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.
if these jp morgan estimates are right we're screwed thats far worse than the Great Depression
USA Q1 GDP -4% Q2 -14%
Eurozone Q2 GDP -22%
Uk Q2 GDP -30%
of course funeral costs will fall DTY will do well offering BOGOF to family members
news just iust in
guys this is really serious
MILAN (Reuters) - Italy ordered the army to move bodies from a northern town at the centre of the coronavirus outbreak where funeral services have been overwhelmed as the government prepared to prolong emergency lockdown measures across the country.
Oh dear, down again! What must be wrong? Not enough people reducing the surplus population?
This share seems to be going right down the pan! And the Directors are still not buying, even though they must have inside knowledge of the increased custom generated by the effects of the virus. If this share cannot prosper in times like these, things must be bad! Does the company have enough resources to pay its debts?
How cheap would they need to go for someone to consider a take over I wonder?
The Brokers downward facing target of 300p has just been hit - they've got plenty of cash - been operating under a complete costing saving rejig of the business focusing towards cheaper end of the market .... primed to take advantage -
Horrible terminology but its just a share based investment decision 75% of all deaths in the UK are cremated and these people own 49 of the existing 300 Crematoria and 800 of the funeral homes.
They will be getting busier as you would expect the aged to be the poorest demographic and the worst affected by Corona ..
Time to buy.
The Crems clearly not enough to salvage dignities outlook , The funeral homes are competing with lots of cut price funerals and cannot see them increasing their current position, Total Greed is Paying Them Back.
My golfing buddy owns a funeral parlour, spoke with him last night, i am based in Scotland and he was saying there is already a substantial increase in the turnover and the staff are already getting overtime.
he reckons he will do pretty well over the next few months
And I know someone who worked on the MBO in 2004 and one thing Dignity aren’t set up for is surges in deaths. They have to throw costs and overtime at the problem.
It takes a particular skill for the management to destroy 90% of shareholder value in such a predictable, bog standard business as this.
Want to know how many deaths there will be next year ? It will roughly be the same as 2019. Demand is constant and in normal times is pretty smooth (winter peak is fairly small).
They are over loaded with debt, costs are too high, can’t gouge the bereaved any more and will have regulatory burden heaped on them.
The management are utterly hopeless and unmotivated as they have gorged themselves on share options (quickly sold on vesting).
Ahha - don’t lose the faith yet. You rightly called it when people were boasting about Phoenix buying a huge stake at a tenner.
This scummy, scummy company surely got further to fall.
In these dark days it gladdens my heart every time I see them fall further.
Poor old Dignity, may they rest in peace, but not rise in glory!
Thank you Noheartss for saving me a shed load of cash...…..I could have got in at £4.50 but have so far not bought a single share. The stock market is a crazy world...who would have thought a rock solid business like this could suffer such a fate. But as I have been saying all along the Directors cashed in their chips and ran for the hills......and they don't look as if they will be returning soon.
Zaaaaaaaaaaaaaaaa boom! Another 5% of the share price! It is really interesting to observe how the roulette wheel of the stock market works! This boring trustworthy share is definitely going down, but very very slowly! I think this is ultimately going to happen to some of bigger more solid companies. I could have so easily piled into this share at £6.50.....then £5.50...…..then a lot more at £4.50...…..but here we are at £2.50....its so insidious! But I, like the very shrewed Company Directors, are still not buying!
Dignity has around £500 million of debt, a consistently falling share price and profits in the last number of years, even dignity don't even know how much it's profits will be impacted by the FSCSR review, and now even that review is on hold because of the coronavirus pandemic,
Dignity has borrowings of £500M and that must cost 10s of millions to service each year ?
I'm not surprised at the rapidly falling share price, the pandemic I believe will have a very serious material impact on the income dignity recieves, normal funeral service's and needs may not apply here , quickly arranged burials and cremations would be sought to avoid most of the bereaved getting the coronavirus, all these drastic changes may bring dignity to a level to just service it's huge debts. And not much more. I have always wondered why dignity allowed this debt to spiral out of control, surly they should have reduced it by issuing new shares when the SP was sky high !!! And now there is always the possibility that the banks could pull the plug if dignity breaks it's banking loan covenants.
This really is for the brave hearted, though if it gets through this pandemic and past the FSCSR review unscathed , then it might still pardon the pun live another day, though I'm quite sure the capping of funeral prices will make dignity in the long run a tortoise moving share on the stock markets.
Good luck to all its investors, I'm thankfully not one of them .
True, 550m depts but also has assets of 1.7b, current revenue of 338m with a 10% profit margin at 34m (Dec 27 2019). And its share price vs. fair value is currently undervalued by about 66% according to simply wall st. So there should be plenty of room to get this back on track?
Now we know why the Chief Executive Director wasn't buying any shares in the company......he was planning a dignified exit! And now he is probably planning a dignified retirement in the Bahamas. I wonder what sort of retirement most of the shareholders will have?
Dignity is losing most of its limo service, it's getting mothballed for quite some time it seems, that has a cost for storage, preparation, deprecation, insurance car tax etc, it's employees are taking time off worried sick they might catch the virus,
That 2020 revenue stream will or should collapse from now onwards I think, even dignity don't know what's going to happen here, yes people will need a funeral service ok, but probably straight from the hospital to the grave yard or crematorium I suspect,
Most of the other we money earners for them will also disapear, wreaths memorals etc, will stop, + many of the deaths of the elderly from coronavirus would be taken out of further future years death rates, these very sad early deaths will be quickly cremated straight from the hospital under government guidline instructions, this is a very sad fact of the horrendous problems society faces around this pandemic, though I fear India will see the biggest worldwide death toll, by virtue of the 1.4 billion population and widespread poverty in the country.
Yes 1.7 billion in dignity assets should see it through its worst difficulties, though I wouldn't expect any or much of a profit for 2020 and possibly beyond that, you also have set key personal leaving at a time like this !!! Strange to put it cautiously !!!.
There might be a good opportunity to get in here if taking a long term view, but that opportunity only relates to a jump in the share price, not any great earnings enhancing funeral pricing jumps.
Good luck to any brave investors here who takes a gamble on this one, at around this price long term ,,,,MAYBE,,,MAYBE,,,
Dignity will just leave limos in the funeral homes where the normally park, Total Greed in better times started their problems
Every time the added funeral homes to their company it spawned more less expensive independents A few yeas ago independents where slipping away which made it better for the likes of dignity but regained a position in the last few years with the cheaper funerals. Dignity is now stagnant it cannot expand, it will struggle to compete as its overheads are way to high, You can do all sorts of things with figures but going forward dignity will have to a massive revamp and rethink about where it is. COULD there be some kind of sell off, when a company like dignity are stagnant and stop expanding they cannot survive and especially when they cannot continue to maintain market share, I said in a earlier post Dignities directors/ Managers do not know what is really needed. The virus has added to their problems , THEY have lost control at the grass roots.
Likely to be paid his full 12 months notice , even despite being unceremoniously dumped.
One last filling of the snout from the trough.
Just a reminder that he ‘earned’ a £400k bonus in 2018.
Most of this was for the 100% achievement of ‘strategic objectives’ - whatever the hell they were.
Can’t wait to see if he snaffled a bonus in 2019.
This heading for sub £2
So the next question, after hounding the Directors for the last couple of years about not buying the shares is why aren't they selling? If I were them, I'd do it quick before they reach £1. Will Mike Mc Collum have to inform the shareholders of the sale of his 93,000 shares? Hurry up Mike...…..get that 186, 000 quid in the bank before it sinks to £93,000. "Let the dead bury the dead"! Get the money in the bank mate!