Bonmarche Share Discussion Threads

[eastbourne1982] 04/1/2016 21:38

Warned about what Deano, the share price has nudged a little lower since you appeared, where were you with your warnings when it was around £3 ??

[deanroberthunt] 04/1/2016 19:12

you were warned.

[stegrego] 22/12/2015 12:47

You just cut and pasted that from an article!

[eastbourne1982] 22/12/2015 12:46

Nice cut and paste job Deano, that is taken directly from the Motley Fool website:



So you are a plagiarist as well Deano ??

What next ??

[deanroberthunt] 22/12/2015 07:31

While Bonmarche’s multi-channel development and solid product investment could still provide rich rewards in the long term, I believe investors should perhaps sit on the sidelines for the moment as questions over the firm’s direction — not to mention the impact of worsening market conditions — could keep shares locked in freefall.

[eastbourne1982] 21/12/2015 22:06

imranawan,

I reckon the share price could move sideways between £1.75 and £2 in the short term, I decided to take a position at around the £1.93 mark as I just thought they looked cheap, I haven't gone all in yet and am happy to add if the price drops a little more, I just felt everything stacked up from a valuation point of view and the net cash position is the aspect that really gives me that added confidence, net cash of between 18 - 19 million v a market cap of under 100 million is pretty impressive. At £3 these didn't look massively overvalued so in the medium term I see these plodding back towards £2.50 plus.

This isn't a particularly exciting business, it is a solid business that should make around 10 - 12 million, generate good cash flow and pay a decent dividend, it is a pure value play imho.

Over to you Deano, why will these hit £1.20 - £1.30 ?

[stegrego] 21/12/2015 21:13

More useful than yours

[deanroberthunt] 21/12/2015 17:46

only another 66p to go before it hits my target.

@Stegrego, thanks for the input much appreciated.

[imranawan] 21/12/2015 16:31

I've added Bon to the w/list and agree with your point comments Eastbourne1982. It reminds me of SHOE which was also a recent float and performed well initially, and than they warned on profits in April, and I seem to recall they said they sold less ankle boots (which was the higher margin product), and the share price took a battering before bouncing back slightly.

I see similar parallels with BON and I calculate that they should achieve EPS of 17p-18p this year based on my calculations. I'm also interested in buying in, but waiting to see where the price settles, as I bought into SHOE shortly after they warned on profits, and the price kept on falling.

[eastbourne1982] 21/12/2015 13:41

In the long run upgrades and downgrades are totally irrelevant as they mean very little, they are all a reaction to what has happened, they hardly ever predict anything, broker upgrades / downgrades just follow the price action, totally pointless imho.

DYOR and make your own decisions based on valuation and what you think is likely to happen, I've bought BON as they look cheap and I think they are a solid business with a strong balance sheet.

Still waiting Deano !! Fundamentally why is BON worth £1.20 - £1.30, if you are unable to answer the question in a worthwhile manner that is fair enough however just posting comments like this is going to £1.20 and then giving no worthwhile reasons seems rather pointless to me.

ps. Regarding DX you were changing your mind on that literally every ten minutes when I was monitoring the DX bb, one minute you were a buyer saying the price was cheap, the next you claimed you had no position and the price was set to tank, with Xmas coming up I suggest you spend your time on something else.

[deanroberthunt] 21/12/2015 13:40

@philanderer

that broker rating is solely to get mug punters to buy the stock whilst the city boy crowd offload at the highest possible price/s

hope this helps

price target 120p

[deanroberthunt] 21/12/2015 13:39

DX. has panned out as I had described with the benefit of foresight....so it will here.

[philanderer] 21/12/2015 13:23

Cantor Fitzgerald today downgrades its investment rating on Bonmarche [LON:BON] to hold (from buy) and cut its price target to 230p (from 350p).

[eastbourne1982] 21/12/2015 12:56

Dean,

From my experience of you on the DX thread it is pretty clear you are totally clueless however please humour me, fundamentally how do you get to a price of £1.20 - £1.30 considering the business is making circa 10 - 12 million a year, pays a decent dividend and has net cash of approaching 20 million ?? With the current price around £1.89 the market cap is circa 95 million which seems to be very low given the above.

So come on then Dean, show me your workings.

[deanroberthunt] 21/12/2015 11:57

could see 120-130p here

[eastbourne1982] 19/12/2015 00:36

Bought some of these on Thursday at an average of just under £1.94 as I feel on valuation grounds these are now cheap, profits are reasonable against market cap, cash position is excellent and the dividend is good for a small cap, my target is £2.50 within 6 - 12 months.

[pugugly] 17/12/2015 14:31

Loos as though bid proof as BM holdings have 52.4% so no bid premium applicable - As ahs been said above the warm winter (to date) will play havoc with stocks and margins so (imo) drift and uncetainty untile the spring early summer at the soonest.

[deanroberthunt] 17/12/2015 11:26

Bargain retailer getting battered

Budget retailer Bonmarche (LSE: BON) has not enjoyed as solid a performance as Vodafone in midweek trading, however. In fact the company’s share price was last seen tanking 28% following the release of disappointing trading numbers, sending the stock to record lows in the process.

Bonmarche announced that “trading conditions during December, particularly since ‘Black Friday’ on 27 November, have been very challenging.” The business had stressed the need for a return to more normal conditions in last month’s half-year results as critical to it meeting its full-year expectations.

But with market pressures persisting, the retailer now expects pre-tax profit to clock in at between £10.5m and £12m in the year to March 2015, down from £12.4m last year.

And Bonmarche provided a double-whammy to investors by announcing that chief executive Beth Borthwick, the architect of the retailer’s improvement after it exited administration, is set to depart the company in favour of fashion giant Karen Millen.

While Bonmarche’s multi-channel development and solid product investment could still provide rich rewards in the long term, I believe investors should perhaps sit on the sidelines for the moment as questions over the firm’s direction — not to mention the impact of worsening market conditions — could keep shares locked in freefall.

[martinthebrave] 16/12/2015 12:07

Bought a small opening position. At first glance todays profit warning only seems to merit a 10% - 15% short term drop. The uncertain bit is how important the loss of Beth Butterwick is? All IMO.

[ed 123] 16/12/2015 10:15

Bought a few - no advice intended.

The business has net cash of £18million and was awarded "Best online clothing an shoe shop" by Which Magazine in November 2015.

My hunch is that they have been hurt by the mild winter. Spring sales may present a different picture? We'll see.

Xd for 2.5p tomorrow - but tiny after today's drop.

[e-boffin] 16/12/2015 09:38

redhammy

Not bashing at all. I had been watching because I was thinking of buying. I thought it was a solid long term investment but now have my doubts.

[redhammy] 16/12/2015 09:21

Good for you e-bashing, well done for highlighting that fact.

[e-boffin] 16/12/2015 09:11

Oh dear. Have been watching for a while but not holding luckily.