The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Its the business they are in. Simple as that. Are you suggesting all burials should be handled by the government or private companies ?
People are coming around to the idea that this could be one of the few beneficiaries of a widespread pandemic in the UK.
It’s disgraceful that a business such as this can be listed, nevertheless it made me laugh when they reported that deaths were lower than normal so trading was going to be impacted. How can you run a listed company where the main KPI is numbers of deaths?! It’s just beyond ridiculous.
This is really motoring today, on actual volume not the usual run up of small automatic trades. Its a bit morbid but I guess a Corona-virus epidemic could create a huge boost for Dignity... still think its a terrible business in a terrible state though
Noheartss, clearly you are not a fan, but I view Dignity from an investors perspective, and it's starting to look interesting to me.
In a recent post you said, ‘Deaths (England & Wales) in Q4 2019 about 4% down v previous year.’ What is your reference?
According to ONS data Deaths in Q4 2019 (138,928) were UP 6.9%, with the highest Q4 number of deaths since at least 2006.
https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/datasets/monthlyfiguresondeathsregisteredbyareaofusualresidence
"If true, why is the CMA investigating?"
It can be a competitive market if you are prepared to shop around. However relatively few do.
For the rest, its the ultimate distress purchase.
You are doing it at the a terrible time, have a few days really to get it booked, and have plenty of other things to do surrounding the death. There is deliberate price obfuscation even though the service is often pretty indistinguishable.
I suppose you could have a grudging respect to Dignity for spotting that it was a market ripe for gouging money out of people at a vulnerable time but if ever there was a market now begging for price intervention and enforced price transparency this is it.
It's a far more rigged and inefficient market than the electricity market but look where we are there.
Dignity supposedly welcomed regulation with open arms, except they didn't realise it would be regulation.
You reap what you sow. It would take a heart not to laugh at there pathetic attempts to wriggle out of the mess of their own making.
Almost Dickensian in their shameless greed, Dignity the kind of company that gives capitalism a bad name.
"3.2% pa and 4.0% pa"
Doesn't sound much when you say it quickly but over 10 years its 11%.
Added to that Dignity have been the greediest and their prices rises have been more, so a price cap will have a disproportionate effect.
Add that to the fact that takeover and price gouge is a busted flush, the dividend seems unlikely to be re-introduced shortly, they are awash with debt and the management (one trick pony) is very weak.
There seems to be absolutely no reason to hold these shares.
Could recover a little bit, but can anyone see how they could possible get back into the £12-£15 range in the next 5 years never mind the £20+
People simply blinded to the old share price.
Love re-reading this thread and posters claiming that it was only shorters keeping the price down, or lauding Phoenix buying in at a tenner.
Utterly rancid company.
65jh, only you has linked it to the Coronavirus.
'Still a terribly crowded and competitive sector with just scraps left for the individual chains.'
If true, why is the CMA investigating?
Is this being linked with coronavirus????
Ghoulish!
Still a terribly crowded and competitive sector with just scraps left for the individual chains.
I meant to say, The differential (rather than absolute) is significant but not big considering the likely cutbacks LAs would have made in their services during that austere period.
This bit caught my eye, 'The price control could apply to all crematoria operators or a sub-set. Our current thinking is that it should apply to all operators. However, we are mindful of the fact that local authorities have a cost recovery obligation.'
Price caps. Protecting state pricing. A national cap would have a significant impact on new entrants in the South East. Geographical limits would create boundary issues. A tricky area - like eating soup with a fork.
I get the sense that the CMA are mindful of the unintended consequences of a price cap, so it will be interesting to see how restrictive a remedy will be on Dignity. I note the price inflation over the 2008-2018 period for local authority and private was 3.2% pa and 4.0% pa. Significant but not big considering the likely cutbacks LAs would have made in their services during that austere period.