Scs Share Discussion Threads

[deadly] 14/2/2021 17:59

Possibly, but the boom will only make up for sales lost during the lockdown?

[netcurtains] 14/2/2021 17:34

SHOPPING:
UK consists of over 15m people who are over 70 or are at risk and that does not even include those in age range 60-69 - we know this by vaccine numbers.
For the FIRST TIME in any lockdown these 15 million will feel more free to shop - so when shops open quite possibly.... Booom.

[netcurtains] 09/2/2021 16:12

A market cap of £80m
It normally makes about £11m profit

So its got a PE ratio of 7 (for normal years)
Its got NAV of about £30m
Apart from 2020 profits had been growing at
about £1m a year (that it is pretty good).

Whats not really to like?

(If compare with Topps Tiles - topps profits have
been declining over the years and its market cap is over
DOUBLE SCS).

This looks a "RELATIVE" bargain compared to competitors

[thorpematt] 09/2/2021 15:53

I think the biggest thing people don't understand with SCS is it's debt levels...or actually its lack of.

Most screeners do not pick SCS up as a company with a very strong balance sheet. When new investors look at it, most can't work it out either.

I have eplained it all on here before, so I won't repeat it all but quite simply put, future rent payments are not the same as debt in my book. (They're future operating expenses).

A capital lease obligation is not a liability if the property it relates to is in a viable trading location. In fact if it is then one could argue that it's an asset.

Take £111m off the EV and you will be about where we're at.

So, if the BoD expained that to the Mello investors they proably will like the stock....if not, they probably won't.

[netcurtains] 09/2/2021 08:59

Not sure if SCS came over well, bad or neutral in the investment show but share just ticked up.

[davidosh] 07/2/2021 19:21

Good question to ask on the night......he will be answering Qs

[netcurtains] 07/2/2021 15:37

No idea. Next question.

[eggbaconandbubble] 07/2/2021 12:18

Why did Carson leave Holland & Barrett just nine months after being promoted to the role of Group Managing Director?????

[netcurtains] 07/2/2021 10:37

Here is the link - SCS gets a big write-up:

[netcurtains] 01/2/2021 09:31

Thats very interesting davidosh - thanks for letting us know!

[davidosh] 28/1/2021 09:19

Just to let you all know that SCS and introducing the new CEO will be featured at the next Mello Monday investor show..



There will be over 600 investors attending and these are very popular shows with company presentations, fund manager and investor interviews and panel sessions including the popular BASH (Buy, Avoid, Sell or Hold)

Not to be missed and use the code MMTADVFN50 to get 50% off tickets or if you have never been before to a Mello evening just send me a message and I will give you a complimentary invitation to join us.

[chrisb1103] 27/1/2021 17:22

Just need some news about reinstatement of the divi - should get that on 26th March with the half-year results I guess? Plenty of cash here!
Anyone any thoughts as to how much?

[netcurtains] 27/1/2021 14:07

I Agree with Paul Scott. This is potentially going to have a cracking 2021!

Shops might well open in March - just right for Spring DIY time!

If compare with Topps Tiles this looks like it should have a very similar market cap.
Both companies look good value.

It was a great Trading Update and it is a great balance sheet.
A cash mountain of £88m

[davidosh] 27/1/2021 13:34

This was provided by Paul Scott in the Small Cap Value Report this morning....

My opinion - very positive. It’s a boring, overlooked company that is trading well, with a bulletproof balance sheet, and high future dividend paying capacity.

The only thing missing today is any mention of profitability! It sounds like we're probably in line, but mgt is coy about saying anything, as the outlook re covid/re-opening is still so uncertain.

That fits very comfortably in the value section of my portfolio. I’m happy to sit tight, and probably might add more to my existing holding on any dips. It’s proven very resilient throughout covid. Don't expect any fireworks with the share price, as sellers always seem to overpower any attempt to rise. But who cares? That's only temporary - eventually strong fundamentals drive things up where they should be, it's just a question of being patient. Plus an advantage of sellers, is that we can buy as many shares as we want. That's not always possible once the sellers have finished. So a depressed share price, combined with strong fundamentals, strikes me as more of an opportunity than anything else.

The chart looks lacklustre, but if you add divis on, the total shareholder return has been better than it looks, and there's plenty of upside to come I reckon, if strong performance of the business continues.

[deadly] 27/1/2021 11:34

Very good TU considering the lockdown.

[cravencottage] 14/1/2021 11:10

Trading statement scheduled for 27 Jan

[davidosh] 28/12/2020 00:15

At our next MelloMonday on the 11th January we are going to do a sector comparison to include competitors SCS and DFS and look at all the data and ratios to decide which should come out on top.

[davidosh] 23/12/2020 10:47

This can only be good news for SCS and I suspect there will be long order books awaiting fitting in Feb/March by now

[davidosh] 18/12/2020 15:50

Here is the next event but go to Mello videos

[frazboy] 18/12/2020 13:54

Ok David, I'm not sure if you mean I'm well off with my estimate of net cash (if the working capital were to unwind) or sales growth year to date? I'm more confident about the latter than the former, but what really matters at the moment is sentiment towards 2021, in my view.I will listen to the mello session tho.

[davidosh] 18/12/2020 13:50

Frazboy.....I think you are way off the mark there. I will be getting the SCS team in to do a Mello presentation early in the new year but the BASH panel covered the situation very well in our October show.

[frazboy] 11/12/2020 16:57

One thing to consider here when looking at the ginormous (in comparison with market cap) cash pile is the order time, which I think is currently around 16-18 weeks (check the trust pilot reviews, not refuted by the company). If you were to take annual sales and assume the order time has not changed (clearly, not entirely valid, the order time will have lengthened from May onwards until recently), and deduct forward orders from the cash pile then you're left with a cash pile of £10m, perhaps a bit more?

Perhaps a better approach would be to take sales for this year thus far, assume the same YoY figures for weeks 18-19 as for weeks 15-17 (English lockdown, sales -65% YoY) and you get a figure of sales for the year to date being around 7% higher than 2019. What's happened since the lockdown has ended is anyone's guess, but do folk buy sofas in the run up to christmas? Regardless, that percentage increase is very supportive of the current share price but the headwinds are obvious, the vaccine (a minus not a plus - this was a Covid winner in my book) and potentially a slowing housing market in 2021 post help to buy changes/stamp duty reversion.

I still have a small position here but would offload much above the current price.

[sphere25] 10/12/2020 09:15

Lobbing into this spike.

182 to 224 in no time.

It's another where the market has been sleeping and presented a nice opportunity.

Short term perspective only.
All imo
DYOR

[sphere25] 09/12/2020 17:15

Erm....ok...

I guess that's one way of breaking £2, just close a tiny, incy wincy teeny weeny bit above it at...

216

[soleman1] 09/12/2020 10:48

The move to 200 this time comes off of a much higher base at 180 support, having breached and held recently the gut says its a legit move with legs. I can see this making a new all time high next year and divi reinstated at the next opportunity. Thats more than I can say for any other physical retailer.