Sanderson Design Share Discussion Threads

[disc0dave45] 11/10/2022 22:09

Thanks eric, sounds reasonable (133p), although I tend not to add cash.

[trt] 11/10/2022 20:31

Broker Investec near term target price is £2.10

[salver2] 11/10/2022 18:48

Very good analysis pireric I can’t help feeling that some sort of corporate action is on the cards a bolt on acquisition or something else - it’s woefully undervalued still - how this went below a pound is testament to the nervousness of the market and aversion to anything consumer facing - I was almost expecting a share buyback - it still trades under its assets

[pireric] 11/10/2022 18:08

While we have bear market mood music, I can stand behind the following equation for valuation as being fair:

8x P/E + credit the prevailing £15m net cash balance -> 8x * 14 = 112p + 21p per share = 133p

When the bear market mode rolls off (I personally think we're majority of the way through, but will need 6-9 months for recovery; market bottoms always seem to occur well in advance of economic downturn bottoms), then why can't this get back to a more normalised 12-13x multiple rather than the 8x (let us say) -> 12x + net cash would take this back towards 190p or so.

Eric

[disc0dave45] 11/10/2022 18:03

Good to see more positivity and confirming that costs are being passed on to maintain / improve margins. Don't know why they didn't say the same in the trading update, perhaps the share wouldn't have dipped so low?. Will keep watching this one and congrats to those who held on. Any views on rating? and target price?

[netcurtains] 11/10/2022 12:41

Is 150 the medium-term target?

[trt] 11/10/2022 12:23

Good set of Interims. Market now realising what we have said all along.

[salver2] 11/10/2022 11:57

Clearly not much stock on offer as very few shares traded

[pireric] 11/10/2022 08:40

FYI, revised progressive research forecasts trim back revenue expectations a little for the full year (always looked punchy given the first half), and EPS comes down but only fractionally.

They have SDG now ending the full-year with ~£115m of revenue, 14.3p of adjusted EPS and £16.6m of net cash

Against a £70m market cap, so £53.4m ex the net cash pile giving a headline P/E of 7.0x falling to 5.3x ex cash

Far too low

Eric

[pireric] 11/10/2022 07:57

As it did during the global financial crisis, I'd reiterate from before. But with a better management team, a more coherent strategy now and a excessively comfortable balance sheet position

Not the sort of market where we will be rewarded with a huge share price jump today but should certainly set a floor above the double digits over the coming weeks I think.

Eric

[our haven] 11/10/2022 07:55

Hopefully we will see a more realistic share price starting today towards that 125 mark. Excellent progress has been made in these challenging times. The diverse model of markets and products is proving robust.

[pireric] 11/10/2022 07:38

Impressive first half performance

- Profit up y/y with good royalty income and even if some is accelerated, this is a core part of the strategy and I hope/expect it to become more meaningful over 3 years
- Cautious but reasonably positive outlook that remains in line with the boards expectations
- inventory peaked at the first half, so the £15m net cash balance should be rebuilding
- pension flipped into a surplus
- "The momentum in licensing has continued into the current half with the announcement in August 2022 of a Sanderson collaboration with Disney. In addition, the Morris & Co. kitchenware partnership with major
US retailer Williams Sonoma, initially signed in August 2021, has been extended by two years to 2025. The initial products from the partnership will be fully launched across the Williams Sonoma retail network on 17 October 2022."
- August was slower than 2021 but the company has seen growth in both September and October

Think this remains very undervalued for the portfolio of assets and given the company's resilience and underlying strategy. Ought to be a 125p+ stock even with the uncertainties, nowhere near <100p IMO especially with the £15m net cash pile

Eric

[salver2] 06/10/2022 15:34

Charts pointless

[mesquida] 06/10/2022 15:29

Any chartists out there care to express an opinion. I am not a chartist but it does look to me as though the share price is about to break it's downward drift. It all hinges now on next week's interim figures, and - more importantly - the statement on current trading.

[disc0dave45] 06/10/2022 11:47

Not too certain that the collaboration with Giles Deacon is of any value, just a job for the CEO's pal to "tweak" existing designs IMO, why?.

[clocktower] 04/10/2022 00:13

In my humble opinion, the risk to reward looks positive over the mid-term,so the fall over the past year is due for a little reversal as the deals they have done over the past year should start to impact in a very positive way I expect.
DYOR

[disc0dave45] 24/9/2022 09:29

About 48% of brand revenue is non-UK, so a decent proportion. Do they also hedge?.

[netcurtains] 24/9/2022 07:51

The way things are going they will also be making currency gains and extra sales in the EU too (their weakest market).

[barnesian] 23/9/2022 22:46

They'll be making big currency gains!
They'll also be a juicy target for US private equity.

[netcurtains] 23/9/2022 20:27

Surely they will be selling stuff in the USA hand over fist

[disc0dave45] 23/9/2022 14:57

They need to do something with the cash but doubt it will be a buyback.

[salver2] 23/9/2022 08:04

I see Colefax are doing another share buyback -I’m not sure where they’re getting the shares from as they’re so tightly held-maybe Sanderson will start on that route

[netcurtains] 23/9/2022 07:28

"if" stamp duty is lowered today one would suspect companies involved in the housing market - either in doing up properties (that is SDG) or building them will do well.

[disc0dave45] 20/9/2022 20:47

EIDoubt it IMO but wtfdik.Todays RNS - worthy support, hats off to the CEO.