Ig Design Share Discussion Threads

[blackhorse23] 23/2/2022 23:46

Best stock to buy

[netcurtains] 23/2/2022 20:05

Thanks darrin1471, that's a better explanation.

[darrin1471] 23/2/2022 19:58

IGR have little if any spare cash to fund any M&A.

Trading update 26/01/2022 "current expected year end net cash position is forecast to be around $40 million."

Full year results 15/06/2021 "finishing the year with $76.5 million net cash balance and zero average leverage which leaves us well positioned to pursue further growth opportunities." (FY20: $52.4 million).

So strong cash generation of $26.5m has turned into cash burn of $36.5m

15/06/2021 share price £5.86 Outlook: Growth Plan targets driving revenues beyond $1.5 billion c.30% organic growth, balance from M&A

No cash generation = no cash for M&A
No timescale was given to the growth plan in the full year results, but without M&A, growth is cut from 50% to 15%.

IGR appear to have enough working capital to fund organic growth of 15%. If things go well IGR may be generating enough cash and have a strong enough share price to return to M&A in 18 months.

[netcurtains] 23/2/2022 16:34

HOLD:

A correction to what darrin1471 said "it has no cash".

In the accounts, IGR has 96m cash so not sure where that phrase "has no cash" is coming from.

IGRs assets are also THREE TIMES its liabilities - In fact, IGR's NAV is three times its current share price - eg if they were to sell the company as a going concern its possible that they would get 300% more than the current price and that would be a "fire sale".:




Valuation:
Simply Wall Street says fair value is about £8.50p a share:

[darrin1471] 23/2/2022 16:28

High growth through acquisition which took IGR to £8 will have to be put on the back burner until IGR sorts out the CSS business. IGR have no cash, a weak share price and will find it more difficult to fund growth through acquisition.
No profits = no dividend.
Profile of the company has changed from a growth share to a recovery share so the profile of those holding the share is also likely to change.
CSS looked like a struggling business with a 5 year falling share price until IGR bought it. There may be lots of skeletons in the stockroom. Those involved in buying CSS have sold their shares at £5 plus and are now leaving the company.
The CSS purchase still makes sense. IGR design capabilities with CSS ranges and customers.
New management will want to get rid of the skeletons and get in some nice options at a low price. So I would now expect write offs and at least another profits downgrade before the IGR share price turns the corner.
Founding family are unlikely to want to sell at such a depressed price if they can see a 3 to 5 year turn around plan.

[blackhorse23] 23/2/2022 08:21

Excellent opportunity to buy, high growth , high dividend & good value.. 500p company target SP

[netcurtains] 22/2/2022 15:11

They aren't seling any either - sooooo.... Perhaps they dont know either.

[justiceforthemany] 22/2/2022 14:12

Surprised founding family are not adding to their stake here.

[blackhorse23] 22/2/2022 11:10

It's a good stock

[netcurtains] 22/2/2022 11:06

I tend to agree, but its a very slow burner. Needs a bit of positive news to get this going ....

[blackhorse23] 22/2/2022 11:04

Bought some excellent value

[grantley] 22/2/2022 09:01

The impression was that issues were mainly post covid related to shipping costs and delays so short term but this is a longer term decision re Fineman. He seems to have done well over the years taking the share price up 20 fold to £8.00 at one stage but the Chairman Stuart Galliland and UK/International CEO Lance Burn both seem to have good experience. This has been a big lesson for me holding all the way up to £8 and still when Fineman sold all his shares - from my largest profit in a share to a loss having bought a load more at £5 when was on the up.

[time 2 retire] 21/2/2022 18:15

Agreed, Yankee boss gone (biggest market) along with money guy and now Fineman.
A new broom sweeps clean.

[justiceforthemany] 21/2/2022 16:38

About time Fineman left. No time for reward for failure. Founder has clearly sacked him.

[netcurtains] 21/2/2022 15:51

MACD buy:

Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. ... A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.

[grantley] 21/2/2022 13:46

Any views on Paul Fineman going? The impression was that issues were mainly post covid related to shipping costs and delays so short term but this is a longer term decision. He seems to have done well over the years taking the share price up 20 fold to £8.00 at one stage but the Chairman Stuart Galliland and UK/International CEO Lance Burn both seem to have good experience.

[km18] 18/2/2022 18:12

...from last year...

IG Design Group plc, formerly International Greetings plc, is engaged in the design, manufacture and distribution of gift packaging and greetings; stationery and creative play products, and design-led giftware. The Company's geographic segments include UK and Asia; Europe; USA, and Australia. The Company sells its products in over 150,000 stores across approximately 80 countries. It also offers a portfolio of licensed and customer bespoke products suitable for sale through multi-channel distribution.

The Company's products include crackers, pens and pencils, stickers, single cards and gift wrap. The Company offers its products under the brands A Star, B Stationery, Papercraft and Pepperpot. Its subsidiaries include Artwrap Pty Ltd, International Greetings UK Ltd, International Greetings USA, Inc, International Greetings Asia Ltd, The Huizhou Gift International Greetings Company Limited, Hoomark BV, Anchor International BV and Hoomark S.p.z.o.o. Current market cap is around £505m....

...from WealthOracleAM

[value hound] 18/2/2022 13:34

>5% stake for TM Tellworth UK Smaller Companies Fund. Their website says: "Investing in UK listed/UK registered companies only, with a typical market cap range between £100-500m, the strategy has no style or sector bias and crucially is capacity constrained."

[time 2 retire] 16/2/2022 14:39

When are we going to get some information on this pi## poor share? Been literally 10s of millions of shares traded since last report yet only one RNS! IGR get your act together.

[blackhorse23] 14/2/2022 10:48

400p by this summer

[blackhorse23] 10/2/2022 09:10

Best stock to buy at LSE

[netcurtains] 09/2/2022 22:08

Simply Wall St say IGR is 87.3% undervalued:



They think fair value is about £8.50p a share.