 So, have a couple of concerns here not around sales but around the costs for the business.
First of all, we have a single-point-of-failure for the entire business model with the mail plane. From the reports, we and FP make up the majority of the mail from Guernsey, and the mail provider have been looking for partners for a while now and it all seems a bit desperate. Jersey seem to be saying it is very unlikely and yet that's the news hitting the public domain, so it doesn't appear there are other realistic partners in the mix. Let's be honest, it is going to be hard to find someone to stump up 80% of the plane bill even if they were importing into the island. It's just not that big a place.
We could see a ferry-only service, and that would destroy this business, but I doubt it. More likely it will cost more for us, though. We've been getting a free lunch for sometime, and now we'll have to pay something of a bill. Either through actually contributing towards the costs as we are the biggest party to benefit from it or a static charge on mail inbound to the uk. There's 5 months to go tiktok. GP aren't that profitable, so I can't see them being able to cover all the cost.
Also, there's growing pressure from UK-based retailers to have import duty charged on big retailers exploiting the loophole meant for personal use. The EU are doing it and so are the US. I just think that once the Shien IPO happens or collapses that this government will do that. We're talking about duties on gifts not cards, but still likely to be a cost in the multiple of millions.
Final concern is that RM will keep putting up prices, and we will probably see some sort of environmental tax. This is going to hit us harder as every order we sell is posted. Everything in a singular package.
On the positive side, the business is being run fairly well, making strides in the premium segment, even if I think the cards are frankly a rip-off. I guess most the customers have the male-gene and so pay the convenience premium ;). I buy around 40 cards a year and only 1 or 2 from here even though I'm in.
Final-final point, that the buybacks are being done with share price quite high. Could it be that management want to touch up the EPS for future years as margins reduce? |
I guess the buyback program is a known known. Surely there must be something more constructive to do with the capital? |
mooning again |
Theres no other posters so no worries !
I think Card is probably having to play catchup with their online offering.
A bit like online clothing playing catchup with ASOS 10+ years ago. |
So I’ve used card to buy online - similar to moon, or customisable too so find it odd that it’s languishing. But don’t want to x-pollute here, so I’ll leave it there
D |
Thoughts on card?
D |
All the chatter about the motley collection of random businesses in the Hut group, but all those folk could have just bought Moon earlier and sat back and waited. |
Silence is golden |
Meanwhile complete silence on a sustained rise that would usually cause Advfn users to go crazy |
The annual membership is a kind of gifting-as-a-service model. Once you get into recurring revenues the value of the business and its rating should rise.
I don’t know if EU countries have anything similar but if they haven’t, then there’s a big opportunity. Greetz seems to be going well. |
I don't know what proportion of MOON's gifts/cards are imported and not sure where to find that out, other than if they mention it. The experiences aren't. I'd hope the cards are printed here. Some chocolates are. TBH not worth going through their list of products. They're not generally widgets, they're mainly consumables, so I imagine they are sourced from all over the place, not via some monster ship from China. |
SHOE reporting higher container costs and also harder to get hold of them. Isn't there a similar read across to MOON, or are MOON products being air freighted in ? |
Mine isn’t so good either, but I did buy quite a lot nervously near the bottom.
Unfortunately their float timing couldn’t take into account future events !
Or you could call it opportunistic on the back of covid based boom. |
With my bookcost share price needs to rise as much again as it just has, for me to break even |
There is life on this thread. Well 1 anyway! |
@wallywoo
You made a good purchase recently by the look of it ! |
Thats a fair old jump. Considering that its been flat for quite a time and clearly off the bottom, how come in a forum full of supposed traders, not one poster said anything at 150p ?
Messing about with gambling on penny shares I suppose.
Afaik its one of the few UK businesses that’s actually taking a “fee” as a middle man off purchases by a big captive audience, with no competitors. (See Amazon, Etsy, Ebay etc)
Only a matter of time before the US spot it, buy it (VC) and that will be another boast for a government about us being “open for business”.
Its a “special relationship” that only benefits one party. |
No idea what your post says but assume its irrelevant or twaddle.
How many times a week do you aim to show that you’re a complete pillock ?
Its just that I think everyone knows by now. Wouldn’t want you to waste your time old bean. |
https://www.proactiveinvestors.co.uk/companies/news/1050699/currys-aims-to-power-up-shareholder-returns-soon-after-recharging-profits-1050699.html |
Considering that Moonpig have so many customers, this is an incredibly quiet thread.
It will be interesting to see if they continue to expand instead of paying dividends. That's more like a US model to scale substantially over a long period, rather than use profits for dividends.
If that's what they are doing, I'd expect to see something in the EU as well as Greetz at some point.
If this were a US company it would have a way higher rating and as its tech has enabled very "sticky" customers with that holy grail of cross-selling to them, it wouldn't surprise me if it were taken out by a US company or venture fund with big pockets and expanded much faster, across many more countries. |
You actually thought I was serious ?!! |
Lidl are in partnership with card factory ya daft mug |
Lidl better value ! |
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