Member Info for Culpepper

Yes. Seems to be showing some resilience last couple of days. Waiting for some time for the legacy seller(s) to finish or for buyers to prevail and gains start to hold.

£536 mil now.

The investment case, I mean…….

One can but imagine the obvious, that company circumstances will improve when they do whatever they have decided amongst themselves, or they wouldn’t be doing it.

And debt, loan notes, it’s Mxc that have most to juggle with - so they’re talking to themselves and their own investing cohort.

the final stage of the restructuring, and which would allow the Company to grow organically and possibly through acquisition should the right accretive opportunities become available".
Determined to build this up before sale rather than try to shift it early - Mxc have a lot in this and Smith and Weaver will want the cash where their personal holdings are in Mxc as they dispose of assets before retirement.

Whatever. 250 is the one, isnt it, their first buy, if there’s a point to be made.

222. Get it right. Maybe.

226

Same again today so far. Wickes struggling against the markets, up, Travis and Kingfisher. Directors also bought at 250 and 236.

I can but agree.
However, on a p/e of 8-9, I think it’s lagging anyway.
I look back at shares comment immediately after demerger.

https://www.sharesmagazine.co.uk/article/get-the-lowdown-on-wickes-after-its-demerger

The writer identifies forward risks.
Up against ‘tough’ comparatives PBT is coming in at over £10m greater than forecast at the time.
Upgrades, but holds nothing even briefly.
Nobody buying and holding since demerger can sell at a profit. Giving in my view credibility to the risk coming to fruition being the overhang, though it may be additional to a falling market.

Bit of a summary. Easy reading.
https://www.thisismoney.co.uk/money/markets/article-10423223/Wickes-reveals-difficulties-business.html

PerhapsI should say apparently sells on here. But they have been successfully traded.

You see, £395k gone through in 2 sells 0952, 0954. Can logically only be Travis sellers. They’ve been picked up somewhere.

When one contrasts the steadily declining price against the increasingly positive newsflow since demerger, I cannot come up with any explanation beyond what I have said.
There you go.

https://www.lse.co.uk/rns/WIX/wickes-group-plc-q4-trading-update-oqibbzyf8y5owq9.html

Nothing in there to alter my views as expressed in those 2 posts on Monday. On top of the £83m+ PBT there’s more in the order books now apparently extending past first half ( as previously indicated ) realising cash then, with stock coming in. Though core moderating as previously indicated, trade market share seems to be increasing, building on that increase reported at first half.
And sharpening up as a standalone with a new CFO.

Reinforces my views as expressed in those 2 posts on Monday - very undervalued, cash generating, dividend paying, debt free company, sold down by Travis Perkins holders with unwanted inherited Wickes shares following demerger - can’t really be anybody else selling at this price.
I can’t think any of these would want to revisit, other than to reiterate, having regard to what the price is now. There may be others.

Citi. Buy. 282p. Wickes joint broker?Deutsche Bank. Buy 320p Wickes joint broker?Berenberg. Buy. 290p?Peel Hunt. Buy. 360p?Liberum. Buy. 450p

The company has been and is very healthy. The price is dire.

You’d think. Shares, price, total value doesn’t add up. Or is it me?

there today, on both sides I think. Looks like £1m buy at 1620.

A debt figure is shown on the accounts, without explanation that it relates pretty much wholly to contracted future lease payments not overdue. Debt is a fundamental factor, and though a couple of websites have picked up on it I have the impression it’s not widely understood. A difference of opinion . To the future things may moderate after a hectic period, and though I think there’s probably something in it I don’t push some analysts’ view of the model continuing to increase revenue in competition and even better margin as it sharpens up as a standalone over future years with a new bunch of home improvers - too far off - I am simply persuaded it’s too cheap anyway and will turn when those who never wanted the Wickes shares finish their selling, whatever, whenever. Anyway, there’ll be confirmation of the promise Thursday, and little else I suspect .

In me experience on delisting it comes out of the ISA, and into a non ISA account with the broker. Future payments into that account.