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Japan jv. Happy New Year choclatiers! So it looks like world domination is back on Angus's wish list- a different approach that hopefully reaps rewards.. Fair game buying in at these levels imo- a good run back upto the £4 levels would be a nice way to leave 2023?..... hold for me.
Added a few here - reading between the lines I think it's a fair to assume that the board wouldn't have signed off a new Japan JV unless Xmas trading was at least in line or ahead of expectations. Shame that this wisdom hadn't occurred to me yesterday morning at 158p, however there is plenty of upside from these levels if trading has indeed been better than expected!
Still moving nicely on up - a gap fill to ~£2.30 looks fairly likely at present, could go higher on a positive trading update of course...
Yep, trading update should be around 18th Jan, and looking at other retailers who are reporting significant increases in the xmas trading run up this should be a good omen for HOTC. Obviously inflationary issues linger but we have Valentines & Easter to come- and chocolate is always a winner for those two!
I wouldn't be so sure about that. They could've signed the JV before Xmas trading period and just waited until new year to release it. Next & B&M have reported solid xmas trading so far but they are at the value end and would've benefited from consumers trading down. In this environment I can't imagine many people paying £100 for a Velvetiser when you can get the same for £12.99 at Lidl! Perhaps I'll be proved wrong on the 18th Jan t/u but after a 50% bounce I'd be running for the hills ahead of what's likely to be a rough year for the UK consumer....
So the press says. But like the Italian restauranter, whose business bloomed during the great depression, replying to a journalists question said, Depression?I don't know, I don't read the papers.
You cant compare the products of HOTC to the centre aisle dump bins in lidl...HOTC has a very strong loyalty base, with over 85% vip customers returning for velvetiser products- I'd guess that 85% of lidl customers will have dumped their machine within 2 months of using it.. As for money in peoples pockets-I went to Harrods and Fortnum & Mason a few times in December and the stores were rammed with shoppers. The mid year trading update from HOTC did state they expect headwinds in 2023 so it wont be a surprise if another 40% yoy isn't achieved- but we are also a long way down from the £5+ of this time last year. I'm happy to hold and see how this year pans out.
and you can't compare Harrods to Hotel Chocolat!....different target market!
I didn’t state that comparison- I pointed out that shoppers are still out there willing to buy premium. It’s fine by me- there are a lot of us that continue buying quality chocolate products at retailers such as hotel chocolat, while other consumers are more price conscious and tempted to sift through boxes in other stores in search of something akin to brown emulsified lard…. You generally get what you pay for.
Been a good few days and the market clearly likes the deal.