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From the latest RNS - who in their right mind would hold shares here at the moment! "As a result of the wider full year loss expected, the company said there was a risk it will breach a covenant of its banking facility in March."
So it begins...... http://www.telegraph.co.uk/finance/newsbysector/industry/12052819/Rolls-Royce-to-axe-divisions-in-management-shake-up.html
Well for a start, clear out the company finance people who claim we have a £70bn order book spanning the next decade, yet cannot give forward guidance for 2016 - this is unbelievable, how can a company operate like this!!! Get a bunch of financiers in to sort it out in the short term and not stick with the bunch of losers who couldn't be trusted with a piggy bank. This phase is crucially about "confidence", and the impression so far is business as usual i.e. NO CONFIDENCE. This will get much worse, unless quick and decisive action is taken to get a clear picture of the true financial position of the company and reposition the company accordingly. All I've seen so far is 5, yes 5 profit warnings. Wonder how credible the loses posted in those were..... Maybe we will get another profit warning in 2016 as well a losing the dividend!
Help to buy = housing boom = house spend = let's get new furniture = increase in sales for retailers = increase in sales for Laura Ashley. H2 is the key period for Laura Ashley and the recent uplift in house sales and subsequent redecoration and refurbishment can only benefit the SP. Next update should be a cracker!
Trading update is due this week - last RNS said update will be out week commencing 28 Oct. so anytime between tomorrow and Friday. Personally I think this will recover back to +£2 over the coming months. I've been trading and following a share called TT electronics, which followed a similar crash, restructure and return to profit profile as Volex. That doubled as well. The pattern looks identical!
Hat year results due out w/c 28 Oct. http://www.volex.com/Investor-Relations/Findancial-calendar/index.html It looks like the recovery phase is over and return to revenue and profitability is starting. A slow breakout began in July with a new management team starting, and a stabilising last RNS. Classic recovery here, with a strong potential for a significant upside. I'm betting on £2 by Xmas.
I tend to agree. This has hit circa £1 two times, over the past couple of months, coinciding with news/RNSs. Results are out in about 2 weeks, and with a potential dividend on the horizon, I should think we will break the +£1 mark again. Lots of upside in profit too, due to the big drop in raw material prices.
I've been researching and posting regularly on Thorntons. I have bought back in. For those that have missed some of my research (if you interested of course) I believe the dominant factor next month will be the drop in cocoa prices through last/this year. Cocoa prices have dropped even further over the past months and the futures are pointing towards a 5 year low of $2,000 per metric tonne, from a high last year of $3,500 per metric tonne! That's a 40% drop in raw materials costs. I've been trying to figure out what this means and here are my calcs: from the company balance sheet, raw materials comes in at about £45M ish. Cocoa represents about 25% of raw materials = £11.25M for 2011/2012. If an improvement of 40% is realised, then that means gross profits will improve by £4.5m alone over 2012/2013. This represents a significant increase in last years gross profit alone, or 60% of gross profit in 2010, without doing anything different to the business! This also doesn't even factor in the drop in sugar prices, closure of loss making stores, restructure of the distribution business, or transformation of the long term business. If all this plays out to plan, we should see a rise over £1 and well into dividend territory! Keep a close eye on results next month.
Look at how Tesco's recovered, to see what going to happen here (25% increase over 12 months). With a 2.5 times dividend cover, there is still room to increase the dividend whilst driving investment and change. One for the SiPP.
With a 2.5p dividend this year (approx 9% yield at today's SP). This is one to lock away in your SiPP. The 0.6 drop in sales today (18 weeks) mirrors last year..... With the 2nd half being significantly higher. This is a well run company with the potential for massive growth both in the UK and abroad.
Stock market fork lore suggest warnings come in threes! We have had 2 so far. There was a significant debt jump in the last RNS (April) which is going to have a materiel impact here. I was looking to buy in recently, but will be holding back for now - purely based on statistical analysis, this is best left until Autumn. One to watch. Possible price target 70p to 80p.