Member Info for jds15

Oh forget the final point...I am a very simple person and can understand what MKS does and where it is travelling!!

Fender

I am not a trader. I have a very substantial long term investment in MKS. Over 170k shares at 250p. I am taking a 3-4 year view and hoping to average a 15%-20% annual return within that time frame. Many much more skilled investors on this site will say JDS you are bonkers but my view is this a) this is a brilliant, superbly well managed retailer who will take huge market share from Waitrose b) an excellent and financially solid customer demographic c) if there is a recession the more affluent who may never have shopped at MKS may turn to it d) the SP is ultimately protected by the very real possibility of a takeover.

Fender, I just wonder whether M&S is a luxury food retailer? Does Waitrose fall into that space? You did get it right and I think you have been applauded for that. The FD's of most companies are constantly talking to analysts not in the sense of imparting price sensitive information but providing broad guidance. My sensation that the message being passed is that the company is confident of meeting forecasts hence analysts have been minimally shaving SP estimates.

I think it would need to be a long and protracted recession to impact MKS's relatively affluent customer base. We also need to take into account the projected interest rate drops. If the price ever falls to the levels you project then PE is bound to step in.

I think one person may have been astringent with you. I commented on your view of analysts which I thought incorrect but that is because I know a few. I do think that your tone is a tad challenging and that might be something to think about.

Listening now. Fascinating. If I had more dough I would be in. Solid guy. Solid company. Solid future

Great idea. There would be great snob appeal at having a smart liveried van dropping off

Thanks Chilting. You make a very good point but the perception needs to be corrected.

M&S is clearly back on the right track again…..it may have taken decades, of course – but it’s definitely back there. Especially in (lower margin) food, if less so (in my humble opinion) on General Merchandise (higher margin clothes) – where I think there’s still a way for M&S to go and the job isn’t quite finished. Clothing and Home is now headed by an ex-NEXT guy – and what it’s doing on most fronts is eminently sensible, to my mind.

I’m less convinced by its Ocado play…..but who knows? Time will tell on that front, I guess.

It’s a tech / logistics business in my opinion (rather than a food retailer) – but it has food retailing margins (i.e. comparatively poor v’s clothing) and an insatiable appetite to swallow enormous amounts of cash for v v little return (from what I know). And we all saw yesterday what can happen to an entire tech / IT sector in (literally) a day, when a ‘DeepSeek’ comes along….. So I’m sceptical about that ‘play’ and always have been…..

Very good summary and wise too. I had an email from my friend at Next who told me MKS had taken on Next's head of mens clothing. I might summarise it here

Is that good or bad???

10ntheup

I am going to package your extremely valuable points and send off Archie. I may be unlucky this time and get annoyed. In actual fact there are very useful messages with this site that MKS could take on board. That 'High Wire' analogy was really inopportune!

Courdelion, do you think there will be a mass exodus out of AI related tech stocks?

If there is a rush out of tech stocks then perhaps those investors UK/US might start thinking of lowly valued and solid stocks like MKS. The money has to go somewhere

And without unduly flattering you 1ontheup the points you make about tone and content are exactly what a good external comms consultant would have flagged. In fact, he would stooped Archie using them

1oneup is there a way of messaging to you? I feel it better that way. And you are further spot on. The high wire analogy is so wrong particularly taken with turnaround. Without annoying him I will your comments. I wonder if they ever survey retail shareholders....they would get invaluable feedback. Most of you have very good perception expertise

Https://www.investing.com/news/analyst-ratings/bofa-reinstates-marks--spencer-stock-with-buy-rating-420-target-93CH-3831660

I have an email address for Archie and did email him about a good point made here about ceasing to use of 'Turnaround": he did reply. What did you all think of another message about price comparison? If we do go into recession it makes great sense for MKS to hammer home the facts pointed out in the Express article about the shopper who found just as good value at MKS compared to Lidl

A Lidlhttps://www.express.co.uk/life-style/food/2005546/lidl-ms-supermarket

This is fascinating lady shopper found little difference in price between MKS and Lidl except she come out with a dress!

Fender it was not my intention to offend. I have been fulsome in my praise of your judgement.

Let's hope for those that did not heed your advice there will be a bit of recovery. My own feeling is that wage inflation is going to substantially lessen helping companies do deal with NIC. Ok, this segment will have less money to spend but I doubt they are MKS customers. GS are forecasting a series of cuts this year. That should help.

When I visit my M&S i am constantly aware of young employees on the first rung of their career. They are obviously been well looked after. I would suggest some come from challenging backgrounds but there is a pride in them working for a great brand. So, here's my point. All will be earning in excess of the NIC exemption level. In applying these NIC increases Rachel Reeves should have thought, "why don't we reduce all NIC for kids earning below xyz. That would encourage 'responsible' employers to take on and train youngsters rather than seeing them on benefits

A sensible and pragmatic view. Courdelion I do feel that Stuart was slightly an architect of the SP misfotune by the over pessimistic message at the interims. Maybe that will turn out to be a boon if he is able to over deliver. I erred institutional is 80%. Me? I will be sitting tight for 2/3 years. This is a very special retailer.