Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This is the way to think of it...
BOOHOO produced less than £70m free cash last year but is valued at £3Billion!! TED is going to produce a minimum of £30m ahead and is valued at £150m!!!!
TED has £1.2M followers on facebook, over 100,000 on twitter. This is now sorely undervalued at this market cap but that will change dramatically in future. It's why i've closed my shorts and gone long :) :)
From the FT:
Ted Baker: worth a rummage
A reset by retailer’s new chief executive should pique the interest of value hunters
UK clothing retailers have been fashionably late to the stock market rally. Ted Baker’s better than expected online performance is eye-catching, even if the latest quarter’s overall sales have more than halved compared with those of a year ago. The rise in ecommerce sales — up a third on last year — was good enough to send shares in Ted Baker up 13 per cent. Rival Superdry also gained a 9 per cent boost.
Neither retailer was thriving before the outbreak. The travails of bricks-and-mortar stores, along with leadership challenges at both, wiped more than 75 per cent from their share prices in the two years to the start of 2020. The pandemic pushed those declines to greater than 90 per cent. Shares in both now sit at the very bottom of the bargain bucket. A reset by new Ted Baker chief executive Rachel Osborne should pique the interest of value hunters.
The precipitous decline in Ted Baker’s share price reflects the scale of the turnround ahead. Following net losses of £70m last year, shoring up the balance sheet was the biggest job. An equity offer raised £100m at the start of June, the sale and leaseback of its King’s Cross headquarters, known as the Ugly Brown Building, raised another £72m. That gave Ted Baker a net cash position of £57m at the start of July. Excluding the new funds, net debt was £20m lower than the first quarter at £116m.
Improvements in stock management and working capital should avoid a repeat of last year when more than half of accounting losses came from inventory writedowns. Fewer suppliers and shifting from a three-year to two-year buying cycle should mean greater efficiency. Investors will have to wait until next year at the earliest for an end to losses, when the consensus analysts’ estimate suggests operating profits of £15m. But a market capitalisation of £150m — less than the combined value of net cash and inventories notes Liberum — is yet to price in recovery.
SP deserved to be back to 150p - and even this means we will still be 50% off pre-covid which is a fair valuation.
Yes for anyone new to this board (including myself here), Oceanpassage appears to have a clear agenda. Worth reading their posts over the last couple of weeks to see this for yourself.
Most likely a bitter long term holder who lost a packet & now can’t bear to let others think a recovery is possible.
As pointed out by others, TED is highlighted in a positive manner in both the FT’s Lex column + the Times business section;
https://www.thetimes.co.uk/article/ted-baker-embraces-online-sales-surge-xthjn6tbr
I’d be surprised if we don’t see a decent recovery back to the £1 level for starters.
oceanpassage
I am afraid you are worse than we feared ..
"Just read sales have declined by nearly 40% v LY. Far worse than I thought"
well, you are a poor analyst so..not suprising anything isnt quite what you thought
Cash position isn't a fixed asset when a company is making a growing net loss. It's only value is as a protection from bankruptcy. That's like selling a burning house at full price because all of the property is there when the fire starts - it's simply not worth the money.
I called the short here from above £10 as a few long termers will know.
This was a far better than expected set of results and even the FT suggesting value investors should have a look today. It’s in today’s lex column. Net cash and inventories equals the market cap. Hats off to the new ceo, she’s delivering
Good luck everyone
Just read sales have declined by nearly 40% v LY. Far worse than I thought. And it was a £70M loss last year. Looks like they will have to increase debt further to avoid another rights issue.
Great set of results and surprisingly positive, all in all we should rerate from here back to 140p+.
It's an isolated supplier issue, which they will just Dump. Sorted :)
You really think a outfit which employs slave labour to bolster it's margins will continue to operate as is? Watch over the next 12 months how their operating margins get decimated when they have to pay people minimum wages.
yes looking better now
I'm starting to think of a longer hold for BOO to target £5.
"Boo doing very well today. i thought it would reverse today. it put in a reversal pattern yesterday."
Yes, I expected the same and nearly sold this morning. I originally had a target of 250p.
However, I reassessed, thankfully.
Now have a target of 300p.
“Fashion stocks up today - even the worst of the bunch. Good price to get out in favour of better performing and Lower risk options.“
Time to close your short buddy. Not going to see 56p or 40p in the end was it?!
80.80 close
gonna close around 80p me thinks.
we have support of 20DMA.
4.5m volume. good.
81p payed. nice.
just seen a flicker of 80p. come on ted. push on this afternoon. would love to see 90s today. never say never..
looking good my decision to buy some back yesterday at 69p.
Boo doing very well today. i thought it would reverse today. it put in a reversal pattern yesterday.
market gets stocks wrong sometimes. like ASOS up from £10.50 to £35 since April. Ted could do the same.
Fashion stocks up today - even the worst of the bunch. Good price to get out in favour of better performing and Lower risk options.