Appendix 7: "Curry in a hurry": Monday, 20 March 2017: (15:07)

The author of “Curry in a hurry as Just Eat Delivers” article, was questioning how a company like Just Eat Plc can be valued? Obviously its shares will be highly valued, about 535.5-559.0 GBp, is a successful combination of food, technology and psychology. An individual, like me, who does not like sharing food, is able to order as much food as wants without feeling is being judged.

The founder of Just Eat Plc knows how to take advantage of the market’s demands and needs with the current technological progress. This progress has become parts of our lifestyles and would be very difficult for an individual to live without the smartphone and 24/7 internet connection. This new lifestyle makes everything easier for consumers and firms. For instance Just Eat has increased its revenue due to its easy pattern which can be easily adopted by co-operators as restaurants and easily used consumers on different locations.

As an investor, who I am not, I am quite happy with the financial performance of this company as well. I invested my money on this company due to its future promising results. And in fact it worked better than I thought, its profits exceed the estimations and its liquidity has been increased more than 30% in a year. Its asset valuation has been increased as well, due to its geographical expansion.

However it would be rational for me to sale these shares since their value has been dramatically increased reaching the peak, is against investment rationality: I buy cheap shares with low returns in order to have high returns in long term. If I buy expensive and high risk shares, I might have high returns indeed but in short term, in long term it is very possible these shares will follow a downward trend.

The company has not even introduced a new project to justify the highly priced shares. The expansion of its already existing features are the firm’s promises based on which is not enough though. Its true has very strong liquidation and it boosts its cash flow valuation, but for an investor held money are useless.

The only problem is that I have not gotten my expected incomes yet. The company is using its incomes for its own expansion and therefore does not pay dividends. Shareholders are “committed” to those shares till the company decides to pay them back. It sounds absurd indeed however the expected return is expected/required to be very, very high.