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These look to be heading towards a good value to buy, but with construction looking to follow in the steps of retailing I am thinking we should not buy just yet. They have negative debt so are in a good position. How about 200p?
Hi Wobbs Dont take too much notice of director dealings the cash value is only £6k so probably only window dressing. We are very much in agreement over these shares, I am in at 200p and at 220 they are good value.
A company such as Wincanton surely has a significant need to hold assets such as lorries and all the support and property that requires.
They are a good company and I think after a while they will go up nicely but not just yet. Note Nomura have target 180p, do we trust them? http://www.igindex.co.uk/content/files/ukratings_21apr2011_igiam.pdf
I too did the same and first bought at 168 in early December. There are two key points here which we can learn from this experience; Firstly, with hindsight, we could say that buying a company which is valued on profits only ie. PE is a bad idea. Secondly, we must take into account Net Assets and particularly the level of Debt. A company is not sustainable if it is saddled with a high level of Debt and negative Net Assets per Share. Am I right or wrong?
I thought I knew Wincanton quite well, it looked a good investment and on the back of one press article I bought in at 165. Only £4k but still very disappointing. How important it is to have some idea of there financial position. Looking at the Times today Pe=4.9, at Yield=6.9% which almost looks attractive. To me it seems the fundamental problem is their Net Assets Per Share which is standing at (negative) -252p per share. I'm not sure how they can continue like this. Is the SP ever likely to recover? Any comments? Have I got this wrong? Why would anyone buy this share? Comments please
The 5 year low is 163.5 and with a really bad retail market I feel convinced it will fall more so 200 or even 190 could happen. However, this a very well run company with negative debts ie. cash in the bank. Price to book = 220/345 = 0.6377 which is a serious discount to assets is good. But the PE at 11.5 seems too high when earnings growth is negative. This is definetely one to watch, but I am going to wait. What do you think?
Up 7% on bad news and furture profits warning. If this share does'nt fall to 200, I will eat my hat. Why is up so much? Was this result better than expected?
That sounds reasonable. Similar to Kesa, this stock has a good balance sheet showing negative debt, but as suggested in my last post I feel the Dixons effect may take it down to 200, we might even see 190 again but this give an opportunity to buy again. Good luck. Tim
see also Home Retail Group
200 feels better to buy if you can wait. Lots of bad news around today and I feel this will last for a while. Having said that I agree with most comments here that Home Retail looks a good bet. No debt. A target of 300 seems safe. But dont rush in yet.
Dont know this share very well but the figures look ok. Any other takers for this one.
I think Kesa could fall a lot lower, perhaps 80p. Look at how bad Dixons SPis doing, although up a bit in last few days. Kesa may have a better Net Assets Per Share but market confidence could easily fall away from this stock too. Dixons is now way below what most valuations would suggest. My 80p figure is not based on anything more than a quick look at the 5 year sp figures. The 5 year low is 60.25p, so why not a low of 80P? Any thoughts welcome?
Good value here, just started at £4k at SP 416. Will buy again 5% below this price Target 580 looks possible
Why is the Yield so high? 11.5%, PE = 10.5 sounds too good to be true. Not much chat going on here if they are so good.
Perhaps thats too low, the 12 month low is 326.
So how about a further fall with bad news out this week and then support at 300. A fall of 10 to 12%. That will take the PE to closer to 9, The Times quoted a yield of 5.1%. So what do we think about sp 300?
30(not too sure) or so redundancies yesterday. What does this mean?