Ig Design Share Discussion Threads

[wigwammer] 21/6/2022 10:40

Not a problem for me either, ham. But I'd rather be disproportionately weighted to stocks with higher return per unit of risk, than lower.

[wigwammer] 21/6/2022 10:38

To repeat hamham. I own IGR. I'm not slagging it off, I'm evidently making people aware of the realities. iGR HAS DEBT.

[hamhamham1] 21/6/2022 10:38

All investing is a risk, thats why a broad portfolio spreads the risk.
Having a percentage in higher risk/reward isn't a problem for me.

[wigwammer] 21/6/2022 10:37

I'm answering blackhorse's points. IGR has material debt, just like MCB, and also dropped around $50m cash over the last 12-18 months. I suspect selling gift wrap predominantly over a 5 week period each year is more economically sensitive and unpredictable than selling laundry products over an entire year. I had a vastly larger position in IGR at 50p, but took profits in the rebound, and now think 20p for Mcbride looking better value. iMO

[hamhamham1] 21/6/2022 10:35

But that's investing you think MCB is better than IGR, time will tell but going on other boards slagging off those shares, espec whilst holding the likes of MCB, is a tad ironic.

[hamhamham1] 21/6/2022 10:32

IGR has market cap of 65m and net asset value of 392m.
MCB has market cap of 35m and net asset value of 69m.

[hamhamham1] 21/6/2022 10:29

A lot of companies have debt, only a handful in the FTSE don't.
Currently is 15m. Which isn't huge on a near 1bn turnover company.
And yes it may go up over next 12 months, but that's realistic in this economic/supy environment.
Am happy to hold till this all settles, and MCB, you think that is a safer bet????

[wigwammer] 21/6/2022 10:28

Please stop Hamham.. that is an end of year number.. a snapshot.. the average debt required over the course of a year is substantial, which is exactly what the company have told you.

[wigwammer] 21/6/2022 10:26

And re stock.. if the stock sitting with retailers goes unsold, I'm sure I don't have to tell you why that's bad news for IGR.

[hamhamham1] 21/6/2022 10:26

"The Group closed the year with a net cash balance of $30 million, down year on year reflecting inventory-related working capital absorption. This relates to the Group's response to continuing supply chain challenges, which have required raw material purchases to be brought forward to support the strong seasonal orderbook and the inflationary impact on the cost of inventory."

"The Board expects FY23 to continue to present external supply chain challenges bringing uncertainty across the Group, however, customer demand remains strong, particularly in relation to our important contracted seasonal orderbook."

[wigwammer] 21/6/2022 10:24

"Average debt of the Group is expected to increase to c.$75-$80 million across the 12 months to 31 March 2023."

[wigwammer] 21/6/2022 10:22

But... they still have debt.

[hamhamham1] 21/6/2022 10:13

IGR already said that they have very strong order book secured for season coming up, ie Xmas etc.
So IGR wholesale sell the stock to the retailers, then it's up to the retailers to sell the stock per item.
IGR say they have less cash in the bank, c.30m, as they have pre-bought raw materials for stock ahead of the upcoming season, avoiding stock supply issues and also beats inflation.

[wigwammer] 21/6/2022 10:07

IGR average debt has ballooned, lol... "Average debt of the Group is expected to increase to c.$75-$80 million across the 12 months to 31 March 2023, compared to c.$15m in FY22 reflecting the expected higher working capital requirements of the Group throughout FY23."... I own IGR, but at least I'm not entirely naive to the risks.. :)

[wigwammer] 21/6/2022 10:03

"no indication banking facilities will be extended.." please read the statements before making assertions, you are talking total bwollox.

[wigwammer] 21/6/2022 10:02

IGR also in debt. You are just looking at a snapshot at one point in time, not over the course of a year. ATB

[blackhorse23] 21/6/2022 09:46

MCB is in multimillion pounds debt & posted multimillion pounds loss , no indication banking facilities will be extended, IGR in green & growth stocks , bank facilities has been extended

[wigwammer] 21/6/2022 09:33

Moved some IGR into MCB. IGR far more cyclically sensitive than MCB. As economy retrenches, the wage pressures that have affected MCB will likely ease as the labour market loosens, and lower demand for commodities will reduce input prices. 0.05x sales, with debt that can revert to normal levels after 2-3 years of repayment (likely to take stock back to the 60-90p range). I'm happy to triple bag+ over that period. ATB

[blackhorse23] 21/6/2022 09:26

Excellent growth stocks

[wigwammer] 21/6/2022 09:18

Recently sold some IGR on the bounce to mid 70's. Made a decent profit. Risk is they stuff the channels, and it doesn't get sold over Christmas as the consumer retrenches. Retailer gets left with a lot of stock they fire sale and stuff IGR in the process..

[blackhorse23] 20/6/2022 19:51

Next Tuesday looks like go up 1. Strong order books 2. Like to like sale up by 15% 3. Current revenue till March 2022 is 963 millions 4. That's all , institutional investors like to hear at this current economic situation

[hamhamham1] 20/6/2022 19:46

As someone mentioned earlier, waiting until next Tuesday could be wise, confirmation, but i am in now and I'll top up if it drops as I'm not overloaded.

[hamhamham1] 20/6/2022 19:34

It's not like I bought at 800p, 700p, 600p, 500p, 400p, 300p, 200p or even 100p.
Anything sub-100p seems like a potential cheap entry point, but who knows, time will tell.

[hamhamham1] 20/6/2022 19:19

The current share price does suggest there is an element of risk, but am happy with that as a small part of a broad portfolio.

[hamhamham1] 20/6/2022 19:14

Maybe, but am prepared to hold for the medium term.
There a lot more upside than downside from the current share price level.
Maybe it goes down 20% to near 50p (in short term). And/Or maybe (over time) it goes up 200% to 195p, or up 400% to 325p, or up 600% 455p???
The (over subscribed) discount share issue Jan 2020 was 695p area.
I like the current skew in risk/reward to the upside, but hey, that's investing.
Broad portfolio, etc.