Card Factory Share Discussion Threads

[luderitz] 12/1/2018 14:16

Talk about a market over reacting!

[woodhawk] 12/1/2018 13:48

Indeed Gary, should be a decent bounce from here!

[garycook] 12/1/2018 13:09

Woody,Should do well with CARD.Look at last years graph it bottomed at 232p.This is well oversold now.

[minerve] 12/1/2018 13:06

Welcome aboard Woodhawk!

[woodhawk] 12/1/2018 12:52

Decided to join you at 216p. Thx for the tip, GaryCook.

[hardupfedup] 12/1/2018 12:11

eb1982 --- anything poss @ these levels

[eastbourne1982] 12/1/2018 12:11

Yes I agree, there is scope to raise prices, even a 5% rise only adds 6p onto a £1.20 card, negligible for most buyers.

CARD is a dominant player in this game and I expect that to continue.

[riverman77] 12/1/2018 12:00

Having been into one of their shops recently, I can testify that the cards are incredibly cheap - way cheaper than anything else I've seen and reasonable quality - so surely must be scope to increase prices. High margins suggests this is not an overly competitive sector so I'm sure they could sneak through a 10% rise with affecting sales. Perhaps they are deliberately keeping prices low to put rivals out of business and have the market to themselves.

[eastbourne1982] 12/1/2018 11:30

At £2.17 this must now be considered as a takeover target.

Someone like Walmart would fit the bill imho.

[staylow2] 12/1/2018 10:37

Hi Yump, No data here. I'd like to see your AI data. Sounds interesting. Also, no argument was just my opinion.

[yump] 12/1/2018 09:42

staylow2

So presumably you've got the data somewhere to show that card-buying is very price-sensitive and that people will increasingly shop online to pay 60p for a card that costs 99p at Card Factory.

Sort out which argument you want to use for goodness sake.

As I said, you need to understand market segmentation. By your arguments, especially the Amazon comment, nobody would start any business and be successful. But they do and they are.

[minerve] 12/1/2018 09:32

Look, even IF it is a declining market, margins and its vertical integration should allow the company to be a good income stock which is what we are all here for. In other words the decline (if there is one) can be managed.

The concern should be focused on whether the business will continue its path of selling more non-card product vs cards; the costs here are more heavily $ based and that will lead to continual erosion of margin.

What is amusing is general consensus amongst the City is for a reversion to mean for Cable but oddly (ho ho) that doesn't seem to be the consensus on this stock.

People are also forgetting that this company does have internet presence and so, even though this side of the business is nascent, it isn't exclusively just high street.

[tsmith2] 12/1/2018 09:27

UBS: There is no evidence yet of a wider market slowdown, while the lower margin non-card products are performing well. With the largest competitor, Clinton's, reducing store numbers and appointing a property agent to undertake a review of its estate we think there may be scope to see LFL accelerate even against a lower consumer disposable income environment.

[tsmith2] 12/1/2018 09:25

UBS in other have 290p base case, 400p upside case and 210p downside caseSo opportune to buy at these levels

[tsmith2] 12/1/2018 09:23

they also cutting dividend expectations and valuing it at 6% yield..

[tsmith2] 12/1/2018 09:21

From same note:We don't want to be too histrionic but the basis of all our enthusiasm has been the stability of the wider market. And for the first time, this is being brought into question. We can understand the Stock Market's seemingly brutal response to the update.I think they are being exactly that

[hardupfedup] 12/1/2018 09:17

gotta laugh
peel hunt 05/01 target 400
peel hunt 11/01 (thats a week later) target err 240 lol

[staylow2] 11/1/2018 16:01

Yump,amazon and Moonpig is enough reason not to get into this. AI is not going to get people thinging about getting out of the house to go shopping. And if AI has displaced their jobs they are not going to go pay top draw price for a card they can buy online for half the price.

[yump] 11/1/2018 14:58

staylow2

Have you ever heard of market segmentation ?

[minerve] 11/1/2018 14:00

This stock ISN'T about how people choose to send! It is about what receivers EXPECT to receive!

The 40+ generation do not get excited about email cards. The elder generation and future elder generation cannot afford to commit continually to smartphones and tablets. This area is a demographic that is growing! Life expectancy and baby boom generation are its drivers.

The signs of pension funds creaking are actually good signs for Card Factory. Think about that.

This just needs to find a level. It isn't going anywhere.

[mozy123] 11/1/2018 13:48

Bookbroker - please dont invite me to yours at Xmas, i dont fancy sitting round the Xmas tree sending each other texts and opening our vitual presents!

[staylow2] 11/1/2018 13:42

Like most thing, I now buy cards from Amazon. They even have mini shops on there that create bespoke cards. No matter how I look at it I can't see Amazon not being the one stop shop for everything. Unless of course the UK public wants to start to pay more for its goods. Which it won't.

[1224saj] 11/1/2018 13:32

This is a fantastic buying opportunity, I'm following Hubbard. The stock is all over the place today with a spread of 11%, its just trying to find a level. Wish i had got in this morning at £2.22