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We see some of what has been the spanner in the works as I mentioned. The determined sellers who just don't want Wickes. 3% gone to new holders loosely around this price though. Probably oodles more to clear out.
We have had good update for those seeing more in the share price. But it's taking an age to get rid of these Travis sellers.
Deutsche Bank raised target to 300, giving average target of 330p amongst the four brokers known to have initiated. There may be others I have not seen.
1st. June.
Analysts at Liberum upgraded their forecast for 2021 profits by 22.8% to £68 million, adding that the group looked to have entered into a cycle of upgrades. They said: “Wickes is in a structural sweet spot where numerous tailwinds should drive multi-year growth ahead of the broader market.”
The broker increased its target price by 60p to 420p, while counterparts at Peel Hunt increased their estimate to 320p after nudging up full-year profit forecasts to £67 million.
https://www.ii.co.uk/analysis-commentary/why-investors-love-these-two-mid-cap-shares-ii520362
One or two commentators previously identified potential downside risk arising from Travis shareholders simply wanting to sell ( also providing an opportunity ) and kitchens and bathrooms not taking off as they reopen showrooms. The last seems dealt with, with orders flowing through into next period. There are still the sellers. Can't last for ever though.
WICKES GROUP PLC: Trading Update
Tue, 1st Jun 2021 07:01
WICKES GROUP PLC (WIX) WICKES GROUP PLC: Trading Update 01-Jun-2021 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
1st June 2021
Wickes Group plc - trading update
Strong sales volumes drive trading ahead of expectations
Wickes Group plc today provides an update on year to date trading performance and profit guidance.
Group Sales have continued to perform strongly, with total like for like growth in the 21 weeks to 22nd May 45.7% ahead year on year, 23.1% on a two year basis against the equivalent period in 2019.
Within Core, YTD like-for-like sales were ahead by 53.1% year on year, 46.2% on a two year basis. Trading was notably strong through April, driven by sales volumes in both local trade and DIY and continued to be underpinned by our digital capability. Trading in May has settled back in line with expectations.
Following the re-opening of our Do It For Me ("DIFM") Showrooms on the 12th April, we are encouraged by our kitchen and bathroom leads and order pipeline, which is expected to deliver strong like-for-like sales growth in the second half of the year.
Whilst there remains uncertainty in the balance of full year outlook, following stronger than expected YTD core sales growth, we anticipate half year adjusted PBT* of around £45m and full year adjusted PBT within the top half of the range of analyst expectations (current range £55m - £74m).
David Wood, CEO of Wickes, said: "At Wickes, we are here to help the nation feel house proud, and I am delighted with how the entire business has responded to the continued strong demand for our products and services. Availability constraints and inflationary pressures across some raw materials have been well-flagged, but we have strong supplier relationships and are working closely with them to ensure we continue to provide customers with the products they need at the best possible value."
I think the second half is likely to benefit from servicing back-orders, as manufacturers and suppliers play catch up. And in view of their experience, an element of stockpiling by tradespeople, should that prove possible.
From builders merchants trade body 28th. May.
"Q1 growth of 15.1% against Q1 2020 and 6.0% against Q1 2019. Timber & Joinery drives growth against 2020 with an increase of 30.5%, with Heavy Building Materials and Landscaping up by 10.3% and 41.4% respectively. Ironmongery, Services, Tools and Plumbing, Heating & Electrical were the other areas to see growth.
As mentioned, the industry might now become more affected by the indirect repercussions of the pandemic. Stock shortages are front and centre with pent up demand leading to a buying frenzy. RMI is expected to be the main driver during the first half of the year and it could very well remain that way throughout 2021. Q2 figures should see massive growth due to last year’s first lockdown, with the remainder of the year very difficult to predict at this stage."
I do not know, but it seems to me that the increased demand is now the main factor at the bottom of shortages. It does not necessarily mean that the likes of Wickes will be receiving less product than they did before, with manufacturers working to up their output to satisfy demand. I appreciate there are other factors, Brexit, Covid and so on, which have contributed to things over the past months.
"More suppliers clamp down on sales of cement as demand rockets
By Tom Lowe28 May 2021
Bagged cement shutterstock
Building understands Cemex and Breedon rationing supplies of products as post-lockdown boom shows no sign of slowing down
Cemex has become the latest major cement supplier to clamp down on sales because of spiralling demand, amid warnings that shortages could soon have a “big impact” on firms’ ability to complete contracts.
Building understands the materials giant is not expected to take on any new customers for “at least” the next four months, with all available supplies being restricted to existing customers under an allocation system."
Wickes don't sell 'em. But Dan is likening it - toilet roll sales actually went up by a fifth, during and contributing to the shortage. And everyone tries to stockpile.
27 MAY, 2021 BY DAN GRIMSHAW
It feels a bit like the great toilet roll grab of 2020 at the moment with dwindling supplies and our builders’ merchant limiting us to one pallet of cement a day.
Repair, maintenance and improvement is expected to be the main driver during the first half of the year, and quite possibly beyond, which bodes well for the industry if supply can keep up with demand.
https://rcimag.co.uk/news/building-materials-sales-continue-upward-growth-trend
Repeatedly trying to break resistance at 262p
Brokers initiating coverage. There may be others already, and others to come.
Citi. Buy. 282p. Wickes joint broker
Deutsche Bank Hold 280p. Wickes joint broker
Peel Hunt. Buy. 310p
Liberum. Buy. 360p
Not a good day generally and for the DIYers. Kingfisher B and Q down, despite analyst upgrade today giving 25% upside. There you go.
Whatever else happened today, and whatever they amount to, there's £10million pounds worth of big trades shown at 264p plus. They all finished up with a holder.
On the subject of shortages, it is just my thoughts that it'll be the bigger projects that may suffer, you know, where you need oodles of one thing before you can get on with oodles of the rest.Albeit that as far as suppliers are concerned it should amount to orders in the book.
With jobbing builders of Wickes' type, 6 of this 6 of that, and DIYers, they'll probably be able to juggle stuff around if need be. And I think that'll also be lots of smaller orders in the book.
Kingfisher ( B and Q ) report ( summary )
https://www.sharesmagazine.co.uk/news/shares/kingfisher-upgrades-guidance-following-first-quarter-sales-surge
You can only comment on what you see - signs of firming up a bit? Would be unsurprised by a bout of selling though.
You only need to look at the chart to see its not following any particular trend, world markets, whatever you like. All over the place on trades.
Still mass sellers here. Just don't want to be in it after divorce from Travis. May take a while.
And some more - 2 days running. Wants them at £2.50.
Former Travis NED, now Wickes chairman, bought some. Should know what he's about. Not a bad sign, anyway.
Managed to absorb the selling yesterday and make a little ground on the day. One swallow doesn't make a summer though.
Last couple days upheaval in markets didn't touch us here. Just a wild guess, somebodies happy around the 251 mark as mentioned.