Printing.Com Share Discussion Threads

[mr hangman] 22/1/2009 13:13

Thanks Ebore
I to think that this downturn will benefit PDC in the long term, & i see
no reason why they can't pay the 2p final dividend.
But i surpose if people like Slap get there way, we will be wasting even
more money buying back shares

[pugugly] 22/1/2009 13:00

What do you expect the HOUSE BROKER to say - That is if they wsh to retain the business

"The Cynic"

[eburne1960] 22/1/2009 11:53

Shares in Printing.com slip 7.6 percent after the specialist retail chain says it believes results for the year to March 2009 are likely to be slightly below market expectations. Brewin Dolphin reduces both its pretax profit and earnings per share forecasts for 2009 by 11 percent. It also lowers its 2010 forecasts by a similar amount, but says these numbers are highly tentative given the uncertainty that is rife in the economy. However, the broker says in a note: 'In our view (Printing.com) will survive the current downturn and may well benefit from it as small printers/designers are encouraged to join the network rather than suffer the working capital issues of maintaining a printing ability.' 'Coming months will undoubtedly be volatile, but Printing.com has an extremely strong balance sheet and a cash generative business model,' says the broker, which rates the stock as 'buy'.

[tyranosaurus] 22/1/2009 11:39

They are not about to go bust.
They may half the final dividend to conserve cash.
They will need the cash to buy back stores from franchisees that go under.

[pugugly] 22/1/2009 09:51

JA:> I think you will agree I have been fairly negative. Not sure that they will go bust BUT no idea of the capacity utilisation they need to break-even (assuming no bad debt which usually soar during a recession).

Have you any idea? Must be fairly high if they are spending heavily on promotion.

[spaceparallax] 22/1/2009 09:51

I'm perfectly happy with the latest TS - positive, considering the current economic outlook.

[joshalexander] 22/1/2009 08:47

Stunned by the general level of naivety here.
Ask someone who was in the Printing Industry during the last 2 Recessions.
If this is still trading in 12 months time it will be a result IMO.

[pugugly] 22/1/2009 08:41

Looks as those who were forecasting that the economic downturn in marketing was going to hurt have called it right. With over 90% of t/o (this is the 1st tiem I have seen this figure - though I may have missed it earlier) I can see even more pressure during the rest of the year.

The cash they have could soon be used up if too many franchises go bust and the plant operates significanly below capacity.

I would hope no more buy backs for the moment to conserve cash and a possibly a dividend cut.

Be interesting to see what the Hardman and/or Brewins flash notes say

(imo - dyor - comments etc)

[tyranosaurus] 22/1/2009 08:23

Thanks you printing.com for not being able to tell me anything when I emailed you.
They could have said that a trading update was coming soon and news of international franchise was imminent - but no.

I would normally be wading in and ading to my shareholding but I don`t feel like buying any more of these.

[dd776] 22/1/2009 07:10

printing.com to start operating in the usa
hopefully they are geared up to role this out quickly and efficiently

[mr hangman] 19/1/2009 12:24

"They said that if trading had deteriorated materially they would have had to tell the market".
"They pointed out the increased dividend paid in December".

Even enough hints for slap here

[tyranosaurus] 19/1/2009 12:07

Heard back from the company.
They did not really have anything to say.
Did not comment on whether a trading update was imminent or when the international franchise would be revealed.
They said that if trading had deteriorated materially they would have had to tell the market.
They pointed out the increased dividend paid in December.

All in all not very useful at all.

[mr hangman] 19/1/2009 10:49

Slap
I stand corrected, you did say "pay less dividends" but lets face it they
would of spent most of this money, buying shares back at a lot higher levels
then they are today, Rafferty certainly would not be saying "ho look at
the share price only 27p, lets start buying shares back with our massive
cash pile" even at these levels how many shares could they actualy buy back ?
So how many bankrupt franchises has there been so far Slap ?
As i've said before, with you the glass is always half empty

[slapdash] 18/1/2009 18:01

mr hangman.. yup another moronic comment from you... I said pay out less dividends then they had done and keep more cash on the side.... if they had done that they might now have a surplus £1m-£3m cash which could be used to buy up bankrupt franchises at a discount or buy back their shares.... has the share buy back programme so far been a success???? They should buy over time.. so that if the stock goes down they buy at lower prices...

Mr Hangman... what I suggest is that if they had followed my advice instead of stockholders having had such large dividends now there would be less shares in issue as they buy back stock at the moment..... the financials of the company would be exactly the same as they are now... so not the same comparison as the banks..... there would just be less shares in issue... that would clearly be worthwhile..

Slap

[mr hangman] 18/1/2009 11:13

Another load of toddle from slap:

Yes the share buy back programme has been a success so far, remind me agian
what prices they have bought back at....
If they had not paid any dividends, but invested all the profits into
buybacks, the situation here would not be much diffrent then the banks.
At least if this went belly up tommorrow (it won't) us shareholders will
have had something out of the company.

[slapdash] 17/1/2009 20:44

as stated many times previously they shouldn't have paid out all in dividends but kept a reasonable amount for stock buy backs.... current circumstances are proving this view correct.... on the positive side I think they have a current and quick ratio above one and their growth in stores using the service (not direct franchises just part of each franchises hub) might offset some weakness in business conditions... but I expect earnings per share to be downgraded again.. key point is how many franchises go bust...

Slap

[topgallant] 17/1/2009 20:05

Thanks to all for the recent good and balanced discussion on this BB

[slapdash] 16/1/2009 21:38

Number of issues - earnings forecasts will almost certainly be reduced again. Likelihood one or more printing shops which are franchised or directly owned will got bust. They provided I think £250k provision for one going under.

Yes I would expect promotions to fall massivley say 40% in 2009. It is really leaflets and business cards. Cashflow will be interesting to see. Longer term I can't see how promotions aren't going to the internet although there will always be a place for leaflets... I think say 40% printing down would wipe out profits but I don't know this.. from their website it looked like they have slashed prices considerably... this might also wipe out profits... value is longer term though when recovery comes...

So we shall see... what would be detrimental and justify a much lower stock price is if a significant number of franchises are giving up or going under....

Next results or soon should have an announcement about a new franchise overseas but they might take 4 years or more to contribute cash to PDC.... last interims weren't great in terms of cashflow and payment times etc but not awful.... I think this is probably a wait and see....

Slap

[tyranosaurus] 16/1/2009 14:37

Just bought another grands worth at 26.4p.

[tyranosaurus] 16/1/2009 12:45

Trading statement 22/1/08 so hoping for a similar one this year.

[pugugly] 16/1/2009 12:37

The mode lappears to be highly geared to volume. I suspect (based on posts above re special offers and that the business appears to be based on others promoting) that there will be a significant decline in volume which will have a multiplier effect on profits.
(imo & dyor) No idea where this will leave profits and dividends.

[robertsajr] 16/1/2009 10:53

Have been a long-term shareholder in PDC and have every confindence in the management and business model. Very frustrating to see such a large spread and for the share price to keep being marked down for seemingly no reason.

I agree with tyranosaurus - we need news soon.

[tyranosaurus] 16/1/2009 10:28

We need news and we need it now.

I will email them at weekend asking when this new franchise is going to be revealed.

I will have to buy more if the price keeps falling.

[spaceparallax] 13/1/2009 13:44

Slap,

I've no idea, but would be amazed if such a percentage were 'discretionary'.