Card Factory Share Discussion Threads

[slinkyj] 03/6/2020 13:29

Oh hello, good rise here, this looks ready to boom

[qs99] 03/6/2020 13:12

well I have to say this is looking strong again....maybe PI sellers helped depressed post update and now city are buying in? DYOR etc....maybe they could just help place the entire overhang on back of that? all IMO

[peteret] 03/6/2020 13:07

Oh dear mallorca 9.Your totally screwed

[sparsam] 03/6/2020 12:01

Great bit of news, this is a 50%er in the making. See ya shorters, heeeaaat!

[rumobejo] 03/6/2020 11:58

48p breakout for 72p first target ;)

[lastchance23] 03/6/2020 11:48

>>Mallorca - new holdings 6% position, of dear the cookers back on...

I am fairly sure regarding the debt comments, they have plenty of scope, the chancellor has asked banks to be supportive, banks write there own playbook now days.
Regarding the store space landlords will want to lose long term renters, I have no worries over 6 month near term, and that is all that is needed for decent recovery :D...

[rumobejo] 03/6/2020 11:47

come on Baron, show your hands, you been waiting for the results, and it will go beyond 50p with trading update ;)


still long way to go to £1

a bag and half from here

[rumobejo] 03/6/2020 11:46

Aberforth Partners takes 6.66% of Invesco

Invesco down to less than 9% going by yesterday's volume alone


keep pushin and pushin


burn shorts burn
burn shorts burn

[turbotrader2] 03/6/2020 11:44

new instituion with 7%

[rumobejo] 03/6/2020 11:23

mallorca, ma will give ya a margin call soon son, smelly burnt pants!

£1 broker target :D

burn shorts burn
burn shorts burn

[peteret] 03/6/2020 11:21

Your the one who should get out now.Your short is toast.

[sparsam] 03/6/2020 11:19

Burn shorters burn!

[sparsam] 03/6/2020 11:14

Loool this will be 60+ soon

[mallorca 9] 03/6/2020 10:57

Oh dear, Wiseman is locked into this.
Cut your losses - get out quick.

[wiseman1967] 03/6/2020 10:22

Mallorca 9 - how many corporate banking documents have you read? First off they do not allow a bank to "pull the plug" at any moment - certainly not for a breach of a covenant. A breach May give the syndicate of banks (who have to vote together on action) the ability to appoint an adviser to undertake a review. Secondly, the loans are unsecured and so the bank would rank behind/alongside other creditors. The value of the business is in trading not its asset base so where is the incentive (if they had the ability to) to accelerate the loans? Take your scaremongering tosh elsewhere!

[sparsam] 03/6/2020 10:07

Cards are all on the table. The dealer is looking shaken. You know you know when you know you know, and then they know you know that you know now.

[sparsam] 03/6/2020 09:58

Glad I got in today about to blow up imo

[dave4545] 03/6/2020 09:35

turbotrader

Vent your anger at corporations like Amazon not me. They are the reason the high street has become decimated long before the virus.

Nothing I can do to change that.

[mallorca 9] 03/6/2020 09:32

The easiest way to short this is through a spread betting account such as IG Index.

[mallorca 9] 03/6/2020 09:28

90% of the staff are currently on Furlough - so wages being paid by Gov. That wont continue forever.

Also they have deferred tax payments and are also borrowing more via gov scheme.

Their lenders are now demanding a monthly review and could pull the plug anytime.
It is a condition of their covenants that as soon as debt hits 3 x ebit (it is pushing against that now and they have little revenue) , that they must go to the market for funding if that is at all possible.

They were in trouble before COVID. Naked Trader shorted this last year stating that it was unlikely to still be around by end 2021.

Management has make terrible mistakes.

[turbotrader2] 03/6/2020 09:26

Card Factory (CARD) remains a ‘good quality’ business despite the impact of Covid-19 and Liberum is expecting the next update to provide ‘positive catalysts’.

Analyst Adam Tomlinson retained his ‘buy’ recommendation and target price of 100p on the shares, which were trading at 37.3p yesterday.

‘Putting aside the Covid-19 impact on full year 2021, Card Factory remains a good quality, vertically integrated, high margin and cash generative business,’ he said.

‘The current year 2021 price/earnings ratio of just 3.5 times and free cashflow yield of 30.1% does not make much sense to us.’

Tomlinson predicted that the strategy update at the end of July would provide ‘positive catalysts, giving greater clarity on future growth opportunities, including retail partnerships and capital-light channels’.

[1choip] 03/6/2020 09:21

They have no problem in liquidity but just adding more debts. what do you reckon? what next?

[mallorca 9] 03/6/2020 09:09

1chiop,

as I'm sure you know, I hold a short position on this.
I can only see two scenarios …

the company goes into liquidation within 12 months or …

it may just survive but with massive dilution taking the share price close to 1p.

[1choip] 03/6/2020 08:59

mallorca, good point. what are your suggestions?