RE: Loss next year?2 Jun 2020 20:13
What I think those nervous holders should consider are things others have raised earlier.
Covid has only affected stores in an impactful way for a total of 1 week during quarter 1.
CARD usually make around 22 million pre tax profits for the 1st half of any given year. With the usual 40million pre tax profits raised in the 2nd half of the year, particularly at Christmas.
They have also seen an increase in revenue of around 10million, (usually 5m) of their online sales during lockdown with their 2nd largest cost (staff) being picked up the government to the tune of 80%.
With this in mind and the additional 100 stores opening in 2 weeks and rest ti follow shortly after I think they have been fairly lucky that they havent been hit in their biggest seasons (Valentines, highest the for the 4th year running and christmas).
In my opinion this is definitely undervalued and a fairer valuation at this current time would be in the 60p range.