Booker Group Share Discussion Threads

[soundbuy] 04/9/2014 16:44

More dumping??

[woodpeckers] 04/9/2014 08:03

More reading here:



"Unfortunately, with the rest of the UK’s grocery sector in the doldrums, investors are willing to pay a premium to get their hands on Booker’s shares as the company continues to grow."

[shanklin] 04/9/2014 08:03

Bought a few :-)

[woodpeckers] 04/9/2014 07:58

Hi Kazoom and jlo10.

The dividend is 3.2p but they also issued a special dividend this year of 3.5p and have stated that they are almost certainly going to do the same next year so the dividend is in effect 5.3% based on the current price.

Otherwise you are correct with your assumptions kazoom.

I think, as jlo says, that it is to be expected that you will pay a premium for a strongly managed, fast growing company company such as this. They are rare finds. Average broker targets are 173p at the moment so there is plenty of scope for profit IMO. Karen Jones bought shares back in March at 167p so we can presume that she thinks that the company is well undervalued now.

[ayl30] 04/9/2014 07:38

Positive bit in the Times this am lauding Booker. Buy at this low price recommendation

[jlo10] 03/9/2014 23:24

I'm not invested but looking.
My guess is you pay extra for many years of revenue/profit growth, forecast continued growth, net cash and strong balance sheet. It's in business areas that are doing well. IC has a few write ups that are all positive fwiw.

[kazoom] 03/9/2014 23:05

Hello Chaps,

It's terribly civilised here. And I hope I don't bring the tone down.

Realising (yes I know it's very late) that Bookers is back on the market (I used to have a Bookers card when they were part of the Big Food Group [Iceland]) and that I actually have access to a Bookers card via the charity I volunteer for, I was intrigued to find out what is the buzz.

I am a bit non-plussed to be honest.


I see the share price is down around 30% over the past six months or so and that you seem to be politely discussing whether this is the bottom.


BUT AFAIKS :

The PE ratio is c. 20+
Divided Yield about 2%
Price to Assets around 4 or price to tangible assets > 10.

Have I read these number wrongly?

Assuming that I haven't , I'm totally bemused - I know that strong conservatively managed companies are quite rare these days and therefore one should be prepared to pay a premium - but all of these figures look nuts to me.

Is there something that I have missed?

If not then I'm quite happy to move on and leave you with my best wishes, but I am definitely intrigued.

Welcome your thoughts.

[woodpeckers] 03/9/2014 14:08

Agree NAV, sorry I wasn't being critical of your opinion, in fact I take your point. I guess we are likely to have some PIs that have bought in today looking to take 10% profits when we hit 140p again.

[nav_mike] 03/9/2014 13:25

Woody

Im not saying the market is gonna be awash with shares at all, but there will always be some who cash in a profit early, rather than invest longer term.

We don't know the exact nature of the investors who took up the stock, so its not nailed on they will all want to hang on for the long term, although I agree the majority will.

In any event, Im bullish hence me increasing my holding by 50% this morning, despite being originally stopped out.

[woodpeckers] 03/9/2014 11:54

Not sure why you think there will be excess liquidity NAV? Metro's shares have all been placed with institutions who are highly unlikely to sell in the near future. IMO there is less chance of liquidity as the threat of Metro selling, bearing in mind that they need cash and their shares were well up on the price they received them, was always in the background. That worry is now gone. One direction for the share price now if you ask me.

[nav_mike] 03/9/2014 10:05

My trailing stop got taken out at 128 which was a pain, but managed to re-enter at 127.1. Took the opportunity to increased position size by 50% as well - by my thinking, nothing has really changed. Its not a placing, just a re-distribution of shares. Will be some excess liquidity in the market for a while, but the company is still very sound.

Damn pain to lose my accumulated profit from yesterday, but I guess spread bet stops will save you more often than not

[woodpeckers] 03/9/2014 09:37

I couldn't resist, a real bargain now.

I wonder if the company have thought about buying some back to hold in treasury. I think companies have to have shareholder approval for this. Does anyone know if they have it? It would be a good move IMO for such a cash generating company.

[olded] 03/9/2014 09:23

Agreed michael.

[philanderer] 03/9/2014 09:21

Tempted to jump in for a few at this level.

[michaelwhight] 03/9/2014 09:16

Could have been a lot worse and at least it's now over and only good news to come hopefully. I've doubled up at this level.

[olded] 03/9/2014 08:05

Long auction...

[woodpeckers] 03/9/2014 07:40

Pleased with that, 125p is very lttle discount. That will stand as a very firm base for the share price and if they do take them down this morning I suspect there will be plenty of fingers ready on the buttons!

[olded] 03/9/2014 07:30

I suspect the placing is very much factored into the price, otherwise think the share price would be at least in the 160/170p range. If anything, I think its a positive as it brings clarity to the situation and at least we know why the share price has been depressed, so we can hopefully move onwards and upwards from here. Furthermore, from what I understand, al the shares have been placed very quickly which suggest very strong investor appetite. The discount is not major either, just over 5%, which again suggests strong support.

[michaelwhight] 03/9/2014 00:03

A lot of shares to find buyers for and they will want a discount surely? The timing of the RNS suggests it's bad news really short term but I hope there won't be too much volatility.

[woodpeckers] 02/9/2014 21:53

Hi Pilly, I think the fact that this isn't a stock that has really courted or interests PIs is a good thing. Institutions will soak up the excess from Metro and the share price will continue back on its merry way.