The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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.
Well back up 10% yesterday, wonder if we'll see 2.00 again, certainly would like to. I was in one of their stores yesterday, only person there, needed a car battery fast, got one but it cost me 83% more than the cheapest on ebay, which cancelled the order! Used my £5 car club which I signed up for in advance of getting the battery, help reduce the pain of the price... Asked the lad if they were busy, he said not yet I queried elec bike sales and said they sell well when they in stock.... Not quite as positive a visit as I had hoped but least got my battery
Boing boing, up we go. Fallen too far and should not be long before it starts with a 2
Going very nicely and this is so undervalued.
Makes good sense in my mind - buying £70m of market share and dominating in the B2b replacement tyre market.
The strategic conversion from high street cycle seller to multi-site motoring products and services is going well and hedges against margin pressure from a volatile Sterling - you've got to have tyres etc, almost whatever the price - so good strong defensive stock at a low PE (just got lower) - what's not to love?
As I understood it one of the reasons the markets have been pushing Halfords price down is because they have been buying businesses and increasing their debts at a time when interest rates are rising. So today they announce another acquisition which although giving synergies does not seem that much of a bargain and which presumably increases their debt levels further, and the markets welcomes it with open arms!
"Markets can stay irrational longer than you can stay solvent"
and i am done for today , thanks HFD
Its a good deal. Any business that deals with the replacing consumables on cars is a good business.
Been a week or so from 127p
and i like it as well, 155p to buy now
Hi, don't have time to look at the accounts at the moment, probably should I know, I personally like negative working capital.. Let someone else finance your cash needs, ref other cash flow question, haven't seen that yet, they used to be cash flow King's so bit surprised by that.... But companies can change of course
However the market seems to like it
Hi!
New to this share and I was attracted by the low PE and 'defensive' characteristics in a recession. Possible value buy at current prices.
However, I wanted to get ppls opinion on short term cash flow/ operability. To me a few red flags were raised in the year end statements: (i) negative working capital (-£30mln) (ii) cashflow (after stripping out the acquisition was -ve / neutral).
Saving grace is that HFD has no debt, so borrowing could be upped to plug the gap. However, it doesn't point to a particularly healthy current situation.
What are people's thoughts?
(I'm completely open to having gotten something wrong, just started researching it!)
I'm not too impressed either, so they are paying in excess of 10x ebitda for a business, when they could buy back their own shares somewhere between 4 and 6 times.....
Hope it all works out, I'd rather have this money than a costly acquisition
The numbers disclosed for Lodge are 18 months out of date so absolutely useless. Has due diligence been done? Do the shareholders have to approve the deal? is regulatory approval required? How is it being financed? All is silent in the RNS.
I left a limit order yesterday at 1.261 and got filled during the afternoon which completes my holding. The company is reasonably well managed and financed but its a bit of a play on their resilience in the downturn to come.
This all sounds like mumbo jumbo in the current market. Halfords, like most stocks right now, is very heavily influenced by the shower of ****e that is running our country and by the war. Halfords will undoubtedly bounce back but I don't see a change of govt or end to the war in the near future.
Gratefully I was out before close of play yesterday. Almost tempted back in earlier but glad I wasn't. If the SP can finish the day at or above 127 that is tl support on the daily chart. If it can't hold that, there is of course the previous low of around 50, but assuming that's not going to be hit then you can draw quite nice descending tl support from June 16th to Aug 23rd that would be hit a 3rd time from above around 117/118. The interesting thing about that line is that extrapolated back, it was a resistance area during Oct and Nov 2020. Might or might not have some significance (I think it does) and I'm watching very carefully. Tempted to enter speculatively, but most of my success has come from day trades recently so may not do that today.
I've been out for a little while, but the results were pretty good so I'm a bit surprised that it came off this amount. I've gone long again today, but am not a long term investor here, I'll just trade in and out now that it's back in an area of interest to me.
I doubt that this forum has any influence on the SP.
Slipperman, why bother posting your drivel on this board. Maybe you like to run the SP down to get in. Rather transparent old boy…
To be "recession resistant" I would want to see: inelastic demand for most of their output, margins in the high teens, low fixed costs relative to sales, and low levels of debt. Halfords don't score very well on the above.
There are plenty of economic headwinds, hence today’s retail sector sell-off, but HFD is more recession-resistant than most, so I think they are largely priced in.
The budget will likely help companies like this one, but a weak £, growing recession, lower spend on discretionary items, faster transition towards EVs, and very tight margins all point a cash flow squeeze going forward. Looking like sub £1. It's not a stock that pension funds or many institutions can consider.
I live in a village part of a cycle route between 2 towns, another village and an Raf base full of cyclists.
After the British Olympics cycling picked up but now currently seeing three times as many cyclists on route.
Reasons - cost of fuel, current fitness craze 14 to 25s would rather be doing exercise the computer games are just recycling themselves(pardon the pun).
Changes to highway code have also given a new bravery/momentum to cycling.
It was an OK update, given the circumstances, but if you add inflation LFLs are soft. They have a very good management team but I would expect any more analyst reports to be pretty negative. If the war ends they will have a very good run. Compared to FTSE250 over the last six months they have struggled. I may buy but not at this price level.
Errrrrm we just had an incredible update slipperman :-) what is your agenda with Halfords out of interest?