A horrible chart with multi year downtrend, massive volume that was highest for 13 years high on yesterdays sell off, new ceo needed with the uncertainty that involves including a possible "kitchen sink" job , 2.5 m customers lost in the last few years.Falling profits and dividend under threat.Almost the perfect storm for further falls imo.
Dead cat bounce imo, it has fallen massively over the last few weeks the test will be in the next few days (next week) if there is real follow through .Personally I would be very surprised if the bottom is not tested again soon.
Short term I would say no, I see this many times with shares out of favour the trend goes on much longer than you expect.A share rarely goes up just because it is cheap.It needs good news to drive it up and can not see that coming anytime soon.Most times in situations like this it will continue to drift lower and eventually stabilise at the lows before recovering so longer term if the FCA report is not too bad and sales start to improve it could be seen as good value but I will avoid for now.imo.
He really needs to get on with closing the stand alone CPW stores just done a check on their site and amazingly there are 9 CPW stores within a 5 mile radius from where we live and 5 are standalone .There are even 2 in the same shopping centre.No wonder its not profitable.
Looking at the current deals Carphone now do now seem to be competing with the online operators.First time I have seen this they are usually more expensive sometimes by a fair amount.
Also like the new "switcheroo" campaign.
It does however highlight the fact that the operators are supplying packages that CPW will use to directly compete with their own direct sales as more people than ever buy direct from operators online or in their own stores which is obviously more profitable for the operators as they don't need to pay a commission.
I like Lookers and have bought several new cars from them. They are very competitive and the customer service is very good. The sales process is slick but some parts are a little questionable. They really push credit and did me a better deal provided I bought on (very low APR) credit. They also throw in extras I was not really bothered about for virtually nothing. They also use what I call double bagging where they get a manager to come in and try and get you to take gap insurance which I never take. Maybe this is what they are looking at must admit I thought this was the norm in the motor industry and it does not really bother me as am ex sales myself and the deals I got were as good as the best on the net with large discounts. These practices have been going on for years in sales but I think these days they are very much frowned upon by the FCA.
I agree with Dark although store cards have there place putting all this focus on getting customers to buy on credit is not a good idea imo,For a start the APR is higher than most credit cards so its not a great deal for customers.At one time customers bought lots of products on credit but these days things have changed.More people have credit cards and prefer to purchase this way its quick and easy and they can pay it of easily as and when they want simply and having all their credit one one card makes it easier for them to budget.Also customers are much more aware of interest rates and are often not keen on getting new finance and having to all their personal details to a salesperson instore.They are likely to face bad publicity due to the high apr's and the unwanted attention of the FCA if they push it too hard on customers.Really think he is not on to a winner with this long term but the problem is he has limited ways to drive profits further, last time I heard staff and managers were already measured on about 20 KPI's.They have a reputation for giving customers the hard sell on extra's.He has limited options to increase the tiny margins they make on the product itself.He basically is getting sales staff to pay for themselves by selling "add ons" but this can only go so far and I think its near its limit.Reducing overheads and using technology to reduce costs, a lot of customers know what they want now which is shown by the amount buying online and from places like Argos so maybe trialing more low cost stores with less staff and customers using computers instore to purchase less high tech items. similar to Argos and reducing the amount of staff needed and letting them focus on more high tech items where customers do need help might be a way forward.
Yes agree a good performance all things considered in most areas however mobile down 7% L4L on what was not a good previous year has to be a concern even if it was expected.Bet they wish they never merged!