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It doesn't matter if one is a medium to long term holder.
When one looks at it cash generation and profit, it's amazing how this company would remain public.
Any group of investors would recover their capital within 5 - 8 years then own BRBY for free.
I’m sure it will recover, eventually, but I have a feeling it might see £8 before it sees £20 again.
Interesting read on performance and cash generation:
https://www.burberryplc.com/investors/financial-performance-kpis
I woud add that the dividend is being kept steady since 2006, even during the 2 year Covid when all its shop were closed. This proves the company commitment to paying a steady dividend.
https://www.dividendmax.com/united-kingdom/london-stock-exchange/personal-goods/burberry-group/dividends
A long term hold for the recovery.
Regarding dividends, I think they can easily cover them until full recovery as their cash flow is excellent.
Assuming no takeover bid is received in the next 3 to 6 months.
Is the current dividend sustainable?. Not sure on that.
As a buy and forget..it may work longer term.
It ticks all the boxes:
1/ Very well established old British Company
2/ Lowest share price for 5 years
4/ Excellent dividend yield cover of 5.5%
5/ Present weakness may attract a takeover bid
One has just to keep it in an ISA, be patient, collect dividends , while events unfold ...
Looks like a good time to buy for me. Tradeplan orders for my SIPP and ISA executed at 1050 this morning ( actual price 1057 ), 5.5% div coming up, lowest share price in 5 years, potential target for takeover, fingers crossed for a turnaround later in the year, I'll weather any further fall, no point in trying to catch the bottom for me.
Following the similar path as Superdry, easy multiple year short from here
Yep, think I'm going to start buying tomorrow. Although I don't think they'll be much recovery any time soon, I think now is a good price to start building a position.
If it goes lower, great for me. Sorry any long term holders, it's just one of those periods unfortunately. It'll pass over the next few years.
Meanwhile, I would be happy to wait for the recovery with a dividend yield of 5.5%.
I can't blame BRBY for exploring other, non-traditional lines. As for overpriced, BRBY have instituted a policy of cutting the discounting of their products and dragging their pricing upwards... a policy which makes a lot of sense to me - there's no pricing power whatsoever down in the mass-market categories. A classic Burberry trenchcoat cost £1890 new. Perhaps not super-luxury, but certainly not cheap tat either. This tells me the brand has value. Perhaps I was too early coming back in last week (I also sold out north of £20), but I'm happy to let this play out and wait for the value be realised.
This has now reached a new low for the last 5 years.
IMO it's time to buy - This is without taking into account any future bid approach.
I got out at £22 and I won’t be returning unless it is well below £10. Takeover is always a possibility, but the brand seems to have lost its way, so is probably not a prime target at present. I know nothing about fashion, but having seen some of the overpriced rubbish Burberry have been turning out of late, perhaps they should stick to their knitting and concentrate on developing their more traditional lines.
Look at the last Q revenue fall in China..appears dire.
Asia accounts for 40% of their revenue.
LVMH could possibly be interested...if you are an optimistic type.
Results as expected for me.
Share price more than reflects the drop.
This will feel cheap in 6 months when a positive TU drops.
Adding
Well, as stated I bought back in, a few @ -2.5%, a few @ -3.5% and my last buy @-4.2%
Currently holding a few less than I held (before selling) yesterday.
Will see how the day goes, but looking unlikely that it will crater.... ;-)
...and they did just beat the estimates.
Start a position here not so long ago. Think it's either a turnaround play or takeover target. Imo future long hold should still be good
Thanks for the link IDoMyBest! Looks like Q4 sales were inline / slightly better than expected, tho still bad! So interesting to see how the market reacts. I have a holding in Burberry, still see it as having a long-term future, and at these prices look good value, tho could take a few quarters to turn things around.
The brief opinion piece from Bloomberg.
https://www.bloomberg.com/news/articles/2024-05-14/burberry-brby-sales-expected-to-decline-as-brand-revival-falters
Well I run my ruler over this yesterday, and bought, bought some more first thing today.
My aim was to take a chance on a turnaround, decent dividend, perhaps takeover.
But after the hit 3.8% up circa 30 minutes ago, and Bloomberg were suggesting another lousy trading period.
I decided to bank the profit, I may pile in tomorrow if Bloomberg are correct. If not, I’ll console myself with my very quick in/out profit.
Best of luck if you hold.
Are the results better than expected? Nice little boost today!
What rubbish you write.I do not know what fashion industry you have been working in.Burberry is one of the most successful brands over the last fifty years .Over the years it has had its ups and often inflicted by itself but in the industry could be called a gold mine and very much depends how it is exploited.
As I said in a recent post I sold most of my holdings in 2018 at about 2018.Have just started to buy and increase my holdings again as it will come good soon
Having worked in the fashion industry for past 10 years, I wouldnt touch this even its at half of whats trading today