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are they going to take this private ?
E commerce was already growing and dominating the high street before covid. That trend will continue. Nbrown plan to go fully digital was in play 3 years ago as analysts saw the trends. Covid isn’t going away but even if it does the online shopping boom will just continue.
I Rarely go shopping and buy nearly all products on line, the rest of the family is the same. Packages arrive on a daily basis. Shops visits very rare.
……….
Retail e-commerce revenues are projected to grow to $5.4 trillion in 2022, according to market data provider Statista. As retailers adjust to this digital sales boom, online marketplaces are changing the way customers shop. Amazon alone accounted for nearly one-third of all online retail sales in 2020, according to Internet Retailer. Other top online retailers also saw huge increases in their online sales. Walmart, for instance, reported its online sales grew 79% in its fiscal year 2021.
The pandemic, which pushed many consumers to change how they buy essential items, electronics, and clothing, has helped to reshape the future of online shopping and forced businesses to evolve to meet new needs and demands. To capitalize on the opportunities presented by e-commerce, business professionals must be well versed in the latest technologies and trends, including the following.
https://online.maryville.edu/blog/future-of-online-shopping/
Sentiment has fallen in the online retailers briefly due to shipping headwinds and supply but its abating.. retail investors panic sell when the sp drop and sell making a loss, isn’t it wiser to spot these opportunities to buy at very clear value.
Do the research and have faith in it. Sentiment will return. Only needs one of the big players to post strong data and suddenly online stocks are flying again..
When covid first hit and the world panicked this fell to 10p… those who bought and held made 500% Yone else trashed it and panic sold and made a loss. I bought at 23p and held to 55p should have held longer but was sat on hefty profit and banked it,
Back in 43p recently and averaged down twice.. will wait. The markets designed to take your money…it will if you let it and don’t see value when it’s on offer.
Ive read up on the litigation. I think BWNG have a strong case to claim back monies they paid in ppi claims over recent years, Alliance were the under writers of the insurance so payment should all fall on them. ( Both Bwng and Alliance paid out Ppi claims ) . Alliance want their contribution back from Bwng and vice versa. Any financial penalty or money won will not happen until 2023 (see note 26 in the annual report)
“Until 2014, JD Williams & Company Limited (“JDW”), a subsidiary of N Brown Group plc sold (amongst other insurance products) PPI to its customers when they bought JDW products. This insurance was underwritten by Allianz plc (“the Insurer”). JDW was an unregulated entity prior to 14 January 2005 in respect of the sale of PPI insurance. The regulated entity prior to 14 January 2005 was the Insurer.”
They will agree out of court imo - but it’s 2 years away if not and if it goes Bwng way they will themselves receive a windfall. If the court orders in favour of alliance then of course Bwng pay out but I don’t see how that can happen if Alliance were the under writers.
If it was clear cut then there wouldn't be any litigation. Looking at possible outcomes - If they can reach a compromise then the numbers won't be too big either way; if BWNG wins then great! but even if they lose heavily this will be a once off historic problem. Looking forward from there BWNG will continue to be a profitable, cash generating company which can be assessed without worrying about PPI. Presumably they have set aside some money as reserve against possible outcomes?
It’s not clear cut there’s loads of reading on it if you google.
Bwng stance is its the under writers responsibility and alliance the sellers. There are loop holes and it’s complex. If Bwng legal team thought it was clear cut in a favour of alliance they wouldn’t issue a counter claim but instead make an out of court offer. It May still come to that. My view on what I’ve read is Bwng have a strong case but no it’s certainly not clear cut.
THe absolute worst case scenario is it goes to court, that will drag on for 1--3 years from what I’ve seen of USA litigations in other shares I’ve held. Then again worst case BWNG are ordered to pay Alliance, my own view is it will be substantially less than figures quoted as US litigations always wildly inflate claims.
Meanwhile Bwng are generating lots of cash. The cash pile is growing and that looks set to continue going forward, They would have any worst case scenario well covered.
Meanwhile The mcap of Bwng is equal to about 3 months of its revenue -
It seems that they have not set a reserve against this claim. PPI compensation court cases have often produced surprising outcomes for Lloyds and other banks so it is difficult to forecast what may happen. UK courts cases never result in US type payouts - our law is different; the max you can chase is what you prove you lost with no penalties on top. Legal fees will mount up so normally this type of row ends up with a settlement on the basis of paying up is cheaper than paying lawyers. I am happy to wait. and wait. and wait...