Marks And Spencer Share Discussion Threads

[isis] 01/6/2011 08:34

Yep - but that was 2010.............

[nicd] 01/6/2011 08:30

hmm, their website says tomorrow

Ex-Date Record Date Payment Date Dividend Amount
2 June 2010 4 June 2010 16 July 2010 9.5p

[gruss] 01/6/2011 08:28

Robert.

The share has gone xd today not tomorrow. The divi attraction has now gone.
The final is 10.8p per share.

[isis] 01/6/2011 08:15

Obviously the Market market makers can't count! ;-))

[robertfaulkner] 01/6/2011 08:14

I thought perhaps it was ex div day but that is tommorrow, financials says it's 15p, so buy today at 10p dowm and also get 15p div and sell tommorrow. Market must expect at leasta 25p drop for a while??????

[gruss] 01/6/2011 08:11

Ex-dividend factors will knock a hefty 16.83 points off the FTSE 100 index on Wednesday, with Capital Shopping Centres, Intertek, Marks & Spencer, National Grid, Vodafone and WPP all trading without their divi attractions.

[nicd] 01/6/2011 08:04

why the drop this morning?

[isis] 31/5/2011 13:22

01 June 2011 Ex-dividend date - final dividend *10.8p

[shekari] 31/5/2011 12:30

HOW MUCH IS THE DIVIDEND?

[philanderer] 25/5/2011 15:18

Summary from Citywire...

Marks and Spencer

M&S beat analysts forecasts on profits but its cautious outlook hit share prices.

Deutsche Bank raises Marks and Spencer (MKS.L) price target to 420p from 370p but keeps its hold recommmendation

Socgen analysts also raise their price target to 420p from 390p and rate the firm at hold.

Nomura raises its price target to 460p from 430p and rates buy.

Investec raises its price target to 430p from 400p and rates buy.

Citigroup raises its price target to 450P from 425P and rates buy.

UBS raises its price target to 400p from 380p and rates neutral

Socgen raises its price target to 420p from 390p and rates hold.

[artnouveau] 25/5/2011 09:34

Nomura raises price target from 4.30 to 4.60 on Marks and Spencer. Doesn't give a timescale naturally!

ArtN

[artnouveau] 24/5/2011 17:21

Cheers for link Alphahunter. Have to say you timed your short to perfection but watch out for buying ahead of the dividend going ex before June 1st. Mind you, markets continuing to fall all looks in favour broadly speaking for short positions.

ArtN

[alphahunter] 24/5/2011 12:38

ArtNouveau, thanks for the comment.

I'm off now to have look a these middle-class Majestic shares and do some number crunching.

Ciao

[artnouveau] 24/5/2011 12:18

Well that IS the question.

The red herring is Sainsbury's bidding being backed by the Qatari's. Phillip Green isn't going to get private backing surely at a time like this and one wonders whether the other private equity companies mentioned previously really have the appetite for a takeover (apax and KKR). They (M&S) do own their property though which is a substantial portfolio. It is amazing each time the shares dip down that there is speculation in the press though that speculation hasn't happened since February.

I'm not trading these, they sit prettily and profitably in my SIPP and ISA and that's where the remainder will stay for this year at least.

ArtN

[philanderer] 24/5/2011 12:12

FT Alphaville in the last hour....

Marks And Spencer Group PLC (MKS:LSE): Last: 386.00, down 11 (-2.77%), High: 394.50, Low: 385.00, Volume: 7.48m
BE
Aha, of course.
BE
So sales were very good
BE
As widely speculated.
BE
Unfortunately, it's been done on falling margins
BE
So, earnings a tad weaker than thought.
NH
yep
NH
and the stock had a good run unto the numbers
NH
and there were hopes of some more positive guidance
NH
after
NH
the recent warm weather
NH
but
NH
there won't be any upgrades on the back of this statement
NH
which also contains
NH
the latest M&S strategic plan
NH
I've lost count of them now
NH
apparently there are new stores being planned
NH
new line of goods
NH
etc
NH
and of course it's costing loads
BE
M&S strategic reviews in summary: into France, out of France, into France, out of France, into France.
BE
I think we're currently in an "into France" phase.
BE
Though that could change by next month.
BE
Anyway, any comment?
NH
hang on
NH
I have Bubb
NH
Today's final results from M&S are in-line, at £714m underlying PBT, up 13% on a 52 week basis, with the dividend up 13% as well. In terms of guidance we are pleased to see that a) the tax charge will be lower than expected at 25% this year, b) gross margins will edge up despite the input cost pressures and c) M&S report a good start to the new-year (ie April was good). The expected 5% operating cost growth is higher than we expected, but that includes higher space growth and there is lot going on to grow top-line sales to compensate, with a focus on improved space allocation in-store and a revitalised store format to be trialled in Stratford City this autumn
NH
Given improving market shares in Food and in Clothing, we are happy to hold our £778m PBT for 2011/2012 at this stage, which gives 37.1p of eps. That puts the shares on a P/E of only 10.7x, which is good value (given the prospects of faster growth in 2012/2013) and a bare 10% P/E premium to Next (Add) at 2249p. We think MKS should trade at bigger premium to NXT (given its stronger balance sheet, stronger brand and better growth potential), so, although the shares have had a good run up to just below 400p, we are raising our target from 430p to 445p (a P/E of 12x)
NH
and a slightly more bearish comment
NH
from Merrill
NH
FY11 RESULTS SLIGHTLY BELOW EXPECTATIONS, CAUTIOUS OUTLOOK
M&S has reported FY11 results slightly below our expectations with underlying
PBT of £714mn vs. our £718mn estimate. Net debt was £1.9bn in line with our
forecast, while DPS was 17.0p, slightly ahead of our 16.5p forecast. M&S states
that it has had a good start to the new financial year, however it is cautious about
the outlook due to rising pressure on consumers' disposable incomes and high
commodity prices.
NH
GROSS MARGIN WORSE IN GENERAL MERCHANDISE, BETTER IN FOOD
Gross margin was down -40bp in GM (BofAMLe -20bp) and up +20bp in food
(BofAMLe -5bps). Inventory at the end of the year was +12% yoy, in line with our
forecast. Unlike other clothing retailers, M&S is not seeing much operating
leverage off its improved sales trend, with both occupancy and support costs
coming in higher than expected. This should continue into FY11E with opex
guided to be up c.5% yoy excl. bonus. Overall UK EBIT was £678mn (BofAMLe
£688mn). International EBIT was £147mn in line with our estimate. Guidance for
FY11 is in line with the Q4 trading statement.
NH
PROFIT TAKING LIKELY SHORT TERM, RELATIVE UNDERPERFORM
M&S shares have rallied into the full year results as like other apparel retailers it
has enjoyed a warm a sunny April, plus its Food business has been resilient due
to better execution and ongoing innovation. However M&S is seeing a net cash
outflow due to high opex and capex plans, while the current sales trajectory is
well below the c.5% LFL implied by M&S' sales target, on which this level of
capital investment was fixed. We think a modest upgrade to consensus of
£725mn for FY12 is already priced in and that M&S remains vulnerable to slowing
share gains in womenswear due to less competitive pricing and to trading down in
Food in an inflationary environment.
BE
(ROTR: to reiterate, it's difficult to do this while a totally independent, potentially legally sensitive conversation is scrolling up on the other side of the screen. Knock it off, eh?)
BE
Yup - Numis has downgraded on much the same reasoning.
BE
PBT of £714m was marginally ahead of consensus, while EPS was +6% benefiting
from a lower tax rate. However, M&S' outlook commentary remained cautious,
despite a 'good start' to the year and some early progress on the 2013 plan. We
raise our Mar-12 PBT forecast to £730m (from £714m) but, with the shares having all
but reached our TP after a strong run, we move from Add to Hold.
BE
Good start' to FY12: Elsewhere, there was not a great deal of new information with
commentary on current trading limited to noting a 'good start' to the year, while the
cautious outlook was reiterated. Further details were given on the progress of the 2013
plan, including progress on store ranging and spacing, apparel branding, and Food
SKU increases. We look for more detail at the meeting today.
BE
Forward guidance unchanged: As expected, forward guidance was reiterated,
including space growth in the UK (3%) and International (10%), the 0-25bp current year
gross margin progress, and UK operating costs (+5%). Running through the numbers in
detail, and with a greater confidence in the potential for gross margin gains from Food,
we edge up our Mar-12 PBT forecast from £714m to £730m.
BE
Still not expensive: This upgrade leaves M&S trading on 11x earnings and offering a
4% yield - still reassuringly inexpensive. However, the stock has had a strong run since
we last reiterated our Add recommendation, all but reaching our TP. As such, even
lifting our TP from 400p to 420p (12x Mar-12 earnings), we move from Add to Hold.
BE
That's from Andrew Wade.

[alphahunter] 24/5/2011 12:10

Who would be buying a UK-Centric retailer?
Green offered 400p a while back when the numbers were higher and Rose sold his holding below that price.

On a different note, if anyone was jolly to buy sandwiches and barbecues when K&W got married, surely Majestic should have done pretty well. And the weather has been superb ever since.

Yet the share price has been trotting along, not much more.

Just a thought. I'm not in yet.

[alphahunter] 24/5/2011 12:04

Who would be buying a UK-Centric retailer. G

[artnouveau] 24/5/2011 12:00

Has anyone written off a takeover here?

Debt stands at £1.9bn.

The company is expanding with online and abroad and has a VERY strong brand in the UK. Customers are die hards for their clothes and food and extremely faithful.

Anything below £4 looks cheap on an income and long term investment basis to me though I don't intend adding to my position unless I get a windfall soon from my SOCO shares.

ArtN

[alphahunter] 24/5/2011 11:56

Peel Hunt, PT raised from 325p (he obviously missed the train) to 400p, HOLD (he obviously carefully used a PT that allowed him to be "consistent" with his/her previous recommendation).

[philanderer] 24/5/2011 11:21

Not that many brokers so far, here`s another...


Grupo Santander , 'hold' target = 358p

[alphahunter] 24/5/2011 10:29

Thanks ArtNouveau,
This isn't an aggressive short and yes I will be closing at some stage (shame that the webcast is down) as MKS is doing allright and the sector rotation is helping them (money moving away from "economically sensitive stocks" like industrials or commodities). It just got ahead of itself recently IMHO.