| Date | Subject |
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29/10/2020
18:38 | undervaluedassets: The CMA have gone away. Investor relations confirmed as much.
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28/10/2020
08:28 | undervaluedassets: Yup ... Investors are pragmatists. They will trudge here due to the inevitability of pandemic and the relatively cheap DTY stock price.
The regulator will stay their hand .. They need the funeral directors onside.
Grim but true
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06/10/2020
13:45 | undervaluedassets: Nibbled a few more on that no news fall just then .. rude not to.
Harsh.. but logic dictates investors will be drawn here for obvious reasons
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29/9/2020
12:08 | weemonkey: Above average volume today.. follow through by private investors of Goldman?
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13/8/2020
14:14 | velocytongo: hat .. once the market forgets about the debt, which it will because it is no longer a problem and it is £500m and not the £1.8bn that is being bandied around by the financial illiterate and it's got £80m of gross cash, investors will rate it on a p/e basis .. I reckon on £1 EPS in the next 12 months and with a market of 15 that's a £15 share price and that's before you factor a growth rating that it will almost certainly get if there's a second wave and/or when there's a pick up in the death rate .. investors will are flocking anything that's got perceived growth and rated as quality .. just check out the mid 40 multiples on stocks like Renishaw and Games Workshop .. the same will happen here .. the market has a short memory .. VTongo
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03/6/2020
21:35 | hatfullofsky: They look cheap to you, to me, to the director and the institutional investors..... but shush Just keep adding
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06/8/2019
08:12 | the real stan: Remember that the investors who loved the sector did so because of the price inelasticity at moments of family grief. For too long Dignity have been able to take over small family businesses by stealth, sponge off the continuing customer loyalty by increasing prices then pull out huge dividends funded by debt. This game is exposed and hence over.
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05/8/2019
09:54 | peanut100: Dignity's profit outlook remains tough due to the combined risks of significant regulatory overhang and considerable leverage, says Berenberg. The broker notes that the company can only grow profits through price, volumes or reducing costs. Investors will have to believe that Dignity is unaffected by the CMA's market investigation, that its transformation plan can reduce costs and that it can win market share over the medium term, it says. However, with demographics limiting market volume growth, and the CMA's investigation likely to limit pricing growth for the foreseeable future, Berenberg sees reduced costs and market-share gains as the only way in which Dignity can grow profits over the medium term. Berenberg has a hold rating on the stock with a target price of 570 pence.
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03/6/2019
21:10 | checkers2: IN FT LEX today:Dignity/funerals: profiting from loss
Poet and playwright Ben Jonson, pleading poverty, opted to be buried upright in Westminster Abbey. His worries about funeral costs are widely shared in the UK. They have risen at twice the rate of inflation since 2004. Politicians and regulators are determined to intervene.
A crackdown on the “shameful̶1; high pressure selling of pre-paid funeral packages is the latest salvo. The sale of these will be regulated by the Financial Conduct Authority, the Treasury says. Listed undertaker Dignity welcomed the move. Even so, its share price fell 4 per cent.
The move will hit Dignity’s pre-paid funeral business, currently a quarter of the whole. Bad publicity will reduce the popularity of the plans. Compliance costs will rise. The total impact should be modest. Dignity has already stopped booking profits when a plan is sold.
A much bigger investor issue is the full-blown investigation announced in March by the Competition and Markets Authority. Barriers to entry are low: the number of funeral companies rose 83 per cent between 1989 and 2017.
Dignity has just 12 per cent of the market, while its bigger rival Co-op Funeralcare has 16 per cent. Previously, the shares had been seen as a strong defensive investment. But a recent price war, along with news of the CMA probe, has hit Dignity’s stock hard. After losing more than three-quarters of their value since October 2016, the shares trade on a multiple of 11 times forward earnings, down from a long-term average of 18.
If the CMA does not opt for draconian remedies such as price controls, it is possible the shares have plumbed the depths. Dignity’s fortunes could turn, especially as the long-running decline in the death rate goes into reverse. But investors should steer clear until the CMA probe is over. Ominously, it singled out Dignity’s top-of-the-range profit margins as symptomatic of a market that is not working well for consumers. Bereaved families may be price-insensitive; regulators are not.
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28/3/2019
08:23 | hatfullofsky: hussyo - I doubt there will be a significant rise here anytime soon. You may be right over a 24 mth period but at what opportunity cost ? There are many more companies that have better short to medium term prospects.
Watch and wait, they'll be no significant investors until the CMA outcome is clear
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