Marks And Spencer Share Discussion Threads

[andyj] 27/2/2019 10:01

Well the multitudes who accepted future growth is negligible but held on the basis of a good yield are now facing this, IF the JV is successful, at some point in the distant future the dividend may return to its current yield. How is that good news? And worse, it is entirely self inflicted!

[loganair] 27/2/2019 09:42

One of the pillars holding up the M&S share price was its dividend yield...

M&S is planning a rights issue to raise £600m and will also cut its dividend by 40 per cent in order to fund the deal.

M&S is paying Ocado £562.5million on completion of the deal and up to £187.5million, plus interest, after five years.

I understand that M&S are hoping to encourage Waitrose shoppers who currently use the Waitrose/Ocado will transfer over to M&S/Ocado.


Shares in Ocado jumped as much as 6.7 per cent, while M&S stock fell 7.5 per cent - the stock martket seems to be saying it's a good deal for Ocado, however a poor deal for M&S.

[andyj] 27/2/2019 09:16

I hold MKS through the ups and downs happily ignoring the volatility in the knowledge they will not go under and will pay a good dividend. I think many others do likewise.A 40% cut changes everything.

[poikka] 27/2/2019 09:05

Divi cut - Fugg! For what? Online grocery tie-up. Sure, some like online, but plenty of competition, although Ocado seem to do well.

Food's a nightmare as it is, why not keep it small and local. And get the clothing right. And get the cashflow right. And pay us the divi.


Fugg, again.

[danny baker] 27/2/2019 09:03

What M&S haven't said in this announcement is the effect on their store portfolio of having an online presence. Already M&S has stopped its programme of opening standalone food stores but this signals the possible closure of dozens of marginal stores as some customers migrate to online.

[philanderer] 27/2/2019 08:54

Liberum reiterating 'sell'..... tp 225p

[spob] 27/2/2019 08:50

The companies said that for the year to Dec. 2 2018, the newly created joint venture would have generated revenue of 1.47 billion pounds and EBITDA of 34.2 million pounds.


So MKS is paying 750m for EBITDA of 17m

We all know what EBITDA means in terms of actual real net profits

[philanderer] 27/2/2019 08:34

They did a good job of pumping this fella up ;-)

[diku] 27/2/2019 08:27

A bit like BT buying EE out of desperation to stay in mobile market and the share price drifts down...




technovator
27 Feb '19 - 08:23 - 8118 of 8120
0   0  0



this deal smells of desperation by MKS, I think the shorts are more likely to increase
with rights issue looming.

[freedom97] 27/2/2019 08:25

Expect a good bounce in SP, look at the charts above, many showing same pattern as MKS, UKX, NXT, TSCO, MRW, SBRY...

[technovator] 27/2/2019 08:23

this deal smells of desperation by MKS, I think the shorts are more likely to increase
with rights issue looming.

[folderboy] 27/2/2019 08:20

The point about an ageing customer demographic is very well made - my wife and I fit that picture so well. As long as our local stores are available then we will not use online delivery for Marks - should they shut, both, stores then I am fairly sure we will simply stop using Marks for any food shopping.

[porsche1945] 27/2/2019 08:20

smacks of desperation to me, in reality home deliveries havnt done much for any of the supermarkets,theyre all struggling, the small quantities alot of M and S shoppers buy dont lend themselves to the model really, the more I look at the ftse and the Uk in general you wonder whether its really investable, poor share prices, zero growth, dividends being cut, its hopeless.

[raweden] 27/2/2019 08:17

Danny, online shopping will not transform M&S. Your points are valid, but the bigger picture is that online isn’t a good match for an aging customer demographic. In the long term I think M&S will seriously struggle. Take over is their only hope in my opinion.

[folderboy] 27/2/2019 08:13

Cannot see the value or indeed the sense in this tie up. Looks like the market agrees with me and that I am more likely to see £2 again than £4 (long ago given up on the ides of getting back my £6!)

[technovator] 27/2/2019 08:08

Qantas, what are you talking about?

[technovator] 27/2/2019 08:08

Qantas, what are you talking about?

[danny baker] 27/2/2019 07:52

Haha Raweden it sounds like you've been stuck behind some retirees in a queue at M&S. From my experience M&S struggle to get their stock levels right in-store which results in lots of yellow stickers at the end of the day. Moving online should help to even out the fluctuations in demand and reduce waste.

[raweden] 27/2/2019 07:39

A large portion of M&S food shoppers are retirees. Online shopping is about convenience and saving time, retirees don’t need to save time, they have loads of it on their hands. Retirees actually enjoy going out into the shops to but their food, at a very basic level it’s something to do.

[qantas] 27/2/2019 07:29

Debsdowner told you so.

Please do your own research as always.

[nickjoseph] 27/2/2019 07:26

Online shoppers like deals. Waitrose offer deals, M and S rarely does, lots of current
Ocado shoppers won't stick with them as M and S food is more expensive. I like M and S
food but don't think it will be a major success online as its an affordable treat for most, not an everyday shop.