ElliottWave Technical Analysis PYPLStock Market Analysis:The most important thing was to count 5 waves into wave {c} and we can identify them. PYPLElliott Wave count:{c} of 2. PYPL Technical Indicators:Above the 20EMa and RSI made a bounce into neutral territory. PYPLTrading Strategy:Looking a break of the green line and then a three wave pullback.
    • The rally on Wall Street yesterday provided Asian markets with a reason to bounce, as oversold stocks and excessively bearish sentiment finally gave way to some bargain hunting among investors. The Bank of England's decision to intervene in bond markets yesterday provided the foundation for at least a short-term bounce, but whether it turns into anything more sustained remains to be seen. Longer-term of course, rates continue to rise, and the economic outlook remains grim, suggesting that earnings will keep coming under pressure. Thus while another 'bear market bounce' may be in the offing, the overall outlook still suggests that risk assets will struggle. Today sees German CPI and weekly US jobless figures, along with speeches from Fed members Bullard and Mester.   
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   Relief for the markets as the mighty USD saw one of its biggest single day declines since the early days of Covid Indices: New lower lows and a mini capitulation for most markets before a rebound. Europe expected to open up. APAC all higher FX: USD weakness unwinding a small degree. EURUSD awaiting German inflation expected to tick up by a margin of more than 150bps to 9.4%’ GBP weaker again  Equities: Toyota global vehicle sales up 44.3% in Aug, a record for the month Commods: Pretty much all of the commodity complex showing an upward retracement in the wake of that weaker USD. Today a small drop apart from oil which is holding Wednesday’s gains      
  • Create New...