Card Factory Share Discussion Threads

[kaos3] 19/8/2020 08:48

CARD is superb business imho btw

[kaos3] 19/8/2020 08:46

in Q and A section no one asked and in presentation nothing was said about the goodwill - half of their BS

It begs my mind !!!

before my slovenian internet broke in the last 10 min

[kaos3] 19/8/2020 08:43

first impression - too much of Kris Lee around.he should be in a financial organization not in a Company. He is able. too able

what about - keep it simple and conservative ???

[kaos3] 19/8/2020 08:38

I also do not understand why it makes sense to deffer rent payment - if one can afford to pay what is his obligation - for a few months. better to pay , present clear cut picture and build a wall of safety.

makes no sense to me and highlights bad vibe

[mallorca 9] 19/8/2020 08:31

oh dear , this is looking weak !

[kaos3] 19/8/2020 08:27

why - because they last !!

and one knows there is an effort eg appreciation put into it. emotion

[mallorca 9] 19/8/2020 08:27

From next month they have to start paying back the deferred rents !
Payments to HMRC have also been deferred and must be paid soon.

Oh dear !

[lastchance23] 19/8/2020 08:14

How has digital/social killed CARDS bravebet??? I can't stand those really annoying animations, they are not the same as a physical card. The primary reason for the shops is convenience and choice, busy lives, people forgetting/leaving till last minute. Agreed social changes nature of business, so you need online/multi-channel strategy, but even Amazon and Apple integrate a store presence as a driver to core product. Its about getting the right fit for a changing business, but Cards and party/celebrations will always be celebrated in physical format.

[kaos3] 19/8/2020 06:34

I like their new 5 year strategy (words - hope not empty)

I would like to buy this "perfect business" with huge moat and great margins and huge growth opportunities

but for the accounting - as not a clear state of affairs for me

if 50 % is goodwill - which they freely determine and do not amorti and TAKE DEBT for it !!! on the other side of the BS - in order to balance

I must be wrong - where ?

[bravebet] 19/8/2020 06:29

Digital social media has killed cards. That and the forthcoming recession/depression. Chart looks bad and I think it's likely to get worse. GLA

[kaos3] 19/8/2020 06:28

new executive will need a huge broom imho

in this very good business

[kaos3] 19/8/2020 06:28

I admit to need help in order to understand their (intangible) accounting

cca - half of the company is "hot air" or good will walued at 330 mil and it is dealth with as they feel

is my first impression

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment.

[kaos3] 19/8/2020 06:24

goodwill is 328 mil down just 11 mil for the getting personal impairment

[kaos3] 19/8/2020 06:11

all is rosy - is it really in such a huge organization ???


No impairment loss was identified in respect of the Card Factory CGU (2018: £nil). The valuations indicate sufficient headroom such that a reasonably possible change to key assumptions would not result in an impairment of the related goodwill.

crazy

NIL goodwill adjustment to the down

but the statement ommits to the up category !!!!

[kaos3] 19/8/2020 06:05

make your own numbers as you like them or what?

GoodwillGoodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment.

IS ALLOCATED AND IS NOT AMORTIZED AND TESTED ANNUALLY

WTF moment

[kaos3] 19/8/2020 06:01

The Group utilises foreign currency derivative contracts to manage the foreign exchange risk on US Dollar denominated purchases and interest rate derivative contracts to manage the risk on floating interest rate bank borrowings.

financial geniouses in paper card business

or

patsys taken advantege off?

in the falling interest rates enviroment they hedge them!

110Card Factory plcAnnual Report and Accounts 2019Notes to the financial statements continued24 FINANCIAL INSTRUMENTSFair valueFinancial instruments carried at fair value are measured by reference to the following fair value hierarchy: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).Derivative financial instruments are carried at fair value and measured under a level 2 valuation method.Derivative financial instrumentsThe balance sheet date fair value of derivative financial instruments is as follows:2019£'m2018£'mDerivative assets Non-currentInterest rate contracts–0.2 Foreign exchange contracts 0.1– 0.10.2 Current Foreign exchange contracts 2.3 0.3 Derivative liabilities Current Interest rate contracts(0.1)–;Foreign exchange contracts (0.1)( 7.0)(0.2)( 7.0)Non-currentInterest rate contracts(0.1)–;Foreign exchange contracts (1.0)(3.4)(1.1)(3.4)Net derivative financial instrumentsInterest rate contracts(0.2)0.2Foreign exchange contracts 1.3(10.1)1.1(9.9)Interest rate contractsAt 31 January 2019 the Group held fixed for floating interest rate swaps and interest rate caps to hedge a portion of the variable interest rate risk on bank borrowings. Notional principal amounts for interest hedges totalled £90.0 million for the period to October 2019, reducing to £70.0 million for the period to October 2020 then reducing to £50.0 million for the period to October 2021 (2018: £70.0 million for the period to October 2019 then reducing to £60.0 million for the period to October 2020). Fair value movements of £0.2 million (2018: £0.2 million) were expensed to the income statement within financial expense.Foreign exchange contractsAt 31 January 2019 the Group held a portfolio of foreign currency derivative contracts with notional principal amounts totalling £130.4 million (2018: £128.3 million) to mitigate the exchange risk on future US Dollar denominated trade purchases.

[kaos3] 19/8/2020 05:45

when I look at an investment - balance sheet - there has to be "natural order" and nothing sticking out really

here are intangibles sticking out - and growing,

what are they and why their business model provides for growth in them instead of reduction in them over time

usually it means "fraudlent accounting" but here it is not the case. so what is going on? business model generates them and being mature and almost zero growth it makes no natural sense to me what I see from a distance

[kaos3] 19/8/2020 05:45

CARD did not make takeovers recently - so we are dealing with capitalising intelectual work ??? like in the drugs industry - not expensing it or what.

which can make their paper profits endless

in the last few years balance sheet (intangibles financed by taking on real cash debt !!! a disaster) grew faster tan revenue which means bad management specially when one looks at the quality of the balance sheet - active part of it

robots, software ..... can not make such a difference imho

[mallorca 9] 18/8/2020 10:59

This sat at around 50p for quite some time then, suddenly down to circa 40p . After sitting there for a while it will no doubt suddenly drop to circa 30p.

Last chance will still be holding.

Sadly it's the typical fear mode - fear that , just after I sell it will suddenly rise !

I bet £1 that Lastchance holds until it's below 10p !

[fenners66] 18/8/2020 10:36

Lastchance

Since you are invested here , surely the price you got in at you "believed" at the time was a "silly" too good to miss price.

[fenners66] 18/8/2020 10:30

From M&S update today

"In those 8 weeks store sales were down 47.9%"

M&S a different , but retail, business.
With a mix of food ,home and clothing.

"The performance of store sales has varied widely across the estate with some of the newer out of town stores trading close to last year's level of sales overall in recent weeks but legacy town centre stores and some shopping centres still heavily impacted by social distancing and reduced footfall. Furthermore, with the closure of many workplaces and lack of social gatherings, the clothing sales mix has seen a substantial shift"


You will recall "Karen" was building stores to capitalise on "impulse " buying - well if there are no people in town centres to impulse buy... also its clear social gatherings such as birthday parties are out - so no need to get cards for those kids parties then.....

[mallorca 9] 18/8/2020 09:17

Oh dear - silly boy !

[lastchance23] 17/8/2020 16:27

fenners66>> Apparently you must have invented some kind of AI chip as you seem to know what price I deem as silly, and which retail companies I'm looking at.

In terms of CARD, the price has met a resistance level between 40-50p, it is undervalued relative to PE, but there is a lot of money sitting on the sides with fund managers/investors, a lot of retail is being held back by constant negative press from the media on fake covid statistics, but when the vacinne/covid situation improves, there is money looking for a home...

My retail comment was a generalisation, there are others I'm looking at, same with travel, unless you think everyone is going to camp out at home for the rest of their life??? It is human nature to want to explore.

[fenners66] 17/8/2020 10:03

As for retail getting back to where it was...

DM says that Debenhams are looking at possible Insolvency