Ig Design Share Discussion Threads

[lord gnome] 30/5/2022 18:00

This is priced to go bust. Something doesn't smell right so I am staying out until there is some progress towards solving problems. Just what is wrong across the pond? Has the full story emerged yet? Sorry to be so negative. I have been a fan of IGR in the past and wouldn't mind coming back again. There will be plenty of time to get back in once we see progress being made. Until then I am sitting on my hands.

[justiceforthemany] 30/5/2022 17:55

Relentless selling. 90% down. Market cap a pitiful £48M now
Price to Sales 0.05 seems bogus
CSS alone was bought for £90M
Anchor Play Products bought out last week
NAV 4-5x current SP
Tipped by Interactive Investor on New Year's Eve at 270p
Bizarre. Very.

[fegger] 30/5/2022 15:25

Ichimoku indicators still negative. Likely to improve in July/August

[blackhorse23] 30/5/2022 15:19

Better stock than moon , mcap 3 times higher than revenues but IGR mcap 20 times lower than total revenue, huge opportunity

[value viper] 30/5/2022 09:56

Red day for IGR again

[blackhorse23] 30/5/2022 09:15

6 bid vs 1 ask

[no dice] 27/5/2022 08:57

Apologies, misled by Google's fubar reporting of Moonpigs's PER. It is indeed a slightly less stratospheric 41x, based on FY21 diluted EPS of 6p.

[blackhorse23] 27/5/2022 08:20

To IGR better than moonpig , moonpig revenu 350m but mcap 931m where IGR REVENUE 963m but mcap 49m , will be skyrocket soon

[yump] 26/5/2022 20:52

FYI Moonpig doesn't have a PER of 100, except in that other universe.

Half year eps was 4.5p.

[blackhorse23] 26/5/2022 10:19

IGR Will be hiking from 1st June when Claire taking over as non executive director, who is advisors of JP Morgan investment portfolio

[blackhorse23] 26/5/2022 08:46

Bought more today

[blackhorse23] 25/5/2022 10:54

Excellent value for new entry

[no dice] 23/5/2022 13:21

Meanwhile in an alternate universe...

Moonpig (market cap. £804m, PER 100) buys Buyagift (revenue £44m) for £124m.

[blackhorse23] 20/5/2022 09:00

Bought some more , could be takeovers coming like thg

[darrin1471] 19/5/2022 21:31

IGR bought CSS. CSS had falling sales and share price before IGR bought them. Using IGR design skills they have an opportunity to update the CSS range for their big US customers and sell the same or a similar ranges around the world to IGR's existing customers.
There has to be a significant risk that during the strategic review there will be stock or brands that need updating, closing or writing down.

hxxps://www.thedesigngroup.com/group/americas/

Take a look at the IGR webpage above and see which 2 pictures look like something from 40 years ago

[wigwammer] 19/5/2022 20:48

Well they did mention an FY22 write down in the update, but only to tax assets. Perhaps too early to say anything with conviction about FY23, but does suggest we should not see other write downs to the balance sheet ending FY22 .. "As a result of the lower than previously expected future earnings in the USA, the Group will book in FY22 a non-cash one-time reversal of deferred tax assets, meaning that adjusted post-tax losses and adjusted loss per share are expected to be significantly below market expectations."

[time 2 retire] 19/5/2022 20:08

Nice to have some informative posts off individuals other than the daily ramper who is jinxed, more they post more IGR falls.
Cheers all.

[darrin1471] 19/5/2022 19:53

I don't think Walmart/Target inventory issues has any relevance or effect on IGR directly.

What I am trying to say is that investors and analysts are going to be more interested than normal in inventories and write downs. IGR needs to be clear about what they are writing down (if they do) and why inventories are increasing.

[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.