Scs Share Discussion Threads

[thorpematt] 15/2/2022 18:39

David,
No I must admit I haven't been on the mystery shopper trail here...but I might give it a go now you mention it.

I think it's clear that the market is in a phase where it is worrying about macro issues and applying the perception of likely outcomes to individual stocks as it sees fit.

There are headwinds for discretionary purchase consumer goods. And as per the FT article for imported goods re-sellers also. So these fit the bill for that story. I understand why people have sold into that narrative BUT as you indicate, there are times when you must buy into a position when others are allowing fear to get in the way of true valuation.

FWIW I tend to go in a bit too early. (You will see this if you look back far enough at the SHOE BB). But as long as you can excercise patience, valuation tends to play out in the end.

[currencytrader1] 15/2/2022 16:11

Spread on this one is amazing, topped up this morning when share price was 192p, had to pay 197p.
Holding 10,000 shares now though with average of 203p. Announcement of any good news will have this streight over 250p.
Im holding for gold tho!!
GLA

[davidosh] 15/2/2022 15:02

It amazes me that they are available below £2 today so I have added significantly to my holding and SCS is now a top five position in my portfolio.

Have any of you been in a store recently? I think I need to get my ears to the ground on this one. Must surely be extreme value at this level?

[fft] 15/2/2022 08:50

Meanwhile in the market, DFS with far weaker balance sheet, cheaper FD, more overseas imports (see post below) is doing better.... All they need to do is spend a few million on a share buyback scheme. Must be the cheapest way they have of increasing EPS.

[thorpematt] 15/2/2022 00:23

Very salient article from the FT here: -





Steve Carson is quoted in it also.

The Key on raised freight cost and ensuing inflation is that SCS is now 60% UK manufacturing.

DFS is just 40%

Made is 75% "outside of europe" so the costs of freight and lead times are more troublesome for SCS's competition.

Cost pressures will stress test those without a strong balance sheet ....so again SCS is the horse to back in the sector since it can ride out any issues and possibly acquire any distressed smaller businesses if good opportunities arise.

[effortless cool] 09/2/2022 13:54

Why is that interesting?

[mackie] 09/2/2022 13:53

Interesting! just increased my holding but not showing on LSE.

[farrugia] 08/2/2022 10:45

think furniture think SCS

[fegger] 08/2/2022 10:25

SCS have been cited as a PE target for so long that it would have happened if it was going to.

What they need to do is set out capital allocation rules as Next do and buy bac shares at a defined level. Also have rules to allocate genuinely excess capital to shareholders As part of this define how much cash they need to retain to survive a downturn and hold that.

[chinahere] 03/2/2022 19:24

My big fear is that the BOD squander the money on some wasteful purchase.

That's why I think some Private Equity interest is what shareholders need.

[thorpematt] 03/2/2022 19:07

free stock charts from uk.advfn.com
'>

Recently it has been important to understand Fib retracement. Since so many stocks are retracing.

As per the chart SCS hit the 61.8 and bounced. Its a pretty hefty drop TBH so a bounced on a postive TS is not a shock.

The MAs on the chart are my favourites to. Currently we are above the 21day MA and this coule well act as support on the way back up. I like the 21 as it often provides support or resistance to trends. For those who aren't aware the 21 is the ave. no. of trading days on a typical month.

In SCSs case the 90 day has been more of a trend maker/ breaker being a little volatile it seems.

[thorpematt] 03/2/2022 19:02

fft,
Consensus Estimates 2022: -

Net profit £11.50m
EPS 28.50p
Divi PS 13.0p

------------------

At present SCS has a divi yieled of about 6%....unless there is a special divi or share buy back, which, either way raises it.

------

If I were private equity I'd need £60m to buy this and it's profits would pay me back easily in less than 6 years. In those 6 years the divi would also pay me out another £31m. For the benefit of disclosure, I do not have £60m.

------
people might stop buying furniture. This seems unlikely.

[chinahere] 03/2/2022 17:32

I know others have said it, but this must be a prime target for Private Equity.

Assuming the company can service say £50m of debt then you could offer £3.50 per share for effectively no cost and still expect £5m+ return per year. Salaries and overheads could be managed too to increase revenue. It would be a risk free endeavour.

I also think that if SCS were faced with such a Private Equity offer the BOD may try to fight it. Only then would shareholders be properly offered the cash back IMO.

Anyone got any Private Equity contacts?

Lol.

[harrogate] 03/2/2022 07:28

Suspect we are not really going to get this share price moving until they announce a substantial plan to return a large chunk of that ridiculous cash level to us. If DFS can talk about a capital return plan with their balance sheet it Is farcical that SCS don't. Especially with the eye watering director remuneration here.

[purplepelmets] 03/2/2022 07:21

Don't kill the moment man

[fft] 03/2/2022 07:17

Maybe a daft question, but what were full year expectations as mentioned in the RNS (but not actually quantified).

[davidosh] 31/1/2022 17:09

Nice to see a strong move upwards ahead of the trading update. Does anyone have a feel for how things are going in the stores?....January sales etc

[effortless cool] 29/1/2022 07:25

The trading update is confirmed for Thursday, 3 February.

[fft] 29/1/2022 06:23

End of half year in a couple of days. Should be TU on Monday or Tuesday.To quote John Lennon, "let's hope it's a good one, with plenty of cheer"Let's also hope that a share buyback program is initiated.

[brucie5] 24/1/2022 21:21

If 2. 00 goes, looks like 1.50 may be revisited, the same level as Spring 2020. Madness.

[fft] 19/1/2022 02:13

Given the recent DFS results and the huge amount of cash that SCS has compared to DFS, there is no reason a special dividend or a large rolling share buyback (or tender ?) can't take place.Perhaps the 1.4m that David knight 'earned' last year clouds his judgement. He treats SCS like a private company and gets away with it. I don't believe the new head of the remuneration committee will change anything. DFS can't buy SCS. The only possibility would seem to be a private equity bid which would cost them peanuts as it could be largely funded from the cash already in the company. Hopefully it appears on someone's radar soon.Institutions need to be encouraged to vote against the board at the AGM.

[davidosh] 19/1/2022 01:37

The share price was higher before the pandemic and we are seeing weakness again.

Hopefully the next trading update will bring some strength back.

Meanwhile...

ScS announces that Angela Luger, Non-Executive Director of the Company, has been appointed as Chair of the Company's Remuneration Committee, with effect from 12 January 2022.

I think Angela needs to establish why there were significant votes against the remuneration report at the Agm and why shareholders had no virtual access to our annual meeting?

[abergele] 12/1/2022 12:56

CWA1,
I agree,
I was just stating a position that they had faulted on (ADVFN)with my trade and another persons trade,,

It could be thought of as they were after more shares by presenting it as a sell?
perhaps an order in as the news from SCS was good and maybe warranting more shares to push through..imho.. g.l.All..

[cwa1] 12/1/2022 12:12

Trade indicators on ADVFN are just a crude estimate. Anything above mid at trade time is shown as a buy, below it a sell, on mid a ? trade. So all ADVFN trade data should be treated with extreme caution. I would say the majority of my personal trades have been mis labelled