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Very interesting. Thanks for posting.
Sandbagging definetly I feel . Out of all the retailers they have performed at the top end over the last few years since the merger . The carphone piece is the issue as the core currys side of the business is strong . Although like most people still believe or think oversaturated on the high street with the number of costly retail units . Carphone closures welcomed but need more likely and also some 20% of currys estate still too close to other units . You just need to pop your postcode into the find your nearest store to see how many appear within reasonable travelling distance ( never mind being able to just buy online and get delivered quickly ) . If you own then hold I wouldn't be surprised if next year shows a delivery over the 300 million and he looks like he is delivering and a hero .
Watch this space . Also it would be interesting to see if anyone aligned to the busines uses this as a buying opportunity when allowed .
....some of you managed to get out yesterday and take a few quid profits.
£1.79 still a great sell price for this one.
"Why is it that every time someone takes over a succesful company they run the past down"
(a) Dixons wasn't that successful. The operating profit has hovered between 2.7% and 3.4% for the last 4 years and that isn't very inspiring
(b) Alex Baldock is (I hope) sandbagging. He is telling all and sundry that the previous management was rubbish in order to make himself look better when he finally manages to turn the company around. A bit cheeky but it won't do the share price any harm so all to the good.
I would agree with you a few months ago but things have gone full circle.
Was going to buy the iphone 7 and go sim only.
But mobiles.co.uk which DC own did it on a 2 year contract at just �23 a month with �110 upfront for 4 gig data and unlimited calls and texts with voda which is cheaper than even the best sim only prices.
Went to CPW and they virtually laughed at me saying they could no way match itt and their best deal for that was over �35 a month indicative of some of the issues they have.
The big money making days for mobiles are in the past now imo.
Agree GoingLaege. Pretty simple economics with this one. £1.85 is still an extraordinarily high share price for this company.
Sell while you can IMO
I think most people have worked out that you are better off buying a handset and going sim only even if you pay for it on a credit card and pay interest. By way of example you can buy an iPhone 7 for £549 which is £22 per month ignoring interest charges and get a decent Sim only for £9. The same deal at car phone would cost £40+ a month. Even with interest you can save a lot. All their electrical goods are 10% more expensive than online. The average person is trying to make their money go further and so are looking at imaginative ways of saving money. Can see further falls in the share price
Why is it that every time someone takes over a succesful company they run the past down.Virtually every word contained in today's statement has the same theme.Making the profit for both this year and next that they are most probably makes them the most profitable electrical retailer in the country.Margins in the industry are far too low,hence the comment regarding installation and delivery costs.By running the past dow means that after this year there will most probably more bullish statemnts in the future and the bonuses will then kick in.I am a proud capitalist but these people should not get away with it.I purchased some shares to day as I believe it is a good buying opportunity and the dividend is good.
The funny thing with the people talking "knowledgeably" about the problems here following the announcement today is that the sp has fallen today over 20%. This, for such a large company is an awful lot. If these problems were all known I would be more impressed if these views were spouted when the sp was over 230p but I can't see them. At that time, and with the subsequent fall then maybe those people would have a point but turning up and saying mobiles are doomed and the like and coming up with arbitrary price targets based on nothing in particular when the sp has already had a beating doesn't seem to portray any sort of knowledge or expertise in my view. It is easy to look at a company where the sp has fallen and come up with "strong sell" but not quite so easy to do it before the news comes and put your money where your mouth is.
Is key to trend.
He certainly �kitchen sinked the past�.
Now its his vision.
Lets see what the City makes iof his vision.
Don�t forget he is also about to invest �30m of 18/19 earnings in his vision.
The share price dipped below �1.50 (from memory) after the profit warning in August last year. Less than 9 months later we have a second (even worse) warning.
I have seen nothing in the (ridiculously bullish) statement from the boss this morning that gives cause for any investor to feel confident. Perfect storm of negative issues surround this company at the moment and the fact they have a huge retail presence is setting off even bigger alarm bells.
If the price dipped to sub �1.50 last year there is no reason why we should not be heading considerably lower than this in the days and weeks ahead. The current price of �1.88 represents a huge opportunity to sell before things get much worse IMO.
The issues with mobiles are here to stay and it affects young and old alike,the new features are so ridiculous that very few people are interested.
Take the x when it was launched,the feature they were shouting about most was face recognition.Really? do people rush out to buy a new phone because of a security feature!!!!!!
Every time I look sim only gets cheaper �7 a month with 2.5gb data and 1000 min calls and unlimited texts, cant see companies are going to be getting rich fast at those prices.
The golden days of highly profitable 2 year contracts are gone forever imo.
at 'upgrade' time. Said 'what new phone can I have'. Was told I didn't need one, just a new deal and to use the cloud to free up space. New phones aren't that much more wonderful any more.
Things were begining to look promising then hey once again SP takes a tumble. However, iv'e allways been in for the long term so as long as we keep receiving a respectable divi then I will keep riding this roller coaster.
Me thinks the drop is over done. We may see near to �2 today even. Same thing happened on WMH a few days ago.
DC has a decent online offering and Click and Collect is always useful function via stores and people often forget that. Agree that sentiment is not good atm but I am a bit optimistic. GL all.
the climb to 230 was too good to be true...however despite the usual shock profit warning yet a bloody again before any official results they maintained the divi so some yield....reckon we are stuck between 175 and 2 for some time so perhaps trade this...12 months time we should start moving upwards as confident in the new CEO and the team he's brought in....
retail stocks...?....who'd invest in them eh?
I think we know the operational problems of Dixons, so I'm going to point out the financial implications of this restructuring.
People shouldn't forget that �1.8bn of value was created out of thin air during their merger with Carphone Warehouse.
Having said that, profit plays an important role and investors can put aside the fear of a write-down if profits are stabilising or growing. Now that profits are weakening and a restructuring plan to close stores, one can't help to think that Dixons will take this opportunity to impair their enormous amount of goodwill which totals �3.1bn.
Furry coat is right, although I wish that he was not. Mobiles are like my purple loons; pretty hot in their day but now they are yesterday's fashion. Dixons will have to cut costs by dumping as many of their terrestial outlets as possible and then herd the remaining staff into those Godawful call centres. But it will take a while and I don't like the idea of hanging around for it to happen. With luck this is just the usual first day of the week panic so I will wait for the shares to crawl back a bit (200p?) and then jump ship.
couldnt give a monkeys about shorts getting rich.Hate them!
The view I’ve expressed isn’t just mine. The boss clearly stated the “not upgrading” situation in the results.
Good luck though...hope you get the bounce!
That just you're opinion and in my opinion you're wrong. Sim only might be 'all the rage' in the 50+ demographic who don't see the point in having the latest technology but with phone companies bringing out the latest models constantly there is always a demand to be with the latest trend. Carphone warehouse also offer to buy people out of their current contract to get them signed. Very appealing for people who can have what they want when they want it! This is just one factor in the business. This is a buy. Won't go any lower than 175. Easy 5/10% :) GLA
Is destined to struggle. People dont need to renew phones like they used to so SIM only deals are all the rage. My contract is £12 a month SIM only, organised directly with my service provider.
Combine this with heavy retail cost commitments and you have a recipe for huge challenges.
Sub £1.50 in days ahead. Got to be a great short play IMO. GL to all long or short!
What are u on about? Stop de ramping because u missed the entry point. Results are ok and New ceo is quality