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Clipper Share Discussion Threads
Showing 51 to 72 of 75 messages
I agree that the share price is unlikely to fall back to a level when I would be prepared to invest. My concern is that the company now has to deliver sustained growth over the next three or four years to warrant the EPS multiple. If the results disappoint the market at any stage over the next few years, then the share price will take a hit as the 24x eps premium will no longer be warranted. For me, the company has little or no room for error at the current valuation, which for a value investor like me means there is no margin of safety.
I will keep an eye on this but there are currently more attractive options in the market on valuation grounds.
Good luck to all that hold.|
Totally agree with your post.
I think we will see quite a few big companies signing up for click and collect in the next 6 months and most of the click and collect revenue is not priced into future broker forecasts.
njb67 ,half the share price in your dreams !!. Whilst I agree that CLG is richly valued, there is a reason for that ie., the market is convinced the company will grow into its valuation comfortably . You have to pay for quality. If you want cheap , buy inferior companies like wincanton.
Clipper is the leader in a very big sweet spot for the next 5 years and I fully it expect it to reach 500p within 18 months or else get taken over by the likes of Amazon who could do with a proper returns management(Boomerang) system. I should also add the US let alone Europe, lag way behind the UK in online delivery and returns and click and collect.|
|Like the company a lot but not at this price. 24x next years earnings and a dividend yield of 2% means you are paying today for the assumed growth for a number of years into the future.
If you got in at half the current share price (12x earnings and 4% dividend) then you have got yourself a good looking investment. Will keep on my watchlist in case the price comes back to a more attractive level.|
|Very quiet here, had a quick look at broker estimates for TY & they seem very much on the low side, Singer at 12.4p EPS & Numis 12.7p. Based on prior yr seasonality EPS would come in at 12.6p but this takes no account of the following ;
1. New M&S returns contract
2. increase in the size of the Waitrose click & collect service from 30% of store estate to 100% (effective 1st Sept). JV with John Lewis will undoubtedly broaden scope of companys relationship now that they have 10 yr contract.
3. New Halfords click & collect contract across car accessories & Bikes (ref Halfords sell 88% of their bikes via click & collect now apparently).
4. Any further contract wins (note CLG have not lost a customer contract on e-fulfillment) including cross border international ops with UK customers.
Company themselves stated in the HY report that "we expect (some of the opps highlighted) to significantly enhance profits in future financial periods".
No doubt that the rating is a little punchy at the moment but I don't think its beyond the realms of possibility that they could do 15p+ EPS for FY17 with decent growth to come in FY18. At yr end delivering 15p EPS PE would be 24.3 & PEG 0.53.
Brokers are estimating FY18 EPS at 14.4p currently which is far too low imo.|
|HY results presentation
|No figures in the announcement|
|Will this new deal warrant an EPS revision upwards by the brokers covering Clipper?|
|They have announced a ten year contract with John Lewis.|
|I'd be interested in knowing too unless it's merely a technical breakout higher?|
|Any reason for the rise?|
|Sounds like a very positive view jambo192!|
|Contract with Marks and Spencer announced in company website|
|Just bought into this one -looks good value. Very quiet thread !!|
|Changing to a new depot in Bristol I have heard,i think its to handle increased volumes from a current contract.Definate confidence coming to clipper.|
|Quiet board here. Highlights from last week are the Director buy at 266p and an article in IC: "Blue-chips flock to Clipper
The rise of online shopping - and thus online returns in areas such as fashion footwear - have sent droves of blue-chip brands to Clipper Logistics (CLG). A spate of contract wins, 70 per cent of which reportedly came from recommendations, sent adjusted operating profit up 18 per cent to £6.2m in the six months to October"|
|Decent half year results. Happy to hold here having bought on the recent dip to 240.|
|Well I'll be dipped!|
|You raise some good questions and concerns saucepan.
I would have thought that it must be the case that margins are under pressure across the sector as each company bids more and more competitively for business.
Could be the case of too many companies operating in the sector perhaps i dont know?|
|I have just been looking at CLG a bit further.
I am wondering if there is any potential sector "read-across" from the DX. trading update/profit warning that has just devastated the share price?
DX. pointed to:
* challenging trading conditions
* pricing pressure
* deteriorating trading patterns
* increased cost based pressures
* driver resourcing issues
The moot question being: is this DX. company specific weakness, or is it indicative of wider sector challenges that could also impinge on CLG, including increased competition (e.g. lack of barriers to entry)?
These possible concerns have stopped me buying back for now, but I would be interested in what others think.|
|Modform, u must b very cautious as I do not see any reason to be negative based the statement you have quoted. It is simply stating that they are growing organically in terms of services offered to existing clients AND ALSO winning new client contracts leading to exponential growth. That is how I interpret the statement, but I am not not sayin that your interpretation is incorrect, just different than mine!|
|Thanks saucepan, the only bit that was of concern to me was this bit on the trading statement:The Board remains confident that continued organic growth in the Group's sectors, particularly e-fulfilment and returns management services, coupled with the benefit of new contract wins, will continue to deliver strong performance in the second half.It says coupled with the benefit of new contract wins. Is he saying that they need to win new contracts and how many of them to meet market expectation. That was the bit that I felt uncomfortable with.|
|Just looked back in here, thanks to modform mentioning CLG elsewhere. I went into rather a lot of cash late August as a precautionary measure, when markets took a dive. CLG was a stock I sold up as part of that exercise. I am thinking about buying back. It looks attractive at these levels.|