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Got to be worth £2 at least, this is a solid well run business with a decent dividend, still seems cheap to me...
It doesn’t necessarily follow through into general retail, but it’s what Wickes, and others, have been investing in anticipation of, over time:-
UK consumer confidence reached a two-year high in January, according to research company GfK, in the latest positive sign for the economy.
The consumer confidence index, which measures people’s views of their finances as well as their view on broader economic prospects, rose three points month on month to minus 19, the highest level since January 2022.
This was the third consecutive month-on-month increase and followed the release of January’s purchasing manager index last week, which showed economic activity rising at the fastest pace in seven months.
Economists said the findings suggested that January’s cut in national insurance, falling mortgage rates and rising real wages were helping consumer sentiment despite the cost of living crisis still hurting household budgets.
On cash, the divi will cost £27.3m and go from there.
Good morning.
They said they were comfortable with brokers expectations and actually achieved top end. Dividend will be safe, though never in doubt.
CEOs sometimes pad stuff out, but in Wood’s case and what they’ve been doing to ready themselves for improvement in household spending, better housing market and so on, I believe it.
"We remain confident in our growth levers and in 2023 we have invested further in new stores, refits and our digital capability. This leaves us well-placed to continue to outperform the market in 2024 and beyond."
What do you think Culpepper ?
Seems very steady albeit my cash projection was over the top.
However looks like £10m of share buy backs (4p a share) and 10.9p dividend is well covered by new capital allocation policy.
A return of 10.3% at £1.45 is very good.
I'm hopeful we might crack £1.50 today and hold it - let's see
26th. January
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Couple of 1m buys just after ten and some meaty ones after that.
The bad weather the country has been having will always get people needing diy products,therefore Wix should benefit.
There might be. Obviously depends on how they see best interest, and their visibility on forward cash.
Whatever happens, there’s good opportunity for capital growth alongside returns. I believe.
Culpepper my first buy was £1.55 but brought 4 times as many at £1.29 so into the blue. You know I'm really bullish on this one.
Cash position at 31st Dec will be interesting. I think there could be a case for a special.
Even without it with inflation at 3.9% and falling the yield looks good.
I'm holding
It’s a slow process, but that’s alright. Geared only at increasing eps. More shares cancelled, more earnings for each of those remaining.
As per RNS.
We had conversation about that earlier on this page. I can’t add to that.
They are making enough to invest in the future, tech, new and upgraded stores, as well as making returns to shareholders through normal dividend. And now additional returns.
I see that continuing. And I guess by future buy-back programmes, having satisfied dividend.
Shares will prove to be cheap as economy improves. Buying them back now is efficient and effective.
How long do management allow share buybacks to continue.
And they’ll benefit from the divi too, with greater ongoing yield having bought low, and returns to shareholders being slowly helped by buy-back. Assuming we all don’t go to hell in a handcart, no DIY and building work required, dwhich hasn’t so far proved to be the case.
I think the blurb indicates they’re thinking longer term UK equity. Buying in anticipation of reversal whilst prices are depressed.
One has to remember that Wickes is principally a retailer which means that if they are carefully watching their margins, they will be adding to their cash balance day after day. They do have some borrowings but it looks as though they are steadily reducing that as well as doing the buy backs. With good management this business will look a whole lot healthier in another 2 - 3 years IMO, which could be the reason for Chelverton's interest.
Chelverton UK Dividend Trust PLC adding Wickes. Contains their general take on buybacks, takeovers, household spending power and confidence in their portfolio over time.
https://www.investegate.co.uk/announcement/rns/chelverton-uk-dividend-trust--sdv/half-year-report/7907567
My understanding is Chelverton Asset Management already holds 4.5%.
When I started I made a quick £17k. Took it, bought back in later.
It’s very mixed. Frankly, I was too early into it as an investment. I have traded some, averaged down, etc., etc.
But I’m on the losing side with it now.
Have to be content with dividend, which is doing sufficient of a job for me whilst we all wait for an upturn in the UK economy. That’s OK for me.
At the beginning, nobody was posting on this as I recall. So I decided to. In posting, I have picked on just one or two of several to post on. Bit of a useless pastime really, but something I do to keep the marbles rolling.
Culpepper - if you dont mind me asking. What's the story behind your investment ? You've been here for a while. I'm sold on the fundamentals but have called a lot wrong. Let's hope I'm not a jinx
Thank Culpepper - the authority is until 1st Feb so would expect this to be fully completed.
So after £12.5m has been spent, I expect to see a RNS before moving on with the remainder of the current programme.
They call the first tranche for £12.5m of the £25m buyback programme, the ‘initial programme.’
It appears that the intention was to issue a further RNS to announce when they go beyond that.
https://www.investegate.co.uk/announcement/rns/wickes-group--wix/share-buyback-programme/7661768