Member Info for WolfofWarks

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I’ve had a couple of long drives recently and they are everywhere now

If I recall correctly the lockdown cost ABF £1.1bn in sales.

Kellu - no one cares about Primark and if they did they would post on the ABF board.

I believe that a lot of the HMRC quibbles around the Leicester rag trade are more mundane matters like incorrect commodity codes on textile imports meaning that are applying incorrect tariffs on materials and underpaying import duty.

Nothing says ‘gangsta’ more than a planning application discrepancy with the local council …..

GGP was flying at one point in the 30's then had disappointing Scallywag results followed by Gervais Heddle leaving and being replaced by Sean Day who is more of a corporate/ii guy to take it further who is only really being accepted by PIs after lacking a bit of polish at the start.

They currently have a 25% interest in JV with Newcrest in mine Haverion which is in it's infancy. There seems to be no doubt though that it's a world class asset and the new CEO has pitched that he sees GGP becoming a multi billion pound company.

I'll caveat this with I more understand companies that deal in widgets than mining and like here am more of a passenger over there (I only view and rarely post on GGP). My energy/mining investments are HE1/GGP/SENX/GLEN.

Kalluma’s got beef with online.

He sees bricks and mortar as the future.

“ALDI, LIDL, Primark”

All these companies you are obsessed with are discounters …. They are no frills businesses offering no quality to their product. They aim to sell as much as possible to the less well off in society. They wouldn’t be able to successfully run a digital strategy because it would erode their tight margins too much.

You’re not comparing apples with apples. It’s like comparing Ryanair or easyJet with a middle of the road airline. They are not competing for the same quality of customer.

I’m in GGP and the big rise was upon the haverion discovery. They keep drilling and hitting decent mineralisation but the SP is tracking back. Probably need to factor in the drop in POG from pandemic highs as well but the point remains.

That said I don’t know much about geology/mining but thought it was a point worth making.

Hi Kellu - I agree with you actually re the larger kingfisher group tbf.

They’ve had to do a lot of work on the procurement side to bring their cost of sale down because until the pandemic the diy side was struggling.

I think their whole global corp buys from 100 key suppliers which in terms of purchasing power is great but doesn’t offer much choice to the customer.

Screwfix is the jewel in the crown.

The reason companies move online is because that’s where the sales are. Bricks and mortar are expensive.

The idea that taking on all the overhead is somehow better for margins is quite frankly laughable.

Plenty of companies operate omnichannel successfully. Look at Next or screwfix for two just off the top of my head. Physical stores restrict the amount of lines you can carry, as there is a finite amount if space.

That’s why if you’re a man with a 34-38 inch waste going to physical shops is pointless as they will rarely have your size as the stock will be sold out. We can carry four times as many lines online as instore.

I must be poor!

I’ve got a Braun series 5 razor ….

Kellu - primark sells cheap clothes to folk without much cash - or people who want cheap work gear. Not too bad for kids and baby clothes either.

Boohoo is one brand in the portfolio. We’re now serving multiple segments. Primark needs the high density because they are selling unfashionable low quality low margin junk.

With every new generation of shoppers the desire to buy goods from physical stores erodes and the expectation to purchase their favourite brands increases, dramatically I would say. This will not reverse.

And I say that working for a company with a large bricks and mortar presence, albeit not in retail, who has spent the last five year developing an omni-channel offering. Online is by far our fasted growing channel. Some stores are basically now hubs for click and collect sales.

I had a small top up at 250.7.

Anything online has been battered today following Amazon’s forward guidance.

A buying opportunity.

Well I guess the point is it’s not a established company.

It’s a growth company that’s had its perfect market condition land on its lap.

It’s got decent vertical integration as well so been less affected by the semi conductor shortage whereas companies like Ford have had massive issues.

All the other companies are trying to service ICE markets while growing into EV. Tesla just have the one focus.

Needs to grow into the valuation for sure.

If 2021 EPS ends up $3 dollars that brings the P/E ratio down to 217.

I bought some Disney and Moderna yesterday in the US and IG haven’t charged me any commission, unless they have screwed me on the FX rate.

Kellu - as you well know Primark is only one business in ABF’s portfolio.

So know matter how well they do the SP will always be a reflection of the sum of it’s parts.

You’re hitching your wagon to part of a business which isn’t sensible IMO. You might as well buy a fund or ETF.