Alexon Share Discussion Threads

[the skies the limit] 20/12/2006 16:14

They make there money by knocking it down then ramping it up on low volume so while the small buyers pick up stock they pump up.

Doesnt happen every time but its just one tactic.

They can do it on the way down as well ie mark down heavily on low volume.

Cant beat the mms!

[bletherer] 20/12/2006 16:05

Pretty close to a breakout again.

[bletherer] 18/12/2006 11:48

Looks like the Independent was well-informed.

[the skies the limit] 10/12/2006 10:40

The report just adds to the gloom.

[grigor] 10/12/2006 00:56

Retail's nightmare before Christmas

Many of the big chains are predicting a disaster. Are they panicking or will it really be hell on the high street this year? Report by Jenny Davey ...

[bletherer] 21/11/2006 23:07

I think all retailers are Christmas-sensitive, aren't they? Just checked and last year there was no news between the interims and the trading update on January 10th, though no doubt there will be rumours. Interesting seasonality now that I look at it that in each of the last 3 years the share price has rallied around the turn of the year. Hopefully there'll be a repeat this time round.

[bletherer] 21/11/2006 09:09

Don't think it's a C&H as the right side of the cup should be more or less level with the left (i.e. in this case should have been at around 150, not 165). Just looks like a standard up-channel to me, though when you look at it in the context of the 2-year chart it appears corrective in nature, i.e. could be a bear flag. Looks good for at least another 20p from here, though, IMO.

[bletherer] 17/11/2006 10:58

The mild share price recovery seems to be continuing for the time being. What you make of this company depends quite a lot on whether you think the very bad year they're currently having will become the norm or whether they can make some kind of recovery. At 150p the dividend yield is still 6% so at this price the market is clearly saying there will be no recovery and they will be forced to cut the dividend next year. We shall see.

[the skies the limit] 22/10/2006 21:19

Cant see £15 million being right...LOL

Brokers say sell I think.

[typo56] 22/10/2006 21:03

Sunday Express today:- "Alexon, owner of the high street shoe shop chain Dolcis, may have to give the struggling chain away for nothing after failing to attract buyers for the business at the asking price of £16m"

[flashheart] 20/10/2006 12:30

It does indeed. Bring it on!

[flashheart] 20/10/2006 12:30

It does indeed. Bring it on!

[bletherer] 20/10/2006 12:18

Looks like a breakout...

[alansmith23] 19/10/2006 15:33

good article and a good rise today!

[avonmore] 19/10/2006 12:34

Motley Fool have following share alert!!!
______________________________

Bargain Share Alert



By David Kuo (TMFDragon)
October 18, 2006


Investors love bargains. I suppose it is the prospect of buying something on the cheap that frequently gets investing juices flowing.

One share that has come to the fore recently is Alexon (LSE: AXN). The high street retailer regularly crops up on radar screens and share filters because it is ostensibly cheap. Here's a quick summary of some its key ratios.

It sports a P/E of 9, which values it at a significant discount to the retail sector, which is valued at over 20 times earnings. It has net cash and boasts an above market yield of 6.6%. Alexon is also valued on a price-to-sales ratio of 0.2, which means that investors are paying 20p for every pound of sales rung up on its tills.

For the purposes of comparison, here are some ratios for Alexon's competitors.

Company P/E Yield Price
to
Sales

Austin Reed (LSE: ARD) 17.6 1.0% 0.4
Burberry (LSE: BRBY) 17.8 1.9% 3.3
French Connection (LSE: FCCN) 54.0 2.5% 0.7
Jacques Vert (LSE: JQV) 7.2 0% 0.2
Marks & Spencer (LSE: MKS) 16.2 2.7% 1.4
Monsoon (LSE: MSN) 16.7 0% 1.9
Ted Baker (LSE: TBK) 16.4 2.5% 1.7



Alexon is probably best known for its Dolcis shoe chain, which operates 67 shops and 147 UK concessions. The shoe retailer was part of Sears for many years, but was sold in 1998 and then subsequently bought by Alexon in 1999, which had been running Dolcis under a management contract.

But the core of Alexon's business is women's clothing, which accounts for almost 70% of sales. These are sold through a raft of brands that include Minuet, which caters for smaller women, and Ann Harvey, which sells clothes to ladies who aren't so small. Other women's brands include Eastex, Bay Trading, Dash, Kaliko and Alex & Co. Phew!

Alexon also owns Mandolin, which has been plucked out for culling following a strategic brand review. Seventeen shops will either transfer to other group formats or be disposed. Alexon is also involved in menswear through its Style menswear fascia, which operates 60 shops and 65 concessions.

Alexon, without question, appears cheap at first glance. But truth is, it has been cheap for quite some time because its brands have come under intense pressure on the high street. Recent trading figures bear this out as like-for-like sales fell 8% in the first eleven weeks of the second half. However, Alexon is not alone -- last month Next (LSE: NXT) said its first-half sales fell 7.5%.

In my view, what's interesting with Alexon is that things could be a lot worse. It is still profitable, and estimated profits of around £10m this year suggest that the prospective dividend of 9p this year is not in peril. Additionally, let's not forget that venture capitalists are still awash with cash, and debt-free Alexon is the type of business that may just appeal to them.

END