||EPS - Basic
||Market Cap (m)
|Food & Drug Retailers
Mccolls Share Discussion Threads
Showing 326 to 347 of 350 messages
|Thanks for the links.
I am fundameltaly much more positive on this stock than the wider market appears to be. It was the same with GRG some while ago. I am not saying we have the same level of potential here by any stretch BUT in a similar vein I believe it is the change in business model which is the underlying story. MCLS are FAR more able and capable to deliver it than its larger rivals IMO and historically (like GRG) there team at the top has delivered REAL growth and value to shareholders (according to my calculations as taught to me by Mr. Graham).|
|185.25 - 188.00 (GBX) at 15:16:03
on Market (LSE)|
|Update from Beaufort
|Hold on. Food retailers shares fell on DEflation, as reduced revenues made it harder to meet rising costs. Now, you are saying INflation will do the same?
I actually think the whole economy is about to tank on rising interest rates, increased import costs and, possibly, rising fuel costs (coal has shot up this year, besides stronger oil). Corner shops tend to be a refuge in recession. Their sales tend to hold up as people lose their jobs and can't afford to drive to superstores twice a week.
There is the complication of bricks and mortar retailers being hit by online sales, which seems to be hitting home hard again this year, I recently noticed lots of empty small shop units in Southport and Leeds, and an even greater proliferation of charity and £1 shops. I noted a first £1 cafe in Southport, which used to be a bit more upmarket then some Northern seaside towns but maybe not so much now. It there is less draw to such high streets as the economy declines and range of shops deteriorates, I suspect people will buy a bit more stuff when they nip into their local corner shop for milk, bread and now parcels. I could be wrong, of course. Who knows what ever-expandinng online will do? They will start charging properly for delivery before long, as the dash for market share matures. I think dull old MCLS's 6% and rising yield might be reassessed when the next downturn arrives, which I think will be soon.
Mortgage rates rising:
|I just can't bring myself round to buying into this. It has been on my watch list forever, or so it seems. The growth is coming by expansion, fair enough, but the LfL figures are not good. The group is having to pay more overheads for more shops to buy the growth to sell marginally more goods. That must be hitting profits.
They will also be running into major headwinds over the next twelve months. I can't see LfL figures improving any time soon. Higher inflation is on the way, bringing tighter margins as retailers try to absorb costs to maintain their competitive positions. The move to the living wage which will hit the pay bill (not that I am complaining, mind).
A nice yield, which I would like to have, but I think the risk to capital is just a bit too high for me at the moment. Back to 140 and I'll have a dip.|
|yes all going to plan|
|That's a very steady update. Year finished and traded in line with expectations. 1000th store opened. Coop conversions planned to start after Christmas (and should be completed by half year, said previous news). All ahead easy.|
|Good write up in mail on Sunday|
|little bit of movement in the price now, never takes much volume to go one way or tother|
|I've just checked the website and there is a pre-close update on December 1st and Christmas trade update January 12th.|
|That forecast seems a bit conservative to me but maybe the refit costs will eat into next year's profit and then 2018 will see the real boost. Refits start in January and should finish after about 4 months. EBITDA should then run at over £50m per year, making the current maket cap look a bit tight. 250p would seem more reasonable given the likely steady cash generation and dividend increases..|
|Thanks, dirty75. Your article indicates that profits are set to rise from £20m this year to £25m next year.I think that would probably push eps to a little over 18p.
|nice piece in yesterdays Sunday Mail|
|180.25 - 188.00 (GBX) at 15:20:14
on Market (LSE)|
|I suppose it could be a read across from other supermarkets. Tesco is becoming profitable again, according to yesterday's update, so maybe it eases the price war pressures.|
|SHare price is looking very perky of late. News coming?|
|Retail Week are the latest have a positive write-up saying "it's a significante step up."
IC - Half-year figures from convenience chain McColl's were somewhat overshadowed by the group's recently announced plan to buy 298 stores from grocery rival The Co-operative Group for £117m. The acquisition was revealed just one week before half-year numbers hit the market, and helped mask a 2.2 per cent dip in like-for-like sales during the six months to May.
McColl's strategy is increasingly based on such buy-and-build growth - something made all the more evident by a 1 per cent improvement in underlying sales from recently acquired and converted stores during the reported period.
IC VIEW: McColl's appears confident in its ability to conduct a thorough conversion of all 298 Co-op sites. The shares trade on just over nine times forward earnings, around the average since listing and about right given the competitive background for grocers and the future integration risk. Hold.|
|all apart from the IC|
|All the write-ups I've read about taking over the Coop stores are very positive and favourable and say they are a good fit for McColl's.|
|shame I missed on the recent rise. I looked, then got distracted, came back then £1.50.|