Member Info for Carllapos

I have topped up this morning. But I had reduced my holding leading Upto the result so that I could respond to either direction of movement.

I’m holding here for a good couple of years, so 5p I’m either direction isn’t going to change my world. But as a whole, there is certainly no rush to top up and there may well be some better butting opportunities in the coming weeks. A rough few weeks ahead, but a very bright medium term outlook in my opinion.

Agree with both of you while heartedly.

Patience reaps rewards here.

Yep, they really should have got an RI out of the way back in June. This would have been a very positive trading update of not for the covenant breach hanging over its head.

I still don’t see it as a forgone conclusion, but to SP
Isn’t going to do much until this risk is either realised or negated.

That’s because expectations of boo are ridiculous. Lots of wannabe day traders expecting 20% daily returns and they jump ship when it doesn’t happen.

brown doesn’t have those sort of expectations weighing on its SP. so we just need to show a bit of decent growth and some good forward guidance to get this moving.

Agreed. Long term prospects are very good here, short term is going to be bumpy. I think the positive trading activity for the months that they were open and the fantastic growth in online sales, should help their cause somewhat and I don’t think the bank will see them as a massive default risk, so could be willing to renegotiate . Let’s see what happens at the end of the month.

Either way I’m here for a couple of years, so I’d subscribe to an RI and ride the bumps as I think there’s a clear path to return to healthy profit.

Prickly aren’t you Jnix, my humble apologies for having an opinion that differs to yours.

I fully appreciate that there is the potential risk of a cap raise, but I don’t believe that it is “all but confirmed” as you stated.

Agreed Tom,

We have an uncertain few months ahead of us. But looking beyond that, CARD will almost certainly return to profit and given all the developments within the business, I believe that it will also surpass FYE 2020 profit levels by FYE2023. The current PE ratio based on FYE2020 is nuts and a future return to dividend should see this move sharply.

Certainly can’t rule out a cash call, but my gut says it won’t be needed.

If there is an RI, I will simply take up my subscription and sit it out. CARD have a clear path to profit and will also return to dividends ASAP. So RI or not, I think CARD offers a far better recovery prospect than many other shares within the retail sector.

I’m reading this very differently to you, but time will tell.

Well, I’ve grabbed another 25k shares in the dip. I personally see this as a positive update and think the SP will turn around soon enough.

As long as the vaccine does what it is meant to do, I can see card returning to profit rapidly, I anticipate that retail will start opening at the start of March and barring some new super strain of the virus, there will be no reason to close again. Come summer/autumn, we should see the return of sales boosting events such as weddings, birthday parties etc. I’m here for the next 2 years now I reckon.

Jesus that’s a dire account of the announcement by Reuters there and not exactly painting the full picture.

I’m surprised by the market response so far. It thats the market for you!

Paddy,

As long as I’m reading it right, they are forecasting an annual loss of £10m, not a H2 loss. Which means they’ve actually recovered some losses from H1.

Also no mention of an RI, only the potential need for additional funding should lockdowns carry on past the end of April. Given that this statement is coupled with the news that net debt has been reduced by £29m, I don’t see this as being so bad.

I’d be very surprised I’d retail isn’t opened by end of March and this update clearly shows a path to profitability post pandemic. I think this is a good update. Let’s see what happens when that bell rings.

Poker chips,

Yeah I think I it will be a big miss. Supermarkets pick a a disproportionate amount of card business during lockdown. I think a lot of people go to card factory because there are so many easy to access stores, but I’m not so sure it will be the first website that springs to mind if people are buying online.

Then there’s then ‘man factor’. We’re pretty good at leaving these things until the last minute! Ha ha

Shaping up to be a strong close! If we can hold this or even break 80p for closing, I’d say that puts us in bull territory for sure. Let’s hope the results don’t disappoint.

Yes, took the full quota. I’ve only got 18k shares in total though as I sold some of my inrush holding at 65p in dec. (regrettable!) But I recently opened a contract for 80k shares too as I’m expecting/hoping for a push towards 100p post results.

This could well be a banana skin yet though, so we shall see!

It’s a very hard one to read. We know that trading was buoyant whilst they were open, but was it enough? Has online sales continued to grow?

Very hard to know which way the results will go and not ideal for them to be announced mid lockdown and it makes it harder to offer positive forward guidance. Missing Valentine’s Day is also going to be a kicker.

But failing an RI announcement, I think this share is pretty solid and and worst it will remain largely stationary. It’s done surprisingly well to hold over 40p since lockdown was announced.

Paddy,

I think there is a moderate chance of an RI down the line for the reasons that you outlined. But I don’t believe it will be imminent as the need for cash is not imminent. But the world is quite fluid right now and that could chance if lockdowns are prolonged too much.

I’d gladly sell at 60p and light a cigar!

I was going to leverage this at 59p, but I bottled
It and just stuck with my holding. Kicking myself, but hey Ho, a gain is a gain.