Poundland Share Discussion Threads

[philanderer] 18/11/2015 20:33

Poundland slumping despite successful expansion,

Shares in Poundland are slipping as the sales growth rate is sliding and the acquisition of 99p Stores will not be as beneficial as initially thought

Poundland will announce its first-half results on 19 November, and dealers are anticipating revenue of £554 million and adjusted net income of £7 million. In the second-half of last year the company posted revenue of £588 million and adjusted net income of £24.33 million. The company will reveal its full-year results in June 2016, and traders are expecting revenue of £1.29 billion and adjusted net income of £35.57 million. These forecasts represent a 16% rise in revenue and a 4.7% increase in adjusted net income.

Poundland has warned that its takeover of 99p Stores will not be as fruitful as initially thought because the company’s performance has slipped slightly since the move was announced. The acquisition will provide synergies and the firm will review its spending plans when the transaction is completed.

Poundland’s own expansion is progressing nicely, and it is aiming to open 70 stores between the UK and Ireland by the end of the year. The discount retailer is still making headway into continental Europe, and it hopes to have its tenth store in Spain open by December.

The company stated its profits would be stacked towards the second half of the year as the negative impact of the euro and the ‘subdued’ start to this financial year pushed the share price lower. Sales at the deep discount retailer are still rising but they are expanding at a slower rate, and this has traders concerned that the price war between the major UK supermarkets may eat into Poundland’s profits.

Equity analysts are bullish on Poundland, and out of the 12 ratings, seven are buys, and five are holds. The average target price is 357p, which is 27% above the current price.

Since late September we have seen two attempts by Poundland to break away from the 270p support level. The first ended at 300p, the bottom end of the gap down from late September, and the price then drifted lower.

Having returned to this base at the end of October the shares have attempted to rally once more. The price has been able to push through resistance at 283p, and now it needs to clear the 50-day simple moving average (SMA) at 291p before moving on to test 300p. If the rally falters then we look to 276p as support before a possible return to the recent lows around 270p, with a break through here putting the shares in fresh ‘all-time low’ territory.

Definitive bullish momentum needs the price back above 305p.

[philanderer] 18/11/2015 17:22

Perhaps not good news leaking , oh well we`ll find out in a few hours :-)

[shakeypremis] 18/11/2015 16:02

To buy or not to buy - that is the question. So often on decent news shares drop only to recover a day or so later.

[philanderer] 18/11/2015 13:10

1 million shares traded and we`re blue , good news leaking before tomorrow ? ;-)

[freddie01] 17/11/2015 12:54

Poundland in Coventry was absolutely heaving this morning.

[philanderer] 17/11/2015 09:40

Noticeable PLND not joining in the party today ... read across from very disappointing BME half year results this morning.

PLND - 2p

FTSE 100 +112.28 (1.83%)

FTSE 250 +215.72 (1.28%)

Hope I`m not in the wrong sector here ... it`s been a rubbish year :-S

[philanderer] 16/11/2015 20:04

Yep, agree with that . Integration costs of 99p stores should (hopefully) be priced in.

[cabreado] 16/11/2015 17:38

Thanks for the telegraph link. I think it is expected and the recent placing may have taken that into account. Hopefully the market will focus on the road ahead and not the past figures.

[shakeypremis] 16/11/2015 09:59

Suggests Poundland will see a drop in profits this coming Wednesday. What are people's thought's on this?

[philanderer] 16/11/2015 09:07

I`d be happy to see 320p ;-)

Morning all

[cwa1] 16/11/2015 08:51

LOL. Don't shoot the messenger ;-)

[redartbmud] 16/11/2015 08:31

CWA

And I'm dreaming of a white Christmas, but I don't have the conviction to nip down to the bookies for a bet.
I would be more than happy to see £4.00.

red

[cwa1] 16/11/2015 08:08

Lifter from Twitter:-

Peel Hunt has initiated coverage of Poundland Group with a Buy rating, price target 400.00p

[joemillion] 13/11/2015 18:06

Think we will see a nice increase next week. £3.00 post interims?

[philanderer] 13/11/2015 17:03

So -3.5p on the week which really I suppose is not too bad with these markets.

Thursday we`ve got the interims and 99p store integration update.

[clivell] 13/11/2015 11:07

I will eat my hat

[redartbmud] 13/11/2015 09:24

I'll drink to that.

[philanderer] 13/11/2015 09:14

13th nov Jefferies buy tp 400p

reiterates

[philanderer] 12/11/2015 20:15

only news on a rubbish day ;-)

New Poundland store to open in Croydon

[philanderer] 10/11/2015 20:05

Poundland, the budget high street retailer, is launching its first TV ad next week as it pushes the brand in the run-up to Christmas.

[philanderer] 09/11/2015 20:09

Poundland Group PLC (LON:PLND)‘s stock had its “outperform221; rating restated by investment analysts at Credit Suisse in a research note issued to investors on Monday, Analyst Ratings Network.com reports. They currently have a GBX 340p price target on the stock.

[philanderer] 06/11/2015 17:19

UT @ 282p

sp +7p on the week

[philanderer] 05/11/2015 17:40

And a few buyers today ;-)

[philanderer] 04/11/2015 19:58

Still plenty of sellers about.