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M&S beats forecasts with 8.1% rise in Christmas sales.
Consistent with market expectations, food at +10.5% is very good, together with full price sell through. Clothing okay performance, down side that market will react to is -6.4% international sales with transport issues and his comment on overall outlook-economic growth uncertain.
All the papers had food sales at 12.1% came in 4% lower hence the sell off yesterday, I would be surprised if this stock moves up today, the only good news was women's clothing which improved sales, and less clothing in percentage terms in the January sales.
Not impressed but will still hold onto my 5k, going the right way but expected more on food sales.
More progress but C&H could have done better, online growing nicely, is how I see it. Now to see how the markets view it. I will not be surprised if M&S are down on the day. JJ
Where did you read that? Thought it said results were in line with their expectations?
Lower than market expectations!
If it drops another 3/5% in the morning, then I definitely will buy more.😂😂😂
See you in the morning with my diazepam.
Good luck all.
Ditto JJ
It will be more than fine!
The market expects a lot of M&S right now. The words will be as important as the figures. If the message is that we are likely to be buffeted by further inflationary pressures then we could see a 3/5% drop. I will be here with my coffee from 7am. JJ
Always buy on dip. Took the opportunity and topped up. Let's hope that tomorrow will be good news for the SP and for the shareholders. GLA
Hopefully major forces driving the price down before trading update so they can load up. Unfortunately as soon as the tide turns in a share that has steadily been rising, the auto trading panics a bit and it can become a bit of a snowball effect in my observation. The facts remain, m n s have done very well over Christmas so we'll see what tomorrow brings and hope the US inflation figures don't put a dampner on it.
You can see the hedge fund managers are finally back on the markets.
It is all about price for them Chilting and hunting down the next obscure tertiary volume.
All will be utterly boring in 5 years as it is today.
It is not them who will be innovating, far from it- they believe the right model has been found and will work hard at keeping it working better, and keep communicating it.
Jacks was for Tesco a wake up call not to change the vehicle into something so narrow it cannibalised itself. Clubcard with ai has a long way to go too.
The thing is Neil - I don't think the discounters have a possible plan B - its all about price.
Its difficult to see how they can innovate.
I think that Tesco's, Sainsburys and Asda have them in their sights - they just need to go in for the kill.
It should be exiting to watch!
I agree Chilting with corner, however I’m not so sure they are yet fully conscious of the likely scenario you paint. Take Kaufland another Eastern Europe start up of Schwartz, I recently saw one of these in Poland, once an exciting ground mover but now tired and overtaken by even Danes Salling in terms of rank.
German retail in UK is worse because it’s brain drain in commercial and board leadership is so fast they are losing consistency too, and the sharp edge is too diluted. There’s a firm feeling too that the centre aisle non food is landfill and customers are now tuning into this because garages and cupboards are full of it at home.
When growth turns to flatlining it will be because they are lifting margins on back basket as you say when things improve economically, however the model with fade into normality for customers and Tesco/Mks etc will be still innovating. Relevance is hard work, and even harder if retailers don’t listen very carefully to customers and get ahead of them economically.
I expect consolidation this year in food and especially nonfood.
Neil
I think the German retailers have backed themselves into a corner that has now developed into a situation outside their control.
Customers are quickly realising that they can buy products for about the same price at other supermarkets and they can also get a better range from other supermarkets.
The other supermarkets are sacrificing margins on basic products from the discounters range and getting better margins on more up market products and branded goods - hence they remain profitable.
As the economy improves I think this trend will become more obvious and the discounters will start to loose market share and will remain loss making with debts of £3 billion becoming problematic for Lidl.
The markets are forward looking and the suggestion is that the cost of our imports could be on the rise owing to the wider impacts of the war by Israel and the dramatic rise in the cost of container shipping. Maybe MKS should get back to selling more product made here in the UK. It was once their USP. JJ
At some point the German retailers Schwarz and Albrecht will demand profit, they can’t keep buying market share for improved cost of goods, eventually those volume bonuses are normal. They are not making money and debt continues to grow.
The demand for improved services never stops and is expensive on the operating model, if discounters can’t make money in this climate they never will, also, the longer time goes on the more Tesco and other home retailers learn, until the USP for discounters is not distinguishable for customers or suppliers.
I expect full price sell through to be much higher for Mks than previous year.
Digital, including C&C will be outstanding!
Key will be clothing and I think Mks have done very well.
Everything points toward absolutely great pre tax profit.
The outlook is what I would focus on tho.
I think the SP got ahead of itself when the market was performing well, now that the market is more subdued the fizz has been knocked back.
The numbers have now been so widely trailed that they are more or less included in the SP.
Any movement tomorrow will probably reflect general market sentiment.
Then the SP will continue to rise ahead of the market throughout 2024, if the macro allows.
Sainsburys sales declined over the Christmas period and their share is down 3pct atm - probably a read through from that in terms of MKS currently down today - my read through is that their market share of sales declined because MKS took their share along with many other supermarkets - looking at the sale items left on the shelves in terms of clothing I am pretty confident for tomorrow - lets see
gla dyor etc
Maybe the rise earlier this year has been factored in in anticipation for the update. Nothing to worry about imo.
Morning all.
Could anyone please explain what is happening with the share price over the last two days?
from the high of £2.93 yesterday morning, now down at £2.82.
All the news coming out (from the internet admittedly) seems to indicate a cracking Christmas.
That’s just food , need C&H numbers as this will move the dial.