Brown (n) Share Discussion Threads

[onjohn] 09/8/2016 05:53

Could be a quick 50pc gain here

[stevie blunder] 08/8/2016 14:51

Interims 11th Oct

[onjohn] 08/8/2016 14:47

Eps forecast 24p
PE ratio of 7 whereas Boo is on a PE of 70

[zcaprd7] 08/8/2016 10:19

Well, it must be a bargain at some point. When's the next announcement due?

[nw99] 08/8/2016 09:05

Bottomed hopefully averaged down

[alex1621] 05/8/2016 16:43

It's transitioning from a catalogue retailer to an online one, and like all projects of that type it's taking longer to show light at the end of the tunnel than planned ... the execution risk of launching a platform coinciding with a post-Brexit slow down will not help matters. It may indeed get worse before it gets better. If your investing for a period over 3 years and you can handle a dividend cut I reckon this will recover strongly over that period. If it's a short-term investment it may well disappoint. Also, Angela Spindler is a very capable retailer, I worked in the same organisation as her in the early 2000's ... her position may be vulnerable but I personally would like her to stay the course and see this through. The strategy is sound, admittedly execution has not lived up to expectations.

[forsh] 05/8/2016 15:59

It WAS a decent retailer - I'm not too sure it is anymore but it's certainly in the right market

[alex1621] 05/8/2016 15:15

Yes, I think the IT platform is being launched in the US, if my memory serves me right?

[jbarcroftr] 05/8/2016 11:47

Launch in America this month

[alex1621] 05/8/2016 11:41

It's a decent retailer going through a transformation that has taken longer to execute than anticipated. I like its demographic audience (growing) and increasing online sales, but given the economic climate it may not have a particularly great second half, and the dividend will likely have to be cut. The new IT platform launch may well experience some teething issues but after all that I think it is one that is likely to do extremely well over a 3 to 5 year horizon. Debt is an issue, but given a great deal of the capital spend is out of the way they should be able to bring this back to historical levels over the medium term.

[danieldruff2] 05/8/2016 11:32

I suspect the market is waiting until the following points mentioned in this FT article are resolved

Minimum repayment pressure for N Brown?

Type above into google news and you should be able to read it now, before it locks behind their paywall.

[aishah] 05/8/2016 11:24

Something doesn't add up here. Not participated in the market rally at all. Perhaps a stock hang over?

[forsh] 05/8/2016 11:13

Might not look so cheap when we get the next trading statement. The concern for me is the cash flow and the debt level - take another look at last year's numbers - dividends paid out of borrowings are never a good idea. Personally, I'm surprised the private equity boys have not been sniffing around. There is an immediate cash benefit from not paying the dividend; and in private hands, the long tail of poor performing trading styles other than the 'power brands' can be cut before refloating the company. I don't think Angela Spindler is up to the job whilst Andrew Higginson just seems to have become a 'director collector' - Morrison's, Dunelm etc. - but he is ex-Tesco (so that probably says it all!)

[che7win] 04/8/2016 10:03

Yes,
I have them to thank for the cheap entry price. Thanks Peel Hunt :-)

[aishah] 04/8/2016 09:05

Peel Hunt have reduced the target here from 275p to 150p since April

[che7win] 03/8/2016 16:28

Bought some, new holding for me.

[zcaprd7] 31/7/2016 17:10

Another thing that grinds my gears, is why don't the just say what the percentage change is I'm their results? E. G. "Ladieswear saw a low single-digit decline in revenue year-on-year against a challenging market backdrop. Footwear revenues declined by mid single-digit" Can't they just say minus 4% or -5% ?

[danieldruff2] 27/7/2016 09:09

They've sold 6 million shares in the last year, since finals 2015, one of the reasons this has become too cheap IMO

[lomax99] 27/7/2016 08:57

Selling down? Hardly, it looks like a very minor adjustment - they have sold c. 0.34% of their holding.

[zcaprd7] 26/7/2016 20:48

Invesco selling down...

[zcaprd7] 24/7/2016 19:40

And she knows it's not the bottom?

[zcaprd7] 13/7/2016 11:02

She's doesn't have enough money to buy the options?

[liquidkid] 12/7/2016 11:33

Something not quite right with that transaction.

The Tax liability only arises when selling the shares not when exercising (buying) the options.

Also exercise relates to an award dated 2 August 2013 when the share price was 523p! So even if the options were awarded at a massive deep discount
there surely would be a Tax LOSS on the sale of these options.

So why has a TAX LIABILITY been explicitly notated to the 2013 options?
And why SELL? ...at the bottom? She must be getting some really bad financial advise.

Could be a US citizen - then she has a tax liability on exercize.

[ed 123] 11/7/2016 19:53

Hmmm ... Yes, Chief Executive was gifted shares via the option award but chose to sell a portion in order to raise the funds to pay the C. £185k tax due.

It would have given confidence, after the big slide in the share price, if she had paid the tax from another source and kept the full number of shares awarded.

AGM tomorrow. Anyone going? I won't be.