U.S. markets close in 2 hours 22 minutes

Secoo Holding Limited (SECO)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
2.1500-0.0100 (-0.46%)
As of 1:38PM EDT. Market open.
Sign in to post a message.
  • L
    Leon Battista
    SECO has retained Duff & Phelps as its financial advisor. The firm will submit several reports to SECO which are stipulated for the finalization of the privatization. Unfortunately, after SECO retained them, Duff & Phelps started its reorganization with the incorporation of Kroll and the change of the brand. New stuff was hired while others were dismissed.
    That could be a reason for the delay of the announcement of the definitive agreement.
  • L
    Leon Battista
    From Chinese sources:
    Secoo plans to set up offline experience centers in Haikou, Sanya, Danzhou and other regions in the next two years. In addition to private exclusive services such as consignment, identification, and maintenance, it will also provide users with comfortable leisure areas, and regularly arrange fashion-themed activities. Through the "touch and buy" model, the company provides customers with an immersive experience service combining online and offline.

      Secoo's cocktail brand 247 Holiday Happy Water has also landed in Sanya. In the future, the company plans to promote this ready-to-drink high-end beverage in Hainan, relying on the gradual improvement of tourism infrastructure, to open "247 Happy Holiday Water" POP UP stores in more regions.

      It is understood that since the first offline experience center opened in Beijing in 2011, Secoo has opened offline experience centers in Shanghai, Chengdu, Qingdao, Tianjin, Xiamen and other places, and has continuously upgraded its services, except for a wealth of luxury goods. In addition to commodities, it also provides users with services such as identification and maintenance. By 2019, Secoo's offline experience center will be connected to the live broadcast system, realizing the transformation from traditional offline sales to "anchor-based sales".
  • L
    Leon Battista
    News which wasn't been released in U.S. :
    "Create a fashion talent training school

      For industrial upgrading and regional development, the introduction and training of talents is undoubtedly the top priority. Based on its own characteristics, Secoo, together with Qingkong Zhidao Educational Institution, an online education brand of Tsinghua Holdings, has united with outstanding fashion education institutions at home and abroad, and strives to build a high-end fashion industry talent training school."
    (Google translate).
  • I
    Ian
    SECO has raised so much cash the last years from its IPO, from Luis Vuitton etc, and lately from Qudian.
    $QD invested $100 million at $4.90 per ADS less than a year ago.
    Now, the founder/CEO and Chairman of SECO wants to take private the company at the very low price of $3.27. But this guy from China is so cheapskate! He even now delays the announcement of the close of the deal and he buys around $2.50, to save 77 cents per share, while U.S. markets and U.S. and European companies have made him a billionaire!
    Mr Rixue, I understand that after the delisting you will not need anymore the U.S. and international retail investors, but you could at least show some dignity and announce the deal. We know very well that you are the buyer and the seller at the same time, the other major shareholder, $QD, is following you to the privatization, so it is time to make something decent and do not trick and scare anymore small investors to steal their shares at $2.50, just before the announcement to pay them only $3.27 per ADS.
  • L
    Leon Battista
    OK the news are good. At last
  • L
    Leon Battista
    About 14% now is held by retail investors. Institutional has slightly increased their stake, insiders have, of course, not sell.
    All the go private deals have delayed a bit. SECO has the highest discount to take advantage, like $TEDU.
    Bullish
  • s
    superawsome
    The valuation would at least be tripled if it listed in China, so much catalysis.
  • L
    Leon Battista
    Wealth Architects LLC acquired a new stake in Secoo Holding Limited (NASDAQ:SECO) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 12,834 shares of the company’s stock, valued at approximately $32,000.

    Other institutional investors also recently added to or reduced their stakes in the company. Penserra Capital Management LLC boosted its position in Secoo by 119.6% in the 4th quarter. Penserra Capital Management LLC now owns 55,136 shares of the company’s stock valued at $126,000 after buying an additional 30,026 shares during the period. Virtu Financial LLC purchased a new stake in shares of Secoo in the 4th quarter worth approximately $128,000. FMR LLC purchased a new stake in shares of Secoo in the 1st quarter worth approximately $2,905,000.
  • I
    Ian
    Until today, only a 17% with minuscule voting power is owned by the retail investors.
    All the Series B shares are owned by the CEO who made the buy out proposal. He controls 82% of all votes.
    The 29% of Series A shares is controlled by Qudian. It participated to the buy out as rollover equity.
    The famous LVMH fashion group also controls a stake thru L Catterton. An important person of the industry is a director of SECO as representative of the group, Mr. Jun Wang. It seems that LVMH also agrees to the privatization and will hold its stake as rollover equity. SECO can't disagree with LVMH which is its major supplier of luxury goods.
    So, the buyers group and affiliates controls about 90% of the votes. All the Series B and the majority of Series A shares.
    It's a done deal I think. Shareholders of SECO are the companies on which it depends, not some retail investors, so they will complete the deal as planned.
  • Y
    Yahoo Finance Insights
    Secoo Holding is down 5.09% to 2.05
  • L
    Leon Battista
    Qudian has bought nearly a 30% of SECO less than a year ago. There is no chance to not have done their thorough DD before invest. They bought at $4.90 per ADS and they will continue to hold their stake after the deilisting. $QD is not a fund as you know, it is a company which cooperates with SECO and SECO will not screw them.
    After all, fraudulent Chinese companies like Luckin Coffee did hire as accountants one of the Big Four firms, but smaller ones with no much reputation to risk. SECO hired the most reliable firm in China, BDO China, which is the only one which didn't have any problems with the SEC (the previous firm, KPMG China is also one of the big four but they had some serious issues with the SEC back in 2013).
  • L
    Leon Battista
    Change of auditors a few days before the deadline to release annual results of 2020 and a form of delay.
    I think we should wait a little to have a more clear picture here...
  • Z
    Zev
    They are selling luxury goods in the time of Corona. With the largest growing middle class in the world, this is a great stock as we exit Corona. Of all companies, this is the type of company that will get hurt the most because of Corona but also benefit the most as Corona disappears. Thus if there was ever a time to own SECO, it’s now. It’s already selling at a major discount. So at this point the upside is a multiple larger than the downside.
    Bullish
  • M
    Matthew
    I’m not as worried about the 14% decline in revenue (to be somewhat expected given Covid), but the large decline in gross margin from 21% down to 16% combined with continued growth in inventories makes me believe there is more to the story than simply Covid. And cutting the marketing spend in nearly half does not bode well for sales growth for the remainder of the year.
  • Z
    Zev
    If you want to understand just how undervalued SECO is, Mr. Richard Rixue Li, founder, Chairman of the Board and Chief Executive Officer of the Company, just proposed to take the company private by acquiring all of the outstanding class A ordinary shares of the Company not owned by him or his affiliates for US$3.27 per ADS. No one knows the real value or trajectory better than the CEO and he is willing to purchase the entire company himself, that's how cheap it is. His offer is at $3.27 which means he believes the company is worth way more than $3.27 per share!
    Bullish
  • J
    Jack
    Something to consider here: The stock buyback announced at the end of April justifies an increase in earnings per share of approx 14%. Relative share value without any considerations besides earnings per share gives us over $2.61 if we're using share price on the date prior to the buyback announcement to calculate today's number.

    All that to say, the stock is much nearer it's all time lows than it's price is showing. It's closing in to it's all-time low right now from a buyback-adjusted market cap perspective. And it was cheap to begin with!

    Another thing to consider: is the stock a scam if the company is buying $20 mill of it? Probably not. I think this stock is a real buy and a real value
  • M
    M
    If you take the blip of "BlockChain Rumor" out - this stock has been moving steadily up. No reason why it should not continue on its upward rise.
  • L
    Leon Battista
    $TEDU conversation
    The quickies are leaving, they bet on buyout news with the ER and now they abandon the ship.
    Great prices to add or re-buy imo. The Q4 results were much better than Q3 and Q4/2019.
    Also, Ascendent Capital has now all the official data to evaluate the company and upgrade a bit or not the offering price. They have until the 6th of April to do that, according to the proposal prospectus.
    At April 8, the CEO will resign too. He has some experience withn such procedures and he leaves because he works in publicy trading companies. I believe near these dates we will have some news.
    New CEO is the buyer's wife! 3.10 to 4, not bad if the deal closes until April 10-15.

    $seco is the next to go private at some point during May. Like TEDU, the suitor controls the management, he is the founder of the company and he controls the vast majority of the votes.
    Other companies which could follow are $CIH, $SOS, $TKAT
    Bullish
  • M
    Matthew
    The company raised USD $100mm in the quarter, but burned through $65mm of it in the quarter. Giving away 30% of the company (and dilute future earnings by 1/3) is an expensive way to pay down liabilities.
  • L
    Lei
    It is so quiet here, seems nobody care about it. However when it moves to 12, 15, 20$/share, it will become busy! My target is 20$