Wh Smith Share Discussion Threads

[philanderer] 19/8/2012 09:11

'Market Watch: WH Smith sales take off as travel branches drive growth'

Sunday 19 August 2012 00:00

High street stalwart WH Smith is expected to reveal improved like-for-like sales as it continues with its strategy to expand its UK travel arm and international division.

The travel business, which features stores at airports, railway stations and motorway service areas, has helped offset declines in the under-pressure high street outlets in recent months.

The travel arm now makes up 50 per cent of the group's pre-tax profits and analysts expect it to continue being the key driver for growth, supported by its plans to expand internationally.

Seymour Pierce analyst Kate Calvert said: "The business model is becoming increasingly more flexible as travel accounts for a greater proportion of group underlying earnings and its high street position is benefiting from market consolidation."

The group is also expected to give an update on the success of the Kobo e-reader, which it introduced to stores this year to compete with Amazon's Kindle.



PA:

WH Smith recently saw its share price hit a new high as investors continue to be convinced by the retailer's strategy to expand its UK travel arm and international division. A final trading update on Thursday before it publishes full-year results in October is expected to reveal improved like-for-like sales across the group.

Despite recent strong share gains, Seymour Pierce analyst Kate Calvert said she still believes the market is undervaluing the business at around £748 million and that shares at around 575p could go further. She said: "The business model is becoming increasingly more flexible as travel accounts for a greater proportion of group underlying earnings and its high street position is benefiting from market consolidation."

[philanderer] 17/8/2012 10:03

Morning guys,

Just a small holding at present to give the portfolio some more retail exposure which I reckon is near bottom. I like the international exposure for SMWH and it`s expansion plans in that area.

Pre close statement next thursday.

[contrarian2investor] 16/8/2012 21:15

philanderer, nice to hear from you. As you will see from my earlier posts. I did well shorting SMWH earlier in the year. Now I am doing my best with my current short positions to give it all back. SMWH has done amazingly well since mid June, out-performing its peers.

Why are you buying at this level?

[philanderer] 16/8/2012 15:51

Dipped a toe in this afternoon

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maybe a false dawn - mixed views....

Retail sales rise points to stronger UK economy

Better-than-expected retail sales figures have helped to raise hopes that the UK's recession may not be as deep as initially thought.

The Office for National Statistics said sales volumes in July rose by 0.3%, and were up 2.8% from a year earlier.

It also revised June's monthly sales increase up to 0.8% from 0.1%.

Analysts now believe that initial estimates that the economy shrank by 0.7% in the April-to-June quarter are overly pessimistic.

The ONS figures showed that the increase in retail sales last month was driven by fuel sales, which rose 2.6%, as supermarkets tempted motorists with promotions.

Excluding fuel, sales were unchanged, with stores continuing to cut prices to attract shoppers. However, this outcome was still better than analysts had forecast.

Food sales rose 0.4%, while sales of clothing and footwear fell 1.8%.

The ONS also said that retailers had reported no impact from the opening two days of the Olympic Games.

"I think it supports what the Bank of England's been saying that as real incomes start to improve because of lower inflation and possibly eventually higher wages, you might start to see the retail sector show some signs of improvement," said George Buckley of Deutsche Bank.

Amit Kara of UBS said: "The data shows that's been a widespread pick-up in volume growth across most of the sectors... and of course this is all coming before the boost we're likely to get from the Olympics.

"As such, it's consistent with the view that Q3 will be a lot better for overall economic growth in the UK."

However, the British Retail Consortium (BRC) was less optimistic.

"July was no golden month for retailers, despite the build-up to the Olympics. The sale of non-food goods held up better than food, but both measures were weaker than in June," said Stephen Robertson, the BRC's director general.

"We'll need to see August's figures for the full picture. But with disposable incomes still under pressure and with inflation sneaking back up, underlying conditions remain challenging for the sector."

[philanderer] 14/8/2012 20:15

Telegraph market report

"Shares in WH Smith hit new highs"

Investors have chased the newsagent higher, but broker Seymour Pierce thinks they have further to go.

Despite touching new highs, shares in high-street stalwart WH Smith may still have further to go.

The newsagent climbed 2 to 574p, the highest level since the company de-merged its retail and news distribution businesses in 2006. Seymour Pierce analysts Kate Calvert and Freddie George said today they think there's more to come from the company, which has held up well in the tough economic environment.

"We view WH Smith as a core holding and believe the market is undervaluing this highly cash generative business," they wrote in a note to clients. The group "is one of the few retailers in our universe to have grown profits through the current downturn."

The analysts also noted that over the past five years, the retailer has returned more than half its market value back to shareholders. They recommend investors buy the shares, and raised their target price to 670p from 570p.

[philanderer] 14/8/2012 20:12

Part of the international expansion that Ms Calvert talks about..

Qatar firm sets up unit to run WH Smith franchise

Qatar's Al Meera Holding Company said on Tuesday it has launched its own bookstore subsidiary, Al Meera Bookstore, to run shops for UK giant WH Smith.

The new subsidiary, 100 percent owned by Al Meera Holding Company, will operate stores in Qatar under the British franchise, with the first shops slated to open by the end of 2012.

...The first stores are expected to open in Qatar before the end of the year, and will be located in Ezdan Mall, Giant Hyatt Plaza, and Nuaja Mall.

[philanderer] 14/8/2012 13:45

Afternoon all

just put this one on the watchlist.

Good piece today by Kate Calvert of Seymour Pierce ( she`s one of the few I do take notice of ).... 'buy' with a 670p target

[contrarian2investor] 02/8/2012 14:03

I have just added a further short @£5.56p. I can only reiterate that a fool and his money is easily parted.

[antic177] 05/7/2012 10:08

the bid offer spread on IG is terrible. I only managed to short 551. a few days ago. hopefully should come back down 20-30p after such a quick increase.

[contrarian2investor] 04/7/2012 19:45

spob, indeed, congrats well done with your trade.

[contrarian2investor] 03/7/2012 09:27

I have just added a further short @£5.57p. A fool and his money is easily parted.

[contrarian2investor] 28/6/2012 12:42

Added to my short position @£5.32p

[contrarian2investor] 22/6/2012 16:34

I took out another small short yesterday @£5.14p.

[contrarian2investor] 20/6/2012 21:03

spawny100, thanks. I closed out the remainder of my positions on Friday.
Given the disappointing news from the US FED this evening I will be looking to take another nibble tomorrow.
In answer to your question. Not whilst the executive bonus schemes are linked to EPS. The less shares available the easier it is meet their bonus targets, regardless of share price performance or shareholder return.

[spawny100] 20/6/2012 19:43

475 was a great call CI. Now when exactly will they stop buying back their own shares?!

[contrarian2investor] 14/6/2012 19:16

After reading the IMS first thing this morning, I fully expected SMWH to finish the day down a minimum of 2-4%. Show's how wrong one can be!!
I have just checked the SMWH trading data and it appears that a purchase was made for 169050 shares @£4.846p near the close of trading. I wonder if that was a "Transaction in their own shares".
Given all the different factors, volatility and intervention(s) that could take place over the next 5 trading days. I will be giving serious consideration to closing out the remainder of my SMWH positions tomorrow, with a view to coming back again once the dust settles.
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I wish you well with your targets spawny100.

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I wish you well with your holding spob. BTW what you shorting atm?

[jon827] 14/6/2012 07:53

Lol that statement was short and to the point!, now we know why teh ceo sold at the top then

[spob] 11/6/2012 16:26

bought a first tranche in SMWH today

goes ex div 8p on wednesday

will add more if goes much lower

[contrarian2investor] 06/6/2012 20:02

My targets triggered/achieved today. 20% of my short position left on the table with a stop-loss in placed at £5.12p. Lets see if SMWH goes sub £4.60p whereby I will reduce my short by half.

[contrarian2investor] 03/6/2012 14:53

My SMWH targets should be achieved next week. I will then reduce my positions by 80%. I wish you well with your targets spawny100.

[spawny100] 24/5/2012 08:02

Not a hugely ambitious target there and I feel it will come sooner rather than later. I have sub £4 as my target as I mentioned earlier, and soon!

[contrarian2investor] 23/5/2012 13:56

My initial short target of sub £5 for the summer has been met. I have opened a smaller additional September short today with a target of £4.75p.