B&m European Value Retail Share Discussion Threads

[lovewinshatelosses] 13/6/2022 13:09

I took a small opening tranche as well. Will add further on the way down, which this is almost certainly going to experience, in the short to medium term anyway. IMO of course. GLA.

[freedomexpress747] 13/6/2022 11:46

Well, after doing my research, I am a shareholder here for the first time. I made sure I looked around my local store, talked to the staff, watched what folk were buying, and was impressed by the useful and very reasonably priced miscellaneous goods. Looks like there is scope to raise prices and not scare buyers away.

[lovewinshatelosses] 10/6/2022 13:03

Similar thoughts roguetrader, although markets are often harsh of course, so I did in fact have 300p as one potential number to add into (current thinking circa 340p for first nibble). I would not be at all surprised to see multi-year lows here, especially if the next update does show some contraction. But, I see a healthy future for this type of company in the future, (hopefully this one in particular!) so over a 5-10 plus year horizon, one to hold in the wider p/f IMO.

[roguetraderuk] 10/6/2022 11:58

theres no risk of relegation from the ft100 on the next round as its already been decided and takes place 20th june. but there might be a risk at the next quarterly reshuffle if the shares arent able to hold 300p. i think a price down there would be overly harsh and i dont think it would be there for long. previous bottoms have been around the mkt cap of 2.8bn, currently we are about 3.7bn. but you can argue the business is now bigger since revs and inc have increased significantly since then. so they have a higher level to fall from which should provide some relative support. if earnings were to halve from here and the shares fall to 300p, they would be on a 15 times multiple. while it wouldnt be particularly cheap in isolation, the following year would likely see at least 25-50% added to earnings and would produce a forward multiple of between 10 and 12.5. during the late 2018, the pe dropped to about 12 times. presently we are at around 9 times past earnings.

[lovewinshatelosses] 10/6/2022 11:22

I have been following this company since the recent results and consequent share price fall back.
As a long term investment, it looks compelling.
The momentum and sentiment is clearly still very much to the downside though IMO, so I am still pondering when to take an initial nibble.
Chief concerns to my mind, apart from the obvious regarding supply chain and inflation issues, is whether SA is going to retain the rest of his stock after the lock in period expires, as well as how effective the new boss will be in the top seat.
Does anyone know if SA plans to retain strong links to the company? Has he made any suggestions thus far?
I could see this going quite a bit lower in the short term, perhaps after the pending dividend goes ex, although equally I have noted the short interest here has reduced considerably in the last few days too.
Might need to acquire a few more splinters on this fence, before I take the plunge! GLA.

[muzmanoz] 07/6/2022 12:02

It was listed as a buy in today's Times.

Interestingly it says the Arora's 180-day commitment not to sell more shares expires on July 17

[pjleeds] 07/6/2022 11:55

Just been to b and m kirkstall leeds for 1st time. Big shop, used to be a dunnes.stood empty for a long time. It's like Wilko on steroids. I can see it doing damage to very close neighbour Morrisons,didnt buy much, just a piece of trellis fencing for garden.shop was busy.Qs at all tills.looks like a winner to me.ps.only been a holder for 2 weeks.

[m_kerr] 01/6/2022 16:37

management have a great track record. distributed £1.80 per share in dividends.

but valuing retail stocks purely on cash flow and earnings is fraught with risk, when the share price was £6, ask yourself if you'd pay about £7.5m per leasehold b&m store (adjusting for heron foods and france). if someone cheaper comes along (and they always do), your cash flows dry up and there's nothing left to underpin the shares, indeed there could be negative value at some point in the future given the leasehold debt.

kingfisher, for instance, backs up about 60% of it's enterprise value with property. here there's no underpinning to the share price.

[bulltradept] 01/6/2022 08:04

It will be 'fine' but the share price should fall further as you indicate. From a charting perspective, we could see the £3.00's.

[m_kerr] 31/5/2022 18:05

margin pressure here is a sign of things to come for all retailers that haven't reported yet IMO. the market got it first jitters once the poor numbers from target and Walmart in the US filtered through.

you have to ask how much is in the price already. I have no interest here because it's got no property base, but there's a read across IMV to all retailers. b&m will be fine, but what will happen to margins? retail park rents bottomed out a while back. the fully leasehold model will mean full exposure to that increased cost.

[sllab101] 31/5/2022 14:04

I have wanted to buy this stock for a long time so I have just added 25726 shares to my portfolio as I am sure this selloff is overdone.

[prokartace] 31/5/2022 13:49

Gap? thats the smallest gap in history. More important will it go to fill the gap created today?

[disc0dave45] 31/5/2022 13:25

HiWhat gap are you referring to?, July 2020?

[roguetraderuk] 31/5/2022 13:15

340-360 more likely if they dont close at or above the gap

[firestorm911] 31/5/2022 13:13

Careful citi algos drifting it. Their position will be balanced out so, you won't see their short.

Relentless selling, meaning they are about to stick the dagger in a spike down. They will be putting online quotations offline soon.

Inflation will keep to go up,

[wallywoo] 31/5/2022 12:37

This is a ft100 stock, when they are in play they nearly always get hit harder and come back harder than others. They are just being targeted. Sit back let the 10% dividends (that's the likely yield imo) come in. Let the trader's play with the share price. In a few months you would of forgotten all about it!!!

[bulltradept] 31/5/2022 12:33

£3.80 on the cards, the shorts have it now unfortunately...

[babbler] 31/5/2022 12:18

Eeek £4 broken down...

[basem1] 31/5/2022 11:44

I have a strategy that has served me very well over the years. If a holding is starting to make me uncomfortable I sell it We do not buy stocks to make us worried, poorer or unhappy The worst thing that can happen is you pay a bit more the next week to get them back

[babbler] 31/5/2022 09:53

Well hopefully when he takes over in 12 months that will be in the past.

[bulltradept] 31/5/2022 09:47

Is there a finance man in history who can protect margins when they are getting squeezed though...

[babbler] 31/5/2022 09:19

good job he's a leaving then to be reolaced by the person who knows the finances best.