Card Factory Share Discussion Threads

[amt] 26/4/2024 06:31

If card has EPS of say 15 then on pe of 15 that's a share price of 225p

[amt] 26/4/2024 06:29

I notice that Moonpig is a smaller business with less turnover and profit than Card but has a 50% higher market
Cap and on a pe of 15. Seems anomalous to me.

[amt] 26/4/2024 06:09

Debt of 140m isn't that big a deal when racking in well over 100m of cash each year.
Anyway net debt is half that.
Plus they have reduced overall debt by 100m since 2020.
They are choosing to invest for the future rather than payoff debt all the debt in a hurry.

[s34icknote] 25/4/2024 23:03

Debt was around 140 million !!!!!!

[s34icknote] 25/4/2024 23:02

Pre covid !!!!!! -- Total ordinary dividend per share, including proposed final, maintained at 9.3p (FY18: 9.3p) -- A special dividend of 5.0p per share was paid in December 20

[elsa7878] 25/4/2024 21:18

I'm expecting to hear about both a dividend policy for this year - say 5p and an immediate buy-back of £15-£20 million. They can easily afford it. News on progress on their partnership negotiations would also be welcome.
See Moonpig down 12% today. Cardfactory now finally seems to be fleshing out and actually initiating an online strategy (I've had 3 emails in 10 days). A large market to go after and a huge customer base means a well formulated strategy should be able to drive substantial additional sales at virtually no cost.
Roll on Tuesday.

[napoleon 14th] 25/4/2024 16:58

Took a few more today.

[haroldthegreat] 25/4/2024 12:12

I think it would be wiser to put a brand name on all their cards rather than Card Factory . Most of their other cards have their own other brand names on . I don't think anyone would think the person was not a sucker !

[grahamytrain] 25/4/2024 09:28

I think more than 10p once it reaches the shop and other parts of the process have taken their cut…..but for Card Factory you would be nearer the mark with its vertical integration set up…..paper mill to retail outlet….very efficient, little waste. How this isn’t double what it is I don’t know but hope I am still holding when it’s potential is fully appreciated.

[amt] 25/4/2024 08:22

Basically cards in most shops are massively overpriced.
I doubt a card that sells for 2 or 3 quid costs more than 10p to produce.

[bbonsall] 24/4/2024 23:31

htg
Card Factory cards are reasonably priced because they are verically integrated and produce their own cards. The quality is not cheapskate and is comparable to cards at twice the price elsewhere.
One should be proud to send cards with their name on the back because it proclaims an intelligent shopper who is discerning and not a sucker!

[haroldthegreat] 24/4/2024 21:49

I go past a card factory shop about 3 times a week. Today for he first time ever they have a sign outside saying buy 3 get one free on all cards . They often have offers 10 for a £ or 5 for a pound or 4 for a pound but these are usually on a single section of cards . I disagree with them putting Card Factory on the back of some of their cheaper offers as it shows the sender is a cheapskate buying cheap cards .

They obviously have a very high profit margin on their cards and can afford a 25% discount but this is a first !

[bbonsall] 24/4/2024 16:43

And that would still be low for a company churning out this level of EPS and cash generation. It is outstripping Moonpig as far as revenue, profit and cash generation goes.

[casholaa] 24/4/2024 14:48

185p is the base in my mind but I've been wrong many times before so dyor etc

[elsa7878] 24/4/2024 12:44

Liberum put out a broker note saying they thought it could double. Think that was the reason for the rise initially.
Results are on Tuesday.

[billy rector] 23/4/2024 14:59

Had enough time now ya mug.

[havinthelasttoast] 22/4/2024 10:41

Give it a chance ya daft mug

[caveater] 22/4/2024 08:56

And the market has spoken...modest rise, due to impending results April 30th, not takeover talk. But hopefully still a steady climb till we find out the full results.

[harry_david] 22/4/2024 08:32

The heavy turnover and strong move on Friday is starting to look like a big institutional order rather than anything like a bid. Good news of course but not immediately. But you never know

[harry_david] 21/4/2024 22:24

A bit of media speculation, none looks informed. The market will tell us Monday morning.

[bountyhunter] 20/4/2024 23:24

I noticed the 6% hike in the price on Friday but have just noticed the accompanying volume spike in the header, interesting. Prelims 30 April.

[harry_david] 20/4/2024 20:29

Let's wait till Monday, it could be good.

[ggrantsu] 20/4/2024 16:01

Thought I’d chime in after yesterday as a big (relative to my overall holdings) holder of CF. Good comment below about this not being on the market for much longer…couldn’t agree more. Generally, massively discounted businesses which the stock market fails to appreciate in terms of quality are snapped up at a bargain price by PE. Make no mistake - this business being bought for a penny less than 1.80 would be a robbery for shareholders but I grant that with plenty of other attractive names around, potentially a lucrative way to make a quick buck. Friday may well just be random, although 7x avg volume is pretty substantial.

PE will recognise the opp here. A growing but very predictable recurring revenue stream in terms of store revenue, a huge growth opportunity for online (which I don’t think needs to be pursued but obviously could be), and an exciting opp in partnerships. After revenue comes the highest margins I know in retail, fabulous cash flow conversion and a very unique negative return on tangible equity ie a business which can grow infinitely without putting up any of its own equity - financed by suppliers and landlords. Qualitatively, I can’t think of any other retailer which benefits from such an attractive competitive position, with these two American behemoths supplying the grocers and Clinton’s etc who can only match in terms of quality but charge 2-3x as much.

This has all long gone unnoticed because it just garners scepticism from a city investor base who are male and rich (cards demographic is female and on a tight budget), and will see patient holders very well rewarded. Only positive I can see to a bid is a catalyst to make people see the value on offer…but personally I want to hold this for years while picking up good income while a niche little story plays out.

[bbonsall] 20/4/2024 14:21

Did you see The Apprentice final this week?
Alan Sugar told the runner up that he was wasting time and money by wanting to expand his online presence selling pies. Sugar’s emphatic advice was to open more shops!!