Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This one has a LOT further to fall. Shorters out in force. Another 50% fall to come in the next 3 months
Be amazed if doesn’t go below 50p
They are trying to sell a product in their main US market that their customers cannot afford , or are not willing to afford at current prices......or..worse case scenario .....no longer want
The "new Supply and Demand Planning system and Customer Data Platform" cant come soon enough
300 000000 market cap down in a day that’s a lot of naughts a wonder how long it will take to get those back did think we were heading in the right direction towards a quid but probably another year plus now and that’s with any kind of positivity that seems we need to borrow !!!! Very depressing
The company think that the answer to current problems is to sell more product so that the US facilities are fully utilised. Growth driven by the marketing ceo. Predators will see cost cuts as the answer and hopefully they will bid.
this what the company wants a docker size 12 straight up it's ****. the product to dear and usa not even in recession yet so forget 2026.
Couldn’t agree more. I’m fuming. I notice the debt is due Feb 2026 and it is highly unlikely DOCS will be able to repay. Refinance will be much more costly assuming we don’t breach any covenants ahead of it. Dividend has to be cut. More pain to come I fear.
If any brand might consider DOCS it's ECCO with their owned tanneries and a focus on quality leather goods for the mass market.
Nike, adidas and Burberry will NOT see this as a useful addition to their business. They are completely focussed on their core brands and will continue to be.
Perhaps Authentic Brands might consider.
As a DOCS LTH, I am fuming. I thought all the bad news was out in the dreadful January update and the series of preceding poor updates. Yet they had even more bad news to come, this one really blindsided me especially as a trading update wasn't even due today. The markets hate it when companies drip feed bad news and DOCS will have to work hard to regain investor's trust, also it's laughable that they are spending more money to retain talent, managers who couldn't organise the proverbial in a brewery. These US issues have been festering for 2 years now and they still haven't sorted them out. I'm not convinced by the new CEO appointment, he's inexperienced and a branding man who will happily fritter away cash on marketing, what we need is a battle hardened nuts and bolts CEO right now. I'm certain this will recover but when and how I have no idea.
Hadn't realised that, Chris, many thanks. Agree then, they could well benefit from some fresh thinking / impetus.
Not so sure it counts as new blood though PJT12 as he's been on the board since January 21 as a NED. I'm not convinced his Apple experience and branding focus is what the company needs right now (more of the same?) . Hope he appoints a strong COO to get a grip of things.
The next Superdry??
This was way overhyped on flotation. How can a single brand....although a good one....be worth about 6 billion at one point?
In fairness, chris_g, there is new blood at the top, as opposed to just the previous talent:
"Wilson's replacement as chief executive is Ije Nwokorie, who only just became Dr Martens' chief brand officer in February and was formerly the head of global branding company Wolf Ollins and a senior director at technology giant Apple."
DM have moved much of their supplier base from China to SE Asia. These newly engaged suppliers will now see their orders dry up as DM seeks to reduce their 36 weeks of inventory.
The risk of damage to credibility with suppliers is substantial and will have the potential to push up future cost prices so reducing DM future margins (if they continue to supply DM) .
DM can accelerate the destocking process by reducing prices, and their own margins, which will make it difficult to retain premium prices in the future, so more margin hits.
The only plus for DM is their conversion of inventory to cash will help their working capital in the short term, but at huge cost to the business. The directors and management team must have been totally asleep at the wheel to allow inventories to increase like this, and their seeming inability to connect the dots on the impacts of destocking do not bode well for the future.
DM is a single brand retailer akin to Superdry and as with Superdry hubris may be their downfall.
This mornings RNS is as close to an admission of failure as you are ever likely to see. The companies US venture has cratered the value of the business over the past couple of years and whilst I'm sure there are vultures circling I can see this going south of £0.6 before any recovery starts and even then, what is going to trigger a recovery? I bought at £1.20 last year and sold at £1.70 a couple of months later and never thought I would see the share price drop to this level.
Seems the share price is being supported by bid chatter. Take away the bid chatter and the numbers are not convincing, given managements record. Maybe best to see what transpires given the potential for current macro environment to deteriorate drastically.
Although, I am sure the brand is attractive, seems there will need to be a patient buyer who is prepared to bring some operational expertise and money in order to stabilise current situation, and lay the foundation for growth. This in itself will limit the list of potential buyers. If no bid appears, we could see the share price continue to drift downwards. I am minded to wait and see what gives ...
He should have left one year ago min
Been watching docs for a while . good a time as any me thinks to jump in. maybe a buyer will come along to make me a decent profit :)
Rough day - incoming dead cat bounce?
GL everyone
The Board still can't quite seem to recognise the reality of the situation.
They still seem obsessed with resourcing a long term growth plan when the business is clearly in need of rightsizing to the realistic medium term position. A £35m hit from inflation next year including "retaining and incentivising talent throughout the organisation" - that'll be the talent that has seen the business mismanaged to its current state I assume. And I hate the weasily "where possible" added to the statement on cost savings - sounds like they are really not committed to it. And why does it take 18 months or so of sitting on an Everest sized pile of inventory to only now start significantly scaling back orders in the supply chain?
Having said that I've topped up this morning on a view (hope?) that the business will be in better shape in 3 years time and the valuation at these levels appears to offer significant upside if that does materialise. The CEO change is essential but I would have preferred a more rounded individual with growth and rightsizing experience rather than an ex Apple manager. The RNS has a feel of a kitchen sinking exercise to prepare the ground for the new CEO (why else talk about a worst case for 2025?) but we'll see. Hopefully this is the last of the warnings and they've now cratered expectations so low that they should be able to get close to them in 2025. Maybe this is the point of capitulation? They must be in play now given this morning's price fall so that should also underpin the price?
I am thinking that adidas or nike or burberry could see this as a useful brand to add to their offering or even Frasers who are trying to go up market.
Bought some more after selling my hfd and average now 86p - and hopeful that a takeover will see me in profit.
One of the issues in the RNS is the over investment in america - warehouse , which means there will be huge efficiencies if the company becomes part of a larger group. Furthermore I am not sure that the all the standalone shops they have are an efficient use of capital and the departure of the CEO is an admission that he has seriously messed up imv.
If it wasn't a takeover target before it really is now!