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I think we are lucky that this small cap stock is too small to catch the attention of large institutional investors. Great value IMO.
Just a bit of caution here. There were problems before Covid struck and the SP had drifted to below 80p in Feb last year.
Expectations of £1+ are unrealistic at this point. If I hadn't already sold (doh!) I would be selling today or at least taking some money out. Not de-ramping...just trying to add some realistic expectations.
@MSM That was before the new app, the new website, new CEO, the new growth strategy. It’s called a turnaround. Just like REDD.
@swedishinvestor You’re not... Sven Carlin... are you????
Da_master : Have I missed an announcement on the new growth strategy? Or an update on the App/new website impact on sales? Your points are valid...but we need to see this come together when the new CEO starts. At this point the company are focused on refinancing in preparation for stores opening...so I cannot see why there are expectations of a £1+. 12 months time with the right strategy from the new CEO and no more lockdowns... maybe.
I agree about the caution. I sold half today for slightly over a double. So on a freeroll. Which suits me in these crazy markets. I look back at where the price was a couple of weeks ago and think I am in the same position but with no monies involved so the downside for me is now zero.
I do think a bid or a placing are possibilities here. This major move will have not gone unnoticed. What price a bid? 90p? This is the time with lockdown end in sight. Who knows?
I was watching a YouTube video the other day, and prior to the video starting you sometimes get the adverts...well to my surprise and delight it was actually a Card Factory advertisement. Shows clear intent they are trying to hit the online market.
Hi
I also sold yesterday and like yourself and Stanleys post I was worried about Covid and the retail sector in general. Moonpig now has 60% of the card market and though it is expensive to use compared to CARD prices (and I have to say I thoroughly enjoy using Card Factory because they have a great section and very good prices ) their business is a lot more profitable at the moment. CARD were in trouble along with many retailers and I think the people on here that believe the shares will reach £4 as was quoted by another are deluded. Having said that with the launch of the CARD app and online there is probably still a profit to be had here though.
Do not think its deluded to imagine this as high as £4 in the future, maybe within a few years as its been as high as £3.50 plus before, I think they grew a little faster than ideal but they have crushed the opposition on the high street to be the leading company, nothing to stop them raising prices a little now to enhance profits. one for the future i think !
Thinking about a little nibble again. The High Street will be packed this summer with people just wanting to be there. High street retail in general will be good. Also, the so called value stocks are now on the road to recovery.
Hi thanks for the reply just want to clarify I wasn't trying to speculate that I believe the share price will reach £4, the sp doesn't actually interest me that much as I'm in long. I was only trying to use the past dividend yield to represent the discount and value I believe is on offer here in comparison to a lot of the market. The past yield even at 65p share price is around 35% if you look at the payouts from 2015-2019 -Around 12-13X the market average of 2-3%!. Yes covid has caused issues in an already very slightly declining market but I do not believe the level of discount here to be justified hence my large investment. I feel that the small cap nature of the stock (220M£ today) has allwed CARD to be overlooked by all the superinvestors with their billions to deploy. Hope this helps clear things up :)
@MakeSomeMoney The growth strategy is plastered all over their investor relations site including a webcast on 28/07/2020. There have also been plenty of trading updates on the switch to online sales during both lockdowns. Also, if you think the app - now well-publicised on social media and ranking well in the App Store - will have little effect on sales then that is your opinion.
Even without these potential boosts, this is still undervalued by my metrics, which is why I am holding even after doubling my money. If you want to wait for the FY22 final results, then that's up to you - but my guess is the SP will be much nearer fair value by then.
As others have said here, you get paid for doing your homework and realising that Mr Market has got this seriously wrong. That is not speculating, it is calculating. As others have also said, I am not in it for the SP gain, I am in this for the earnings at the end of the tunnel.
Have the hedge funds employed another deramper since Paddy lost all credibility, I wonder?
Every time I look at CARD the SP has jumped up. I've always been optimistic that it would recover but expected a slow steady climb. This growth is bonkers but very good to be part of it :)