Sanderson Design Share Discussion Threads

[netcurtains] 04/8/2022 08:35

RCTurner2: Too bad. Sorry to hear that.

[rcturner2] 04/8/2022 08:33

Sold mine on the 3rd May at 165p.

[netcurtains] 04/8/2022 08:30

I get the impression many people have not seen markets like this before or have forgotton what they are like.

I can see this share going much higher - 130p+ easily.

Cash is king. The dividend is king. A low PE ratio is king.
SDG has the big three.

[dan_the_epic] 04/8/2022 08:29

Have you seen what the indices have done in the last 3 weeks and how many stocks are 30% or MORE OFF THEIR LOWS.

I get the feeling some investors want to buy in here on the cheap so they talk it down but they will not get an opportunity better than this. Who else was saying to SELL this in December? I was the LONE VOICE. This is the time to buy and DO NOT GET GREEDY expecting a big fall from here

[rcturner2] 04/8/2022 08:25

This is a bear market.

Good shares will get taken down.

In a bear market good news does nothing and anything slightly less than good causes shares to fall.

I get the impression many people have not seen markets like this before or have forgotton what they are like.

I can see this share going much lower sub 100p easily.

[netcurtains] 04/8/2022 08:23

True, on open, but gut feeling is, later on in the day it will come good.
Just a feeling.

[salver2] 04/8/2022 08:22

It’s gone straight down!

[netcurtains] 04/8/2022 08:19

Dan: I have a feeling in my bones that this will be up quite a bit today.

[essentialinvestor] 04/8/2022 08:17

net, I'm giving a gut call on reading through the update, let's see how it goes.

[dan_the_epic] 04/8/2022 08:16

The market is pure stupid if it wants to take the share price down today. What idiots read todays statement and decided they wanted to sell on under 8X PE and £15M net cash

Too bad, I'll just buy more! I called the top on this in December when everyone was bullish and this is now the bottom.

Buy high sell low crowd having fun LOL. This will be up by tomorrow when the fools have exited stage left

[netcurtains] 04/8/2022 08:15

Most retailers open up (M&S, Next, Primark)..... SDG are big NEXT and John Lewis

[dan_the_epic] 04/8/2022 08:08

No way jose because this is pricing in a great depression THAT IS NOT COMING. Do you really imagine that investors did not expect caution when its on 8X PE and £15M net cash?????
This will pick up steam later once Paulypilot on stockopedia acknowledges this is dirt cheap for a luxury goods company with huge gross margins and a fat stack of cash

[essentialinvestor] 04/8/2022 08:04

A few mentions of caution, may sell off on that
but happy to be wrong.

[netcurtains] 04/8/2022 07:51

NEXT reports a surprise jump in sales (SDG are a supplier to NEXT)

[trt] 04/8/2022 07:30

Good to see licence agreements being extended in America without products even being launched yet. Really does show confidence in the brand going forward. Big market the USA so could lead to huge growth further down the line.

[pireric] 04/8/2022 07:29

Progressive Research have already published their note so no doubt they were given this information ahead of time. Their paragraph on forecasts

"Forecasts unchanged - despite global uncertainties. The group states that H1 adjusted underlying profit before tax is anticipated to be in line
with Board expectations. Despite a challenging global backdrop, full-year
trading currently also remains on track. Given this, and ahead of the
interim results on 11 October, our forecasts remain unchanged"

Forecast remains for 14.7p of adjusted EPS this year

Eric

[pireric] 04/8/2022 07:23

Agreed, quite a bit better than I had expected, overall. Normally broadly in-line means down, but not in this case - revenues up 1% or flat in constant currencies.
- UK only down 1% is better than the posts I mentioned before
- Northern Europe and ROW weaker combined vs. my expectation
- But SDG point out that a Brexit impact on European revenue and loss of sales from Russia were big drags on Northern Europe/ROW. Brands down 3% in constant currency but would have been flat excluding these two factors so the underlying performance was strong.

Probably deserves to trade towards a 10x ex-cash P/E at a minimum here despite the forward uncertainties, which is comfortably higher than current levels

Eric

[our haven] 04/8/2022 07:20

Agree, a very solid set of results with expectations being met.We will see what the market expectations were shortly, which I admit to being a little nervous of.Though they should not be seriously hit, I have seen other shares getting hit for meeting market expectations which is nonsensical.

[salver2] 04/8/2022 07:12

Not a bad result-European sales probably a little worse than expected and as I thought UK sales better than anticipated- pretty much in line and doesn’t warrant the excessive hammering of the share price

[pireric] 03/8/2022 16:58

I may be wrong Salver, but looking at the revenue split, it's quite hard to think that e.g. if revenues were down 3% for the first half that the UK brands business was anything but down at least high sd % if we take the strength in the US (currency helps), licences and manufacturing to be true.

Broadly may turn out to be different to down a little, but I'm expecting revenues maybe down 3% y/y when they report tomorrow. Higher than that would probably be better than the market is expecting.

Eric

[essentialinvestor] 03/8/2022 16:52

Hopefully a half decent outlook, let's see.

Has been hit hard on some recent updates, expectations now arguably lower
as indicated by the current share price

[pireric] 03/8/2022 16:51

I'm expecting a lot of the FCF to be invested back into capital equipment upgrades and digitalisation of the manufacturing facilities (to drive future productivity and cost efficiencies), but broadly expecting y/y cash by year end (ignoring any working capital swings at the first half) to be comparable to that £19m from last year

Eric

[salver2] 03/8/2022 16:49

I’m broadly with you on these points but I think UK sales will be a little better than you might think

[netcurtains] 03/8/2022 16:47

Well in January they had £19m in cash which was £4.5m more than 2021.

[pireric] 03/8/2022 16:40

If we take the broadly in line on revenues from the last update to be accurate, then I guess it has been clear since the trading update that the following mix is probably going to have happened
- UK/Europe brand sales under pressure and probably down middle towards high single digit % y/y
- US brand doing well, as is Morris & Co
- UK manufacturing doing well
- Solid license revenue performance y/y

Then comes the outlook statement. I'd be astonished if there is not a caveat on an uncertain macro environment, but if they hold their expectations for the year unchanged then that would be a positive.

I could see the stock up a bit on a relief rally given the low forward multiple and very strong cash position if the above comes through as true. Could try to recover 120-125p. If its not the above, then we'll see in the morning what's reasonable !

Eric