Member Info for LorenzoLynch

I bought a ProCook slow cooker, but while I’m very impressed with the product, the bowl split in half after around 1 year of use (probably 100-150 uses).

Anyway, I requested a new bowl under warranty, but they sent me a brand new slow cooker.

Now, this is great for me, but imo, it’s very bad for business.

If I can spot this level of inefficiency and waste after buying one product, how rife is it within the whole company?

Poor management imo, on this basis.

It might sound like nothing, but they’ve supplied me 2 slow cookers for the price of one.

The replacement process was the smoothest I’ve ever encountered though. Rapid delivery and no messing about (I’m assuming the latter is because this is a common issue though).

LW,

I think the evidence is in all the takeovers… overseas investors obviously see much more value in our businesses than we do.

Epwin was snapped up today; naturally, I hold Eurocell instead 🙃.

I’m also incredibly frustrated at some of the issues here and in Europe, but I do think it’s all intentional. In fact, I think it’s obvious that it is, when it’s been incentivised for years now.

My theory, and the theory of my friend, for while now, has been that the illegal immigration has been allowed, so that a digital ID could be created.

We’ve thought this for several years, and now, funnily enough, the govt are saying that this will probably be ushered in soon.

It also serves other purposes: it keeps the middle class stagnant (at best), it makes the working class work harder, so that they can move house, it keeps the masses distracted, it enables a high scale money laundering operation to take place (ask yourself where the ‘free’ hotel and food money is going) and it’s the most effective way to divide and conquer.

On that latter point, I’m mixed race, but was born in England. I’d never experienced or witnessed racism here until a few years ago. Now I see it on a daily basis, especially online, because many Brits can no longer tell the difference between hardworking immigrants who were invited over here to contribute to the economy and those who are culturally incompatible, hateful, extreme and unwilling to work.

Still… it’s not as bad as it seems imo; although it will be soon if we don’t make serious changes.

Doodoo,

I used to live in Greece myself, albeit briefly. I absolutely love the country, but have never looked at any Greek stocks.

What’s the name of this company? Asking for a mate 😂.

LWHL,

I agree with the each-to-their-own mentality, but I do think that U.K. investors are a laughing stock atm to the rest of the world.

It’s not just investors either; everybody here seems to have such a negative view on the U.K, even though it’s still one of the better places to live in the world (unless you live in the arse-end of a major city) and still one of the richest nations on the planet. Issues exist, yes, but opportunities are aplenty.

I think there is far too much pessimism in our market, and as a consequence, we’re continually losing great businesses to the yanks on the cheap.

No stock is a sure-bet, and I think it’s prudent to manage financial risk, but I do find myself astounded at how so many U.K investors seem reluctant to hold anything longer than 6 months…. I used to wonder how most investors underperform the market, but now I see why on these boards on a daily basis.

Ah well… I’m glad to have such weak competition in the market.

PI_winner,

I really appreciate that, thank you. I still have a lot to learn though, for sure.

Yougov ticks pretty much all of my boxes at the moment (co-founder back at the helm after a dire CEO was given the boot, a deleveraging story, laughably undervalued imo, negative sentiment, margins improving, strong growth forecasts etc).

I’ll be very surprised if this doesn’t double (or so) within the next 2 years.

PI_winner,

I agree. U.k companies are being taken over en masse recently, because British investors don’t know their arses from their elbows.

The smallest rise on almost any stock, and they head for the exit.

Do many U.K investors lack the capability to value companies? It certainly seems this way to me.

There seems to be no thought process behind their decision-making beyond ‘I’ve broken even, so I’m out’ or ‘I’ve made 10% in 3 months, so I’m out’.

It makes investing much, much easier for me though, so I’m not complaining!

I’m (ironically) forever indebted to the investors who have sold their shares to me on the cheap down the years.

Greggs are getting battered by the competition from supermarkets and their meal deals, whilst also being subject to sky high levels of theft. Moreover, younger people are becoming more health conscious and turning to meal prep etc.

As for Dominos, their issue is pricing imo. Pizzas are cheap to make and (should be) cheap to buy. Their prices are extortionate for mediocre food. They’ve been struggling for years, so I don’t think this is a reflection on macro (although I’m sure they do need a scapegoat).

JD operates in a different space completely, so I don’t see much of a read across, personally. The earnings and revenues of our suppliers are the only read across I’m interested in, personally.

Doodoo,

Most of my stocks release reports in the format which you are describing, and they never get a reaction like this (even when the news is more positive).

I prefer more detail, like yourself, but we can’t argue with the market’s reaction.

That said, the board might have been trying to leave the back door open for some insider buying tomorrow. I think it’s what IGR have just done (in a very different way) in their last set of results… 3 director buys following the RNS within 48 hours.

Doodoo,

I don’t think any more information was required.

The business is trading well and the turnaround is underway.

Numbers were given for the cost reduction strategy and the company is trading in line with expectations (the latter is around 32.5p adjusted EPS for this year, I believe).

Adding more information oftentimes just confuses the market. Some were even confused at today’s incredibly simplistic RNS…. God knows how they get their heads around an annual report (not mocking here, I’m genuinely perplexed)

For those of you who haven’t noticed, Liontrust Investment Partners LLP appear to be a bit of bother and to me, it seems like they are a forced seller of Yougov shares (and other shares).

They’ve recently sold around 5% of Yougov and they’ve done so rapidly…. Yes, 5% of the whole bloody company! That will have caused one hell of an overhang and imo, is the main reason the share price has tanked recently.

I like taking advantage of such situations. Glad I loaded up here recently.

I can’t tell if you’re on the wind up. The company is trading in line with expectations and…

‘ The Group is on track to realise annualised cost savings of £20 million as part of the cost optimisation plan implemented at the start of the year, with 70% of those savings already delivered this financial year.

Looking ahead, the stable performance we have seen in the year and the current visibility into FY26 is encouraging. The Group remains mindful of the volatile market conditions and expects client budgets will continue to face some pressure, which underlines the need for greater focus on delivering high-quality data products and increased innovation to drive medium-term growth’.

So the visibility for next year is also encouraging and this is all in spite of client budgets being under pressure and volatile market conditions… so what happens to earnings when budgets are no longer under pressure and the market is no longer volatile?

Looks like the turnaround is comfortably underway to me. Data is essential in the modern economy, and that need is only going to increase over time imo.

I should have added that I do think that is is likely that MOU-6 flow FWIW (next to nothing).

I had hoped that the A-sands would have flowed, given the information provided (and my basic understanding of it).

Formation damage was my priory concern, although I was told that this wouldn’t be an issue with the A-sands.

A new well, drilled correctly has every chance of success imo. I’ll remain lightly invested for now.

The perpetual going around in circles is starting to drive me insane though. I hope Paul keeps his word and sticks to the new programme.

I have to remind myself that these results could have been worse… much worse.

I concur with Gudin.

Several posters are often shot down on here (I myself have been), but:

Nigel has been right about placings, when the positive posters believed that we were fully funded.

I (on telegram) was right about another well being needed in close proximity to MOU-3 (even though I know next to nothing about this industry).

Jimmy, myself and others were right in thinking that MOU-1 should have been flow tested early doors, which would have saved millions of pounds.

To date (and this may change) the rampers have been right about absolutely nothing material.

Personally, I think a lot of the positive posts today are aimed at convincing the lesser knowledgable posters to hold, while the rampers sell up or trim their positions… each to their own.

This isn’t a bad thing though, as it should make the next placing less dilutive than it would have been otherwise.

Of course, there’s no guarantee of another placing, but I think it’s highly likely that one is coming soon.

Still no news on MOU-5 as well.

MOU-6 could flow of course, but again, the odds are similar to that of a coin flip imo. I’m glad I sold more than half my position prior to results.

I can’t see the recent raise of £1m covering the MOU-6 drill, as most of that programme appears to be essential. Hopefully the next raise is only £1m-£2m.

Nonsense,

I would also consolidate the two websites under the FP brand name and make this known in store, and through the marketing.

Make it appear as though it’s a partnership….

Whether you want a bargain on the high street or a bargain online, we are the one stop shop for all your card and gift needs.

In store advertising for FP costs next to nothing as well… that is priceless imo.

Staff can also be trained to promote FP as the new online platform: ‘if you’re ever pushed for time or want to send a customised card, you can now do this through the FunkyPigeon website as they’re now part of the Card Factory Group’.

This is a huge long-term opportunity imv. I haven’t trimmed any shares on this rise.

Nonsense,

While MoonPig is a different company to BooHoo (I agree), I don’t think their moat is any stronger.

Where MoonPig went right and Card Factory went wrong, is with the marketing imo.

‘MoonPig’ is a silly, catchy, fun and memorable name/brand. Their marketing campaign also made the British consumer hyper-aware of the brand and its ‘jingle’.

I don’t watch TV at all (haven’t for several years) and even I know the jingle!

FunkyPigeon is obviously a similar type of wordplay to MoonPig, but it doesn’t stimulate the imagination quite as much.

I believe that there are two ways CARD can go about this acquisition:

1) Drive some efficiencies and simply keep FP ticking over as a nice contributor to the bottom line every year

Or

2) An aggressive, bargain-focused campaign to draw in MoonPig’s customers AND build a nice email list whilst acquiring data.

I suspect that it will probably be 1 and then 2.

How to market FP and rebrand it with TV ads and social media:

1) Basically give cards away for a while as part of a promotion, once the cost efficiencies are in place. ‘We’re now selling A5 custom cards, for any occasion with any design and any font for £2.99, delivered to any door in the U.K 1st class, with a guaranteed 48 hour delivery’ - for example.

2) Advise on platform changes - ‘we’ve now made our customisation tool so straightforward, that Grandma can now send customised cards with ease in just a few minutes’.

3) We can send you reminders for all your special occasions with our new FP calendar - set it up once, and you’ll never miss another special occasion.. and we’ll let you know with plenty of time to spare, so you can pay less on your postage.

Job done.

I’ve never ran a business (technically-speaking), but I’m confident that even I could execute this.

As another poster said, if CF can start growing FP at a pace, this could seriously re-rate to a p/e of 15 or the like… and if we cause Moonpig’s sales to start declining, I would expect us to attract capital from many present MP investors.

One final word: if Darcy doesn’t execute on this, then he should be replaced. This isn’t a difficult opportunity to capitalise on imo. There’s been a huge hole in this market for years now - we’ve all been staring at it and shouting from the rooftops!

Assuming that MoonPig can’t be displaced is like assuming that BooHoo couldn’t be displaced imo.

MoonPig has very little moat beyond some stickiness, and I believe that they’ve only performed well due to limited competition.

So, how can Card factory displace them? By doing exactly what they’ve done on the high street: undercutting them on pricing, due to the cost efficiencies of vertical integration.

Moonpig’s pricing is a joke. I’d never waste money on their platform, personally.

I’ve only bought online cards from Card Factory (and they’ve always impressed) and I’ve bought a few gifts from FunkyPigeon, as they deliver abroad affordably.

The real question for me is: should Card Factory make Funky Pigeon their online platform (joint marketing etc) or do they keep it as a completely separate, stand-alone business (from the consumers standpoint)?

I would opt for the former, personally, as this would help FP establish a reputation as THE ‘value’/bargain online retailer.

We’ve all been crying out for CARD to step up their online performance… name a better way of doing it than acquiring FP on the cheap? I’ll wait.

Nonsense,

The RNS does lack some clarity about on that tbh.

My assumption is that it will enhance adjusted EBITDA immediately, but not reported earnings due to acquisition and merger costs to release those synergies.

If Darcy can improve FP and drive those cost synergies, it could generate £10m-£15m Adj EBITDA per annum in short order imo.

Around £12m would be my stab in the dark.

If so, it’s a steal, and it will enable us to compete with MoonPig directly. Lots to love imv (for once)

Polish,

The acquisition should add to the bottom line immediately, and I think it’s reasonable to assume that there could be some serious synergies between the two companies.

It’s the first time I’ve been excited by a CARD acquisition.

As for it being a business for 3 months of the year, and a charity for the rest of the year… have you heard of See’s candy?… it’s performed pretty well for Warren Buffett over the years

I took another look through the annual reports last night.

Yeah.. it is a bit of a maze.

Timing (of cash inflows and repayment dates) is everything here imo.

I expect this to gradually take a nice leg up following the repayment of each bond/loan. I’m going to continue going through it all, over and over again, to ensure that I have a full understanding.

JG,

I personally couldn’t see a pathway, due to the covenants etc… and judging by how the SP was in the mid twenties recently; neither could many other investors.

It’s irrelevant anyway. That part of the business has been sold, and it has improved liquidity.

The comment about it not materially reducing did confuse me initially. I need to dig out my notes on it.

It’s an interesting view from Rob below; that makes perfect sense to me.