Card Factory Share Discussion Threads

[tudes100] 27/7/2024 02:28

CARD agreement with The Reject Shop is for 5 yrs & I think will be coming to an end early 2025, no reason it won't be extended I'd guess. There's no nationwide card chain comparable to CARD in Australia so competition fragmented across similar competition to UK (Australia Post/Post Office, independents, book stores, supermarkets, variety & discount stores - Kmart, Target, etc). Arguably a decent opportunity here given the price point that CARD can supply product for but can't think they would want to take that opportunity medium term given the focus on partnerships & the capital light benefits.
Think your BB description is a bit harsh - he started Bras and things with one store and built it up over 20+ years to then sell. He's best known here for Sanity (HMV equivalent) which again he started with one store and built up to over 150 in Aus (100+ in the UK eventually). 30m pounds seems like a lot of money to me to spend to secure a distribution deal & he has previous form for buying Uk businesses (Our Price, Virgin, etc). I've put some photos of my local Reject Shop CARD concessions on X @nicotudes for anyone interested.

[harry_david] 26/7/2024 17:59

darrin, as usual you have done your research. I know Australia and agree that there is a big gap for Card to slot into, the competition is high priced.

[leeson31] 26/7/2024 15:11

After yesterday's come back from it's intraday drop, I'd say this has got North written all over it.

The weekly candle chart with volume indicator looking very bullish..

[sphere25] 26/7/2024 14:15

Key test coming up.

Price is 114p and a break and close above here and 115p and the algos should really bid this higher next week. The only problem is that the price is sat having a picnic at 114p - is it going breakout here?

It popped on that overhang clearance and then came back to re-test 110p. Dips below and then some million blocks get cleared at 110p and it is back to test the recent highs now. Don't know if BB has added to the stake there at 110p.

Nibbled a few times - was slow to see the overhang clearance. Hopeful this lumpy piece of retail lard pushes on. No guarantees with retailers in the UK.

Naked Trader has added to his position, expecting a push on into the 120's.

Can it do it?

All imo
DYOR

[darrin1471] 26/7/2024 12:40

Hi Tudes100. So CARD supplies the Reject Shop in Aus. I first thought BB may want CARD as a supplier for Best & Less but B&L online suggests it is a clothes-only retailer. B&L has half the shops of Reject Shop.
Is there a nationwide chain of card shops in Australia? 1000 CARD shops in the UK indicate Australia and New Zealand could support a chain of 500 stores
History appears to show BB buying businesses on the cheap and then selling them on, like "Bras N Things"
Aged 63 is he up for one more deal? He appears to be selling businesses. Is the billionaire bored with his megayacht lifestyle?

[tudes100] 26/7/2024 04:14

Hi Darrin, can't agree with you re BB. In 2023 BBRC (Blundy's investment vehicle) bought Best & Less (Australian discount clothes retailer) after having a 16% stake for a few yrs post its IPO. The offer was controversial at the time as it was below market price but there was a big private equity shareholder looking to exit. He has taken minority stakes in businesses before but also as demonstrated with the Best & Less acquisition he's not afraid of buying the business if attractive post picking up an initial stake. I bought in as soon as I saw Teleios had cleared but BB's involvement makes the situation significantly more interesting I think. Should add I'm a UK investor based in Aus.

[beachbum1978] 25/7/2024 22:25

I too have looked at Blundy. Decided he’s minted, from retail, and just bought £28m of shares, over what I have mine. Sticking! GLA

[darrin1471] 25/7/2024 19:19

I have looked at Brett Blundy's businesses for an hour and can not see his investment in CARD as being anything other than an investment.
I did see this "We have one objective, to earn a compounding return on our investment of 20% every year."

[leeson31] 25/7/2024 16:34

Consider your eye now as trained :)

[fft] 25/7/2024 16:15

It looks to me (with my untrained eye) that if we close at this level the resistance at 113 or so that has been tested and failed quite a few times in the last year will finally be broken. And hopefully becomes the new support level. Not sure I believe that sort of stuff, but the MACD also looks good regardless of time period. So, apart from positive news and positive fundamentals we also have positive technicals.What can possibly go wrong :-)

[leeson31] 25/7/2024 15:18

First natural target I'd say is a gap to fill about 138p...

[aishah] 25/7/2024 15:10

Someone's been reloading the offer, hopefully cleared now. Big rerating due imo.

[leeson31] 25/7/2024 14:38

Biggie 2.5m+ trade posted. Probably late published trade from yesterday. Looking good.

[harry_david] 25/7/2024 14:30

After the scare a nice start to recovery.A finish on 112 would be perfect, sign of a real growth stock.

[s34icknote] 25/7/2024 13:57

Good top up opportunity this morning !

[bountyhunter] 25/7/2024 13:04

Brett Blundy is the founder of BBRC, a private investment company which has expanded from its retail roots into property, fund management, agriculture and technology.

[kaos3] 25/7/2024 09:22

best word of the day - initiated

[nico115] 25/7/2024 09:19

What price did the buyer pay ? Has the trade gone through ?

[aishah] 25/7/2024 09:07

Stock Sonar Report - July 24, 2024 - Pernas Research

Position Updates

Card Factory (CARD:LSE), is now our largest position, thanks to a 14% MTD upswing driven by news that major holder Teleios has fully divested their 9.9% stake. This was an overhang for investors as Teleios had been steadily divesting their position. Better yet, it was also announced that Australian billionaire Brett Blundy, who we hear is highly regarded in the retail world, has initiated an 8.2% position. This is a large vote of confidence for CARD and could open more doors to penetrate the Australian market

[bbonsall] 25/7/2024 09:01

Since CARD has reached 112p on three or four occasions traders expect it to always peak and fall back to 90p. So they all sell at 112p and so create the share price fall back. This time, when they have gone, things should be different because curcumstances are different.

[chester9] 25/7/2024 08:55

Late sept update is a long way a way but things are moving with recent change of hands. I do not expect this to drop back to 90p now that the Teilios story is complete. Markets in general are nervous.

[johndoe23] 25/7/2024 08:14

Still can't break out of that trading range

[harry_david] 24/7/2024 23:13

You have to wonder whether the new shareholder has been welcomed by the existing management. The company has so many expansion opportunities a rich and ambitious new shareholder might be exactly what the doctor ordered.

[ggrantsu] 24/7/2024 20:15

very good spot on victoria's secret - very good spot.

been on my watchlist a while actually...but the stores all look pretty awful. maybe i am missing something - women's taste in lingerie harder to bet on than old card factory i'd say! but maybe i should follow our new whale holder from aus...

[bountyhunter] 24/7/2024 19:13

I see that BBFIT INVESTMENTS PTE. LTD., SINGAPORE picked up just over 8% of them.

BBFIT also notified a 4.9% interest in Victoria Secrets the same day.