Choicesuk Share Discussion Threads

[quotes_4_u] 29/8/2006 12:15

Unlike Amu i didnt see anything in the results to make me want
to buy and it looks like that applies in whole so the mm's as
normal will drop it on anything that is sold.

JTC.

As i say Amu just has to be the better play.

[edmundshaw] 29/8/2006 11:00

Trades not showing but price is down, even though I only had a small holding. Sorry about that. :-(

[edmundshaw] 29/8/2006 10:57

A day after the bank holiday without warning? Typically a good day to release bad news... but is it really bad?

Turnover down nearly 5% - but loss-making stores closed (and more to come)

Operating profit dire at 20% of last years pre exceptionals.

Costs to be taken out of the business should add back that profit, but only to half last year's levels, all else being equal; but another 6 months to wait for the next scheduled progress report.

All looks to be "work in progress", but essentially CHUK is changing its business to cope with loss of demand on the DVD/video demand. It has a nice network of retail outlets and a new web site, but the former is only a positive if the outlets perform. Otherwise it is a negative (idle millstone).

It has become something of a lottery of an investment for me, so I'm out.

[bletherer] 29/8/2006 10:09

2 hours into trading and a grand total of 750 shares traded! That must be some kind of (negative) record on a company's final results day.

[jtcod] 29/8/2006 09:04

That caught me by surprise.

I'm out for a meeting so will comment later in the day.

[jtcod] 23/8/2006 16:32

Cheers Steg
I'll give it a look.

[stegrego] 23/8/2006 12:51

JT - dont know whether this will help you or not -

a link to keep up with how customer services at CHUK deal with customers

(im not saying its bad by the way - just for you to maybe keep up with things)



cheers

(you might have to register to view - but they dont send you any mail - ive been in for over 4 years and never had anything)

[terry91] 23/8/2006 11:18

L2 on the move 2 bid 1 offer now. Get this next offer 77p

[myoldmate] 23/8/2006 00:12

Well that's better than a kick in the nuts isn't it.

[jtcod] 23/8/2006 00:01

The company's brokers expect 3p for the second half (prelims).

I'm expecting a full re-instatement for the coming year to 7/2007. It's a guess on my behalf but I can see no reason to stall it and the Chaiman must be missing the divi income, (with such a substantial shareholding).

[bletherer] 22/8/2006 23:28

myoldmate - the dividend was suspended last time round I believe. We can only speculate about when and at what level it will be reinstated.

[myoldmate] 22/8/2006 23:22

Looking at the charts for HET and CHUK the drop in share price has been quite alarming but it seems to me that the downside from here on in in is minimal. The 9+% divi is an added bonus too.

[jtcod] 22/8/2006 23:03

GT
Hate to think that you lost money in such a way. I feel that I have almost stolen your shares.

I have had the same problem of moving shares in the past and there is a way round it:

Just explain to your broker that you wish to transact a back to back sale/purchase. Take the current price and give a 0.5p margin to the MM's. Just tell them that's what they get.

On 9th and 10th of August I transfered 63432 and 10,000 shares in CHUK between accounts at 64.25p sell and 64.75p buy. If you have just one broker for everything, you may shave the margin further. These transfers though, involved 2 brokers.

I can't help thinking your loss could have been avoided.

I did laugh when I read your post though. No offence meant.

[bletherer] 22/8/2006 21:10

myoldmate - this is not a new issue and has been noted and discussed quite a bit in the past. Take a look at the old HET thread titled "a" if you're interested as there was quite a lot of discussion there. Unfortunately it means that the shares can go down on little or no volume as well as up, so ultimately it's still just a question of supply and demand. But you can bet that if CHUK come out with some good news there will be a strong positive reaction in the share price even if volume appears light.

[myoldmate] 22/8/2006 20:45

As the newbie here could you old hands tell me if these shares have always been as tightly held as they are now? or did the major holders accumulate near the bottom a while ago.

I was gobsmacked at how the price rose on such few trades and more than a little excited thinking about what could happen if the results are well received and there was a demand for them ( fingers crossed eh! ).

[stegrego] 22/8/2006 13:59

fair comment and seems sound reasons. maybe i should research this beyond my own experiences of the company. i still feel that small items that fit a letter box scream net sales , not stores, but agree change takes time and that impatience and impulse buys will always be a factor.

[jtcod] 22/8/2006 13:37

Steg
Don't really care if I convince you or not but here's my reasons for holding.

Spending habits of individuals rarely change very fast. Remember when the internet originally took off? The concensus was that retail had no future. Post the dot.com bubble, they had to temper that view. Fact is there is a market for all parts of the buying spectrum. This is just one of them. If we take your argument to it's logical conclusion, everyone would buy on line for the lowest possible quote at time of purchase. Well we all know that doesn't happen in the real world because there are a multitude of reasons governing a purchase at any given time and place. One being they just don't want to wait (even 24 hours).

There are hundreds (if not thousands) of retailers selling over the internet on price and still yet to make a profit. In the end, when there is a 'profitable' business model for say 'download technology', I'm sure CHUK will be a player also. Until then, it makes very good profits doing it the old way.

When people look at Choices, they think of the video shops but Choices is now a major distributor of product to 8,000 other retailers and some significant mail order players already. Distribution in this sector is holding up superbly well (see AMU).

Every stock has it's price and imo this one is far too low. I forecast EPS of 17p minimum for 7/2007. I also forecast that the 6p dividend will be re-instated for 2007.

Only time will tell if I'm right.

[myoldmate] 22/8/2006 12:19

I'm a big fan of fingersxxd, and using his guidelines the 75p mark followed by 87.5p and then £1 are psychological resistance levels. However having seen this shoot up on small volume this AM any steady buying over the next few days/weeks will smash that theory to pieces.

[stegrego] 22/8/2006 12:18

Good luck here..

Not invested but a general comment.

I am part of thedvdforums.co.uk and although choicesdirect.co.uk has good service overall (and indeed are a forum sponser), it is not reknowned for its great prices - competitors such as play.com, cd-wow etc are generally cheaper.

Also - what incentive has anyone got nowadays to buy a CD/DVD/GAME on the high street when they can get them for a 25% - 50% discount online?

You dont need to see or hold / touch / try on a DVD/CD/GAME - you can hear part or all of tracks at places like I-tunes, you dload game demos or get em on coverdiscs - I just cant see the attraction of such shops any more.

Also - have you been in a Choices shop? The prices are ridiculous - almost full retail price for a lot of stuff.

Can someone please convince me that im on the wrong track here?

Ta

[terry91] 22/8/2006 12:02

Yes noted that you pay over the top but you ge the bid up fast as well so break even quite quick.

Seems a run up to news. Where will it stop