Mccoll's Retail Share Discussion Threads

[aleman] 17/4/2019 08:23

the shares trade for only 6.9 times Numis’s forecast earnings for a prospective yield of 7.9.%

The article would make more sense if they put the right numbers in. 2019 consensus is 7.9p earnings and 4.1p dividend. However, £38m EBITDA still leaves scope for further recovery from recent trials and tribulations so these numbers could be a little easier to beat than is normally the case.

[cheshire man] 17/4/2019 08:00

A lot of us here can see the potential for MCLS and happy to hold,,,,,,,not to mention the chart is looking pretty good too :-) DYOR

[masurenguy] 17/4/2019 07:52

You're welcome. I've no position here myself but I can see forward potential at the current shareprice, so it remains on my watch list.

[spectoacc] 17/4/2019 07:41

@Masurenguy - I'm shooting Tempus, not you.. Thanks for the link.

[masurenguy] 17/4/2019 07:37

Lukehold - the link is perfectly correct (btw) since Tempus covers two stocks in his column today.
SpectoAcc - don't shoot the messenger, the comments and conclusions are not mine !

[thefartingcommie] 17/4/2019 07:17

"There is nothing in sight that might send them higher.".....really?....

who ARE these people?

[spectoacc] 17/4/2019 06:45

Ha ha "There's nothing in sight, if you totally ignore the Morrisons rebrand deal, the possible end of the supply issues, potential bid interest etc" more like.

[lukehold] 17/4/2019 01:31

There is nothing in sight that might send them higher... I'm betting against that (wrong link btw)

[masurenguy] 17/4/2019 01:01

The shareprice here has fallen by 65% over the past 12 months and Tempus does not think that the prospect of any recovery is imminent !

"With consumers under financial strain and competition intense, the company is forecasting that profits this year will be only marginally higher than last time. The convenience store market may be alive and well, forecast by IGD, the food and grocery charity, to reach £47.2bn by 2023, but McColl’s Retail’s share price is not. Flat at 80p yesterday, the shares trade for only 6.9 times Numis’s forecast earnings for a prospective yield of 7.9.% There is nothing in sight that might send them higher."

[loganair] 04/4/2019 14:57

It seems to me as Morrison's got so burnt with their first foray into the convenience store market that they are trying several options to see which is best including selling Safeway products in McColl's and turning some of the larger McColl's into Morrison convenience stores.

If in a year or two Morrison's does decide to buy out McColl's I can them wishing McColl's to have as few newsagents as possible.

[spectoacc] 04/4/2019 14:46

Can't say a p/w would be impossible of course - but the Morrisons deal has the market now looking forwards, not back. It's where McColls is in a year or two (perhaps part of Morrisons!) that interests us holders.

[loganair] 04/4/2019 14:43

They did have supplier problems when P&H went bust, now Morrison's are fully up and running to supply McColl's with the stores bought from the Coop being supplied by Nisa unil 2020, when Morrison's will also supply these.

[loganair] 04/4/2019 14:41

McColl's say £35m profit for this year and £38m penciled in for next year. Share price fell from 150p to 50p on this news.

Remember Estonia's richest man bought a 10% stake in McColl's for around 275p per share.

With McColl's closer links with Morrison's and continuing closing news agents at around 30 to 35 a year and now days tending to acquire larger size convenience stores then they had before which are of the size that Morrisons are more likley to turn into their own branded stores all bodes well for McColl's going forward.

At the current rate of closure, with in 5 years McColl's will have closed around 50% of their remaining newsagents. I understand what happens is that McColl's just doesn't renew their leases when they come up for renewal.

[lucicavi] 04/4/2019 14:41

yes they have supplier problems

[spectoacc] 04/4/2019 14:22

We had it @lucicavi, why do you think the shares went to 50p.

[lucicavi] 04/4/2019 14:01

profit warning is coming

[aleman] 04/4/2019 12:55

Some interesting voting there. Why is Porter so unpopular?

[aleman] 03/4/2019 19:02

No mention of the boost from cashback services (as ATMs close) and porn registration generating a service charge and increased footfall.

So that's back to £30m profit, 20p earnings, 11p dividend and £3 shares, then! ;-)

[newsboy1] 03/4/2019 17:34

Analysts at Peel Hunt upgraded convenience shop and newsagent operator McColl's to 'buy' on Friday as it highlighted some of the benefits of the group's move to trial Morrisons Daily fascias in ten of its stores.
Peel Hunt believe the move marks a "highly significant and highly positive development", noting that while the McColl's fascia is popular and evolving, the switch to the Morrisons Daily fascia could "really help densities".

"This could just be the fillip McColl's shares need after a quarter or two in the doldrums: we are confident the trial will work and that the fascia will be rolled out to more stores," its analysts said.

Peel Hunt stated the rebrand might also gave McColl's a "real chance" to see its like-for-like revenues make progress again.

"For a highly operationally and financially geared business, that could be gold dust."

Although Peel Hunt noted results of the trials wouldn't be known for a while, the broker still felt the potential of the Morrisons Daily fascia could be significant and was capable of really moving the dial over the medium-term.

"This is a good opportunity to get behind the shares again, and one that we hadn't seen emerging in the short term," concluded analysts Jonathan Pritchard and John Stevenson.

[aleman] 03/4/2019 12:45

There seems to be a short-term uptrend forming.


free stock charts from uk.advfn.com


If it holds, it could make the moving averages look interesting soon, as the shares close in on the 200-day.

[aleman] 03/4/2019 12:39

Something has been occurring since January. All the silliness is hopefully over and the shares are returning to a sensible valuation for a company earning £35m EBITDA this year and £38m next, hopefully with more to come when margins return to more normal levels after the upset of supplier bankruptcy. Presumably, today's buying is due to soothing words coming from the AGM. All they have to say is there are no more skeletons in the closet and we are happy with forecasts and the shares should continue to recover.

[germanicus] 03/4/2019 12:31

Something's occurring here if all that buying @ 80p is anything to go by!

GLA

[newsboy1] 03/4/2019 08:50

two Morrisson Daily stores opened last week. Locally word is sales are doubled. Be good to hear that update and if the Co-ops are next for that treatment

[aleman] 02/4/2019 20:30

The last year has definitely not been business as usual!

I think a trading statement would be well merited as there are a few questions likely to come at the AGM that could be bordering on price sensitive. It might make sense to have a trading update and then refuse further questions about whatever they feel they can tell us. I would certainly not rule out an update, though that is not to say I would expect one. I just feel it might be helpful under the circumstances - not that directors are always helpful!

[kazoom] 02/4/2019 20:05

1:30pm

McColl's do not usually issue a trading statement at the AGM however, so probably little cause for excitement.