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Why the big drop today? Anyone know?
8%! Second from top shorted.
With the labour cost of tradesmen ever increasing , more DIY's having a go ,Srcewfix always busy , dividends paid today , market condition outlook still pervasive , mothballs for these shares
I bought in after reading today's RNS and weekend news on record house prices. Should keep trade and DIY shops busy!!
New £300m buyback plan and reiterating £770m of profit for the year. 300p here we come
Stores are definitely quieter, think pain will really start here September when summer wraps up.. GLA
looking at how well homedepot in USA did, this could be on the way back
The sell off still looks overdone to me as it will still make profits on lower priced items that will sell more of as people delay more expensive projects. If they want a new kitchen, then they will get it on credit. Good price range to start getting in at if holding long term.
It’s plunging down even more now! With its success over the 2 years of lockdowns as they remained open they are now victims of Covid. Confidence in the public taking out big budget projects isn’t there now due to cost of living.
Buy back now finished, interesting to see where this goes next...
seems a bargain to me at these levels and a dividend due shortly too.
I think they heard you re director buys on the open market :)
Only 3 buys since November 2019, recorded on this site. Must pull their socks up, the lot of them!
has been mentioned elsewhere.
Even at these levels.
Think if £2.60 does not hold will be looking at lot further down looking at retail stocks as I see them getting a lot cheaper.But will offer some good gains when I say when inflation starts to peek but I think we’re way of yet.
Under IFRS 16 lease liabilities were brought on balance sheet.
You could argue it's a technical accounting point but as they
are now classed as a debt I thought it worth amending my post.
Yes KGF still have approx £800 million of cash, but also longer term
lease liabilities.
Is that right? The lease liabilities are forward under contract and not ‘due’ under IFRS. I would expect them to be paid from cash generation at the appropriate times.
* cash of approx £800 million Excludes lease liabilities.
So I should not have referred to it as ..net cash.
An Edit function would be most appreciated on LSE !.
Doug, it looks like the market is pricing in a marked slowdown.
As you have seen with BOO, Down over 70% in 12 months,
when market perceptions alter it can result in dramatic
price movements.
Given approx £800 in net cash and an already modest multiple,
I would hope recent lows around 2.47/8 may provide some support.
However, we now have inflation levels not seen for decades,
this is a highly volatile business backdrop.
"already recovered this morning drop"
Intra day movements shaking the tree. SP dropped 11% since results.
I do not have the resources or depth of understanding
that sell side analysts have!, mine is just a guesstimate
IF economies markedly slow over the year ahead,
A 37% drop in EPS is quite a pessimistic guess - but they will be up against really strong comparators arising from the good side.
“Profits at Kingfisher have crossed the £1 billion mark and risen by a third after making the most of a DIY boom with strong online sales.
The B&Q and Screwfix owner beat analyst forecasts with a 33.1 per cent rise in pre-tax profits from £756 million to £1 billion for the year to January 31, making it the third British retailer to ever make £1 billion profit, joining Tesco and Marks & Spencer. “
Yup read the guidance, however guidance is subject to revision.
If they can do 22 pence on EPS - significantly below current consensus
gives a forward multiple of approx 12.5 x.
What we do not yet know is how big an economic slowdown
we are looking at. Recession no longer out of the question,
but would hope we can avoid that.
“As a result of the above, we are comfortable with the current consensus of sell-side analyst estimates for FY 22/23 adjusted pre-tax profit.”
Effectively they have no reason to differ with them that’s paid to present this stuff. - sell side.
Results exceptional as was long since known,
balance sheet transformed over the last 3 years.
However, headwinds are growing for retail and many other
sectors, are we heading for a recession etc?.
Around £765-770 on pre tax now looks a tad optimistic to me.
An interesting few months ahead for markets.