Card Factory Share Discussion Threads

[darrin1471] 29/2/2024 10:02

elsa7878, have there been sellers over the last 3 months?
Holders of less than 5m could quite easily move the price.

[elsa7878] 29/2/2024 09:56

Seen the latest Bloomberg and none of the major shareholders over a 5 million holding has been selling recently so the weakness over the last few days is a bit of a mystery.
Some retail selling evident but can buy in size at 91 indicating someone has a decent amount to sell. Could just be a smaller fund or indeed private shareholders.
The 25k at 91 was me when it was trading 90/92 FWIW.

[riverman77] 28/2/2024 22:21

You may be right although broker forecasts look to be around 13.5p.

[bbonsall] 28/2/2024 22:02

riverman
Probably already achieved EPS of 16p in year just ended on Jan 31st.

[riverman77] 28/2/2024 20:25

Not currently in this but tempted. See no reason why they can't eventually return to their pre pandemic earnings of around 16p eps and pay a 8% yield. That would put it on a 5.5 PE ratio and a 9% yield.

[casholaa] 28/2/2024 19:56

I remember it too. Many misread the rns. But I do agree with you and I've always taken the view that card isn't really 'retail' even though it is

[eeza] 28/2/2024 18:22

Well, yes, I agree. On a PE of 10 it would be over 140p - not unreasonable.

But its been stuck in a 110p to 90p trading range for over a year, despite all the 'beats'.

[bbonsall] 28/2/2024 17:51

It flirted with 50p when everyone thought it might go bust and was told to raise £70 million by its bankers.
Then shops opened again and bankers saw tremendous cash generation negating the need for a cash raise.
Now with its continued growth, cash generation and profits it flirts with 90p. How ridiculous is that?

[eeza] 28/2/2024 17:28

Flirting with 90p, again.

[arab3] 28/2/2024 13:31

Are they selling bikes now ?

[ggrantsu] 28/2/2024 13:12

in the name of that 90s/2000s rapper...this is LUDACRIS!!!!!

[s34icknote] 28/2/2024 12:43

HFD not helping retailers !

[tradertrev] 28/2/2024 10:43

...just like nearly all my other small cap holdings!

[harry_david] 28/2/2024 10:40

It is so frustrating waiting for the market to catch up with the operating performance of this company. Current historical p/e 7.29 and going down probably under 6, massive cash generator, and very solid growth. It should be 50% higher.

[casholaa] 21/2/2024 22:01

Tranche 'A' would be a good start.

[bbonsall] 21/2/2024 21:50

Grahamytrain
I have written to their corporate department asking those questions. Will post any response I might get.

[casholaa] 21/2/2024 12:56

Point of interest. Looking at Research Tree 'short interest tracker' and the '100 most shorted stocks' on advfn, the numbers between them are inconsistent.

[riverman77] 21/2/2024 12:44

Yes very poor - no broker notes on Research Tree and never seen any retial presentations on things like Investor Meet Company.

[grahamytrain] 21/2/2024 12:36

Why aren’t Card Factory engaging more with investors and its pundits. They need to review their PR function.

[disc0dave46] 21/2/2024 11:34

Guess she used Swoonpig?

[casholaa] 21/2/2024 10:30

She must have spent thousands on him. She obviously got caught up in the marketing.

[tradertrev] 21/2/2024 10:18

This might explain the share price weakness - sector's biggest customer apprehended :-)

[ggrantsu] 21/2/2024 09:05

no...it isn't. the supermarkets + specialist card retailers are supplied by the two large american publishers who cannot do anything else except keep prices high - card are on average at a 50-60% discount, but also have offerings which are like 10 cards for a £1. they own their entire supply chain...the only operator in the UK with scale doing this.

they generate ebit margins of +15% (historically higher but low quality mgmt. saw them fall down to c.15%) - new mgmt now trying to get them back to higher levels (successfully). the lack of competition is reflected in their returns on capital...above 20% including historical intangible assets (from PE owned days)...but an infinite return on tangible capital excluding that asset i.e. the business is funded for free by suppliers/landlords. i know of no other UK retailer with this unique financial profile.

[divmad] 21/2/2024 03:20

Isn't CARD also in a (different) low margin business with lots of competition from every retailer?