Currys Share Discussion Threads

[mikepompeyfan] 16/9/2021 05:16

If anyone is so inclined please set up a new page under the new TIDM of CURY



Dixons Carphone plc renamed Currys plc

On 13 May 2021 the Company announced its intention to change its name to "Currys plc". The Board is pleased to confirm that this change has now taken effect.

In the United Kingdom & Ireland, Currys PC World, Carphone Warehouse and Team KnowHow will all become a single brand "Currys" by October 2021.

Further information is available here: hxxps://www.dixonscarphone.com/news-and-media/press-releases/year/2021/four-brands-become-one-currys

The Company's stock market TIDM will become CURY from 8:00 am tomorrow, 16 September 2021 and its ISIN will remain unchanged.

The change of name will not affect any rights of shareholders and existing share certificates should be retained as they will remain valid and no new share certificates will be issued.

[hades1] 06/9/2021 15:14

Up at open now down?Let's hope it's not o2 bribery related?

[m_kerr] 05/9/2021 10:34

the point on investing is to compare to other companies, you shouldn't just view a company in isolation as there may be better value elsewhere. what we do know on dixon's is it has no property and huge lease liabilities, a large pension deficit (3-4 times EBIT), and a large and formidable rival in amazon. furthmore, it makes very thin margins,(1.4% operating margin, and averaged 19% gross margin in the last 5 years). there are other pressing and higher ranked claims on that cash flow, meaning very little accrues to you as a shareholder for the next few years at least. it's basically like a supermarket stock, without the property. activism / spinoff of the nordics is ruled out until that £400-500m deficit is made good.

to the person saying kingfisher is valued at a premium - consider that it is forecasting £650m EBIT at HALF YEAR, not full year. on an ev/ebit basis, my preferred measure, dixons is currently valued at 19 x ebit, compared to kingfisher at 9.5, and on a book value measure, dixons is at negative £500m excluding goodwill. it's unclear how you can therefore conclude the valuation is 600% higher.

[essentialinvestor] 04/9/2021 11:35

Yes Fair enough, it was raised as a comparison so just giving a view.


I like DC, but would like it a lot more if they were not having to pay approx

£80 million a year to plug the pension deficit. No more KGF comment here from me.

[commuter10] 04/9/2021 11:25

I think we've gone off track here guys!

Best to subscribe to the KGF thread.

Totally different companies & products!

[essentialinvestor] 04/9/2021 10:59

KGF won't do £900 million on pre tax in FY 2022, or at least it's very unlikely,
but they might with a fair wind do £750-780 very approx.
That puts the multiple on 12 X ISH.

Now given they own some freeholds, their pension scheme is in large surplus
and Screxfix is worth perhaps £3 BN plus as a stand alone business,
they don't look expensive to me.

KGF is also a recovery situation following the last CEO and the arguably disastrous One Kingfisher programme.

[netcurtains] 04/9/2021 10:45

EI hence the valuation difference.
Do you buy at the top of the cycle or the bottom?

But the million-dollar question really is,
are we at the top and bottom (respectively).

[essentialinvestor] 04/9/2021 10:41

net, profitability of the 2 companies are completely different, KGF is

at consensus £900 million on pre tax this year.


DC is an interesting company, but their annual pension contributions are extraordinarily high as a % of pre tax profit.

[netcurtains] 04/9/2021 10:06

m_kerr:
The market values Kingfisher SIX TIMES higher than Dixons.
the DIY boom is probably running out of steam as more people are heading back to work.

I'm not convinced buying Kingfisher at 600% higher valuation than Dixons is such a good move. Is Kingfisher really worth 600% more than Dixons?

Marks and Spencer are valued at only 50% of that of Kingfisher and its probably in the recovery phase so perhaps that is a better bet?

[commuter10] 26/8/2021 09:30

Agreed! We don't need PR blurb for Kingfisher here thanks.

[danb45] 25/8/2021 20:38

buy kingfisher then, why post on DC board ?

[m_kerr] 25/8/2021 17:54

i've had a look, but i strongly prefer kingfisher in the retailer space. substantial pension surplus compared to dixons substantial deficit. no amazon style competitor and insulation from online, leading to gross margins of about 37% v about 17% for dixons. property ownership (around 40%), compared to zero for dixons. excluding goodwill, kingfisher trades at about an 81% premium to book value, vs negative net assets for dixons. for all these reasons, you have potential return on top, from a takeover. no-one will takeover a retailer that doesnt own it's own stores, and has a huge pension liability.

[sphere25] 19/8/2021 07:43

Raised my stop a tad and it has sliced through it with the price currently at 135.9p. The US is seeing some weakness and it inevitably flows through over here. Had a few go through stops now with AGFX and ADT1 too.

Still headed in the right direction but it certainly isn't the one way street it was. The US is wobbling and I'd be watching the IWM over there to make sure key support is held.

There are some concerning statements out today on supply chain disruptions, which is continuing the theme of late. More to follow on those.

Barring long term holders, having to be more selective and nimble of late. Buy, hold, expect a completely smooth ride and forget about stops - that kind of easy mentality could easily be washed away soon.

All imo
DYOR

[sphere25] 10/8/2021 13:11

Interesting juncture for DC. with the price currently at 138.8p and testing key resistance on the chart, where it has failed a few times before.

It is doing a very turtle like move in an uptrend which could be bullish (slow and boring can be best), but volumes are light too so the price could bounce back off resistance if a big seller .....pushes a button from a yacht somewhere.

Nibbled a few to try and play the breakout. Stop at just under 135p.

DC. is far more liquid (very easy to nip in and out of) than alot of the other companies mentioned and the spread is tight too so also more conducive to trading.

Will the algo's push it through to keep the uptrend firm and a profit or will it be a fail and fall back under the stop?

All imo
DYOR

[farrugia] 21/7/2021 14:39

so a bit of director buying from the CFO who should know his numbers - i bought some at 1.17 for a trade. Don't really know what's going to happen short-term though

[wm2020] 15/7/2021 16:07

GLG shorting this now, up to 0.84% y'day.

[tim 3] 14/7/2021 19:22

The increased costs with all stores open and more people shopping online has been a concern for a while.No doubt they did well during the pandemic BUT they didn’t have the additional cost of running stores.

Having said that I did think the results and the comments he made at the time might inspire more confidence.

Edited left shopping "online" out!

[commuter10] 14/7/2021 18:34

Difficult times guys. I visited my local store last week & only around 6 customers in a huge store! The trend is Online so much now I can see more stores closing similar to J.Lewis & shedding more staff. But the upside is Online is more profitable with less overheads. As long as they have enough HGV drivers as there's a real shortage now! I'd say their Hold for now. Markets down today as inflation worries in the U.S. could spread to the U.K.

[essentialinvestor] 14/7/2021 16:54

Sal, the annual pension contributions not put you off at circa £80 Million ?.

[salpara111] 14/7/2021 16:33

Been watching since the recent results, took a stake today.
Downside has got to be limited from here......surely!

[hades1] 14/7/2021 10:26

Another high volume day.Now 125pHas to be a bargain at this price surely?Where's that private equity!

[hades1] 13/7/2021 13:52

7 days later now 127!What's going on?

[tim 3] 06/7/2021 10:44

Some resistance around 1.40 but yes 1.60 possible with the solid results supporting them.

[pepepepe73] 06/7/2021 09:03

Straight to 160p

[ander] 01/7/2021 15:03

Nice to see us moving up again...hope we close up on the day!