Ig Design Share Discussion Threads

[wigwammer] 19/5/2022 19:01

Thanks Darrin and deanowls. The Wal Mart inventory data relates to the quarter up to 30th April. This is just 3 days after IGR gave their trading update. So there should be littleabout WM's situation that was not evident to IGR management at the time they gave their update. This is what they said "The business has had good success in mitigating a significant proportion of the ongoing cost pressures through discussions with customers. Progress has also been achieved including a restructuring of the US commercial, manufacturing and supply chain operations, which while removing costs also better aligns and accelerates decision making and improves accountability. In addition, operational cost savings have been implemented reducing external storage and freight handling expenditure while also ensuring in-house manufacturing is well prepared for the forthcoming season."

[deanowls] 19/5/2022 18:58

Worth listening to the loadstar podcasts for chat on logistics.

A lot of stock was late into suppliers resulting in lost sales but if of a seasonal nature should unwind 12 months on.

Tied up capital and will work it’s way through.

[darrin1471] 19/5/2022 18:17

IGR needs to get stock in early this year so they can deliver seasonal goods without having to pay premium transport and staff rates which was what happened at the end of 2021. This results in greater working capital requirements and interest payments.

I expect there to be historic stock write downs in the acquired CSS business. It is important IGR distinguishes the difference between the historic write downs in the CSS inventory and the temporary China supply chain issues that require increased inventory.

Market analysis of the Walmart and Target results this week focused on the 32-43% increase in inventory. I suspect this as due to both companies bringing forward some orders so they are not caught up in the supply chain problems. Plus 32% for Walmart represented only 10 days extra stock and appeared to be as planned.
Target (+43%) however said they had lost margins as they had to clear excess stock and they expected this to continue into the rest of the year. Maybe Target seasonal stock got delayed ?
Analysts are likely to be looking at inventory levels going forward so clarity is very important as we know they often get easily confused.

[wigwammer] 19/5/2022 16:58

Yet still it falls day after day! Hopefully we'll get more clarity when the results are released in June. We may also get further PMDR purchases once the closed period is finished. ATB

[wigwammer] 19/5/2022 16:56

I get that a company wants to run with as low working capital as possible, but in this case, does it matter so much? The products aren't perishable, and I can't imagine the product designs demanded change a great deal from year to year. Inventory absorption just means cashing out a later date. Given the quality of their customer base, and that their banks are lending against a physical and non-perishable asset, I suspect they will get the funding they need. Tangible equity at end of Sept 2021 was well north of £200m, on top of the sizeable sales base that seems like a good base to build on, particularly when the market value of the whole company is currently £53m.

[darrin1471] 19/5/2022 16:31

Loss of growth story justifies a 50% fall
5 bagger from here in 3/4 years looks very achievable.

30%-45% increases in held inventory over the last quarter at Walmart and Target has been taken very badly by the markets this week. I think this has been misunderstood and the falls are overdone. IGR flagged their inventories are going to rise this year so they will need to be very clear why this is happening and when they will unwind.

[value viper] 19/5/2022 16:27

Wig agreed of course - might have to work out how filter works !

[wigwammer] 19/5/2022 15:37

Fair point on the profit. But I suspect the scale of revenues ARE relevant - a lot easier to turn a profit when you have revenue than when you don't... does losing 2 years of profit justify a 90% fall in the shares? I suspect not. If it reverts back to anything like the valuation of 12 months ago as the profits revive, then this is a (many) multi bagger over that 2-3 years.

[value viper] 19/5/2022 14:00

Revenues irrelevant- company makes no money for next couple of years by own admission - Plse read last update For gawd sake

[blackhorse23] 19/5/2022 10:21

Looking very cheap against huge revenues & profitability

[s34icknote] 18/5/2022 10:23

In at 53.7Trade hasn't shown yet !

[blackhorse23] 18/5/2022 08:05

Non executive director bought shares at 73.5p

[blackhorse23] 17/5/2022 08:17

Unbelievable low price

[wigwammer] 16/5/2022 15:56

Seem to get through one overhang just to start another. All of them selling at fractions of the price they originally paid..

[blackhorse23] 16/5/2022 08:45

Very attractive price to buy

[wigwammer] 13/5/2022 12:34

Yes. Fingers crossed the overhang has gone :)

[darrin1471] 13/5/2022 10:26

1.4m traded @ 57p before 8:30 this morning.
Hoping that will be the end for the seller and the buyer now moves the price up

[blackhorse23] 11/5/2022 14:25

Bought another 49k shares today for my Xmas bonus

[blackhorse23] 10/5/2022 08:11

Blue day today

[blackhorse23] 09/5/2022 08:46

Excellent opportunity to buy

[blackhorse23] 06/5/2022 07:29

insiders are buying

[wigwammer] 05/5/2022 09:19

Jeez. When will these sellers quit dumping? Quite reassuring that's it's the same brains that bought the thing at multiples of todays price.

[time 2 retire] 04/5/2022 15:03

Someone must be mopping up these shares, I wasn't allowed to buy 30k!

[blackhorse23] 04/5/2022 10:12

Must be another institutions buying back