Card Factory Share Discussion Threads

[bbonsall] 25/5/2021 15:55

All the doom and gloom about raising £70 million. Why can’t They wait until a couple of good trading reports pushes the share price up and then dilution will be less? After the money is raised they will have less debt which is also positive.

[garycook] 25/5/2021 01:50

MM,s at work here driving the share price down.8,000 buyers to 3,000 sellers,but share price down 9% ???

[ken chung] 24/5/2021 09:28

Going down.Thanks for the wealth transfer. Lemmings and mushrooms only.

[bountyhunter] 23/5/2021 16:11

I guess they missed the bit in Friday's RNS about the potential £70m raise! I must confess I didn't pick up on that until I caught up with posts here. Primary Bid may be a possibility?

[wiseman1967] 23/5/2021 09:55

The Sunday Times has put a buy recommendation out on Card Factory describing it as consistently profitable.

[bbonsall] 21/5/2021 12:13

In normal times this company is highly cash generative. If not paying dividends and business returns to near normal they will generate cash that can pay down the debts quite quickly.
They said that the first five weeks were only marginally less than the same period in 2019. That was without the more recent opening up of shops in Scotland, Ireland and the Eire.

[fenners66] 21/5/2021 09:28

bbonsall "we cannot state the percentage dilution that £70 milliion represents."

Of course , but investing is all about forecasting the future , not waiting for it to happen and reacting.

Looks like the dilution just got a lot worse this morning.

Wiseman "It is surprising that a rights issue price was not set before making this announcement"

Absolutely agree. So was this management ineptitude or have they tried running the idea past major shareholders already and been knocked back ?

Those same major shareholders , with any sense , could probably smell blood.
Let the share price slide this morning , sell some and help the slide , knowing that they will get a larger slice of the company for the same £70m later....

[aringadingding] 21/5/2021 09:28

Call it 125. So 467m shares. Pre crisis profit of £66m would be eps of 13.9p and a share price of 80p is 5.7x PE... so a value purchase one might say. I guess the differentiator with clintons is card factory is all about the lower price point? I would prefer long term debt to be more like 1.5x ebitda than 2.5x, but seems they have a chance to get back on their feet here if trading growth continues.

[wiseman1967] 21/5/2021 08:50

It is surprising that a rights issue price was not set before making this announcement. Share price is already down 15% and rights issues tend to be done at 25-33% below prevailing share price so this would make a dilution higher than it need be. If gross proceeds of 75m gbp are needed, then assuming a price of 50p or 60p would require between 125 - 150m new shares on top of existing shares of 342m.

[barkypoo] 21/5/2021 08:40

Well Darcy was at the helm when Clintons went down so has form. This sadly feels like a business which is not bouncing back post Covid and where equity holders are now expected to hand £70m over to the banks. Never a good idea to invest in a repay banks rather than invest for growth scenario. Can see the shares slipping to low 60s and any rights issue will be around 40p so big dilution coming

[bbonsall] 21/5/2021 08:36

They are going to wait before the fundraising. The actual dilution will depend on the prevailing share price at the time of the fundraising. So we cannot state the percentage dilution that £70 milliion represents.

[crazi] 21/5/2021 07:42

I reckon about 30% dilution as there will be large fees to pay for raising the equity as well. Then they have also cancelled any dividends...

It's good they have secured better credit facilities but the above 2 points makes me very cautious for now...

[fenners66] 21/5/2021 07:22

£70m fundraise on the way or else penalty interest and charges due.
About 25% of current equity so a 20% dilution ?

Online sales have already dipped

[ken chung] 13/5/2021 12:08

Cases of vaccine resistant Indian Covid variant now doubling every week in the UK. Visit a shop, catch Covid, spread Covid. No thank you! Lemmings and mushrooms only.

[makinbuks] 11/5/2021 12:47

Yes, very welcome on a day like today

[rovi70] 11/5/2021 11:10

creep my cutie,so much stock going south, its good to see this slowly rise.

[city chappy] 04/5/2021 15:13

358k buy just gone through. CARD should recover quickly to around 170p to 180p.

[makinbuks] 04/5/2021 11:26

Yes very nice

[makinbuks] 30/4/2021 11:48

Well, as I entered at £2.16 that would be nice!

[city chappy] 30/4/2021 08:27

CARD should recover quickly to around 170p to 180p.

[makinbuks] 30/4/2021 08:10

"The Company is pleased to report that its performance following the reopening of stores in England and Wales from 12 April 2021 has exceeded its expectations"

Good news that the banking facilities have been extended without the need for a rights issue. I didn't expect that and would still be happy to contribute once the dust settles if the borrowing level is judged too high

[city chappy] 21/4/2021 09:35

Shops open again must help.

[approach3] 14/4/2021 13:36

So was the one in Ipswich Town Centre whilst Debenhams was manic.