Cettire Limited

ASX:CTT

Cettire Limited

ASX:CTT
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$1.180 (-6%)
Last close price
#315
Rank
3
Held by
27
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Forum Topics CTT CTT Price action

Pinned straw:
GazD
Last edited 8 months ago

Presumably yesterday’s fall was around fears over the duty/tax concerns. I originally took Cettire’s response at face value but did hear Claude asking the question is this where their competitive edge came from (baby giants pod)? And is that going to go away now they’ve been called on it… I don’t think so but keen for thoughts

UlladullaDave
Added 8 months ago

I think it was because Bells downgraded it to hold (which is a rather odd reason in itself). There is plenty of chatter though around perceived issues with CTT and whether or not they are paying sales taxes and duties (it seems as though the collect them). There are so many red flags with this business it baffles me that it trades where it does. How many of these mystery suppliers that the company considers part of their IP (yes, really) have these fund managers that are long CTT met?

7
GazD
Added 8 months ago

I suppose the reason it’s trading at a reasonably high PE is the combination of profitability and explosive growth. I guess what you’re asking @UlladullaDave is how are they doing it and is it sustainable?


the growth and profitability is impressive to my mind but I can see the argument (similar to Claude on BG) that the secret sauce could prove to be a flop

5
UlladullaDave
Added 8 months ago

I think I have a reasonable understanding of how they're doing it, and articles in the AFR in the last few weeks have filled in some of the gaps. I don't think anything that is basically a tax arb layered with turning returns into your most profitable product line is sustainable. How can FTCH, who started off doing basically what CTT does, never make a profit and end up going bust, while CTT grows like a weed and is wildly profitable too? Even more strangely, how did CTT go from huge losses during the online shopping boom to huge profits when people started going back to the high street? The founder has sold over $300m in stock since listing. That just doesn't sit right when compared to the growth the business is showing.

Cettire's growth and profitability is rare enough, but in the context of the economics of the industry they operate in they are staggering – to the point of being unbelievable.

12
AlphaAngle
Added 8 months ago

Just from following the AFR articles it seems evident that CTT declare a value to customs below what they sell it for pay less duty then pocket the difference. It was also stated in the article that usual practice is for the value to be the purchase price.

Sooo... I think really the question you have to be able to answer here is will there be a legal challenge from the duty collectors at some point?

10