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Would a 100m mcap company be considered big enough to attract private equity in this industry?
I'm not so sure.
I have just read via Sky, that Gatemore Capital Management (activist investors) are stake-building in DFS, (although not publicly disclosed yet), believing that their share price is under-valued and leaves them open to a Private Equity bid. This must surely also read across to SCS, baring in mind their cash postion at the latest update. Their next trading update should be around the end of November based on last year's.......
Ex Dividend day shortly. Everyone prepared for the fall. I'll be topping up.
I have been in Warrington for a few days visiting family. Yesterday the opportunity existed to visit a retail park that had both DFS and SCS. I don't have shares in DFS but they had few people in but the shopping environment looked like they,d just plonked sofas in a space giving no thought to marketing or anything. I found it quite depressing. In contrast the SCS store was warm,bright with background music playing. It looked like some thought had been given to merchandise,marketing etc and as a shareholder it looked like a better shopping experience. So we proceed to walk round being followed almost stalked by a member of staff who didn't engage in the slightest. Perhaps he thought we may try to walk out with a sofa under my arm. After waking a member of staff up who seemed to be dozing off on one of the chairs .we faked interest in a sofa that was in prime spot in the front of the store. 14 weeks delivery we were told. I asked if the sofa was made in the UK or Asia. We got that look that said I hadn't a clue . I asked if they were busy.. yes came the reply.
SCS sales are all over Granada TV but I wonder how they sell anything with those two asleep at the wheel. Perhaps I am missing something.
Been buying again today. By any metric SCS are substantially undervalued. Interested to see the plans of the new boss and what they plan to do with substantial cash they are sitting on.
Have bought in. Results essentially positive, but it is a shame that the comments on supply chain issues were so vague.
What a ridiculous market reaction to really positive results.The markets are completed spooked by supply chain negativity.Common sense is going out of the window. Everyone is in complete panic mode because of supply chain problems and inflationary pressures. I for one will be buying as much as I can as soon as I can.
Before anyone else gets there, I realise that it might be me that's stupid rather than the share price.
I thought these were cheap yesterday so bought some more.
Today they're stupidly cheap. Could have saved myself nearly £500 waiting another day.
All that cash sitting on the balance sheet (half the market cap)!
well i read those results positively and then the shares drop 6% - shows what i know... regardless will buy some more for hopeful short term gain
I have bought consistently over the past couple of weeks. The dfs figures last week were positive so i can't envisage anything other than a positive rns tomorrow. The elephant in the room of course is the extent to which supply chain problems may be affecting the completion of existing and future orders.
Bought into this share recently.Based on a absolutely ridiculous valuation.
Indeed. Great write up on Stockopedia today. Paul Scott has been waxing lyrical about SCS for some time now. It's cash alone is almost worth it's market value!
Stockopedia has this down as £4. Dyor.
great breakdown of the figures thx netcurtains..
past mkt cap is what worries me.. if you look at the pretty graph of the last 5 years.. it is now highest its been..
I would buy this but either market is spot on at moment or missed a trick last 5 years...
Totally agree, im a value investor this isnt my bag but the fundamentals are so compelling i see this at £5 in a years time, hope i can hold it that long i have a habit of selling too soon.
· Gross sales* increased 13.9% to £182.3m (2020: £160.1m)
· Revenue up 14.4% to £173.9m (2020: £152.0m)
· Gross profit increased 16.8% to £83.7m (2020: £71.7m)
· Gross margin improved to 45.9% (2020: 44.8%)
· Operating profit of £19.8m (2020: £1.2m)
· Profit before tax of £17.7m (2020: loss of £0.6m)
· Earnings per share of 37.5p (2020: loss of 1.4p)
· Government support of £6.6m (2020: £nil)
· Cash generated from operating activities of £24.0m (2020: £31.3m)
· Strong balance sheet with cash of £91.8m at 23 January 2021 (2020: £61.5m)
Market Cap 99.2
Profits AFTER tax 14.2
This means current PE ratio is 6.8
6.8 pe
(If you deduct cash its only pe of 3).
when the DFS price is rising?.
Results seem good, excellent cash build to £82.3m, sales down 5% but considering stores were closed for 2 months that's pretty good. MCAP only £83.63. I think this share is still undervalued.
Just had a email from HL saying SCS final results out on tuesday. Anyone know how they have done over the last quater? Are we expecting good results. Much appreciated
anyone know? Glad i topped up a short time ago!
and their sofas are poor quality , not much hard wood in those frames
Excellent, what were people thinking selling out over the last few sessions.
But happy to have doubled my holding, not sure how this can be seen as anything but a conviction buy at this price.
DFS RNS out today saying continued high demand so looking good here - holding long term and fancy this will hit £2 again soon