Lets not forget all those lovely big director buys both before and after the RI - ALL higher than the current SP.
I can't believe that ALL the directors in PFD would pump their own hard earned in to a dead duck! Yes PFD has had it's struggles and things won't suddenly move overnight but it looks to me like this company is very slowly turning it around. Efficiency savings are just the start
Had another read of todays rns, for the life of me I cant see why such a drastic drop. . . . Yes power brands arn't expected to do as well as expected in q2 but we were told the new products are only to be introduced in 2nd half of year but having said that profit is still to be as expected. As for the joint venture surely it is better to join forces to try an reduce costs on a part of the business that currently made a loss. To reduce miles traveled to the end of the year by 750,000 will also reduce costs, in my view we are heading in th right direction but may take a while to show on the books. . . . . . Hold IMO
The reason I got out of here prior to the RI was twofold.
With Pfd the shareholders seem to get the rough end of any RI or consolidation, certainly in the short to mid term.
The other reason is all the talk for 2+ years has been growing the brands etc etc! not once have the results actually showed anything other than mediocre performance. again another set with many trying to make excuses, last quarter it was no Easter numbers.
I'd buy back in but I still don't see data to prove any of the talk, I bailed at 1.55 pre RI and am happy to stay out for now.
agree with your post. us ''small investors'' were wandering why the SP had gone from 70p to 50 ish. This was because the ''big boys'' knew about the sales decline and the SP reflects this. From now we are buying on recovery hopes. Point to note is, as far as year end results are concerned, a bad wet summer can really have a positive impact. This along with cost savings may result in year end being slightly better than forecast.
more, typed post before finishing. The question to ask, is this is unique to PFD's Products or down to the general subdued markets. I personally do not feel this is unique to PFD, so expecting other companies to give warnings.
However the company has a lot to learn about giving guidance, for example under promising and over delivering. I just hope they bear this in mind when giving further guidance.
The market would not have been expecting PFD to meet the YTD targets, if they were then the share price would then have been closer to 100p ( P/E around 10). So today's announcement already well priced in before this week's falls.
The question to ask is if this is unique to PFD's Prod or down to the general subdued markets.
Sales growth in the second quarter was, due to the timing of Easter (the reason given for Q1 being so poor) supposed to be positive so for them now to say it will be negative is bad.
This business already has very high margins so for them to say sales down but profit the same says margins will go even higher! As for profit expectations remaining unchanged - this business just has no credibility - too many times they've come out with confident assertions about how everything will be alright, only to disappoint.
Picking up from the other comments from insiders, this business has already cut costs to the bone - further cuts really means less advertising, less innovation and therefore sales will continue to fall.
This business needs to demonstrate that it knows how to get sales growing and quick otherwise debt will become an issue again. It will be interesting to see what they say at the analyst day.
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