Member Info for Watchman007

Inflationary pressures, consequence of interest rises not yet visible. Yes, they can sell all the Rolex's they can get but the vast majority of their offer are sub £1k items. All discretionary purchases. PE13 now but as the BoE has demonstrated consistently, forecasts can be wrong. I'm holding but not increasing. This may have further to go.

As always, depends when you bought.

The directors get shares as incentives and most have been there since listing. Makes no financial sense for them to buy.

The price of preowned watches has declined around 25% since peak over a year ago. The issue at the moment is that they have plenty of stock of most brands, just not the right models. They went through a period before Anders left last year of hoovering up all available stock from suppliers as they were cash rich. They now have an overhang that isn't written down each year but treated as assets. The upside is that watches aren't as seasonal as fashion so three year old watches can still be current models. Anders will be addressing this along with the bloated expenses allowed to flourish that were allowed to flourish in his absence.

LVMH wont be interested.

My feeling is the revenue numbers will come in on target - they manage the top-line figures meticulously. There is still more demand than supply for Rolex but the margins on that is not as good as other brands. Having said that they don't stay in stock long. My concern is that overheads have ballooned. Last time the analysts got spooked by weaker than expected demand in the States. They'll be looking for signs of an improvement there. Overall, revenue steady, margin down. Anders Romberg will be getting the message out there to investors that the European strategy (that he helped devise before he "retired") is going to plan. Its the US jewellery numbers that will prove crucial.

Correction. Tuesday 18th is the day so Anders will deliver them. Even more reason to believe that revenue will be on target but costs won’t.

Bill Floydd will deliver his final update next week. You could read that the change in CFOs is a predictor of bad news. That could be what spooked the price after the phantom takeover. I tend to believe as I have repeatedly said that the numbers will be delivered. It’s the overheads I believe that have cost Floydd his job.

Anders Romberg returning to right the ship is great news. He made a packet out of the company and is still a significant shareholder. Very shrewd and decisive guy. Expect good things.

This is not a day trade stock There will only be four updates a year, nothing dramatic. Be prepared to hold for a while.

None of the brands like LVMH or Richemont would be a fit as a substantial part of W LEGs revenue is Rolex generated. If it's true it'll be a VC who think they can see added value by breaking it apart. Not happening IMO

Either way they've shrunk in the wash!

Sheltie
Correct. Even 'Ramper in Chief' has disappeared off the board for a while though I'm under no misconception that he'll be back as always. The pack mentality here would be worthy of a psychology thesis with anyone daring to offer views contrary to 'double your money' being accused of being a shorter and personally insulted. The only ones doing well out of this share are the original stake holders. The reason there is no takeover bid on the horizon is this company is not attractive when you look under the bonnet as Thoma Bravo found out. I'll be interested to see what EY turn up. As I said a long time ago this is one tucked into my sock drawer and I have no expectations of breaking even @440p for a very long time - if ever. GLA

Thanks PNN. Really illuminating insight that casts a shadow on either Investor Relations, the company or both.

"Fireworks on Monday. US Markets closed positive on Friday.
So whoever thought markets coming down crashing & added shorts will have short squeeze."
Short squeeze still waiting...

Buybacks appear to be only support.

As for E&Y if they give a clean bill of heath that'd be great but make little difference IMO. I don't think the trading update will be out until after Easter.

@MarkBellUK, did HSBC set a target? We love a target price :-)

First glance not looking good for pause in interest rate raises.

Approximate date is second week of April for trading update. That will be a short week due to Easter.