Member Info for copperband

Exactly my point Rusty, only a few are on 6 figures, most close to, it they have Director in their title. Back to the SP, it’s not doing much is it!

I can’t disagree on that at all Rusty. I don’t know salaries but I don’t imagine that too many are in 6 figures. Not sure what level of directors are tracked in the “director deals” is it only executive directors that sit on the board? If so then there are quiye a few other “directors”

You make a good point. The transformation is largely complete from the store estate perspective and the HQ has been refurbished to a high standard. I wonder how much all the redundancies are costing them?

Sorry to state an obvious point but in order to take up the offer they do need the cash to pay for it. I know a lot of the directors and they are not on large salaries at all. If they had the option to buy say another 50k share they still need the £10k spare to invest. You have to remember too that some have been with the company a while and have money tied up in shares that they bought for 350 a share. They are probably looking at huge negatives so no matter how attractive the offer is at 19p, they may not feel inclined to invest!

I completely agree with you.
I think SP is massively manipulated and that combined with pi55 poor PR from IQE means that this is just one big disappointment. I don't really care how many times I read that this is a great business with solid fundamentals as this never seems to be reflected in the SP and good news doesn't appear to reflect in movements up.
If I could just take my money back now I would, plenty of other opportunities out there.

Thanks

Been watching the SP for the last 2 days and it’s not moved at all? Seems strange to me or is it, considering the additional share issue?

The info I have (provided by HL) says that shares will be live with their new owners on Friday 27th July.

I think orders get fulfilled in a week so I guess it will be more likely that we will see the market response then?

Interesting Rusty and I agree with your thoughts on the long term prospects of this business. My thinking is that there are currently so many good prospective investments in the US that i'm trying to consider whether this is good for a quick gain over the next few weeks? It's a low base and has already touched 40p following the announcement of the CVA

May I ask you Rusty, do you have shares in MC yourself?
When you say it's a no brainer, do you refer to the prospects and investing in the longer term or this deal specifically?
The share price appears to be creeping around the 20ish number to sell and just under 21 to buy. If I knew that would still be the case in a week then it would seem a good reason to buy, if nothing else, to make a small margin.

I’m really torn on what to do today. I believe that med to long term this is a good buy at 19p my reservation on taking up the offer today is that the current SP is already so close to that with a high risk that it could drop below tomorrow? On the matter of the past and interested parties, that’s true there was one large US retailer. That was 4 years ago though and things have changed dramatically. It’s true though that interest could be there for the overseas business but don’t forget most are franchises.

Price fell through the floor yesterday but appears to have stabilised today at around 20p. Given how close that is to the 19p offer price, it seems absolutely crazy to consider buying any. As others have suggested, possibly better to wait until the new shares are live on 27th and see what the price is then. I suspect c. 17p? With regards to the business itself I think the comparison with Debenhams is only valid from a top line numbers perspective. These are 2 very different businesses. They may well have a common theme of having been woefully mismanaged and both on the ropes from a survival perspective. You must look first at the basics - Debenhams as a retailer is a department store with a UK base. There are others similar - JL, HoF, etc. Mothercare is a nursery / children’s retailer with a UK base and large overseas estate predominately francised. Even if the UK falls apart completely, there will be value in the overseas business which in places like the Middle East are actually quite strong. The problem that MC has as a UK retailer is that the number of stores in the estate was way too many, the “tail” was looking never than the body. The tail has been reduced over the last 5 years from around 280 to 150, with the realisation that the sweet spot was about 120. This would give good bricks and mortor coverage of the UK as a significant touch point to the online business. Online is around 30% of trade now but for reasons that I won’t go into here, it’s hard to quantify exactly. The post Brexit world of retailing and the stalling of consumer spending has hit the business hard. Combine that with price rises from manufacturers (from Fx changes) and a strategy of discounting to drive footfall and you’re left in a bit of a mess. The reduction of the store estate to 70ish stores is an efficient number and you would be surprised perhaps with how well some stores do, less surprised by how bad others do! The management team on the whole know what needs to be done but have lacked the funds to do it or simply the personnel below them to implement the strategy. I believe there is good value in the long term for this at 19p a share, there was a time about 4 years ago when the price was 330 and a focus on getting to 450. Those days are a long way off. I do think (and hope) that the business will survive after a lot of pain first. I have no affiliation with MC whatsoever so these are my personal views and from past experience working with (but not for) them.

Thanks Old timer.
I had misunderstood the offer, i thought it only went to current share holders and thats why the current price was holding up at the mid twenties.
I don't really understand why the sp is still where it is and not down at 19p? Surely, if the price is sure to go to the offer price or below, everyone would be selling?

On a side note regarding the business itself, i don't know how much you know about the business and where that knowledge comes from? Personally, I know quite a lot about it and understand a lot more. The Iceberg certainly hit several years ago and cut the ship in half. Half is about to sink, the question of whether the doors were shut in time to keep the rest floating and on to its destination remains. I think it will make it to NY, but through a fair few storms on the way.

A question on this and excuse my ignorance in not knowing the answer - Do I have to keep the shares I have until I receive the shares I (might) buy? Lets say I own 10000 shares now and buy another 10000 in the offer, can I sell the 10000 I own now whilst the price is still mid twenties and then decide what to do with the 10000 i get at 19p each when I receive them. A bit like selling shares after the ex dividend date but before the payment?

Well said. I personally wish i’d Never got involved with this share. As you say, massively manipulated and has steadily dropped about a third of its value (price).

Sorry but I keep hearing things like it’s a great company with solid numbers. If that’s the case, can someone please explain why the price has slowly and steadily tumbled over the last 6 months or so. It’s totally my fault for buying in to all the hype.

I put a lot into this share (disproportionate % of my portfolio) and have yet to see anything other than wild yo-yo swings which then turned to a price in the 105 - 120 range. Funk knows what happened to the big promises of 150 / 180. I keep reading how good this is in the long term. I see no growth in the share price and little to no news that suggests it’s just a share that’s holding my money at a loss. I respect completely the knowledge on this form but I’m just not seeing anything positive...