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what a crappy shares
In fairness Card , his spelling was atrocious . GL
Dobbers, I confirm I am not invest 01 in disguise, I do hold and my posts were my genuine opinion. I believe that Card will see better times in the future, with a new CEO making the right changes going forward.
It won't be plain sailing and tough decisions will need to be taken, but the new CEO has a good solid company to work with.
Card investor - i hope you are not Invest 01 in disguise who ruined this board a few weeks ago with his repetive reporting and ramping. Your first post was informative , however there was a similar theme . I hope that i am wrong and you are genuine.
cardinvestor
in terms of room to grow - the issue with Card is that they have grown but the operating profits havent - market share growth has come but with greater costs , costs that they havent as yet managed to reduce -
we dont know but the BOD may deem it necessary to re look at the growth strategy as a result of the continued increasing costs
cardinvestor
right now the market is waiting for the Capital Market Day/Strategy Update on 28th July and the AGM 30th July - there is also the issue about the departing CEO
Plus - the current trading environment and ongoing covid situation ( added concern about covid lockdowns in Australia too )
The strategy update "could" involve a fund raise - depending on what the growth strategy is and whether there needs to be extra costs for say store closures etc-
It "appears" that maybe there was a disagreement betewen the startegy of the CEO and the rest of the board - and she decided to leave when over ruled ...yet to be made clear
Without a CEO and an uncertain straegy and a trading uncertainty - then ist isnt suprising that the market is derisking and selling down to align risk to current sentiment/concern
There is the idea that the growth will come from further international expansion partnerships like that in Australis - but that remains to be seen and maybe it will be discussed further at the end of the month
Right now it is more a case of not over paying against the risks that lie ahead - and not even mentioning the word Brexit !!
What you need to decide in your mind is why you bought the shares in the first place!
I have reviewed the numbers and I am very comfortable that they are a solid company for their size with healthy profits.
This year their sales will be lower, but they have put provisions in place to allow for this and with the Furlough reclaim, 1 year of no business rates and government grants, I don’t think their margins will be affected too much.
As for posters like dfslicker (and others), you are a doom and gloom merchant. I have looked at some of your postings for this share and others, you are a predator. If you thought card was a lost cause, you would not be hovering around trying to encourage existing holders to sell. If you were as clever as you made out to be, you would of made your money years ago and moved on, the fact you are still here, says it all.
Anyone reviewing this board and commenting has an interest, if you didn't why bother posting, there would be no benefit!
Shares go up and down, it is a fact of how the market works, I am looking forward to hearing the updates on July 28th.
My feeling is this company has room to grow and over the next year we will see a positive change. With a new CEO coming in, you will be surprised what can be achieved. Sales price is reflecting current situation as things stand today, after July 28th and as revenue return, the sales price will reflect this as well.
DYOR, good luck to all.
Why falling big from last 2 days ?
Uddin179
you have just copied and pasted this from what was posted weeks ago...it wasnt right then and it isnt right now....even though you were told at the time
" 8. Down over 300% from the start of the year " haha what a plonker ...since when could anything lose over 100% ??
9. New institutional investor (Nortrust Nominees Ltd) - institutional investor ..haha what a plonker when it states "Nominees"
Are those Connect weekly cost figures covered in an rns ?
Do we know if the Aldi trial project is running at a profit or a loss atm ?
I know it's a limited offering, but if costed correctly there maybe some value in it I guess.
To me I'd look at expanding the online offer, and not get too excited about the online growth % figures recently quoted, the actual £'s revenues are more relevant. In addition i'd hope that online sales are not just picking up lost store sales, i'd be hoping to capture sales from competitors.
Card were a bit unfortunate to expand their store offering over recent years only find Covid 19, waiting around the corner. This is the time to escape, under performing stores, where they can exit with the least costs.
LFL revenues fell last year, the market gets nervous so easily.
Much to do here, but perhaps no more than many in retail. A working vaccine would be a real boost for the sector.
Fingers crossed.
G
Connect will charge about £6,000 per week to cover 400 stores.
The Instore team visit 1000s of stores daily, Tesco, morrisons, Asda and others.
Of course he doesn't Gerry. He's just copied and pasted what he's said before without even taking into account what is actually happening in the world. No mention of the debt card has... How about you discuss the fundamentals before you repeat yourself. The fact that the dividend is now suspended yet you use it as one of your points says it all. Do your own research and take a look around at what is actually happening out there. Good luck to all holding and the ones thinking of buying
Thanks Uddin - It was a brief chat, and I was wearing a mask, and he just wanted to get on with the job in hand.
Agree no direct store overheads, though likely some fees due to Aldi, to make it worth their while.
Do you have the figures, on how many Connect Group employees are required to cover the 400 Aldi stores, and how often each Aldi store is re stocked, and the display tidied up, as I've noticed the rack does get a bit messy on occasions in our local store.
Card provided some info on sales through Aldii recently as part of an update, but i don't recall any info on the costs associated with the project or bottom line profit figures. Though i may be mistaken there.
Maybe we'll get the full picture in due course.
G
Hi Gerry,
The company that does the work is called Instore team part of (Connect Group). They do all the merchandising (Newspaper, Mags, Card & other products) it is cheaper than employing anyone & no overheads of a shop.
This is a great opportunity for CARD to make additional sales.
Ref Card in Aldi stores.
I was in our local Aldi last week and a guy was working on the Card rack, which holds a small selection of cards at the end of one of the aisles, close to the tills.
He had a name badge on a chain round his neck, and was updating the offering, working to a template. So i had a quick chat with him. I wondered if he was employed by Aldi, and following Card instructions on his guidance sheet, or actually someone from our local card store.
In actual fact he advised that he was employed by a separate company, outsourced, to keep the rack up to date.
I only put this up as it seemed an expensive way to provide this additional sales revenue.
Any other thoughts on this.
G
1. 400 Aldi stores open and trading - supplied by CARD while other major card vendors (Clintons) closed, online trading going from strength to strength - giving the business a position the future
https://www.pgbuzz.net/card-factory-to-supply-400-aldi-stores-with-cards-matalan-trial-extended-to-15-stores/
2. Online sales skyrocket 302% due to Covid-19
https://www.retailgazette.co.uk/blog/2020/06/card-factory-full-year-profits-falls-but-covid-19-sees-online-sales-skyrocket-302/
3. With staff furloughed courtesy of the govt CARD only needs to manage minimal salary and trading costs (rent etc)
4. Time of closure has been in a low turn over the period (high volume period Valentines Day, Mothers Day had been already been traded)
5. 2 Brokers have updated ratings to @80p and @£1
6. The company is supplying 356 stores in Australia who have also been trading
https://www.retailgazette.co.uk/blog/2020/03/card-factory-unveils-international-partnership/
7. Good P/E ratio (2.9), historically a good dividend payer
8. Down over 300% from the start of the year - no significant change in business circumstances - massive upside multi-bagger potential.
9. New institutional investor (Nortrust Nominees Ltd) takes a position with 41.5 million shares @ £15.2 million & Sparkasse Bank Malta Plc - 8.38% - 341,626,396