Cupid Mega Bear Aubrey Brocklebank also looking at Dignity
By
Tom Winnifrith
PUBLISHED:
27 Mar 2013 @ 19:23
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Comments (1)
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More info about Tom Winnifrith
It was the articles penned by analyst Aubrey Brocklebank that started the sharp decline in the share price of Cupid (LSE:CUP). I have no more to say on that matter, my views are well known. But I just thought that I’d flag up that he is also looking closely at funeral business Dignity (LSE:DTY) and I do happen to agree with his conclusion. I explained the bear case myself a few weeks ago in a piece “Death is not a one way bet.” Given the new found prominence of young Aubrey (being interviewed by the FT today I gather) you may want to take note and read more about Dignity HERE
Tom Winnifrith writes for 10 US and UK websites and can be followed on twitter @tomwinnifrith – you can also get links to all of his free articles on his own website www.TomWinnifrith.com
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Aubrey Brocklebank – he was the guy that said that Cupid would run out cash in short order. Yet Cupid just announced that not only is it patently not running out of cash (GBP9m after buying back 3m worth of shares, paying 2m of the Uniform Dating acquisition AND their normal heavy Q1 marketing investment) but sales are up over 20%. I would therefore suggest that this analysis has been debunked. Another one who doesn’t understand the business model. In addition, the company is accelerating the pay-back of the 2.2m debt due from ID&E so that they will be paid back in Q2.
To sum up: strong sales growth, strong cash flow. With the more profitable H2 to come. Any update on that 10p price target? While you may think your views are well known, the rate at which you turn 180 degrees suggests that we should not assume.