International Distributi... Share Discussion Threads

[radarlove] 16/3/2006 12:16

'Shares Magazine' give Ideal Shopping a good write-up today.

On last week's results they state, 'They demonstrate the online retail group's continued strength. Turnover was up by just over 30% as Ideal benefitted from the continued dynamic growth in online shopping.

However, the comparison was distorted by the fact that the previous year's results only included eight months of Ideal World on Freeview. This year's figures included a four month contribution from the new Jewellery Vault Channel.

Underlying like for like growth was some 15-16%. Margins suffered from the changing sales mix, hurt by increased sales of footwear. However, sales growth helped to leverage the fixed cost base so that operating margins rose to 8.9% from 6.8%. House broker Teather & Greenwood expects the group to increase turnover by 16.5% this year. There is likely to be a slight erosion of margins as the sales mix alters. The growing importance of jewellery will act as a drag on margins. The group's higher cash balances will, however, ensure it enjoys higher interest receivable.

Teather has increased its forecast for both this year and 2007 to £8.5m and £9.5m respectively. Earnings per share of 19.9p rising to 22.3p mean that shares are selling on a rating of 17.0 falling to 15.2. Despite the bearish views of Oriel Securities, most brokers remain positive, partly because of the strength of the online retail market and partly out of respect for Chairman Jim Hodkinson.'

SHARES SAYS:

'One of the sector's success stories. Rate of growth may decelerate but most analysts remain optimistic.'



Over 200,000 shares bought by mid morning, on the back of this article, and still the share price remains static. The MMs are acting like a rabbit paralysed in car headlights - pathetic!

[powwow] 13/3/2006 15:03

radarlove re post below, I agree with you 100% MATE.

radarlove - 8 Mar'06 - 09:08 - 735 of 746

[maestro.] 12/3/2006 21:07

thats the whole point... dotcom + china= mega bucks/shareprice

[diogenesj] 12/3/2006 21:05

Working now, but I'm not much wiser because it's in Chinese. :-)

[jakleeds] 12/3/2006 20:59

link still doesn't work maestro

[maestro.] 12/3/2006 20:53

take a look guys at pacific media's similar model...what ya reckon?..its up again

[poacher45] 11/3/2006 17:16

Tipped today in the Telegraph. Best retail play when you consider how highly ranked ASOS is.

[maestro.] 11/3/2006 15:24

diog..yes i know..i think its down for some reason but check again later..its very similar to idealworld website

[diogenesj] 11/3/2006 15:22

Link doesn't seem to work, M.

[maestro.] 11/3/2006 14:47

just wondered if you guys have seen the equivalent to IDS in China which is owned by PCM[Pacific media]...its ...their shareprice ia around 0.12p with market cap around £15m...thats pretty cheap woudn't you say considering the potential of China

[artful dodger] 09/3/2006 19:57

chart gives me no concern re the share price.

slowly slowly catchy monkey

[diogenesj] 09/3/2006 18:40

Perhaps it's worth noting a difference of opinion among brokers. A brief mention on the last page of Wednesday's FT Companies section (under Small Caps), refers to Ideal Home Shopping (yes, they got the name wrong, as often). It says 'while KBC Peel HUnt said the stock could be worth 500p, Oriel Securities said the shares, which almost doubled last year, did not justify a premium to the retail sector, and reiterated a "sell" recommendation.

Why a company growing as fast as this one should not be able to justify a premium to the rest of the struggling retail sector is not explained, but there you are.

[radarlove] 08/3/2006 17:32

From Yahoo Finance:

Ideal Shopping Direct, the TV shopping channel firm, hiked its dividend after delivering a strong set of results for the last year despite consumers tightening their purse strings.

The group reported an 80% rise in pre-tax profit to £7.4m for the year to December from £4.1m a year earlier, on turnover up 31% to £79.2m against £60.4m last time. Earnings per share surged 87% to 17.6p.

Chairman Jim Hodkinson said, "The focus on all elements of our business performance remains at a very high level, and these factors give the Board every confidence that we will be able to make further good progress during 2006."

Ideal Shopping said it was confident going forward given the well documented growth in digital TV and on-line retailing and was looking to concentrate on organic growth.

Ideal lifted its full year dividend by 200% to 3.0p from just 1.0p previously.


Numis and house broker Teather & Greenwood both have a BUY rating with an average price target of 415. Two other brokers have an overweight rating and one a sell.

[peladon] 07/3/2006 19:02

So do I :-)

[diogenesj] 07/3/2006 18:04

KBCPH reiterates its buy rating today, according to Citywire. So does T&G.

[powwow] 07/3/2006 16:26

fair points radarlove, but I would not say anything wrong is afoot. Paul wright , made his money and most probably wants to sell a few more shares, and yes I agree that may have an effect on the share price Overall though the company is doing well and I see no reason to be concerned.

[radarlove] 07/3/2006 15:30

DiogenesJ,

I'm sure most investors agree with your sentiment.

It has been a frustrating start to the year as the share price deserves to be higher. It has been well over 6 months since the heady days of 400 and we now appear to be stuck in a narrow and lower trading range.

When the MMs took the price up to 370 back in January, that was when the 700k share sale took place. They quickly dropped the share price and have been very cautious since and kept the brakes on.

If these results get good press along with additional broker upgrades, this should, hopefully, force the MMs hand.

[diogenesj] 07/3/2006 15:09

I expect you are right, radar, although the general market is pretty poor today and plenty of other shares are down anyway.

These are excellent results, well up to the forecasts. Strong cash flow, dividend trebled, new year has started in line with expectations - the shares look excellent value to me, and I'm not selling mine. :-)

[powwow] 07/3/2006 12:48

The mms make me laugh, here we go, they will get there stock and then push this above £5.50.

the reason why they have not moved up more is simply because some have some stock only for the purpose of the results and will be selling today.

This company should be at least 150 million mcap

[chester] 07/3/2006 09:06

Can't understand why these haven't moved up more today. May'be DJ might take a look at these results ?

[chester] 03/3/2006 16:22

2 heavy trades this afternoon.