SKO - Serko.com

[tango]

I've never held Serko, but I was under the impression they are only involved in Corporate travel? So, it doesn't matter how much people want to go on holiday, it just matters how much companies are willing to spend sending their people around the globe again.

Yes, that's true but company paid holidays are a perk for many. It's an incentive offered for sales agents who meet targets and long service as well as annual conferences in exotic locations which are really a fancy name for a holiday but they throw in a few speakers to make it seem legit.

I think it's going to vary by country and industry. Some countries will embrace online meetings and others won't want to miss pressing the flesh and boozing with clients and coworkers in foreign lands - or local. Corporate travel booking services are also used for planning trips and conferences to bring everyone together from the same country.

As I said before I think corporate and pleasure travel won't return to previous levels but I could easily be wrong

[tango]

SKO is in a position to turn a profit quicker than a lot in the travel and tourism space by clipping the ticket across the board.
I hear a lot of people over the virtual space but then as pointed out companies faced with budgetary haircuts won't be flying as many people around the globe as before in the immediate future.
However, when you have people queuing up to sit in aircraft simulators for 8-9 hours at a time ... never underestimate the collective IQ.

HAHA yes the collective IQ

And people queuing up to be served a meal on a grounded plane
https://www.marketwatch.com/story/di...es-11602601284

[Everwood]

Big rise in Serko share price today and a new high. Does someone know something that hasn't been announced to the markets?

[sb9]

Big rise in Serko share price today and a new high. Does someone know something that hasn't been announced to the markets?

Could be due to trans tasman and cook island travel bubble and general vaccine related news...

[CraftyBeer]

Could be due to trans tasman and cook island travel bubble and general vaccine related news...

Could be but other travel stocks (AIA, AIR) fell yesterday so a one-day 33c rise for SKO is a big leap. Reminds me of the unusual jump in BGP the other week just before they announced their special divvie so will keep an eye out next week to see if SKO has some news we're not aware of yet (but the market is...)

[sb9]

Could be but other travel stocks (AIA, AIR) fell yesterday so a one-day 33c rise for SKO is a big leap. Reminds me of the unusual jump in BGP the other week just before they announced their special divvie so will keep an eye out next week to see if SKO has some news we're not aware of yet (but the market is...)

Perhaps some new strategic announcement involving Booking.com??

[BlackPeter]

Could be but other travel stocks (AIA, AIR) fell yesterday so a one-day 33c rise for SKO is a big leap. Reminds me of the unusual jump in BGP the other week just before they announced their special divvie so will keep an eye out next week to see if SKO has some news we're not aware of yet (but the market is...)

Well, one thing is sure - it won't be a special divvie :

[daveypnz]

I bought a large pile @ $5.70 yesterday. I'm always amazed this company doesn't get talked about more, it has the strongest bull case of any company on the NZX imo. If they continue expanding into North America and Europe, the runway is huge and with a market cap of ~600M the share price has plenty of legs left.

I know you can make a bear case that covid will linger, corporate travel will never return to previous levels etc but the risk/reward ratio for Serko is incredible imo.

[Cadalac123]

I bought a large pile @ $5.70 yesterday. I'm always amazed this company doesn't get talked about more, it has the strongest bull case of any company on the NZX imo. If they continue expanding into North America and Europe, the runway is huge and with a market cap of ~600M the share price has plenty of legs left.

I know you can make a bear case that covid will linger, corporate travel will never return to previous levels etc but the risk/reward ratio for Serko is incredible imo.

I think what people have an issue is with the worsening financials and the company being valuated at a higher market cap than before COVID which without a question disputed the business for the short-medium term. The possibilities of growth with this company are "amazing" on paper but you need actual proof of concept. The booking.com liaison helped but the company is still in it's somewhat early business stages.

Based on revenue and NPAT at this time the market cap isn't exactly a screaming bargain. Then again riding the uptrend which then eventuates in a takeover or something else is a possibility too.

[daveypnz]

Without a doubt, like all growth companies there is an element of risk. I just believe Serko provides a better risk/reward ratio than any other company on the NZX. Certainly it's not a screaming bargain but if you believe in the long term story that doesn't matter too much.

The company has more cash than it did pre-covid after the well timed cap raise a few months ago. Darrin Grafton is an excellent CEO and I love the direction he's steering the company in:

“We actually increased our full-time employee count from 232 to 240,” Grafton says.

“There’s going to be so many opportunities for technology that manages risk, compliance, cost savings, expenditures – all of that will become spotlight. So we need the people to drive that.”

In September, Serko raised another $36.4 million to gear up for future growth – buoyed by corporate travel recovering to 86% of pre-pandemic levels in New Zealand and overall travel recovering to 50% in Australia and New Zealand, according to Grafton.

Serko has hired about 50 people this fall and plans to add another 100 by next May – some slated to work on things such as AI-based solutions and disruption management tools for airlines, and others available to work on “the unknown ... the things we haven’t even thought of yet.”

“We will probably end up with the largest travel tech team in the world,” Grafton says.

“We haven’t stopped executing. We’ve 100% remained realistic about the crisis and what we have to do and the cost control. We communicate clearly. We’ve said, ‘We are going to burn up to NZ$2 million a month.’ And then we told people even when we raise money, we are going to increase that burn because we still see more and more opportunities through this and eventually it will balance out and we can get through 2024 with that model.”