Mccoll's Retail Share Discussion Threads

[josephrobert] 29/3/2016 19:00

Yep, the charge is pretty steep. Thinking it maybe down to improved sector sentiment - plus I think the share price was unfairly beat down - the recent results show a solid business to me - positive cash flow, high return to shareholders, reducing and low debt. 6.8p in another month so a bit early for that juicy divi imo - looks like the ex date 28/4/16.

[aleman] 29/3/2016 15:06

MCLS shares have been very perky lately. I wonder if its just buying to collect the juicy final dividend or is there something else behind it?

[cwa1] 10/3/2016 08:52

Morning All

Steady as she goes share price wise. Long may it continue.

[loganair] 08/3/2016 17:20

Aleman - I've noticed that too, even though these types of shops are a lot more expensive, often 25% more expensive than your average Sainsburys or Tescos.

Saying that the Co-op are also doing very well and they too are often a good 10% to 15% more expensive than any of the other major supermarkets.

[aleman] 08/3/2016 17:11

I broadly agree with that but what they don't mention is the recent spate of job loss announceents in the UK. People not working and struggling to pay for petrol walk to the corner shop more. Early days yet but the UK is showing some signs of a slowdown or recession - which we should expect to see soon as the cycle is reaching that point in time. And the forecasts seem conservative, given the increasing shop numbers.

[loganair] 08/3/2016 16:24

IC - McColl's is still under the squeeze from price deflation.

Unfortunately, the overall downward trend in the growth rate has continued into the new financial year. Like-for-like sales fell 1.8 per cent during the first 13 weeks of 2016, although total revenue rose thanks to acquisitions and new openings, with the company on target to reach 1,000 stores by the end of 2016.

Things could have been worse, though. McColl's share price has fallen by a quarter since its IPO, but analysts at Numis point out the food retail index fell 37 per cent over the same period. The broker expects pre-tax profit of £20.5m for the 2016 financial year, giving EPS of 15.6p, compared with £21.7m and 16.5p in FY2015.

IC VIEW:

McColl's shares are well down on their float price, but consistency and generosity with shareholder returns has left the stock with one of the most attractive looking dividend yields in the sector. The cheap forward PE ratio of just nine isn't a huge indicator of quality, but we're staying in for the income. Hold.

[aleman] 01/3/2016 11:42

Good results. Like for like a little disappointing but everything else looks good. It's amazing that you can find a share yielding over 7% where the dividend is expected to increase.

[dirty75] 26/2/2016 10:11

brought a few more in the 130s. I noted some sale and lease backs on 3 stores in the NE which are up for sale. Freeing up a bit more cash.

[aleman] 22/1/2016 12:38

Retail sales figures were very poor, showing an annual decrease for the first time since 2009. I'd expect retailers to trim orders and lay-off temps on the back of this. Any more worsening and the UK could be in recession. The MCLS update looks much better in light of this.

[lord gnome] 15/1/2016 16:03

Looks like a big overhang has just been cleared.

[neilyb675] 14/1/2016 08:05

Much less seasonal. Still more expansion to come.

[aleman] 14/1/2016 07:55

Looks the trend has improved a bit in Q4. I think the main supermarkets have stopped discounting so strongly and there are signs the economy is slowing a bit (some horrible retail updates in the US this week). Local corner shops tend to be a bit countercyclical?

[neilyb675] 23/12/2015 12:29

IN @ 133.78p. I like the fact that they are incorporated into so many new build estates - always high prices compared to supermarkets and many have the post office in-built too.

[aleman] 22/12/2015 17:19

Dropped back into the lower channel. It seems remarkable value now but it's probably a spike down as a fund manager or two have cleared out losing positions at the year end. It must be hard having to live with a manager looking over your shoulder that doesn't like sitting on losing positions and pressures you to get rid of them at their lows at year end, even if they are fundamentally good value. Seen it happen plenty, though.

[etavener] 22/12/2015 16:59

OMG!! What happened today? Down 5.5%.

[bingham] 16/12/2015 12:35

Waiting for April 6th to buy more.

[aleman] 16/12/2015 10:37

The downtrend since July looks to be breaking under pressure from bargain hunters/value investors. There is still a longer downtrend in place at aslightly higher level, though. The share price needs to get above 145p to regain the upper channel. That would then suggest a jump to around 160p but that resistance would be falling and probably need some good results to break. I suggest a small bounce in the short term but nothing to get excited about. The shares would then tend to drift down again until news. All a bit of fun from a fundamentals investor.


free stock charts from uk.advfn.com

[bingham] 16/12/2015 09:09

Someone buying in cheep?

[aleman] 15/12/2015 16:14

5m shares went through after lunch.

[bugle4] 08/12/2015 11:07

It's been know for a couple of years that John Lancaster would be going so doubt if will affect the market much, who they replace him with may have more of an impact TBH.

[blueliner] 04/12/2015 15:18

Similiar views to mine Aleman, also bought in end Oct early Nov after the feature in Master Investor, plus a top up today.

Any concerns with John Lancaster relinquishing his CEO role though still around as Chairman.

[wjccghcc] 04/12/2015 13:33

Likewise. Bought back in at 140p.

[cwa1] 04/12/2015 13:09

Good to see you here Aleman. I too have a(recent) holding here FWIW.

[aleman] 04/12/2015 12:54

These have been on my monitor list for a while and I've decided to purchase some this week after some of my other shares went up as these dipped. It meant I could switch and increase my dividend income.

I'm not expecting anything too exciting but there is hope. Despite flat profits, cash is getting generated that is substantial compared to the market cap. Some pays the generous dividend, the rest will be put to use in ways that should lead to some kind of expansion in the long run. Meanwhile, you get 7% or so per year paid out in cash. It's an underrated way to grow wealth. Then there is that the company eems very cheap to cashflows so there is ssome scope to make a capital gain even without any growth from reinvested retaind cashflows. Finally, I've noted the terrible traffic in my area recently. I decided to check fuel sales to find they have shot up on the last few months to the highest since the end of 2006 and up 11.3% last month year-on year.

Traffic It is causing all sorts of problems locally. The slightest accidents are causing major delays. Routine delays are increasing and rush hours getting longer as traffic increases. This will make people slightly less likely to drive a few miles to their favourite big supermarket for small top-up shops and more likely to just nip to their local corner shop. This is rather speculative, I know, but the prospect of getting stuck in traffic again has crossed my mind a lot in recent weeks and I'm having to set off earlier on my regular journeys. The increasing congestion in recent weeks is probably behind parcel companies margins being hit as they have to run more drivers and vans to deliver the same number of parcels if they go slower. I think the traffic is becoming a significant problem for lots of people but MCLS might actually benefit. Whether or not. The shares are cheap, the yield is good, the cashflow looks high and stable compared to the market cap and I am a new holder.