Pets at home Share Chat (PETS)

Hi Poker

Hope your good

Where are you viewing those H1 Results as I can only see Q4 on 30th Jan 2024 where everything is UP?

Cheers George

Look at H1 Results ...says it all

operating cash income down, margins down, cash levels considerably down, earnings down ...

..various reasons for this though ...H1 tells you that though

The review started in September 2023 has concluded they need to do a review from March 2024 to April 2024 ! You can't make it up.

Sarah Cardell, Chief Executive of the CMA, said: We launched our review of the veterinary sector last September because this is a critical market for the UK’s 16 million pet owners, We have provisionally decided to launch a market investigation because that’s the quickest route to enable us to take direct action, if needed. The CMA has launched a 4-week consultation to seek views from the sector on the proposal to launch a market investigation. The consultation closes on 11 April 2023 at which point it will consider the responses

I was just wondering if someone might be able to explain what is holding the share price down? I believe the sentiment behind the business is actually strong but yet there are so many small cells that seem to impact the share price and hold down. The question is why is somebody selling at such small amounts and so many trades of small amounts.

Buyback tranche must be about done now, 8m shares since end of Nov with pps range 270-320p broadly so assuming a 300p avg maybe £1m ish left to go.

As they are confident on flat PBT and with the weak FCF in H1 it would suggest H2 would have decent cash generation, whilst dividend will eat a chunk, I hope they keep any dividend increase modest in favour of further buybacks at this level.

Mr Picky,

My current share price estimate is 360p in the next 12 months vs your 350p forecast.

Having bought PETS during Covid - I will make sure I get a return on my capital... before moving away from UK shares... and let Jeremy Hunt watch his money go down!!

Currently, the CMA investigation is holding PETS down as well as the shorters.

The CMA said they will provide an update about the next steps in early 2024?!?

In the meantime, let's see PETS grow the eps further - and as the Management know the sp is undervalued .... they keep up the Buy Backs..

Reiterating a Bloomberg view of the Pet market growth expected over next few years.

The pet industry is poised to swell from $320 billion today to almost $500 billion by 2030, growth is driven by an increase in spending on pet-related healthcare — including veterinary care, diagnostics, and pharmaceuticals — that has created longer pet lifespans that require more expensive elderly care.

Alongside this longer pet lifespan comes a larger investment in increasingly complex drugs like monoclonal antibodies, which could make the pet pharmaceutical market top $25 billion by 2030. The analysis predicts that increased animal longevity and healthcare improvements might accelerate the use of preventive-care diagnostics as well, with the potential to become a $30 billion global market. Europe represents that largest growth opportunity with a total addressable market around $12 billion with just 8% penetration.

“We’re seeing a profound increase in consumer spending on pets and expect to see this continue through 2030. Consumers are willing to pay more for items for their pets, with the pet food market having the potential to grow more than 50% from current levels by the end of the decade.”

PETS had a quick +10% rally earlier. I think it is just just a little consolidation. I have put on a limit order at 265p today to buy back the 1/3 I sold earlier. I may not get them because of their 'buy-back' programme but happy to hold the other 2/3 and sell in the mid £3.50's.

Any reason for the gentle decline. Just general trading?

Buybacks can't even prop this up now.

Seems sentiment on this has changed.

Sold a third of my holding at 292.25p this morning. It has had a 10% rally this month (albeit from a sharp dip). Simple jobbing strategy here. Happy to let this go in chunks of 1/3 on rising prises or buy back that 1/3rd if the price falls back again.

There is one, they post everyday at 7am, with details on the buyback from the previous working day. So this morning posted Thursdays. A broad estimate I expect we have another couple of weeks at this increased pace. As with an avg price of say £3 a share we would get down to around 468m shares, right now we are still over 470m buying back about 100-150k a day.

No RNS on but back today. Does that mean this round has finished?

Decided to sell out here for a 5pct profit, not too shabby - no more company news here until 29th May which is a long time to wait and I think PETS may get caught up in the UK Macro with negative sentiment re interest rates - still think it will do well and if it does dip below what I paid for them I will reload - gla dyor etc

Fecked by the fecking yanks AGAIN.

I like you style - this is a good business - top of its game but getting involved in hiring to many people with fancy job titles - look at the new CEO’s history. The previous CEO HAD IT RIGHT.

This new CEO is not here for long. The new distribution centre! Massive investment but what happens if there’s a major incident - fire/flood/strike - no back up site. Northampton was a waste of space - wrong location, should have been Newbury M4 corridor. But hey what do I know only was in logistics for 50years plus.

Makes you wonder what exactly was the analysts thinking yesterday to downgrade from buy to hold but still have a price target of 480 ish.

Surely in the 2s that would still mean buy to get an increase in excess of 50%.

These idiots have too much power over market movement of shares when they pipe up.

Just in case you missed it today

"Jefferies cuts Pets At Home price target to 425 (455) pence - 'buy' "

(you know what..... they can have my stock at 405p)

Brokers i not listen to.250 heading too .woof woof/

Even if Berenberg have down graded their target by 10%, that still has the target price at £4.00 so this is certainly appearing very over sold, non?

Another one for me to stress about Mary!!

However I've added twice today.

Same here taken maiden position here along with another top up at BT, missed out couple of years ago here , alot of other shares hitting year low ...atb

1st tranche taken here - despite headwinds, seems a good entry for a quality company despite a few headwinds - will add again as it drops, if indeed it does.

GLA

I think it is sentiment driven JG - BOE holding rates - seen as not good for retail - just a matter of time though before rates come down along with inflation - wage rises have already gone through the pipe so surplus income which is good for retail is on its way - MKS been hammered down on the same basis even though they had stellar results -the UK macro is changing and the tide will turn positive for retail imo - patience needed

gl dyor etc

Carrington

The only thing that doesn't sit right with me is the lack of BOD buys.

CFO has only exercised options and then sold in the last 2 years, and the CEO has made 1 sole purchase nearly 2 years ago.

It's times like these when a market can whack 6% off for a broker note whereby the target price is still well north of this.

Ludicrous and just typical of the UK stock market.