Dixons Retail Share Discussion Threads

[robo175] 22/7/2014 16:27

Please don't say that number.

[wanttowin] 22/7/2014 16:15

testing 50 again.

[mikepompeyfan] 21/7/2014 13:11

An even bigger problem for them if ftse 100 status is achieved. Plus some will have been holding off buying Dxns pending dividend resumption. ;-)

[undervaluedassets] 21/7/2014 12:05

Going to be very complicated for the shorts once merger is complete.

[billiam] 21/7/2014 11:50

Well, I guess the EGM last week was the final, final reason shorts would have been holding on.

Now that has passed (with 95% approval), time to take your medicine and close out.

Up she goes...

[undervaluedassets] 21/7/2014 09:38

They will be replaced with other forms of debt - But cheaper. But yes it is good news - no question.

[mikepompeyfan] 21/7/2014 09:29

Unless l am misreading the RNSs it seems the 2015 and 2017 bonds are being paid off early. Surely a sign of confidence if that's the case.

[undervaluedassets] 21/7/2014 09:29

Redeeming bonds early.

Clearly found cheaper ways of managing debt.

Always good news as the money saved goes straight to the bottom line without the company having to move a muscle.

clearly the merged company has a better credit rating than the company standing on it's own.

[mikepompeyfan] 18/7/2014 15:13

LONDON (ShareCast) - Merger partners Carphone Warehouse and Dixons Retail were both gaining around 5% on Friday afternoon after shareholders overwhelmingly voted in favour of the £3.7bn tie-up yesterday.

"I'm delighted that shareholders have unequivocally supported the creation of Dixons Carphone," said Sebastien James, Chief Executive of Dixons and the designated boss of Dixons Carphone. "The integration team has made a flying start to getting the process underway and we are encouraged by the evidence - that we are discovering every day - of just how complementary our businesses, colleagues and cultures are," he said.

[undervaluedassets] 18/7/2014 14:11

shareholder approval of the CPW DXNS deal is the big kicker here today.

I do think that these are fairly simple businesses to integrate.

[blondeamon] 18/7/2014 14:09

Anything close or above 50p is a good selling point before it retraces back to 48/49p for re-entry if you want to trade this. I don't have skin in the game here so tread lightly.

[muscletrade] 18/7/2014 13:56

Thanks for the post Mike. Excellent news and not before time. License to print money really. Why they have not gone down this track earlier is a mystery to me.

[american idiot] 18/7/2014 11:47

Any reason for todays sudden move upwards at around 10:30am ?

[mikepompeyfan] 18/7/2014 11:46

I did suggest this as a possibility some time time ago.

Carphone Warehouse is in advanced talks with Three, the British mobile operator, to launch its own branded mobile services following the retail chain's merger with Dixons.
Carphone Warehouse, which will be renamed Dixons Carphone, would buy wholesale access to Three's network to provide the services.

Executives at the group have indicated that they want to explore the opportunity around the wider connectivity of electrical devices, such as cameras and white goods, alongside the more traditional means of communication, such as smartphones and tablets.
The merger with Dixons has put this so-called "internet of things" at the heart of the future strategy of the combined group.
Carphone Warehouse has a "branded reseller" agreement with Vodafone at present, whereby the customers belong to the mobile operator rather than the retailer. There are about 700,000 customers who use this low-cost alternative.
Carphone Warehouse has been reviewing this relationship ahead of the completion of the merger with Dixons in order to determine how extra services could be added. The arrangement with Vodafone will remain alongside its own branded services.
Carphone Warehouse has spoken to other mobile operators, according to one person familiar with the situation, although the group's talks with Three are progressing. The group is also examining a similar arrangement in Ireland. Carphone Warehouse and Three declined to comment.

Carphone Warehouse is not seen as a direct competitor by mobile operators, according to one person with knowledge of the market, because the retailer targets specific customer areas.
Carphone Warehouse's primary business will continue to be selling service contracts for the main mobile operators which offer customers smartphones and tablets through the chain's stores.
The discussions with operators come as EE, the largest mobile group, is reviewing whether it wants to continue to using third party retailers as part its own business. No decision has been reached, according to those close to the negotiations, although an announcement could be made soon.
People familiar with the talks about Carphone Warehouse's wholesale mobile contract said that the two sets of negotiations were being kept separate.
The deal with Carphone Warehouse will be seen by analysts as unusual for Three, which has not sought to sell its network to brand providers on a wholesale basis in the same way as rivals such as EE have done. Three has a stronger position given its success in acquiring 4G spectrum in the auction of the frequencies last year.
There are now hundreds of so-called "mobile virtual network operators", including popular retailers such as Tesco and Asda, that use the four networks in the UK for their own-branded services.

[blondeamon] 16/7/2014 14:42

Theory or not, it has happened 3-4 times already. It's not bad for a share to be range bound for a while.

I think the only thing to make this shoot to the sky is when the merged entities post their first mutual results so that the market sees the synergies achieved. until then it's too big a risk to take.

I'd be comfortable to re-enter near 44p as there's limited downside there. I'd probably sell again at 49p though. Better to lose a few p on the way up than lose more on the way down.

[ravin146] 15/7/2014 20:29

Blondeamon your theory will be tested tomorrow. It is disappointing that this merger is longing out now, and we are in limbo, but I do hope this doesn't fall back to early 40's and we at least hold 45-48 at the stage of merging share vale in August. I just read your article on the 26th June blond..you do have a point, pre merger things were becoming rosy with dxns becoming lean, then the sudden merger...over that period from May we have had little share price value for shareholders. i.e merger actually stopped the momentum. I do wonder, without this merger would we have hit 60p now anyway. Hopefully the new entity will settle in with investors, shortens reduce as c.20% is high and the first set of result are positive and carphone's agreement with phone operators are renewed or strengthened. Gdla

[blondeamon] 11/7/2014 09:58

As I said before, it seems a good strategy to sell when it goes above 49.5 and buy back at 47. In hindsight of course but it does seem to be range-bound there for now.

[ravin146] 10/7/2014 17:08

In a limbo atm...a strategy of investing with no time limit is one that has clearly changed from short term to long term lol...it will take time for any further value until merger is out of the way, shares become one value and then first set of results and new strategy become apparent. A lot of 'good' uncertainty still here...the short investor levels are not helping either , as that needs to fall quite a bit still...a lot of upturn still remains...but can't say 60p as that will now be based on carphone having good result to in the next quarter. They still have to finalise their strategy and partnerships with the phone contract providers.

Time will tell.

[maximillian1] 09/7/2014 15:55

Yes but it went up like a bloody rocket first....

[wanttowin] 09/7/2014 11:32

Quiet on here, I am still holding for 60p which is a cert imo, don't care how long it takes. Could be worse look at AO going down like a lead balloon.

[blondeamon] 04/7/2014 16:22

They haven't closed for more than 8 months UVA, they are all still there. The funds are still shorting this so you're not in the clear yet. The recent rise is good but nothing is determined.

With DXNS fundamentals dont matter at all. It still trades where it was last year when it had a bunch if useless loss-making comopanies, didnt make 1/5 of the profits it does now and didnt merge into one of the most successful retail partnerships of the decade. Go figure.

[undervaluedassets] 03/7/2014 18:53

But the they are beginning to close aren't they ....

The the big shorts are long gone. . Just the punters (and lots of them) that need to close.

[blondeamon] 03/7/2014 14:55

June Dixons short interest 16.08% from 16.89% in May. All the shorts are still there which is positive as the share price has risen without them closing so has further to follow when they do.