Majestic Wine Share Discussion Threads

[cockneyrebel] 10/4/2015 11:55

steveo18 - what you doing with your GRG you sold two days ago? you're down 50p on that sell including the divi.

Not the sharpest pin in the tin are you? If you were you'd have been buying these at below 285p with me. A recovery story and a classic co. Remember Next @ 4p? Don't suppose you do.

All imo.

CR

[cestnous] 10/4/2015 11:15

Bought a chunk based on the new CEO,hoping he will adopt the NW model. Could be long term though.

[jazza] 10/4/2015 10:51

In some ways, I think this mimics what has happened in the beer market.

Punters fed up of being forced to choose from a few mass-produced beers of dubious quality - Fosters, John Smiths, Stella.

The micro-brewery industry has grown rapidly as a result (certainly in and around where I live). The improved quality and variety is most welcome.

Being able to buy previously unseen quality wines from the little guy has a big appeal for many people (300,000 and rising fast).

[steveo18] 10/4/2015 10:31

yeah risk of another ims saying trading has deteriorated further and has breached bank covenants lol

[jazza] 10/4/2015 10:25

I think it possible to lose sight of what a growth story entails.

[steveo18] 10/4/2015 10:18

weak march and what they have bought looses money lol

got £70m of debt now inc deferred, so precarious

[randomambler] 10/4/2015 10:13

Well this deal is a bit of a surprise isn't it? Bold though and also creative and risky. The new CEO looks to have a pretty good track record with Virgin Money, Virgin Wines and Naked Wines; a real emphasis on customer service. He's getting some flack from NW investors but he's taking it on the chin:

[steveo18] 10/4/2015 10:11

A weak March, severance payments and FX movements means profit below forecast

[james8] 10/4/2015 10:00

MJW have been doing click and collect for years

[cockneyrebel] 10/4/2015 09:57

Even more large trades jazza - massive volume - highest in 5 years - capitulation imo.

Found this from Panmure today:

MAJESTIC WINE: very bold move to acquire Naked Wines and acquire a new CEO as a job lot. I am told by someone well informed in the online retail space that NW is "one of the best working capital models I have ever seen" .... a bold move given rich price paid (£70m, with £50m in cash, balance in MJW shares). EPS enhancing in FY 2017 is expected. Rowan Gormley becomes CEO. MJW says that PBT will be c£21m for y/e 31/3/15 .... which looks a touch light against consensus of £22.6m. Size of the prize? Well Majestic in yester-year always traded on >20x multiples and the two businesses should be very complementary. I do like situations where high quality companies fall on harder times and make very bold moves. I suspect a lot of people will want to meet the new CEO and find out what it all means.

[jazza] 10/4/2015 09:46

Dipped a toe in the water myself.

Edit: Was that 500k purchase what you mean by heavy CR?

=O)

[cockneyrebel] 10/4/2015 09:22

You have it in one re Naked Wines Jazza.

I've been waiting to buy MJW as soon as they get a decent CEO in - thought it might rally on that news. Didn't expect to buy MJW at such a great discount when they announced it and didn't expect such a great CEO and acquisition either!

MJW will now be a scaled up Naked Wines with click and collect and a top rated CEO.

Naked Wines has a fantastic working capital I read a while back - the divi going for a year isn't a problem for me. This reminds me of when HFD bottomed at near £2 a couple of years ago imo - the punters capitulated today imo.

Been buying in this am, pretty heavy.

All imo/dyor etc

[jazza] 10/4/2015 09:16

MJW customer list grew from 631,000 to 643,000 to end-Sept 2014



Naked wines had 250,000 at the time of the article below. I believe it is now 300,000 with 6,000 on the waiting list (which given my place on it, is being processed about 150-200 per day).

hxxp://www.cityam.com/207468/naked-wines-pour-70m-its-independent-winemakers

The boutique online retailer, whose customers, or angels, invest over £2m each month towards future orders, said group sales were up nearly 40 per cent over the Christmas period on 2013.

Over 250,000 investors have now signed up as investors, which means it will be able to raise £70m in crowd funding this year.

[soundbuy] 10/4/2015 09:07

MJW customer for 15 odd yrs till moved to Naked.......hopefully I won't see any changes, 'reassuring' email this am.???

What does this mean for you?

1.Better wines. We’ll be getting more freedom to invest where it matters, the juice. Expect even better quality, and less stock-outs of your favourites on the site
2.Wider range. Majestic has a team of wine buyers who know regions we don’t (like Burgundy and the Rhône), and can help us find the kind of winemakers you love, and get them Naked
3.More convenient service. If you’re not suited to home deliveries we are planning to offer Click & Collect from Majestic’s 200+ branches.

In case you were wondering...
1.We’re going to be the same Naked Wines. I will be taking over as CEO of the combined group. So if you thought Naked was going to get lost in a bigger company, think again
2.No, we are not selling out. The Naked management team will be shareholders in the new group... you ain’t getting rid of us that easily
3.Majestic did the deal precisely because they love the Naked ethos – so that won’t be changing
4.We will be offering Click & Collect from Majestic stores – but you won’t find Naked wines for sale in Majestic, or vice versa
5.Your money is completely safe. You’re probably not aware, but our original investors guaranteed your money. Majestic will be taking over that guarantee.

[brahmsnliszt] 10/4/2015 08:57

Just dipped toes in sub £3Let's see

[ramridge] 10/4/2015 08:37

Buy a loss making company and make their CEO the new head of the whole company. Words fail me ... MJW's management must have been helping themselves to too much of the free vino.

[jazza] 10/4/2015 08:23

You might want to research naked - their business model is impressive and their customer list growing like billy-o

This deal will allow naked to go click & collect.

[emeraldzebra] 10/4/2015 08:13

yep - a real mess.

[goliard] 10/4/2015 08:10

Well there is my 280 entrance price, but I don't want it anymore. Quite frustrating really. Majestic "transformed" into a company with debt, no dividend and a new business that relies on crowd funding and doesn't make a profit. Not what I would have wanted to see if I was a shareholder and shareholders are now relying on the new business to get to £7m profit to justify this valuation. How long will that take?

[shanklin] 10/4/2015 07:57

Nice of MJW to hide that stuff about the dividend so far down the RNS.

[goliard] 10/4/2015 07:53

And they are buying a loss making business for £70m and then making their CEO the CEO of the whole group. Errrrr... So who was acting as the boss on Majestic's side during this deal? Feels more like a reverse takeover.

[bobsidian] 10/4/2015 07:37

So no final dividend for 2015 or interim dividend for 2016.

Hmm.

[shanklin] 10/4/2015 07:23

So, is this like two alcoholics getting married or are there synergies to be had?

[bigbertie] 09/4/2015 09:30

The Telegraph had Majestic to issue trading statement today, in their list of announcements due this week. No sign of it so far.

[emeraldzebra] 01/4/2015 11:15

havn't got any of these at the mom but feel there will be resistance below 300