|B&M European Value Retail
||ORD 10P (DI)
||EPS - Basic
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B&M European Share Discussion Threads
Showing 126 to 148 of 150 messages
|Results due on 25th May|
|The seller is out for now ... hopefully going to move towards 350 as results day approaches|
|Increasing volume bodes well|
|Fozzy, next up is a TU - but they might not bother if not materially ahead|
|I don't follow charts but I guess resistance can be expected up to 360 then it might breakout into new territory|
|I bought in at 309 , should go to 350 by results day|
|350 feels eminently possible for summer and 400 by end of 2017|
|What's the consensus for end of year EPS ? 15p?? Or more.At that level the current PER is about 20 and this should rerating to an share price of about 350p|
|Very quiet here, fx move today helped many retailers who are net dollar buyers|
|Update could trigger broker upgrades and ascent to 350 and beyond.I'm holding for then at which point will take stake off table and leave profits in the ISA.|
|Profits banked :) I'm bearish retail|
|B&M is a strikingly well run operation and really knocks the likes of Poundland into touch.It has bigger square footage stores for starters carrying a broader range of food,alcohol electricals,gardening equipment,some furniture,mirrors etc.Its all down to merchandising of course.I've visited the one in Cambridge on numerous occasions.In a tougher retailing environment.this company should win through.|
|I agree,I think BME will be successful long term and bring some great returns.I was invested from the beginning when there was hardly any liquidity with the share! It seems people are coming on board now and BME getting good press coverage so hopefully see the share price stabilise above 300 this year.|
Investors may be worried by the example of Poundland, floated in mid 2014 I think, where the shares only briefly got above the issue price before being taken private again this year at a big discount to the issue price.
There are too many of these discount store chains now and some will founder, like Poundland and, I think, Poundstretcher. This is good for the survivors and I expect B&M to grow strongly at their expense.|
|Hard to believe this is still below the IPO price??|
|B&M shares lifted by Canaccord upgrade
|There are 4 separate B&M stores in the area around my home in North Wales. There are also a number of competitors, Home Bargains, Poundland, Poundstretcher etc. I visit all of these from time to time, mainly for catfood and bird food.
The B&M stand out as always being by far the busiest. Together with the huge range of Christmas related stock I see in the stores, I have a feeling these shares are grossly undervalued at 250p and a regrading by the market is overdue.|
|Among the mid-caps B&M European Value Retail continues to rise following Tuesday’s update, adding 10.9p to 255.9p as Jefferies moved from hold to buy with a 285p target. It said:
We believe B&M’s 33% share price fall since peak provides a buying opportunity. We think B&M is well positioned for a tough UK consumer environment and Jefferies’ latest consumer survey results support our view that B&M can gain market share and maintain resilient margins.
|Hi, I wrote an article on B&M, which can be found here:
|Tipped by A J Bell in the Telegraph.
B&M European Value Retail
A significant fall in its share price over the past 12 months, from 335p to 235p, means that B&M European Value Retail could itself now offer a bit of value, although there are considerable risks.
The biggest danger is posed by the plunging pound, as B&M sources most of its non-food offerings from Asia, paying in dollars and selling in sterling. Another risk is posed by the acquisition of Poundland by Steinhoff, a South African firm, which could heat up competition in the budget arena.
More positively, B&M is generating rapid volume growth, has a German business that can at least reduce the worst of the currency hit and is very cash generative. The company, a member of the FTSE 250, has a dividend yield of 2.4pc and even offered a special payment last year, a trick that Peel Hunt, the stockbroker, believes it can repeat.
In addition, if the British economy does slow, B&M’s discount credentials mean it will be well placed to benefit from any belt-tightening and trading down by consumers. Any rally in the pound would also be a welcome boost.
Questor says: speculative buy
|Phil Thanks for the info, I can't make my mind up with bme. I'm not sure a store like bme could pass on rising costs like the weak pound(when hedging ends), increasing business rates and minimum wage.I do like the shops though so would buy lower down.|
|Tony Shiret of Haitong Securities really doesnt like B&M
The key issue here is whether we are looking at a sustainable longterm
growth story or whether the growth is being forced out of the
model by over-expansion, with growth masking a less robust
underlying proposition than investors currently believe. We have
modelled the performance characteristics of the latest larger store
openings and conclude that these are nearly 20% less sales
productive than the group’s existing UK stores, resulting in EBITDA
only being 10-15% higher than for existing stores despite 60%
greater space and roughly double the invested capital. Rent as a %
of sales appears to be nearly 7% against 4% for the existing stores.
We have also tested B&M’s pricing credentials in Grocery – c.47% of
UK sales – and found that while it achieved a 16% lower price on
branded product, in our samples the lowest B&M price was 40%
more expensive than Aldi/Lidl and 35% more expensive than
grocery own-brand generally. B&M does not have own-brand in
grocery and has benefited in our view from the food retail majors’
pricing activity being focused on fresh food, which B&M hardly sells.
In anticipation of the 15th November interims we would expect the
main interest on reporting to be the company’s evaluation of its
buying position relative to a much weakened sterling. Its nonGrocery
product (just over 50% of sales) is largely imported from
China. Clearly the LFL position in the UK will also be a significant
disclosure with last reported 1Q LFL benefiting from a change in
definition at headline level
50% of the tat comes from China — no surprise there i guess
We have reduced our estimates for March 2017 and 2018 by 6% and
18%. We now expect minimal eps progress for 2017/18E and
2018/19E. We retain our Sell rating and have reduced our Fair Value
by 21% to 190p reflecting principally DCF.