Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Just call them up and request a position. They can usually oblige, even if it shows as unborrowable. I'm now short of this overpriced business.
It seems. Decent company, product, audience, just over priced at more than £30.
A rights issue is a more likely source of the investment required IMO
Agree that the click and collect opportunities can be leveraged with the store estate. However, HOME are miles ahead operationally here (on a pure click and collect basis - their service is far behind DXNS). Also their gross margin is showing decline also - driven by categories that DXNS have good share in (iPad). Its going to be difficult to drive profitable revenue through click and collect for DXNS, but they certainly have the opportunity to do so. Regarding the combined group, presumably the networks could still decide now or in the future to not sell via 3rd parties.
Gross profit margin declines again. I think this is the problem here, all other metrics seem positive.
Interesting times for EE / DXNS / CPW. If the Telegraph story has a grain of truth in it, and we have to assume it does, a sensible approach for EE would be to exit Phones 4U and back the winners of the next 10 years - DXNS/CPW. If they believe they can build 4G subscribers without 3rd parties, an exit by EE would surely be terrible news. Thoughts anyone?
This is a new low though. Got to feel a little sympathy for CPW holders! They are getting trashed too!
Hmmm, the market has spoken! The AO selling TVs news is noise - they plan to sell TVs, they arnt yet. Why they think they stand a chance when the list of failures is long, I'm not sure. It will end in tears IMO. The drop here is fairly simply - gross margin declines, again. I cant remember when GM did something other than decline. It needs to stabilise. When the model of selling laptops with 'stuff' is under severe pressure, I cant see this happening soon. Maybe when connectivity is rolled in maybe?
Depends on the mechanism for them leaving.
The decline in LFL's in Q4, growth in wholesale business or negative outlook behind this drop possibly? Someone has known some of this for a while by the look of the 3 month chart.
Agreed CPW had benefitted more recently hence correction, and results are soon for DXNS (they will be good - disposing of a number of people last week means the profit number is a given). However, Phones 4 U owner (BG Capital?) have a lot to lose here. Without action, their main competitor gets stronger with this merger, and they will be forced to rip - literally - fixtures, people, stock etc etc out of C. 100 shops round the country. Is it too late for a DXNS bid of say >£2bn - we shall see. The alternative for them looks pretty dire IMO. Is it too late for a bid - probably, and I expect the merger to be confirmed, which will make a divi paying group ( I would assume), which should go down well.
DXNS blue now CPW red Two to watch
An interesting spike down on CPW, currently -3.8%. A counter bid for DXNS maybe?
IMO 1) DXNS head office is crumbling and needs to be vacated. Everything around it has already been demolished. Location of new office is TBC 2) Very little from Seb recently 3) There isn't a viable alternative in the long term for either business 4) The current poor SP is driven by sentiment and the knowledge there is anther month before any action is likely to happen
Any thoughts? CPW also down slightly
Seen a few comments blaming Seb's choice of words for the 9% drop in SP this week. He can only comment on reality - if peak has its ups and downs so be it - he cant say everything was to plan and there is nothing to worry about, as that obviously is not the case. Still a class CEO, and a leader. There is upside here no doubt, there are also some challenges. The model of consumers buying "computers" has shifted, dont underestimate how significant this is to the gross profit line. Also consumer behaviour demands interaction with retailers in a different way. Dixons can adapt to this, but its expensive and probably hasn't been quick enough for peak 2013. One other point weighing on DXNS - Best Buy in the US has lost a colossal 55% since opening Thursday! Very similar businesses, yes trade softer for them, but sobering. Happy to be out of DXNS currently, having sold before results at between 48.2 and 51. I'll be back, but this needs to settle first, and with no news for ages now, that might have to come from rumours.
Why this is on the way down?
Long term, I remain bullish for DXNS. I'm concerned this week however, and hope to be able to jump back in. Analyst speculation on sales growth may well be correct - its the margin and profit performance that will cause some concern and drive a decline in SP, as with last RNS. Also is 400k hudl tablets all incremental in the market - not so sure.
Hopefully this drop is way overdone. Factors - Internal: Margin -0.6pts (this decline will continue IMO), cautionary H2, no new dividend news (and rightly so). External: Soft for retailers generally today see Sainsburys and Debs, JLP seeing tough LFLs. Also consoles wont save any retailer this year, no stock in the market, and they make little £ in any case. General point - Anything even remotely negative in an RNS (or even not positive) seems to be getting hammered this year, another one here.
Agree with KWB1 - to suggest Ted will take this path is incorrect. Anyone suggesting high street retail is finished is misinformed. I believe the strength and value of Ted Baker runs deep throughout the business, from stores, new website (which is best in class IMO), brand management, senior management, and the product. I believe a comparison to FCUK is unfair (I believe their success was based on a single, cheap, premise of using **** as their design handwriting). I accept there is potential in the future for fortunes to fade, as with all businesses, but I see this as low risk. I see growth in brand credibility in key markets as more likely than decline in the mid term. Regarding ASOS briefly, agree that the PE looks high, but i've seen that written since £30 its now pushing £60 so who knows.