You know what, theres one thing wrong with this company that has put me off buying, the poor dividend. I really think they can pay the shareholders a little more than less than 1%
19 Mar '14
slow steady sp
it is my experience that people dont shop around for the best price at such a difficult time, they tend to use the local undertaker whoever that may be
7 Mar '14
They are getting very close to pricing themselves out of the market. It is not uncommon for them to be almost 2k more than some smaller private firms. In this day and age more families are price checking rather than just going to where grandad had been and if cost is anyway part of the decision as to whether or not you use their services? The likelihood is you won't. I don't believe their share price will go much higher than it is now as they have considerable debts to manage and though they bought Yew Holdings for a fortune a couple of years back and this has given them additional funerals and therefor revenue. I just don't see their current plan of around 10% price increases every year (since flotation) being allowed to continue by the general public. I do not hold this share anymore, though I did previously and did very well after holding for seven years. I tend to have a peek at my old shares now and then just to see how things are going. In conclusion, their business plan is based on the level of service they provide however, I sold my holding when I researched the structure compared to other providers in this field. I discovered their staff are some of the lowest paid in the industry with funeral arrangers in the main getting under £7 per hour and managers getting less than my joiner yet they are without doubt the most expensive in the sector. This is a great simple business plan for the bottom line but it's not sustainable when you are only judged by your level of service and the person you are dealing with is probably more concerned in how they are paying their gas bill that landed on the door step this morning? Have quickly read over what I have written and it sounds like I'm having a go.... This was my best performing share ever... I just don't think it will go much north from here. Just my opinion and the death rate is forecast to increase by 20% over the next decade so who knows...
7 Mar '14
Any views on this share?
8 Dec '13
will drop now to a price that will attract buyers. I shan't look at them again until early next year. Ps. Money Week doesn't always get it right. Two years ago, they said don't buy housing! They always boast when they get it right, but never a dicky when they get it wrong. Merry Xmas!
6 Dec '13
Betting on certainty
Herewith the closing paragraphs of an excellent 2 page spread in Money Week today. 'Should you buy the shares? In fact, Dignity’s shareholders have done nicely out of this debt, and will probably keep doing so. That’s because Dignity has used loans to buy back shares on a regular basis. On top of that the debt has enhanced (geared) shareholder returns, with steady increases in trading profits being magnified into bigger increases in earnings per share. In many ways Dignity has similar characteristics to a water or electricity grid company, where the risks of big profit falls seem small and where debt doesn’t make the shares too risky, but instead boosts returns. All in all, Dignity has a lot going for it. In fact, for me the most worrying aspect is that it’s hard to see what could go wrong. A disruptive competitor seems unlikely at the moment. It’s possible that increased regulation of funerals or pre-paid funeral plans may knock sentiment towards the shares if it was announced, but as I already said, this could well be a benefit in the longer run. The shares are not cheap, trading on over 18 times this year’s earnings with a negligible dividend yield – but they look worth every penny. The high quality of the business and the expectation of further strong earnings growth means they look a good long-term investment. Verdict: buy
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