George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Can’t quite get my head around this. So the results weren’t amazing, but all in all not terrible. Certainly not 15% negative terrible IMHO, Based on these figures other companies comparative yearly financials should mean total capitulation for them!
If 152p doesn’t stimulate reasonable buy ins tomorrow to recover the sp closer to 160p I’ll be out. My steadfast rule is never to run my portfolio at a loss. (Each to their own, but that’s how I sleep at night!) GLA.
Halfords is in a better position than many retailers. Its "essential" status means it continued to trade throughout the lockdown, keeping revenue relatively healthy. However, it would be a mistake to assume that profits are coming along for the ride.
Not only are shops operating at lower capacity, but a large chunk of revenues depends on customers' discretionary spending. A gloomy economic outlook means people are already spending less on higher margin gadgets and gizmos for their cars, and growth will be harder to come by in the current financial year.
We're also mindful disruption means Halfords has applied the brakes to its strategic turnaround. The plan aims to boost services and upskill the workforce, allowing the group to capitalise on what its online competitors can't offer - face-to-face service. We understand the need to reallocate cash to more essential areas while the climate is so tricky, but it is a shame. With lacklustre sales already a problem before the outbreak, we're going to have to wait even longer for top-line rejuvenation.
There's reason to be hopeful where the online business is concerned. Over 80% of online orders are collected in store, so online sales tend to complement physical stores rather than cannibalising them. The website now accounts for almost a quarter of all sales too, which we think is a step in the right direction.
There's also a big growth opportunity where cycling's concerned. The group's benefitted from a surge in bike demand since lockdowns began, and it's a category that will always favour a visit to a physical shop, where you can talk to a knowledgeable store assistant. At the moment this is a lower margin category compared to Motoring goods, but we view this as a profit-boosting opportunity over the longer-term.
The balance sheet is in reasonable health too. With net debt less than a year's cash profits at the last count we don't have immediate concerns over Halfords' liquidity. Remember though, if trading is worse than planned and cash flow is squeezed, it won't take long to burn through the newly drawn credit.
Overall Halfords is starting from a far sturdier base than peers, and its end markets have shown considerable resilience so far. However, from here it will need to focus on how to get the top line moving again, and how to best prepare for a real squeeze in discretionary spending. While we think Halfords has a lot of the right ideas and some great opportunities, we'll need to see some evidence of strong execution this year before turning more positive.
Just in....
https://www.thebusinessdesk.com/westmidlands/news/2042114-halfords-drives-ahead-with-25m-boost
Agree. CEO said yesterday 100k bikes arriving in next few weeks. Camping supplies will now be taking a very positive consumer hit and it’s looks like obligatory MOT’s back in August which is a decent revenue stream. Also general car product related post lockdown sales increase. I’d reckon on about a 10% rise ‘IF’ results are good. So anywhere close to 200p would be strong. Just my thoughts anyway!
Are you referring to ‘settling down’ after the huge recession?! I’m a big advocate of AML with what they are doing and where they are potentially going. But in general the markets are far too inflated based on where we are at with the worlds economies. The last few months have been mental. The majority of shares have jumped a minimum of 50% so don’t feel too special if you’ve made a few quid on investments . I think we all have.
Gotta say I think it’s a disgrace this ipo wasn’t available to initial share holders. A lot of us have put a lot of time and money in to this Company.
And no, I’m not being bitter because I’ve lost money with AML. I sold a few weeks ago at 75p when it did it’s a.m drop to 61p and then fast recovery to the 75p. Do I think I’m clever getting out then? No....I think I got a bit lucky. You win some, you lose some. I’m waiting to get back in but it’s not felt right....YET!
I wish one and all the best of luck.
Ultimately it’s borrowing to firefight the economic situation. So yes, obviously it’s good they are counteracting (they are without choice) ....but n ver forget the bottom line....it has to be paid back. I think it’s up to £300 billion now over circa 20 years.
Blackfox...Been trading 3 months as per what you say in your 1st post and ask stuff like... (Direct Quote)
‘ Hi, can someone explain what the trades shaded in black / grey mean?
Think you’re lacking in credibility mate...
Foxtrot Oscar
Jesus Christ!....What’s the panic! An article stating it’s going to be the worst economic downturn is news we’ve all known about for months! It’s retraced to 75p loads this week and it’s down a ‘mighty’ 2.5%...today!
FFS.....just chill out those of you who are being such drama queens.