Member Info for gulfharbour

It would be nice to see the next Teleios declaration after their recent selling spree.

Last I saw they were down to 10 point somthing %, but only they know if their objective is to sell the entire holding, or just drop down to a lower % number.

There also must be some other institutions such as private equity funds which may look at the value in CARD and decide t take this private.

The positives are:

-profitable

-cash generative

-growing revenue

-market leader in UK< and expanding overseas

-largely untapped (for CARD anyway) online opportunity

-very low debt

It might be a bit simplistic but it seems to be a no-brainer for someone to look at this company and decide it is worth way more than the current market valuation.

Agreed Wiscos.

If CARD was a bank or oil company I would expect the SP to go down in expectation of windfall taxes, but being a high street focussed business that is "homegrown", employs UK people, and derives most of its revenue from UK, this is exactly the type of company that labour purports to support.

Although I would probably prefer the divi to be increased starting with reintroduction of the interim div, I wouldn't be against some element of buyback which should also be a sign that the board thinks buying back shares at the current SP is good value for money i.e. a bargain!

Agreed on all those points money hoarder, however when the SP is so far below the NAV for any extended period, then the board must take some sort of action which BCPT are doing by having the review.

Don't get me wrong because I would like to continue receiving monthly a solid and growing div, but I also want the SP to be a more accurate reflection of the company prospects and assets.

The review has been ongoing since April I believe, so I expect we should get some further update not long after the AGM on 20th June where they have stated they will also canvas further shareholder suggestions.

Also the mere fact that the board announced the review was maybe a good indirect way of soliciting expressions of interest from those "interested 3rd parties", some of which may view the current depressed SP as a great time to table bids for some or all of the company properties before the inevitable recovery in the UK commercial property market.

Interesting observation mong.

Yesterday at Card Factory High Wycombe around 12-14 shoppers in a moderately small shop, with 2 of those being served at checkouts and another waiting to pay.

The footfall of CARD seems to be consistently high which, combined with their partnerships and improving online presence should translate into sound results at the Q2 res which will be announced 26/9.

It's interesting to consider what a labour win might do to CARD fortunes.

As suggested by some other posters the proposed business rates reform might be one area that could be helpful to CARD finances due to the large number of stores they operate from on the high street.

And meanwhile the CARD tills are still ringing, profits are building, and Q2 res are only 3 months away.

If those results follow recent trends it is fair to expect reinstatement of interim divi which would be another boost to sentiment and business attractiveness.

Whatever the reason it's nice to see some upwards movement after the unfathomable (to me anyway) recent SP drop.

Maybe Teleios have finished their selling spree which, if true, would remove that anchor around the SP?

Kipper, I think the div should probably be 5.71p +5% which is almost exactly 6p.

On a more general topic, I expect we should see a positive reaction to any interest rate reduction which would increase the differential between savings rates and our LGEN yield, assuming of course the divi is safe.

The next interest rate decision dates are 20th June, then 1st August, and it is fairly likely that we should see a small rate reduction at one of those 2 dates.

Lets see market SP reaction to solid high yielding shares such as LGEN after such a rate reduction!

Just sold a few more LLOY on todays rise to take advantage of the low LGEN SP.

The RNS SP dip seems well overdone to me, and this seems like a great price to top up on LGEN, or as an entry price to a new entrant!

The market was obviously expecting at least a continuation of the LLOY 5% annual div increase, so the pivot towards a combination of buybacks and smaller divi increase has not gone down well.

I believe the SP will recover quickly, and meanwhile we have the next div to look forward to which is in September.

Although the update only gave a general overview of the direction of travel of various stakeholder discussions, it was extremely interesting to hear the board has "received interest from a number of credible third parties who are currently reviewing information in respect of the Company and its portfolio that has been provided to them"

The crux of the company issues seem to be that the SP is trading far below the NAV, with the Feb NAV announcement of 107.3p being nearly 33p above the current SP!

If the company really is in credible discussions with parties that might result in 1 of 2 things either a) the sell-off of individual assets (potentially resulting in distribution of proceeds to shareholders), or b) the sale of the whole companies assets.

Whichever of those 2 options that might take place, if the company can realise sale prices were anywhere near the NAV figures, we could see significant uprate from current SP levels.

All imho, dyor etc.

LGEN dividend received in my AJ Bell SIPP.

Time for another top-up!

Vince, EZJ are actually net cash at start of this year.

Even the average of those 3 "analyst" projections is still around 708p, so I think they are very realistic numbers that we might even see during 2024 imho!

Agreed Wiscos but you also forgot to mention the small matter of covid hitting the world, at a time when CARD only had physical stores to rely on, with little or no online presence at that time.

This is a very different and a very much better run company now.

@themong, your frustration is understandable and is shared by many, but it is just a matter of time before this starts to re-rate.

After the announcement of the div reinstatement I had thought we would be pushing well north of 120p, but CARD is IMHO held back by being viewed as a retail sector stock which is a pretty unloved sector as a whole atm.

Maybe the approaching of the ex div date will start to push the SP upwards, but in reality we may need to wait till the next interim results are announced in September before seeing significant upwards movement.

That announcement will hopefully show continued improvements in the business results, plus I expect the interim div to also be reinstated.

Up to 2018/2019 CARD used to distribute annual special dividends so who knows, maybe they might surprise the market by announcing a small special div in Sept!?

Also Homer, this would be a sale and leaseback arrangement.

SAGA are not just selling the ships and getting rid of the cruise income which is the most profitable part of the business.

@Bhaveen, we have revenue and profit rising, new stores opening, partnerships delivering good results, an improved online offering (which previously was a CARD weak area), so imho it is pretty nailed on that we will get the interim dividend reinstated also.

My thoughts are that the interim would be reinstated at a level of around 2-3p which would still be well within the board target of 2-3 times div cover, which would at current SP give a yield of circa 6% to 7% which will get the attention of income funds.

I really can't see the SP staying at this level much longer and I expect a slow but steady rise up to ex-div date.

I would love to see divi re-instatement but realistically I can't see happening that until IAG debt levels are dramatically reduced from current levels.

If we can hold in the 180s after next results I believe that is a good result, then I would be looking for continued revenue and profit improvement plus debt reduction, before divs restarting later this year.

I was already bo**ocks deep in CARD but I just bought more on the dip this morning and am very confident in this business and its future potential.

Todays drop makes no sense to me even though it has reasonable volume behind it with 1.5 times daily volume already traded.

This is the type of market behaviour that annoys the sh ite out of me, but it would not surprise me if we end up level on the day by market close after MMs have given this a shake.

At these prices and with the future prospects it could also make CARD an attractive proposition for a PE company to take it private!

Agreed Bhaveen, but everyone has different perspective and objectives, so I wouldn't worry too much about there being willing sellers of what appears to most LTH's to be a rock solid investment to hold for income and growth.

If someone has bought in the low 90's only a couple of weeks ago, then sold at around 111 yesterday, they will think (rightly) that they have done well.

The difference is that they will now move on to their next short term investment, will LTHs' sit it out for what we believe to be the real prize which will only become fully apparent in 6-12 months from now.

Meantime, I'm happy to enjoy the inevitable slow but steady ride upwards as this company continues to develop and grow, and I also look forward to receiving a nice chunky dividend in June, plus the promise of reinstatement of interims which would normally be payable around December.