Member Info for squadraazzura

Interesting read on performance and cash generation:

https://www.burberryplc.com/investors/financial-performance-kpis

I woud add that the dividend is being kept steady since 2006, even during the 2 year Covid when all its shop were closed. This proves the company commitment to paying a steady dividend.

https://www.dividendmax.com/united-kingdom/london-stock-exchange/personal-goods/burberry-group/dividends

A long term hold for the recovery.

Regarding dividends, I think they can easily cover them until full recovery as their cash flow is excellent.

Assuming no takeover bid is received in the next 3 to 6 months.

It ticks all the boxes:

1/ Very well established old British Company

2/ Lowest share price for 5 years

4/ Excellent dividend yield cover of 5.5%

5/ Present weakness may attract a takeover bid

One has just to keep it in an ISA, be patient, collect dividends , while events unfold ...

Meanwhile, I would be happy to wait for the recovery with a dividend yield of 5.5%.

Https://www.fool.co.uk/2024/05/15/why-i-think-burberrys-share-price-is-simply-too-cheap-to-ignore-right-now/

This has now reached a new low for the last 5 years.

IMO it's time to buy - This is without taking into account any future bid approach.

You seem to ignore this so called company is starving for money. They are selling anything they can sell to cover their salaries and travels. There is no order nor results from numerous testing they claimed they have done. No feedback on basically anything. Watch the trend for the last 10 years: Spectacular RNS followed by sale of shares by NR et al then followed by a raise. They have no source of income whatsoever apart from a few pennies here and there AND raised of course.

Received a reply to my question regarding their possible expansion into Asia and The Middle East.

They definitely stated that they are more interested to focus on the US outside Europe.

So they want only to be fully established in the US and Europe.

In any case I feel WOSG will be taken over before even being able to hold it for 12 months.

Exactly ! Dubai, Qatar and Saudi are enough for a 20% increase in sales ...

"AHEAD OF CONSENSUS

Fourth-quarter sales ticked up 4% year-on-year to £380 million, ahead of the £375 million analysts were calling for, with the Rolex, Breitling and Audemars Piguet purveyor delivering continued market share gains on both sides of the pond."

For the time being WOSG is only in UK/Europe and the US.

Japan, China, India, Australia etc. could be next markets for WOSG.

China has more billionaires than the US while India is catching up...

What is promising is that the US is growing very quickly. I wonder what will happen to its numbers if they will start exploring China and the far East ...

FY25 guidance upgraded to £1.67 - £1.73 billion = growth of 9% - 12% at constant currency. FY24 being 1.53 billion

Amazing how the Market Cap is only £897 million for a share price of £3.75, under £4 and a PE ratio = 7.3 when the average in the sector is more than 10 !!!

IMO any future offer not exceeding £2.5 billion or £10.5+ a share is a rip off.

This company is very cheap indeed.

Goldman Sachs raises Watches of Switzerland price target to 566 (550) pence - 'buy'

Another UK company taken over. Will WOSG survive an approach with such excellent qualities ? ...

hTTps://www.bbc.co.uk/news/articles/cd131l3k9jno

The SP peak of around £14.90 - £15 was hit in December 2021. Sales and profit were lower at that time, still in Covid 19 period and without Roberto Coin plus numerous new shops/boutiques opened all over the world since.

In fact, it is also better to own a luxury watch than solid gold. While the value of gold fluctuates and depreciates accordibg to economic/inflation conditions, luxury watches hold their ground far better. Check out the prices of second hand luxury watches bought 10 years ago for instance compared to gold in term of value. IMO a luxury watch is an excellent asset to own.

Their cash flow and return on investment is exceptional with no debt too. Compared to those with billions of debt, this company is one of the most disciplied in this department.

The only real truth in this so called company is to raise money, travel, release rubbish RN's before another raise. then repeat the process as long as idiots are ready to dig deep into their pockets. All the rest is just dressing to impress before another raise. This is basically the real truth of what they call "turnaround project". This lie was happening now for 10 years. Not convinced ? check out the share chart.

The deal is amazing ! For just a mere $130 million for a company that makes $30 million profit is unreal !

Just have a glimpse at its products !

hTTps://www.frostoflondon.co.uk/collections/roberto-coin

Roberto Coin, which holds exclusive rights to import and distribute Roberto Coin jewellery across the US, Canada, Caribbean, and Central America, achieved annual revenue of $146.2 million and a profit before tax of $30.1 million for the financial year ending December 31, 2022.