Kingfisher Share Discussion Threads

[all hart mann] 30/5/2013 14:10

Big bear squeeze me thinks.

[libertine] 30/5/2013 14:09

LONDON (SHARECAST) - Retail stocks were putting in a mixed performance on Thursday with High Street stocks making gains and supermarket firms in the red.

The General Retail sector was among the best performing categories this afternoon with B&Q owner Kingfisher making solid gains despite a slightly disappointing first-quarter update.

The company reported a worse-than-expected 28% fall in earnings before interest and tax in the first three months of the year with the like-for-like sales decline at B&Q and its chains in France coming in well below forecasts

Nevertheless as Credit Suisse pointed out, the first quarter is "small" in comparison to other periods, representing just 15% of the full-year result. The broker, which rates the stock 'outperform', does not see material risk to full-year profit forecasts, though said that this relies on improving macro trends and more normal weather than was seen at the start of the year.

In a research report, Credit Suisse analyst Simon Irwin said: "Macro datapoints are turning in UK and France and we still believe that 1Q represents the start of a cyclical recovery. As this becomes clear we expect Kingfisher to return to a premium rating and we reiterate our 410p 12-month target price."

The stock was up 3.54% at 339.4p, following closely behind by General Retail peers Dunelm, Halfords, Darty, Home Retail, Sports Direct and Debenhams.

[ed 123] 30/5/2013 08:12

Yes, agree.

Looking wider, there have been some excuses to initiate a summer sell-off, but the market, so far, has resisted a follow-through fall.

May not see the 5-10% correction some have been predicting this summer?

[essentialinvestor] 30/5/2013 08:06

Ed, valid points and I am not making a call on the SP,
in the current market bad news is good news and good news is better.

I do think forecasts are too high though.

[ed 123] 30/5/2013 08:02

You may be right and brokers may reduce profit estimates for this year. However, the shares have recovered since the initial sell-off. Expectation that recovery will come at some point and investors willing to collect the dividend while waiting?

It could be viewed as a function of the low interest rate, highly priced bonds, and lack of alternative places to invest? Anyway, if there's no major market sell-off, it looks like Kingfisher is not for going down.

[essentialinvestor] 30/5/2013 06:26

I mentioned previously that the 2013/14 forecasts looked very optimistic.

Consensus pre tax is £770M before today's update, way too high IMV.

[yangou] 02/5/2013 17:04

Bye the way .Take a look at todays chart and is showing something like a flag formation on the chart

[yangou] 02/5/2013 17:02

Oh but you need to register fakename3, Not registering for any more as have plenty junk coming in as it is as well as some good advice. I do expect a retracement for this one but wont be surprised if it continues in the upward direction

[yangou] 26/4/2013 13:34

Well they got this one right thats for sure. Nice to see the rocket lift off

[yangou] 15/4/2013 15:03

Has anyone here had any experience with Investors Inteligence? They had Kingfisher as a buy.

[birdsedgeuk] 06/4/2013 21:23

Been bought on www.traderdiary.co.uk

[philanderer] 05/3/2013 10:24

Eurozone Retail Sales (Jan) M/M improve from -0.9% to 1.2%

[philanderer] 26/2/2013 20:02

Thanks EI.

Every time I look at these I`m always tempted :-)

[essentialinvestor] 26/2/2013 09:17

phil, FWIW the 31/14 estimates look very optimistic to me.

I posted the same comment on the year just ended about 6 months ago
when estimates were over 800m on pre tax at the time, from memory.
Now down to 715m.

The share price has held up very well in the face of falling earnings due
to wider equity market strength and the EU crisis fading from headlines,
the latter may be reversing.

Outside possibility of a bid, longer term I like KGF.

My own experience in dealing with staff at their largest UK store in Raynes Park
has always been very positive, could not be more helpful.

[philanderer] 26/2/2013 09:06

Investment View: Outlook overseas make Kingfisher worth a punt

TUESDAY 26 FEBRUARY 2013

Kingfisher. Our view: Buy. Price: 280.2p (-2p)

[essentialinvestor] 21/2/2013 08:18

They did not need to warn as broker estimates had been consistently reduced over
the last 6 months.

The same will happen with 31/14 estimates, just imv.

[bookbroker] 21/2/2013 08:12

Good performance, I sold y'day over uncertainty, but indicators so negative, yet they surprised on the basis of an unchanged level of guidance i.e. they will meet forecasts.

[ed 123] 21/2/2013 07:57

It's not so difficult to grow sales when opening new stores. Spain LFL was down about 10%.

Overall, I'd say meets expectations.

Market reaction will speak of sentiment. Buy and await recovery? Or is recovery too far off, so avoid for now?

Anyway, broad market is set to open lower, following Wall St and Asia.

[nofool] 21/2/2013 07:45

Well, they actually managed to GROW sales in Spain! But overall, what do you think - good, bad or indifferent, was this trading update?

As they say in Tesco - was it a yey, or neigh?

[nofool] 20/2/2013 11:02

The trading update tomorrow will get things moving!

[missagain] 18/2/2013 15:03

Just came across this snippet in a recent Pension Fund Factsheet and its'Fund Manager's take on KGF dated 31/12/12:
"Our one key buy was Kingfisher where difficult conditions in France and Poland have led to continued profit downgrades. On a low valuation with the hope of profit recovery over time, we see scope for a significant re-appraisal of the shares as consumer sentiment recovers."

Link to full factsheet :



As always DYOR and GL all longs :-)

[nofool] 15/2/2013 14:54

Well now. If KGF has the temerity to show us a V shaped recovery today. That would suggest that the BULLS are in charge and a rebound is possible.

Perhaps much will now depend on wider sentiment in the markets also.

[nofool] 15/2/2013 09:23

From a purely technical perspective. The low 260's are targeted as your next station stop, 258 at worst.

[essentialinvestor] 15/2/2013 09:05

bookbroker, estimates were over £800M on the pre tax at one stage for
the year just ended.