they have invested towards 100m into the global expansion for no real return up to now. buying prices and other costs. they are now in a good position in order to support the best foreign market out of many first. highest possible return on the cash invested from now on. as they know where to accelerate first. returns and margins will improve after the initial foreign investment phase where returns are probably low(er) than their domestic business. costs of buying, integrating, restructuring, building communication and supply....
i expect higher revenue growth due to increased prices and foreign expansion
i expect higher margins as the associated costs of the main office regarding foreign expansions will decrease, domestic (higher prices) and foreign profitability should improve. |
Yes it's a growth stock with global expansion underway. Maybe that's why the market is nervous and assuming such expansion will go wrong. The market in general at the moment seems to find an excuse for knocking shares down. Sentiment is dreadful.
However although the UK economy is dire there are opportunities in other markets and Card actually benefits from Customers cutting back on their expenses. Why pay 3 or 4 quid for a card when an equivalent in Card Factory is 1 to 1.50p |
Yump - I disagree with your comment about CF not being a growth stock. If you look at just the UK card side I would agree that the rollout of new stores will be more limited in future however this management is looking to break into the gift and celebration market where they have only a small market share so plenty to go for there. Outside of the UK they have recently expanded into the US, Ireland, Australia, South Africa and Middle East. I see plenty of growth here.I have looked at Pets@home in the past and they have two headwinds I can see - competition investigations into vets pricing and (I believe) falling pet ownership. |
I know its undervalued now on what looks like a fairly solid forecast. Been reading all the financials.
I’ve got a few for what looks like a good dividend (as insurance) and possible permanent rerating.
Just very curious about the volume of posts. Perhaps it stands out as a trading share, as well as a recovery investment. There’s not many posters talking about the actual figures.
Watching PETS as well as drop may get overdone. Card is more interesting as they’ve specifically said that the NI increase will still leave a modest increase in profits. Pets just said they’ll do their best to mitigate - unless I’ve missed something.
Neither is a growth share though, whatever the BOD’s say.
Unless cost of living leads to yet more economies for households leading to more demand for cheap cards. (Sorry I mean budget cards) (or in case that offends, more economically priced cards) |
Yump, there really are lots of reasons if you go out and do the work.
I also see that you recently posted on Ramsdens. I've been invested there before, but what I would be interested in is why Ramsdens should trade at a pe of at least 10 and CARD should not, which for next year would put its value at 1.50? |
Yes it's an incredible bargain.
Was recently £1.40 and then market got worried that numbers wouldn't be met.
The numbers have been met and the outlook is very good but the shares have 50% upside just to get back to that value. Even then its very cheap. |
Yump, my reasons are pretty simple, but I encourage you to analyse the company. |
Why on earth, amongst all the available stocks is a card retailer featuring so heavily on advfn ?
Not saying its a good or bad investment, but ???
Has it popped up somewhere as a bargain based on a low p/e, or dividend ?
If its the latter, there are FTSE's yielding 10%. |
amt - too true, hence why I've sold none...
_____
Might get a rash of bids on small caps, some of which look very cheap.
It would be good, as providing a base for the sector(s). |
Yes there's no logic to that!
US news to come so that may kick start :)
(A positive TU update from WTB today reinforces that it's not all doom and gloom with well run companies meeting guidance.) |
Strange that the business has recovered fully from the pandemic and is powering ahead and yet the share price is a quarter of where it was before the pandemic. |
This is from their Half year report.
On 23 September 2024, the Directors resolved to pay an interim dividend of 1.2 pence per share. This represents approximately 25% of the expected full year dividend, subject to the financial performance of the Group in the remainder of the financial year being in line with expectations.
So the other 75% equals 3.6p or could be more as the performance has been better than expectations.
so the total will be at least 4.8p for the year.
In comparison moonpig have only paid 1 dividend since flotation in 2021 of just 1p card have paid 5.7p since 2021.
Since Cards flotation in 2014 they have paid a total of £1.06,6p of dividend's one special of 16p their highest.
When moonpig floated their shares rose to £4.87 and the have declined ever since. Imagine how many holders are sitting on big losses their shares today are at £2.10 maybe its them shorting card like mad as we are their main competition. |
There's another TU tomorrow, Premier Inn owner WTB this time, should be interesting being towards the budget end of hotels. |
Yes and it shouldn't be rocket science displacing MoonPig, maybe a bit more advertising and a wider range? |
Happy that I picked up some more over the last week. If the discount carries on for another year, though, I'll probably feel like I should have a seat on the board after all the shares I'll have, hehe. |
 It certainly is prokartace.
We just have to wear the pants and manage it. A little bit odd in that how CARD has just reacted is quite typical of moves out there. I think traders are looking for the relief type updates, where alot of gloom is in the price.
And where that buying and spike happens, then it is just a case of how long the spike lasts before it gets sold into. It happened at ONT recently - ping and back down. HTG is still going. It is happening in the bottom end of the market with highly speculative risky shares like IMM and TRLS of late.
FDEV has had one today. They market that up too much though. Just sat watching it now to see if anyone steps in big there for further upside momentum. Nothing yet.
But yeah, it is abit of a smash and grab right now.
There is alot of fundamental debate on the other CARD thread so naturally alot of long term holders must be nibbling away here and possibly in certain sectors like housebuilders (pummelled!), on the basis that macro doesn't deteriorate, trading stays in line and value eventually outs.
So some patient and others....erherm....going for the smash and grabs ha
CARD definitely needs someone to step in big. It is mediocre action right now - that is an upgrade from horrendous because at least it has found some footing and stopped falling.
Keeping a watch though.
All imo
DYOR |
Stock Sonar Report - Pernas Research:
Card Factory (CARD:LON) released their trading update for 2H and they have successfully improved range and driven robust 3.9% LFL growth. They continue to offset inflationary minimum wage increases through efficiency programs. Cost pressures are a point for potential concern however onerous minimum wage policies ultimately help scaled players like Card Factory at the expense of smaller competition along with disincentivizing potential entrants. We expect Card’s market position to strengthen and significant upside from these levels. |
CFactory have a massive online presence :-) |
Thanks RA quite right! SHOE took a kicking a bit like CARD a while back so with a bit of good fortune I'm hoping that both will progressively recover. Things are certainly looking much brighter here now following yesterday's TU. |
Johnr
My view is the market falsely believes that the future of card sending is online.
Yet we have clear evidence to the contrary but the market is too self important to admit its error.
The truth is CARD is a far better revenue generator and profit generator than Moonpig.
CARD EPS is 14 and share price is 94p
MOON EPS is 10p and share price is 200p |
There must be a big seller working away in the background. Now that we have confirmation that they are achieving the numbers that they said they would, and have a solid forward forecast, the tide cannot be stemmed indefinitely. We have been here before with Teleos.
aimho. |
Market doesn't seem to like CARD at the moment. Any thoughts why? |
Sp will rise nicely over coming weeks.Good dividend and growth with overseas expansion. Patience is needed. |
i think the seller (s) underestimated the collective purchasing power of the card PIs.
it happens |
Glad I didn't get involved with Shoe.
The boots on the other foot now. |
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