Kingfisher Share Discussion Threads

[sux_2bu] 11/5/2020 15:54

Going to break out rapidly by the looks of it

[sux_2bu] 01/5/2020 14:21

Nice, wasnt expecting this rise today, but then its bank holiday soon and DIY overload.

[sux_2bu] 30/4/2020 13:09

Blue, red, blue, red all in the blink of an eye.Trend is up though.

[sicker] 26/4/2020 18:16

Then I hope we both prosper well :-)

[niggle] 26/4/2020 17:31

I'm in HFD too.

[sicker] 26/4/2020 11:54

Nigle, the reason is very simple. I am investing in a monthly saving option and the 10th of each month is the purchase date.
I have just reached my target (10000) with my hfd acquisitions so it is now on toward my kgf target.(10000)

[niggle] 26/4/2020 10:48

With B&Qs now open across the country and getting mobbed I think we may see a spike up on Monday.

Sicker

Why are you buying from May 10 and not now may I ask?

[sicker] 24/4/2020 19:31

Already hold a good few but I'm starting a regular monthly buy from 10th May with a target in mind :-)

[gswredland] 24/4/2020 18:17

Agreed and getting stores open again.
Bought in this morning for long term

[sux_2bu] 24/4/2020 14:35

This looks like a great recovery, especially over the summer while most stay at home for their holidays this year and carry out DIY, etc Happy days.

[niggle] 14/4/2020 10:17

All I see here is a B&Q website with 160,000 people in the queue just to get on it, and Screwfix open for essential
Click & collect and the site open for everything else.

Has to be a cracking recovery story.

[rb1206] 01/4/2020 15:25

Some hedges closed some of their short in MAR but have increase their shorts on this bounce.

KGF are facing serious uphill issues, getting kicked out of FTSE, Moody placed them on downgrade list, to name the few on top of lagging sales already.

I wonder if they will be equally quick to show figures for week 4 in March.

Also, I think they need to look at top big wigs pay/bonuses packages. i.e Véronique Laury-Deroubaix walked away with nice golden hand shake for destroying almost 40% of the company value. I think top/middle management are too far detached from the ground/front line staff......i.e too many chiefs not enough Indians......imho...dyor.

[the oak tree] 30/3/2020 12:06

I sold out entire holding this morning. They currently dont have an online option so while they will have had an amazing few weeks leading up to the lockdown it won't take long for that to be overtaken by their store closures.

The click and collect and online store is only for essential items.

Pity but there you go

Have bought into Sainsbury today: far better investment in these times. Demand through the roof both in stores and online. Like most supermarkets they make very small margin, that only has to change a bit for them to make their best profits for a long time. With people staying at home and schools and resturants closed they are getting demand like never before. They also stand to benefit from £500m relesif from not paying business rates this next 12 months. Yet the share price has hardly moved. Results and update end of April when I expect a rerating. IMHO

[cjohn] 30/3/2020 10:37

Yes, I would certainly avoid for the time being too.

If cash flow ends, they've got a lot of outgoings!

[sr2day] 29/3/2020 21:41

i believe there will be significant impairment charges to come due to the sale of stores in Europe.the update in a few days time will hopefully bring clarity.i would avoid for the time being.

[gswredland] 29/3/2020 21:15

This could last more than a couple of months tho

[cjohn] 29/3/2020 15:17

On a more positive note, the company has the support of its bankers and has drawn down on two RCFs (Revolving Credit Facilities) to a total of 775 million - giving it a total 1.1bn in cash and cash equivalents.

So it won't go bust during the current crisis, assuming this doesn't last more than a few months.

Thereafter, it may be in quite an unfavourable financial situation, which will need good management of working capital and capex.

[cjohn] 29/3/2020 15:12

Higher up in the thread someone said that Kingfisher had 3bn worth of freehold property.

This is mistaken, I believe.

I looked through the latest annual report and there is no reference to freehold property.

The net carrying value for property at 31st Jan 2019 was 2558 million.

In view of my previous post, this must be almost entirely leasehold.

Please correct me, if I'm wrong.

[cjohn] 29/3/2020 13:28

At the year end, overall there was net cash of 37 million.

Gross borrowings were 158 million.

However, there were also 2,563 million of lease liabilities!

[gswredland] 25/3/2020 18:10

Does anyone know the debt pile here please?

[the oak tree] 23/3/2020 21:34

RB - thanks for your views. Interesting your in the trades.

Well thats us (UK) in a basic lock down. Not sure how that affects B&Q, if you have a burst pipe / need a new lock etc you need to get supplies from them quickly. Perhaps the drive through would work.

But confident demand will be soaring from their internet site. Whether it and their delivery people can keep up with it is another matter. Thats a good problem to have though.

Be interesting to see what happens with the share price in the next few days.

I just have a feeling the CEO will be saying some postive stuff in about 2 weeks time when they realease theier update, albeit with a hellish backdrop to it all.

Good luck all what ever you do.

PS. its also intersting that there is no interest in this stock on eforums. Which again is a good sign as you get to by it for a lower prices.

[rb1206] 23/3/2020 15:35

Technically there is a gap needs to be filled at 157/159.

[rb1206] 23/3/2020 15:31

The Oak : thanks for you views. I'm in the trade industry and can tell you reason for that 37% jump in last week is, everyone treating this time off as to do some DIY. That break down is, ppl working from home creating work space, plumbers having good time due to toilets being blocked due to ppl using tissue/wet wipes and some doing painting etc etc...this will be temporary. Also lots of traders have stocked up if supplies shortage occurs.

Also if you look over all sales are down -22.8% due to closer in other countries and last point sooner or later as news of layoff have started to come through ppl will tighten their purse and its vicious circle.

They struggled to increase sales in booming time let alone now. I think ppl will be selling into these rallies just like in Apr last year and today after FED announcement, US market jumped 1K points but since than been sold off ....imho.

[the oak tree] 23/3/2020 11:11

Ive bought in here and in volume. Heres a few points:

1. Go to a B&Q store in the UK and it will be busy, bedding plants and paint especially selling well IMO. With many at home and not much to do I reckon DIY will take off. Retailers don't make much but when demand goes up they can quickly make alot of money e.g xmas. People dont have much momeny now but DIY is a less costly way of doing something, but they have the time and I reckon with more stay at home vacations this year alot will be getting done in garden and homes.
2. They have given us sales by week for March, the one to note is week 3 ie the most recent one and that is showing +37.7% up from last year for the UK (LFL basis). Other countries are down.
3. The problem could be lockdown though, they have alot of staff and quite an old age of staff. France has a lockdown and stores closed which shows a -93% reduction in sales LFL for March. I don't know there internet offering over there, hopefully some of the slack is taken up in that? But note they were labeled in the "emergency" category so they didn't have to. If that happens in the UK then it will obviously be a blow.
4. The good news though is they have a good internet presence e.g. type in DIY and you get B&Q, and it's trading very well e.g. ecomerce +26% up approx but that not a recent figure, I suspect its through the roof and will continue that way. If stores closed I would like to think this trading arm would do very well. They are introducing a click and collect offering so you will have a drive through collection process.
5. China factories and now opening up and supply again so if they get demand as I expect they will be able to cope with it. Having said that there are bound to be issues and some stock is bound to run out.


Full results for pervious year and no doubt a fuller update on trading not for another 2 weeks due to direction from authorities. But the CEO said this morning:

"In the first two weeks of this month (up to and including 14 March) Group LFL sales continued to be positive, with growth across all businesses within our core markets, strongly supported by e-commerce sales.

In the third week of March, the UK continued to be positive, France was severely impacted by the closure of all its stores and Poland experienced weak footfall and sales. Sales in our online channel have grown significantly in recent weeks and we are boosting our e-commerce capacity in all markets to meet this demand."

All IMHO

[sicker] 23/3/2020 11:04

My only blue share to-day. Up 3% as I speak :-)
Boris must be using B&Q to build these new hospitals ;-)

ps I have read the rns.