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Good acquisition the price is cheap and the brands you are getting is worth it. Yes I sold out at frustration and glad this has risen to holders, but didn’t see them buying Debenhams brand really good move. Still a lot of cash left might they buy one more doesn’t need to be top shop or top man , burton might not be bad for the right price.
Nope, those businesses has been impacted by the low oil price environment and there earnings have fallen off a cliff, if dividend is cut yes it could possibly impact the share price temporarily, but looking at the dividend cover it is ok for now, we dont need to borrow.
Also the spinning of the businesses will bring value to shareholders, not sure what it will mean will we own a percentage of both as shareholders? you have read the Consumer healthcare will be £0.5bn leaner from 2022 with 25% of that reinvested?
Banking is very different, they have to hold capital to absorb shocks in the financial systems also with retail banks, low interest environment is impacting them. If interest rates rise so do banks profitability, but with so much debt and one crisis to another rates have been artificially low for a long time, we should have seen rates get back to a higher level and they havent and with recent cuts it is impacting them. Investment banks are different animals and make there money from trading and serving big businesses, why you see someone like Goldman make money during this pandemic.
The separation of the business is good as they believe it will create more value for shareholders spinning off, also the cost synergies will help with reinvesting and partnering with Pfizer to spin out is a smart move, Pharmas will always be around hence a defensive stock, GSK pipeline and R&D hasnt been great but the new Board have noticed this and are starting to invest. If the dividend is cut its not a bad thing as the current yield is c6% most organisations have cut or stopped dividends, dont think GSK need to but if they do to reinvest it wont be a bad idea, but they are still highly profitable and the dividend cover has been of the range of 1 to 2. Compare this to Astra who do not have enough coverage yet they are still paying highly.
Greed overcomes all of us hopefully you guys do well, for me this has been the biggest turd was up 20% to see that gain evaporate was my own fault.
I may come back if a lower price materialises but looking around think there are better places to make money. This is one turd I want to forget for now.
Next share price has been doing very well as compared to boohoo and ASOS which makes no sense at all, with lockdown in place the online retailers should be running away.
Had a look at Next PE multiple has it always traded so high or is it down to earning being suppressed?
Appreciate thoughts
People, think each of the brands are looking to be sold off, not the entire group, they are looking to maximise money here. The deal you mention about Next being front runner, i believe is Topshop and Topman.
If Boo buys one of the others, will go well, especially as Oasis and KM acq have been really good for the business.
Sorry Rag, Had counted as 8 and forgot Evans has already been purchased, thanks for correcting me PeoplePower.
Dan not saying we should pay Dividends now, but there will come a time, if they can not invest the cash to keep growing and as mentioned Boohoo is still early, the dividend will bring bigger players to invest (Not like we have some already) but the big pension holders.
There are 8 Arcadia brands too much focus on the flagship, we could buy any of the others, why overpay, the administrators will look to maximise value here and all these competitors is just to push the price up. Though any deal now will be a discount once the economy is functioning back up and we see the back of covid lockdowns.
As Dan says we have a lot of cash on the balance sheet which grew by £40m in four months so conservatibely we can see FCF c £100m+ annually, the company do not pay dividends, again that is a catalyst to drive value here as big institutions go for dividends, but at the moment that is not where Boohoo needs to be nor has ASOS who have been around for a while pay a dividend.
Think Ashley has his eyes set on Debenhams, he would loved to have bought Topshop from PG.
Below is a list of retailers gone into admin,
https://www.retailresearch.org/whos-gone-bust-retail.html
Buying parts of Arcadia for the right price makes sense, better to make no deal than a bad one.
Also part of the negotiations for Topshop will be keeping open some of their stores, which makes sense as Next can consolidate, the Oxford circus store is a prime location and real estate acquisition.
Boohoo is growing quickly and recent update was good to see US numbers, I really think that will be our catalyst going forward, this week the share price is frustrating especially with a stellar set of numbers. Do we need more brands? no but diversifying is not bad and plenty of others to buy out there, Arcadia is one of many, so if people want to fight over Topshop let them, there are other brands we can buy if we want.
Think the Tech and delivery side should get more focus personally.
Thanks Dan, no i havent will check it out, do you have twitter? my handle @AK_47UK
Think it is great a CEO focusses on numbers but the best businesses are those that are visionary hence the likes of Tesla, Musk focussed on the product and service and its paying off for him. Data is key hence Tesco was the masters of it when they started expanding, but you still need the product service offering.