focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hope it is cheap. On board anyway today for first time as a long term SIPP hold. GLA
Too cheap, tripled down earlier today.
Excellent points. I'm definitely going to make this the biggest position in my ISA.
But share count has declined by 10%+ due to buy back.
On a market cap basis I think it is now lower than the low point of pandemic, lower than even the low point of 2016 China fear.
On a full-price-revenue multiple basis, it is now as low as 08/09 crisis. Full price revenue multiple is now 2x, same as the bottom of Mar 09.
It's just cheap...
£10-10.50 is a pandemic low point. I'll definitely be pilling in it at those levels. I doubled my small position here this morning when it was down 10%, happy for it to keep dropping further.
Surely LVMH must be looking.
Yep wasn’t a good update and who knows how long the woes may last. Am out for now but agree the 10-10.50 area looks like the buy zone if drifts down there once more.
Bby a second tier luxury brand massively reliant on china and listed on the ftse the most hated exchange out there, will re visit covid lows as world enters recession, chinese economy getting vaporised.
The SP is only 50% of what it was in April and profit only down by quarter. So there is at least 25% upside regardless of any improvement in the profit. Time to top up
This is now on the radar. Not particularly convinced by strategy or trading but it's the brand value that is tempting.
This looks like a great entry point. At the bottom of the price channel. Pop forwards 12 months and post any recession, luxury brands are what people aspire too. Crack on
What is priced into the stock is only the full-price heritage outerwear and rainwear business, which is a £1bn+ revenue business trading at full price in the flagship stores / online stores. Using European full-price lux co 4x sales multiple (lvmh, prada, moncler) the heritage outerwear and rainwear business already accounts for all the Burberry current market cap.
Daniel Lee's magic and outlet/wholesale/licensing profit are all freebies.
It's probably the cheapest yet with strong business quality right now in the lux space. Bottom of the food chain you got tapestry and capri owning the aspirational base and constantly discounting (even versace is discounting on the website...), top of the food chain you got hermes. Brby dan lee is pushing brby up to the top table but you get this for free - no need for this to play out for the investment to work (i.e. Dan lee doesnt meddle with heritage trench coat which is the only thing being priced into the stock)...
Never owned this one but bought a large chunk today playing the undervalued brand and China eco recovery (which is massively underpriced for all China related stocks) through 2024.
Full-price leather goods and outerwear increased on a lfl basis 50%+ compared to pre COVID - "the rich dont buy this brand" is a bit of a stretch statement, compared to the statistics mgmt gives ...clearly unless they lie.
top client is 12.5% of overall customer base (see interim results presentation). Website completely has no end of season markdown as opposed to previous times.
Look at their instagram posts, some W23 trench and bags are now sold out.
Bottom line, if you ignore all revenue from outlet and wholesale, the stock is trading at 2x ONLY-FULL-PRICE revenue. All full-price lux business are trading above 3.5x sales.
Have you been to their website on phones? Looks and feels like ASOS. The rich dont buy this brand, thats why they are in trouble
Brby is valued like Michael Kors, Coach. Yet the brand quality is much higher.
Aspirational customers can’t tolerate the pricing points of Dan Lee latest collection - but that’s the whole point. Those are targeted at true lux buyers.
Read through some sell side reports, Brby is so under appreciated some analysts even got their share outstanding wrong. Too busy covering lvmh Hermes kering etc to care about the obviously cheap valuation at Brby.
Full price sales is now at least 75% of retail, up 15% since Riccardo Tisci days.
Even modelling Ceo £4bn revenue target 10 years out you can still get low 20% cagr total return at this valuation.
Yep i bought in recently too. Hopefully not too early....
As per their recent guidance, If they hit the lower end of the consensus operating profit range (approx 550mill) then that's still better than 521m and 543m in 2021 / 2022 respectively. ...?? Guess we need to wait to see what the Xmas TU update tells us..... Low debt, plenty, good cashflow and decent recent director buys.. You would thinks it's a half decent entry for a longer term position.
Yeah, I just bought a few for the first time. I gotta say they look so cheap right now. Got to be a sitting duck for someone like LVMH or an activist.
Just bought a small amount of Burberry shares for the first time. Only started with a small £3k tranche. Will continue to buy if it keeps dropping. The valuation looks good at the moment.
BIG drop today feels overdone. I've topped up.
Yep too low. The Wife loves Burberry. Bought her some shares.
You are right no capital growth for 12 years ,however this company is a goldmine just awaiting to be tapped.It does make a lot of money but they seem to get involved in too many vanity projects rather than just concentrating on these.they also have put their prices up too much
Same price as july 2011, 12 years for zero capital growth and a so so dividend….another stellar ftse performer….needs to move its listing out of uk to get any traction.
You are correct.There is no way that these should have gone down to this level.The chairman bought some the other week at over a pound more.This share is a goldmine and I speak from experience since it was floated 21 years ago
Just bought some shares at this oversold price, will be waiting patiently for it to rise while collecting dividends.