The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Yes - dark knight - this is something that has ALWAYS concerned me. At the risk of appeared selfish, I have to concede Im only relatively short term on this one- and slightly reduced my position late yesterday aft. (but I was massively over-exposed and am concerned about my blood pressure!). The interims, of course, were not ALL window dressing- but theres no doubt that there are some long-term question marks. In the short term however- and at this level - the shares appear very cheap.
I know what some of you are saying and I can agree with it. I think the recent results was just spin. Yes we have problems but we haven't worked out how to fix it yet. Closing shops? I would go to far to say the cpw model is at best breaking even. 1000 shops selling 4.5 million phones and breaking even. Don't forget right now you have had 3 massive Samsung launches and the I phone 8 launch in them figures. OK not the x model but it's not going to be a massive seller due to the price. If they close shops say 25% of them and lose 20% sales would the other shops pick that slack up? Course not, so if they lost 5% plus I would say they would then miss all the network bonus targets. Gla, but I think we just got spin the other day. Ps I hope it keeps rising as in Jan I will bet against the price. Last one if they had a great plan why no director big buys
If we could attain 220/240 level in short term I would be delighted; 3.50 may be a bit ambitious! (but if there were to be a takeover bid later a price possibly approaching 3.00 might not be unreasonable!) Following the recent interims, the maintenance of the divi. (goes ex. in under 2 weeks of course) , and the clear perception that the 'model' needs some progressive review and modification, institutions that may be on the sidelines should be tempted to come in or top up in the forthcoming quarter. The divi. is mouthwatering- even for a more conservative investor. Chartists must be enthusing too - looks very inviting here!. Even if one regards the market in general as 'toppish' - DC. (given the recent reassurance at the interims) looks a firm and solid BUY.
Oh dear Roddy, I may be a fool but not because you see fit to abuse me while dodging the question. People like you never make proper money from equity investments. By all means answer my previous questions if you can otherwise the best thing you can bring this forum is your absence.
I wish you all the best but pie in the sky that. Be nowhere near that. You will have a better idea in Jan when they release there figures but nowhere near that. If it was true you would have directors buying left right and centre. I worry a few don't understand the model it's under real threat but GLA
....ha ha..... check the last RNS interim results 2017/18 issued on 13 dec ..........fool
Roddy what is your reasoning for this or are you just guessing? Do you have any maths or stats to back your claim up? Any information we may have missed? Any knowledge at all that may be relevant specifically to your SP forecast? Thought not.
...... excellent ebitda results.... back to 350 per in early 2018....
http://www.cityam.com/277432/dixons-carphone-share-price-jumps-smartphone-shake-up-plan Amazing...might be a bit down tomorrow but looking like 220 in January is achievable....plus the dividend... 220= £12.3k for me (plus divi yield) Ho ho ho
I love value investing
Looking good indeed!
FH/OT Yeah, it is difficult to get this info from DC;s annual report. Also they may be marketing Mobiles through various channels, including their own mobile phone brand. But the Carphone Warehouse alone had a Turnover of £2.1bn in 2016April year ensd with operating profit of £88mn.You can check this in the Companies House website. By the way, the SP is steady and moving up and hopefully reach the target all are expectring soon.GLA
Expecting to hit that soon
Surely DC. has to move quickly now to above 2 pounds; great deal of positives. A couple of broker upgrades now will do the trick. Looks v. strong on the chart.
Apologies if anyone has read it already. http://www.iii.co.uk/articles/468458/dixons-carphone-worth-66-more
Seek out Carphone Warehouse annual report, but I think it is closer to 40% of group profit.
Agreed, I expect the mobile division to grow. Overall, the shares are cheap and forecast the share price to return to £2.50 in 12 months taking MKT. CAP. to £3bn or more.
I like the results from Dixons Carphone with guidance to full-year PBT decreasing by 22% to range from £360m-£400m, less than the decline in their share price. For more about Dixons Goodwill, Forward PE Ratio and share price forecast http://bit.ly/2AA8nNX
Thanks,they do not make it easy to see the detail of where there profits come from do they.I was told by someone who works for the company that the amount they make from 2 year contracts is considerable with many kickbacks in the following years depending on customers use and this seems backed up by the fact that when they issued the warning they noted a £40m drop in profits due to the new EU roaming laws alone.On a positive note they said sales of the new Iphone x had been good.
Please see the detailed notes under Uk % Ireland in the Results announcement for explanation for the drop in EBIT.Quote " Excluding these items, EBIT was down £38 million year-on-year." About the mobile business I got some numbers from CWS accounts before merger. So the percentage was a ballpark figure Further positive things in the report - Net debt down to 206mn from 285mn, Free Cash Flow 169mn from 64mn. For the second half, iphone X, and the usual festival activities.so things are looking good.
UK profit last half year was 130 million This year 34 million. Fall of 70% I would say a large chunk but I couldn't find it anywhere as well
Taking out mobiles these look like excellent results with electricals up 7% L4L yet profits down 60%?.Do they reveal anywhere what contribution mobiles make to their profits as this appears to be the main concern? TIA
Lol I hope I am wrong but it's the business model don't compare to tesco etc that was always going to bounce back. Wish u all the luck but I think it's over for cpw.
In the context of the prevailing market sentiments on this stock,and the share price the results were extremely good.Soon after the profit warning in August most of the commentators highlighted only one issue - prospects of the mobile phone operations - and made negative sensational headlines and made this stock look like worthless. They said the same to Tesco sometime back. Today's results dispel all those concerns. After all mobile business contributes only 20 to 25 % of the topline reflecting the depth of the other business segments. So you have a number of options to strategize or remodel the business if you are really desperate. Based on the numbers released Dividend @ 11.25 % same level maintained shows the confidence of the Directors to deliver. This alone should give a share price of 225p on a 5% cash return basis.They are targeting around £400m PBt which is only 25 % less than last year but mkt cap fallen by 60% which is over done. Share price should move up.
Now dark knight has gone, we can all feel a bit happier.