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Quite a small free float hence volatility. Stores are busy and Putin can't get in the way of new sofa sales!!
Sorry you lost 4k, this game is about patience... GLA
I really doubt there is anything wrong with the company. In fact ScS could privatise themselves with the amount of cash on hand at the moment. Small caps get hammered when the market is under pressure. Roll on the Interims...
Sold out , something doesn’t feel right here. Will stomach a 4K loss, but good luck all.
News will be yet more barrow loads of cash generated... My money is on share buy back.
9 trading days until update. GLA
I usually avoid bricks and mortar retail but I concurred with your analysis and put a small amount in.
Could I please have your opinion on AIM:POLR?
Over the past 12+ years as I steadily transition from full time job and investing analysis when I could, to part time work and more investing and now to full time investing - well not really full time, a few hours and day and none if the sun is shining, the writings of Peter Lynch has been my primary influence, right from the beginning. It strikes me that ScS is the classic Lynch investment. A sector which is perceived as a bit flat and boring and where participants have traditionally struggled to make good profits - a good description of sofas and carpets I think, excatly where 99% of investors have not been looking over the past 2 years. Did you realise that, even though 2022 won't be quite as good as 2021 for ScS - quite a bounce in 2021 and supply chain issues will have some effect - but nevertheless, the combined tangible surplus for ScS for 2021 and 2022 - TS is the annual buiuld up in net tangible equity added to the dividend yield, i.e. the real wealth generated for shareholders - will be around 50% of the current MCap, putting ScS on a real PE ratio of about 4, i.e. an earnings yield of c25%. This is mind boggling, even compared to valuations back in 77, when Lynch found bargains everywhere, he would have fallen off his chait at ScS's current valuation!
Yep, I think it is pretty good update after all it is all about sales and the heavy TV campaign over Jan and website are working well. Not to fussed about the supply chain issues. After all people expect it now and it's only a temporary problem. More of interest is how the inflationary pressures are affecting profitability.
Nice inline with 2020 update. The order book clipped up a bit since the last update.
I'm happy with that and a hopefully stable dividend.
Really amazed where this share price is.There is nothing like being out of favour. But I really want to know what they are doing with the cash they are sat on
Very interesting video, excellent in fact, thanks for directing me to that Dan. One addtional point is the rate of equity build up, while this year is expected to be a little quieter than last year due to the post lockdown boom, as explained in the video and in ScS statements, the cash/equity build up this year could easily exceed another £15m, i.e. around 20% of the current market cap. I certainly hope that we don't see a buy out. With all that cash you would hope for a buyout premium of at least 50%, but if ScS is left to its own devices we should make a lot more than that over the next 2 to 3 years.
Based on the information in Pauls video, the share should be doing farebeater than it is now never mind the next couple of years. By any method of measurement it is substantially undervalued and the investment case couldn't be much stronger but that means nothing.When you are not flavour of the month or attracting interest the SP falls.
What are the directors doing to act in the best interests of shareholders.
What are they doing with a cash pile that is sat doing nothing?. Why are they not buying shares. ?
Thanks for the video. Very interesting. ScS is a quality business and the share price will do very well in the next couple of years
And comparison with DFS - https://vimeo.com/653460854/a0fa968238
I also fully agree it’s the footflow. The reasons given are perfectly plausible. My wife and all her friends have been focussing on buying on presents fearing shortages. Like the intended change to Uk manufacturers to reduce lead times. It will be interesting to see how this affects profitability as it plays out.
Not sure it's the supply problem that's casued the drop - rather the reduced recent footfall and orders.
Ignore the noise.
ScS is a quality company. In 6 months time the supply crisis will be much improved and in 18 months probably non existent.
RICHARD OLDWORTH AT BUCHANAN
Does anyone have a contact email for investor relations?
I don't need to comment on how undervalued this is! They can have the best of all worlds from this base: dividends, buybacks, selective well-thought out acquisitions and capital allocation strategies... whether they can materialise this or not is the question
I think it's an unbelievable buy at this price. It's not far off sat on cash that equates to its market cap but its not the darling of the markets. What will they do with their cash pile.... share buyback perhaps, acquisitions... I can't believe someone is not eyeing it up.
If you ever want to discuss anything out of the comment boards. Below is my secondary email which i created a few months ago for a blog that i lost interest in.
danmw27@gmail.com
Yes I get the impression that ScS really know what they are doing, a good spot on your part, not previously on my radar at all. Very Peter Lynch this one, a very established, not up and coming sector, where many participants seem to struggle and have done for some time, but with one stand out performer that has been overlooked. Quite a contrast with the stocks held by the hot stock funds (see BGUK) and the value contrast is extreme.
I am indeed Vladamir!
I am still meaning to visit a store and ask a few questions. However, it is good to know the trustpilot reviews are exceptional and above rivals.
You really don't want PE sniffing around, but yes, they could be very interested at this price. The tangible equity build up to year end 2021 was around 25% MCap, giving a 'real' PE of around 4. This year will be a little slower with supply constraints, but ScS is selling at about a third of a 'fair price' currently. Why? Well, UK facing, been a flat few years for UK facing businesses generally, smaller company, a little below the radar and sofas and carpets - nobody makes any money selling sofas and carpets these days do they! Well, yes, ScS is making a lot of money.
Are you there Daniel?
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