Member Info for lemonade311

There has been little improvement in inflation, the BOE says it's more uncertain now as well. If inflation is sticky then wjg model is in trouble.

> I can't see us dropping much lower than this.

I have said that multiple times with WJG and the market kept dropping it lol.

Lowest is 19p so it can get lower!

Inflation is just too sticky in the UK right now, it's not good.

Indeed. I bought quite a bit.

EU tarrifs higher than the UK should help too

Yes, I should put my money where my mouth is.

I'll look at this again over weekend but at this price, the NAV after cladding costs means it's likely a good buy because it's below liquidation value again.

I still think service inflation won't drop to a more reasonable level until 2026 so no change in my opinion here but I'm not a macro expert at all.

10 year gilts are just sticky at 4.5% though, seem to be tied to US yields short term which i'm not entirely sure why so no more sales for WJG until these yields start falling as the risk free rate means that institutions won't buy properties from WJG that yield < than the risk free rate.

> the increasing lower-margin card-only customer %, and now claiming they see 13-16% margins instead of 22%

They have never claimed 22% margins.

AFAIK they have always said 15% margins are more long term once they can pass on UK savings on interest (IIRC)

Pretty horrific update.

Macro won't improve till beyond 2026 in UK, I think the companies decision to not to cut back dividend is a bad one and they will have to cut it later which will see a further drop.

This stock always runs up pre-earnings & falls on earnings date as an FYI, pretty consistently.

@Monty, you do realise you can do limit orders? A wide spread is only bad for investors who rush in and aren't patient.

To say it's uninvestable is silly

Do you expect directors to work for free?

Options aligns the directors & employees with the company.

Also, these are non-material allocations. The vast majority is for SAYE employees it seems which is a good thing.

I fail to see how you can be mad at the directors here, Alex Pease has done a good job with a bad hand (macro).

Next time don't buy overpriced IPO listings...

You also hold Totaly it seems, convienent how you forgot to mention that one.

We both know you aren't beating the S&P500.

Pumping it up I see. When the results come in August it will be another 50% drop.

No fundamentals in this. It's another Loopup, broken business model. Only morons trying to pump it every day on here to short term trade it.

'Whitepaper' lol. You don't even know what a whitepaper is.

This is a trash marketing piece, not a whitepaper.

No, this is a garbage consulting-type company that will go bankrupt.

They have no AI/tech skills at all and combined with the macro, new AI-focused tech firms will kill them off by end of 2026.

Not undervalued, the company is worthless, AI companies will have this dead within 2 years.

DCF on 2 years of value = 0

Also, i've noticed this stock tends to pump rate cuts & inflation news so it's likely to pump again later when inflation falls back to 37p so 25p should be good

Will take until 2026 for inflation to fall further so rates & yields can fall, no reason to buy until this hits 25p again.

I sold a ton at 37p as the pump made no sense fundamentally given gilt yields were high. Gilt yields high = no demand for WJG current buildings as their yields are based on pre- 2023 gilt spikes, it's that simple.

1. Inventory bloat due to bad management & low cash pile

2. Management getting bonuses even though they missed targets (Lisa Montague)

3. Tarrifs causing US consumers & other consumers to stop or halt spending as noted in the RNS.

4. Horrible past capital allocation with dumb acquisitions as can be seen from the huge impairment.

5. Wallpaper sales lagg house sales by a year & house sales are still mediocre.

Competitor Colefax is in the same industry & premium segment and yet has no management issues & doesn't blame macro.

Looking at the PE ratio is silly, that's a lag number, instead you should project the future cash flows.

This is a stay away as far as inventory is tying up cash & tariffs should cause more downgrades for them.

Lol what a joke, 2300 - 2350p is a rounding error...

Sorry, I was a bit unfair in my reply.

You are correct it does make it more diversified in terms of pipeline opportunity. The swissport deal is a big deal actually. I'm already a holder of Aurrigo.