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Draft,
You do realise that the UK is vaccinating people right?
This will be the last lockdown for Covid -19 for sure. Sunak cannot afford to offer support for closures again and why should he when the vast majority will be jabbed. Non- essential shops will be open before you know it. I'd be worried for the like of the travel sector though.
the shops will be closing again and again I reckon - this govt showing no intention to return to normal
was show zone closed in the lockdowns?
Just managed to buy 9,000, but not easy to get
Quite hard to buy in any volume at the moment , without going to market best
M-Night!
I'd go for SHOE, not surprisingly.
Cineworld is crippled by debts which carry a very low rating (C+++ I think, from memory). In effect, the bond market is saying that it expects them to go bust. And the bond market is usually a better judge of these things than the stock market!
The other two I haven't looked at.
The less debt the better and a few of those have a lot of debt.
Looking at some notable UK companies that have been hit quite hard with all the restrictions....
1. Shoe zone
2. Stagecoach
3. Card factory
4. Cineworld
Which of these would you all expect to have the strongest recovery and carry the lowest risk?
This is a great stock for a recovery IMHO. 50% or so are owned by the management family and they won't want to dilute their holding. The government has offered substantial support to the high street thankfully.
This is a 50p share that only a couple of years ago had a 20p dividend.
Warren Buffet: "A great investment opportunity occurs when a marvellous business encounters a one-time huge, but solvable problem."
It's all in that sentence!!
You mean, if the shoe fits, then wear it. You slipped up there.
so the shoe is on the other foot now. It will be interesting to measure the retail investor footfall in Doc marten's versus SHOE. Obviously Dr Marten's is much higher profile among the public. There has been concerns about the quality of Dr Marten's product which surprised me as their durability was a KSP. Might be a stag trade in Dr Marten's and put the profits in here. A bit footloose to be trading like that but if the cap fits then wear it.
for selling £625 worth. Maybe needs a new broker. SHOE seems to be stuck in a wedge now anyway. But I salute you guys who actually invest here as you are real foot soldiers.
will the Floatation of Doc Marten's give SHOE's SP a BOOsT? Ok t completely analagous but I have shares in a graphene company VRS which started to recover when another graphene company listed. It drew attention to the sector I feel.
Falling Knife, i have a good run on RNWH so cashed out of those. Been in and out of CEY for a few years. Traded these well but my core holding is down. the only other one i'm in at the minute is SLP which is going great guns. Long may that continue.
Back to SHOE , i can honestly see them re-instating the divvie earlier than they planned
I thought the post was a bit erudite for a noobie Crooty. I will put SHOE on my watch list and see how it progresses. It seems to meet resistance at its current SP so it will be interesting to plot where it goes from here. I am expecting a market correction of 10% within the next two months anyway and if SHOE is part of that I might be prepared to step in below 50p for example. I am also interested to see if £1 arrives as has been predicted by a few here.
You into anything else for 2021 Crooty? I like RWS and will be punting that this year.
The family own half of it and are intrinsically involved - they will have a keen eye on this.
I have high hopes here for even a 10p dividend from 4 years time - it would be a lovely pension-type return.
It is a great advantage to have a company run by entrepreneurial and significant shareholders. Too many good companies are abused by new found management.
Hi FAllingknife,
yes your puns didn't go un- noticed and are welcomed.! Having been on ADVFN for 22 years i'm a newbie to LSE!
My own view is that clearly we are going to be in a deep, deep recession for a couple for a couple of years and retailers like Shoezone, Primark etc thrive in these circumstances. Personally, i think the shoezone online platform during the lockdown will have created a lot of new customers.
Fair points Crooty. I might have put my foot in it again it seems. I only meant that when it fell to 37p I didn't think it would recover but it did. The current price may well look ridiculous in a few years though if I extrapolate from Housebuilders like Barratt which I own the elimination of the dividend severely weighed on the price though the underlying business was sound. Today the divi reinstatement was announced and it went up accordingly. I expect this will underpin the SP. I don't invest in many retail stocks. I lost money on Ted Baker and Greggs though I rebought just before the lockdown. I am interested in Shoe cos of the puns like leg-it but would invest elsewhere in the current environment. Like NWG the bank which I believe will do well after being beaten down.
Excellent post by you Crooty for someone who only has 69 posts so you get a recommend from me.
PS if you have time on your hands have a look at Watches of Switzerland Group. It will only take a minute and I promise not to take any credit if you make any money out of it cos my grandfather clocked it first anyway.
Fallingknife, why have you changed your mind? You have been upbeat on your previous posts saying you met with management etc. They mentioned in November that the results would be delayed until 8th march. Its simple, SHOE run a tight business model. There is nothing else to understand. In times like this its the ones that look after the pennies that will survive. The MD tweeted a couple of days ago that slipper sales are going to be stratospheric. Hopefully the digital platform is gathering pace as they mentioned it was 100% up in November. I'm unsure of your legit business comment. Its been going for ages and is a simple shoe retailer.....
and say I can't quite get my head round this as an investment. It was the same with FOOT when it was listed. It is probably best to take a good long look in the mirror before buying. Toe cap it all off I could have bought at 37p after results but doubted at the time it was legit as an investment. Shame really cos had I bought at 37p I could have become a flipper by selling and be able to sit back and put my feet up. Grrrr.
Yes, I thought much the same as you. They have some small pension liabilities that would be helpful to remedy and they want a larger cash buffer going forward to offer more protection. It also wouldn't be wise to dividend during COVID upheaval - even though the Furlough cover, Rates relief, VAT relief and now grants per shop are applied and are very helpful.
I like this company and have bought quite a few and could imagine that if all things go well they may well dividend before 2024-25.
I can't help thinking this represents could value and reads as a very well run business. In the October trading update they say no dividend reinstatement until 24/25. What do you more seasoned investors in this stock think of this?
The whole thing reads more like political posturing, for instance mentioning the business rates situation. They have around 1.5 cover historically for their dividend and payout most of their earnings possibly related to BoD owning 65% of the company.
As the share price drops, my interest rises.
Yes, I noticed similar recently. Dropping the share price instils sells sadly and maybe that is what is wanted?
Spiking the price can take out loads of stop losses too which benefits some........
On the plus side I see the Chancellor has announced money for retail stores. Up to £9k each apparently.
being manipulated
sp falling but you cant buy online why?
should be investigated..but happing with many shares ,nobody in authority cares
try to sell on it, but can’t?
Want sell and move capital to isa so can rebuy on the drop which believe is coming.
You might be right Tiger. The SP is flip-flopping all over the place recently. I met with the management previously and they are certainly fairly strait laced guys so I expect them to pull up the SP by the boot-straps from these discounted levels.