Card Factory Share Discussion Threads

[essentialinvestor] 13/1/2020 23:45

mk, with the rapidity of change in UK retail, it would be a brave man
who attempts to estimate 7/8 years ahead imv.

[m_kerr] 13/1/2020 23:40

forgot to add, cash flows have been very strong, and capex low, so FCF performance is excellent.

[m_kerr] 13/1/2020 23:10

i calculate return on capital pre tax as just shy of 17%, so a good business. problems here are negative LFL, lack of long term growth (maximum potential estate of 1200 stores, compared to 965 at last FY), and the lack of a economic moat. it has a differentiated model thanks to the vertical integration, but no moat. their strategy to extract as much cash as possible out of the business has seen it take on a not inconsiderable debt of about 3 x net profits - i'm not sure this is in the long term interests of the business. that said, i much prefer a CEO who gives all the proceeds back to shareholders than wasting it internally.

if they survive 7 or 8 years, you'll get all your investment back at the current share price, just in dividends alone.

[fenners66] 13/1/2020 21:42

Town near me (not a big town) has 3 CF and 3 Aldi 1 Matalan. If they are all selling CF cards there has to be cannibalisation.....

[stevieb2190] 13/1/2020 16:49

Just been to watch 1917, what a fantastic film..beforehand wife and i had a coffee in costa, overheard conversation " husband to wife, did you get a pen the Works, answer , no its full of end of line rubbish, bought a nice pen in Clintons.
As we walked past greggs the que was out the door with 2 staff struggling, i watched for a few moments and some customers gave up.
Look through my postings prior to xmas going back nearly a year and All my comments came true...CARD have got some issues
Card factory fatigue...same ole same ole
Not everybody wants cheap cards, do you love someone enough to send them a card for 59p
The busier they get the more staff they need, if you get a chance google what's it like to work at card factory, you learn a lot there.
Value cards everywhere now even clintons and marks and spencer have a £1 range.
How can you be PACKED out all december and notannounce fantastic results,
And as for the Aldi deal, that will produce nothing.
No doubt about it on the face of the accounts things still look o.k but unless they make some big changes very soon the figures will start to make a nasty reading..

[renewed1] 13/1/2020 16:27

Ive said for a couple of years that I can't help feeling the company has a lot of potential but current management is missing the opportunities.I've generally had a right slagging for such comments. This years Xmas card range was as diar as last years.
I counted our cards when we took them down ...62 cards received and not one in the CF range.We sent the same (give or take)and as I couldnt find a card I liked at CF ours were all bought elsewhere as well. The space that would be needed for a
limited range of better quality cards for Christmas,easter etc is minimal but the market is considerable as is the increased mark up.
We will make nothing worthwhile wasting management time on cut price supermarkets. Australia has potential so is worth a look.
The strategic review is two years late and if its taken this long to wake up to the problems one has to question the management's capability. As for taking a £10000 share position when drawing a £500000 salary..she appears to be sticking two fingers up to shareholders. If she was serious she would announce her salary is being halved!!!

[bargainbob] 13/1/2020 16:08

Even better idea ,

A Valentines card with one free share all possible under a £1 , gift wrapping would be extra though.

Gift cards available to buy shares with a minimum £25 spend .

[marksp2011] 13/1/2020 15:50

Must admit giving the wife a Card Factory Valentine Card would probably result in me being served divorce papers

[mr_spock] 13/1/2020 15:21

Yes, I like this card buying idea. Smart.
I can get my girlfriend a 59p Valentines card (I mean, she is already my girlfriend), and totally splash out on 99p cards for all the potential new girlfriends, AND I get to support the share price and force the share price back up and help recoup my losses!
Card Factory here I come!
Peace and Love.

[bargainbob] 13/1/2020 15:20

UKNEONBOy Who so upset you , never seen anyone trying to create a false market here, other than you posts trying to install fear.

Also expect nothing gossiped here could move the price one inch .

[ukneonboy] 13/1/2020 14:19

ha,ha, not rising to it, got better things to do HARRY

[harry3021] 13/1/2020 13:51

I'm sorry to say that ukneonboy sounds like a 20 something imbecile I have to agree! Now if he's really a retired stockbroker I'm sorry for the clients he gave advice to!

[fenners66] 13/1/2020 12:41

Its called humour - glad you are laughing too.

[woodhawk] 13/1/2020 12:35

"These are also undisputable facts."

Only if you're an imbecile.

[bargainbob] 13/1/2020 11:18

It worked it seems .

[minerve 2] 13/1/2020 10:37

LOL

Go for it Bob.

[bargainbob] 13/1/2020 10:33

Going down for Daughters cards for Birthday , three cards , straight to bottom line :-) lets see if it lifts shareprice today :-)

[bargainbob] 13/1/2020 09:54

Top effort it has to be said .

[fenners66] 13/1/2020 09:49

Despite your report of the missus buying cards - which gave a lift to the share price no doubt - the market seems to have shrugged it off - maybe send her back out with your credit card ?

[fenners66] 13/1/2020 09:48

So if all 12 readers of this BB go and get 7 cards for a £1 the company will be saved.... lol
I had not realised it was that desperate .
That the company needed saving.
Actually its just going to get less profitable and your shares have declined in value.
The Directors will still be getting paid so where's the problem ?

[bargainbob] 13/1/2020 08:05

You must be to busy reporting stuff to FCA to buy cards though UKNEONBOY. Where do you find the time lol.

[monte1] 12/1/2020 13:05

Ah well, that should save the day UKNEONBOY.

Shareholders can sleep easy now.