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I can only share my experience but I’ve worked in retail operations for 20 years, 10 of those in senior management positions.
CEO’s tend to be in role 4/5 years (in line with business 5 year plan) - 6 months garden leave is common towards end of their tenure. She has been there 4 years.
In general, if you have same CEO long term, you stagnate. Need new people with fresh ideas, experiences, knowledge, skill sets etc that fit the need of the business to drive growth/profitability going forward.
In my experience this has happened, with good strategies etc carried on/consolidated & growth delivered via new, hungry CEO (every time we got new CEO - business has grown & profit increased).
This is a few reasons why I believe this is good for Card.
This does hinge on recruiting the right person however.
Update on 28th July will be one to watch.
All imo - DYOR
Imo I believe this to be a good update longer term.
Short term yes will impact SP negatively (how much, im unsure but currently holding up well considering) due to this being unforeseen & during a crisis.
However, during lockdown they have improved online platform (critical for now & future growth & controlling costs), developed new markets through partnerships & undoubtedly (but only imo) been re-negotiating rent & tapping into gov furlough scheme.
There is a plan/strategy & this will continue to be executed by Paul Moody.
I have mentioned earlier but this as a great opportunity to find someone that can take Card forward in the new world, ideally someone with digital/technological background and/or building new partnerships ie Aldi etc.
CEO life cycles are mostly short lived - 4 years is around the norm (usually part of 5 year plan) with new eyes/experience coming based on current situation- Card have the opportunity to find the right person to take them forward in this new world = good imo
All imo - DYOR
Main thread from Card share news:
The greetings card and gift retailer will immediately begin searching for her successor. In the meantime the company's current Chair Paul Moody will take over as executive chair. Moody will receive an additional GBP30,000 per month fee on top of his normal GBP144,000 chair fee.
According to Card Factory: "Karen has implemented a solid platform for future growth, recruited a strong executive board, overseen entry into new channels and markets and led the development of the refreshed strategy which is now more relevant to the market and macro-economic environment we face today."
However, as part of the new strategy, it was agreed that now would be "an appropriate time to transition to new leadership committed to the longer term successful implementation of the next phase of the group's return to growth."
Details on the "refreshed growth strategy" will be provided in more detail at Card Factory's July 28 capital markets event.
Short term uncertainty but they will simply stick to current strategic plan in place (that will be CV-19 updated).
Great opportunity for CARD to get someone who can take them forward in new world, experience of growing digital channels, further partnerships etc
So yes potentially short term pain but strategically this is a good move for longer term (if they get the right person)
IMO - DYOR
.. the weather is looking good across most of England on Monday.
It might seem mad me discussing weather for retail but a dry/cloudy/sunny day is good for enticing people out!
Not saying this means Card & any other retailers will smash sales now lol but weather does play a part - fingers crossed it stays dry haha
Some balanced thoughts/opinions fro Gerry & Adge- thanks
@Gerry - out of interest what do you hold stocks in & what are you interested in potentially?
101 - we all know your thoughts as the majority shareholder in Card... and to poor Gerry! ;p
but seriously it was a genuine question to Gerry so please be respectful!
I’m curious to see if they did any business today
Well said RBM!
Tough day, at times gruesome but it’s all about the bigger picture.
What is you say about holding....
... any buys today? Or holding off until tomorrow?
Derby - seriously! Wtf was that post about
Wish I had 100k shares at 44p but if unsure why invest that amount!
Reasoning ludicrous
Gruesome viewing today but as some of the more clear headed here have pointed out, nothing about the company & it’s potential has changed - only sentiment imo
Anyone bought in at its 87p high will still do well on this share long term imho
I get it’s hard to swallow whatever position you are in - I’ve gone from +60% profit to 16% in 2 days but I’ve held firm & will hold firm.
Hold - don’t panic, top up if you can (I have a lil bit) and be patient.
GLA :)
Draft feel your pain, me too - averaged down abit today but still.. gruesome viewing right now :s
BUT have confidence in Card longer term, hopefully come Monday it starts looking a lil better!
Afternoon All,
Weather personifying markets & sentiment today so far.. s**t haha but was due abit of retrace anyway even with the doom & gloom reports!
As posted previously I did expect further dips - had buys set up for 43p & 40p - happy for 43p to go through (lower avg) & equally happy 40p not gone through - holding up better than expected considering (although that could still change!)
As per mine & other posters (read through last few days posts) there is value in this share. I re-iterate:
60-70p short term
£1 long term
Days like this opportunity to top up/average down.
In it for the long run. GLA - DYOR & those that are in this share - HOLD!
Dobbers - Good to hear another fellow LTH on this one, I’m sure we will be fine - our Christmas on this one will be.. er .. Christmas haha
Dave - get back on board! 45-47p seems to be the bottom now, better than I expected tbh so take advantage!
101 - love the enthusiasm but please, too many posts! We need other people to add constructive thoughts to help shape a balanced opinion- this will only support those of us vested in Card. If anyone coming onto this BB only sees your comments they won’t read it!
Less is more & let the SP do the talking :)
Liberum been saying this for a while now, nice to hear but where is this ‘90p’ ... would like to see it soon, prob won’t show its face until 4th July
Thanks, I must add that these are my operational thoughts (being an operator) but much more to it then that as we all know! Some SP’s and movements defy logic!
As you say Gerry, already been a big movement in sp but believe room for more as mentioned & you have also indicated.
Must admit my timing to enter into this SP was poor, should have held back until yesterday/today but that’s the power of hindsight! Could have easily powered on with the sentiment & build up to stores re-opening & my entry SP could have been higher!
Ultimately see value otherwise would not have bought in. Lost out on say 5p a share, maybe more as could retrace further before moving forward.
But on personal reflection & experience so far is I’ve made profit by day trading. However if I would have just stayed put in those then I’d have a significant return now so lesson for me is to play longer game. Yes money can be made on the swings but being honest about my strengths & weaknesses, a better return for me is patience.
Agree better opportunities out there, no doubt Gerry you will bag them! Good luck to you but I do hope you get on board with this one at some point!
Usual BB battles today! Consistency is key right haha!
Thought I would try & surmise my general thoughts on CARD:
Pros:
- established business delivering profit even in a crisis (not talking margins/decreasing profit)
- established online presence that will grow & no brainier key for future growth
- establishing new markets & partners (Australia/Aldi)
- product pricing: during times like this when people do and/or will need to cut back spending, Card low cost products puts them in a stronger position vs competitors
- negotiating power with landlords both existing & new opportunities during crisis (every LL sees value of a cash cow)
Cons:
- too many retail units even before cv-19 (fat will need trimming on loss makers before cv-19 & disposing of those not suitable post cv-19 social distancing wise etc)
- labour costs increasing (Nat min wage)
- reduces footfall before cv-19 - definitely afterwards, at least for 6-12 months
- so riding overheads, reduced high street sales, resulting in decreased profit margin
However, reasons to be optimistic about Card;
- Shifting sales to online, even if that is existing customer base ultimately long term improves profitability as significantly reduce overheads
- successful expansion into new country & partnerships will most likely lead to further expansion/growth in new markets
- establishing new markets, online presence etc shows not been sitting ideal. They will have assessed their retail outlets & either negotiated better rent agreements or have an exit plan for loss making stores (thus saving on other overheads such as labour costs)
- distance to 1M SD looks likely, enabling more card stores to open
- time on Cards side in run up to bushiest trading period (Xmas) for everything to be ironed out IF no further setbacks or 2nd wave
What will positively impact this SP?
- shops re-opening 15th June (obvs)
- announcement of more stores opening and/or reduce SD to 1M
- better than expected results Q2
- announcement of store closures/redundancies
- further moves into new markets/partnerships
- results Q3/4 showing increasing profit/margin from sales
What do I think SP could achieve?
- 60-70p short term
- £1 longer term
All just my thoughts, observations & opinion. I see potential & value in this SP over time :)
Sorry if I’m sounding like 101 haha (jokes 101 ;p )
Wow garlandgreene really has it in for TLW! Anyone know his back story? Has he been burnt on this stock?!
Will certainly help all retail sp - think 50p will be a sticking point and difficult to break this week.
Disappointed no more clarity and direction given for hospitality industry, that would have provided a much needed boost
.. was about as useful as an open pub without any alcohol.
Utter vagueness, no clarity on moving forward or reducing social distancing to 1M. Having detailed round table convos a little too late. Need clarity, direction & hope for hospitality businesses.
Too late to act to tackle CV-19, too late to act to tackle economic crisis.