Marks And Spencer Share Discussion Threads

[fugwit] 21/4/2010 15:12

Could we be seeing the top of a right shoulder of H&S formation being put in place, lets hope so.

[jas_ron] 21/4/2010 14:44

bad tick down today.....and more to come before Friday. Buyer at 365p

[mortor] 20/4/2010 16:07

good tick up today and more to come before friday i think

[jas_ron] 08/4/2010 09:45

dont think so today - results seem good but mkt (equity) weak today and dow and ftse need a correction.

[qantas] 08/4/2010 07:59

Shorters Doomed to failure
Marks & Spencer enjoyed a strong start to the year with food and non-food like-for-like sales beating expectations in the first quarter. Total sales in the 13 weeks to March 27 were up by 6.2% from the same period the previous year and by 5.1% on a like-for-like basis.

[robertfaulkner] 04/4/2010 17:53

When does Mr Bolland actually start at Marks, shares will like that date.

[dnfa1975] 31/3/2010 12:39

Retailer Topps Tiles posted a second-quarter fall in underlying sales, blaming a dip in confidence as the general election nears and consumers brace themselves for tax rises and job cuts.

[dnfa1975] 30/3/2010 14:53

all the rerailers gettring knackered today

[dnfa1975] 30/3/2010 14:46

how soon for 325p

[bob f2] 26/3/2010 16:45

What happened today? Mks up 8p, 2.2% on a bad Ftse day, why?

[qantas] 09/3/2010 16:54

Traders said that a number if big buyers have been snapping up shares in the high street chain.

[fugwit] 25/2/2010 14:49

Break of 4 month support, Long term trendline gone, if this breaks 325 expect a decent ride down.

[spob] 23/2/2010 12:51

Broker snap: Retailers on Nomura's shopping list

By Lee Wild

Date: Tuesday 23 Feb 2010

LONDON (ShareCast) - Nomura doesn't hold out much hope for the UK general retail sector in the months ahead, but thinks Debenhams and Marks & Spencer offer short-term trading opportunities.

Retailers have underperformed over the past month, down 2.2% compared with a 0.3% decline in the FTSE All-Share. That's placed the sector at a P/E discount of 2.2% versus the UK market.

"In our view, the sector will likely de-rate further from here, given limited earnings upgrades," said the Japanese broker. "We prefer to remain stock specific and continue to focus on restructuring, market share gain or strong cash generation."

So, it plumps for Debenhams where it believe there exists a "significant" market share opportunity for the department store chain's womenswear through the launch of H! and Principles ranges.

"With EPS growth of 16% forecast in FY10/11, while trading at a 25% discount to sector average, we believe Debenhams offers a short-term trading opportunity given current sector trends," it says.

Marks & Spencer also gets the thumbs up as market share growth and self-help initiatives are beginning to improve, while 'foods & drink' growth has hit 90 basis points.

"We therefore see a short-term opportunity in M&S given the pullback in valuation and the fact that forecasts for 2010/11 have started to be rebased downwards, and are now well anticipated by the market," thinks Nomura.





forget Debenhams - way too much debt

[smurfy2001] 19/2/2010 10:00

Interesting article,

Investment masterclass: dogs of the FTSE

On that basis, the five dogs of the FT 30 to buy now are Man Group, the hedge fund manager, RSA Insurance, BT, Marks & Spencer and Vodafone. This selection would have a dividend yield of 6.95 per cent.

[j tuwatmoya] 18/2/2010 01:02

wonder what mr green is thinking ---



Thousand of rich UK citizens living abroad as tax exiles may find they have to pay UK taxes after all.

The Court of Appeal has upheld the right of HM Revenue & Customs to tax a businessman, Robert Gaines-Cooper, who has lived in the Seychelles since 1976.

The judges said that he had never been exempt from UK taxes as a non-resident citizen.

Although he had abided by the rules to spend fewer than 91 days here, he had still not cut his ties with the UK.

[spob] 17/2/2010 22:11

Debenhams leads retailers up on bid theories

By Bryce Elder and Neil Hume

FT

Published: February 17 2010 09:09 | Last updated: February 17 2010 20:06

Bid theories helped lift retailers as the FTSE 100 pushed higher for the seventh time in eight days.

The sector found demand after Société Générale tipped Debenhams as a potential private equity target.

EDITOR'S CHOICE
MPC decision to pause QE was unanimous - Feb-17L&G strikes optimistic note for 2010 - Feb-17Q&A: What's next for Japan - Feb-17Stelios raises £5m by pledging shares - Feb-17ING blames Brussels controls for shortfall - Feb-17Jobless claimant count reaches 13-year high - Feb-17

Debenhams' 12 per cent free cash flow yield and reduced debt make it vulnerable, said analyst Anne Critchlow.

A leveraged buy-out would make sense at 113p per share, 68 per cent above the current level, SocGen said.

That target was second only to Kesa Electricals, which could provide 150 per cent upside in the event of a leveraged bid, the French bank estimated.

Sanford C. Bernstein also saw takeover potential in the UK sector after private equity groups last month bought retailer Pets at Home.

Clothes retailers look particularly cheap with Marks & Spencer and Next trading sharply below historical multiples, Bernstein said.

The broker also argued that trading in the first half could be better than expected given improving consumer confidence and subdued unemployment.

Debenhams ended the day up 3.7 per cent to 67½p, while Kesa – recently mooted as a potential target for an international peer – added 2 per cent to 121p.

Among the blue chips, M&S closed up 2.8 per cent to 342p and Next added 1.1 per cent to £19.37.

Kingfisher, Bernstein's top sector pick, put on 1.1 per cent to £19.37.

Brand closure weighs
on Provident
Provident Financial slipped 0.5 per cent to 928p after analysts at Arden Partners spotted the doorstep lender had withdrawn its Real Personal Finance brand.

RPF had offered long-term loans of up to £6,000 at an APR of 60-70 per cent.

With the home credit market already saturated, new products such as Real Personal Finance had been expected to provide Provident Financial's future growth, Arden said.
Meanwhile, Home Retail Group gained 2.9 per cent at 266p after Investec turned positive on valuation.

[spob] 11/2/2010 12:02

from FT Alphaville


Right this GS note

NHhave you dug it out Bryce?
BEYup - here's the detail on Markies, largely because Andrew seems interested.



BEWe add M&S to the Conviction Buy List following 10% underperformance
of our coverage universe ytd. We believe that the current price offers an
attractive entry point for a company that can deliver material
improvements in profitability and returns over the medium term. We also
believe the market is underestimating upside potential from restructuring
of the supply chain and systems infrastructure that in our upside scenarios
could add £1 bn to operating profit by 2014 and see M&S deliver top
quartile cash returns. Our revised 12-month price target of 495p implies
48% upside potential.

BECatalyst

M&S reports 4Q sales on April 8, 2010 and FY10 results on May 25, 2010.
We believe these results could show a gradual improvement in sales
growth for FY10 and represent a trough in operating profit. For the next
financial year we forecast +1.2% LFL sales as M&S benefits from a gradual
recovery in UK consumer expenditure. We believe earnings will be
supported by stable gross margins as less substantial price investment in
the food business is supported by the £30 mn of cost savings targeted by
management (a target we do not believe is a stretch). Following the arrival
of Marc Bolland as CEO we highlight in this note the core strengths of the
M&S business (and areas we believe require more immediate
consideration) and the restructuring opportunities under Project 2020.


BEAll of which has a real feeling of de ja vu about it, to be honest.
BEAnd here's the general stuff re the sector.


BEUK retail sales to grow 0.6% in 2010
Our top-down model for UK available
discretionary income supports our forecast that
after two years of negative LFL sales (for our
coverage), LFL sales will grow 0.6% in 2010.
Underperformance offers opportunities
We believe that current share prices imply a 20%
reduction in operating profits in 2010. This would
require an average sales reduction of 6%. We
believe this is too cautious a view that current
share prices offer selective value opportunities.
BEBuy self-help, return improvers

We prefer top-quartile return winners that can
also demonstrate sales leadership. In the absence
of this type in the UK General Retail space, we
favour companies that offer an opportunity for
margin and return improvements driven by cost
restructuring, rather than relying purely on a
strong and sustained recovery in UK consumer
expenditure. We add M&S to the Conviction
Buy List and reiterate our Buy ratings on
Debenhams, Signet and HMV.

BESell low margin, low visibility, low returns
Despite showing some of the highest profit
growth (as margins recover from trough levels),
we believe that low-margin and low-returns
companies will continue to underperform.
Following the recovery in earnings, ongoing
structural pressures on margins should prevent a
sustained improvement going forward and
valuation discounts reflect this structural
weakness already. We reiterate our Sell ratings
on Home Retail Group, DSGi, Kesa Electricals
and Carpetright.


NHBuy Debs and Signet???

[kibes] 11/2/2010 11:42

If Goldman have it as a buy it means they must be selling!

[spob] 11/2/2010 08:31

i hear Goldman have a BUY on MKS

[gruss] 08/2/2010 14:43

Nick Bubb the so called retail analyst heading the list.