Scs Share Discussion Threads

[purplepelmets] 26/11/2021 10:28

david, would that not require a vote at an AGM or special meeting to allow a buyback? Not sure if the board can arbitrarily start a buyback to take advantage of this opportunity

[abergele] 26/11/2021 10:26

I'm waiting for that moment to top up and average down ,,
but as soon as I do I bet some buggars will sell again, and drop it down,,
day traders.
bahhh

[brucie5] 26/11/2021 10:06

Seems one of those situations where the market understood the risks better than Paul Scott, who has long said that this is one of the cheapest stocks in his universe. I'm disappointed by the RNS, but given the huge cash buffer this company has choices, and presumably, provides even more of tasty morsel to a PE buyer, should one be waiting for the right time to buy.

I'd rather that didn't happen of course. It's a great and longstanding business, with great product, afaic.

[davidosh] 26/11/2021 10:00

The board really should have been ready and prepared to take action to protect long term shareholders as there is more cash in the bank than the value of the company when it falls below £2.30.

Buying back a million quid of shares if needed would benefit all long term holders and boost earnings per share as the profits then get shared around fewer holders and we can have increased dividends too. Higher divis gets the company a better valuation too.

If management cannot see the logic or do not want to protect long term shareholders from distress then action is needed. The share price should not have dropped to £1.80

Stop losses are not sensible when there is 100% cash backing the company. You are just letting the market makers take advantage of the greed and fear reactions. The company will still be making profits and the cash will still be in the bank.

[terminator101] 26/11/2021 09:03

The MMs know where the stop losses are and take advantage of them by manipulating the price so that it heads below them and they all they triggered. This drives the price even lower and when people realise they buy back in for a bounce trade. Seen it hundreds of times. The only winners are the MMs.

[abergele] 26/11/2021 08:58

I agree Long Termer.
Who could see that drop coming..

[longterm95] 26/11/2021 08:46

Shocking morning for me. Had a stop loss in place at £2.25 which got triggered and achieved me £1.95 sale price for a bit over 2624 shares which was a loss of around £1,700 which I couldn’t stomach. Had to then go back in the market and pay £2.08 , decided no longer bothering with a stop loss so average has I guess increased by 10p somewhere around £2.80 and I’m 91 shares less off for my troubles. The stop loss in my non isa that had very few shares surprisingly got me £2.17 whereas I needed that on the one where I was holding over 2,000 shares so nothing worked out unfortunately. Just going to sit in for a recovery back up to £2.80 now whenever that may be. Regretting my decision to come in last month but will live with it.

[valueman94] 26/11/2021 08:32

No mention of the cash position which is probably not helping. At 77m market cap and with 131m of revenue compared to the 132m cash from 2019 scs is potential sitting on about 140m worth of cash currently. Directors need to seriously think about share buybacks

[cwa1] 26/11/2021 08:26

Wonder if we can interest people in a sofa to hide behind to ameliorate the sight of the market bloodbath today?

[terminator101] 26/11/2021 08:22

Told you at least a 20% drop predicted. Target achieved. You can stick your head in the sand and only read the bits of the RNS that are favourable to your position. Its called optimism bias where you filter out all the bad bits and only read the good bits. you also have to add that its a bloodbath on the markets today.

[fft] 26/11/2021 07:51

Terminator, because of all the store closures, one year comparisons are not that meaningful. 2 year comparisons make more sense. Unless you are deramping :-)

[terminator101] 26/11/2021 07:28

However, over the last seven weeks, the Group has seen a reduction in store footfall and conversion with consumers spending less on big ticket discretionary purchases. This appears to be driven by a change in behaviour with consumers shopping earlier for Christmas when compared with previous years. The extended product lead times currently being experienced across the furniture and wider retail industry are also having an impact on current purchasing trends . #brutal

[terminator101] 26/11/2021 07:27

".......with a one-year like-for-like order reduction of 10.6%......." #brutal

[fft] 26/11/2021 07:20

"At 20 November 2021, the Group's order book was GBP131.9m, GBP71.5m above the same point two years ago. Our online business, which is a key part of our ongoing strategy for growth, continues to perform well, with two-year like-for-like order growth for the first 16 weeks of the year of 38.5%."Because of store closures, one year comparisons are not good. 2 year comparison shows growth of 0.9%

[terminator101] 26/11/2021 07:18

That's brutal. Market has not related well to warnings like that recently, so a 20% drop likely IMO.

[effortless cool] 25/11/2021 16:31

Why don't you go?

[davidosh] 25/11/2021 16:28

Agm tomorrow....Is anyone attending?

[abergele] 24/11/2021 15:58

A nice big reversal of 10p.
perhaps we have changed that fall direction,lets hope it is..gl all.

[mighunter] 24/11/2021 14:11

A few key differences... AO.com has a gross margin of something like 19.7% vs SCS at 45%. SCS also made to order with a healthy backorder list with high percentage made in U.K. mitigating some of logistics costs. Not quite so tight on supply of items like chips either. Further, excl lease liabilities, AO is net debt and SCS net cash.

[aishah] 24/11/2021 13:35

With inflation raging and tax rises coming, are big ticket items going to be on Consumer buy lists?

AO World yesterday said ‘shipping costs, material input prices and consumer price inflation remain challenging uncertainties’.

Edit: not meant to be a comparison with SCS, but the general economic picture at the mo. SCS situation answered below but I'm wary in this climate. Good luck

[longterm95] 23/11/2021 12:29

Thanks man - you kept a stop loss to be on the safe side or…?

[abergele] 23/11/2021 12:23

£2.75,,jumped in sometime in Aug, about £3,,and each monthly buys were higher than the last,haahaa,oh well,that's life,,gl mate

Edit..
No Stop loses...

[longterm95] 23/11/2021 12:00

Here’s hoping man - what’s your average if you don’t mind me asking? Thanks. I stupidly thought it was a good buy last month and bought a lot around £2.77 after a tip in the momentum investor. That’s gone great :)

[abergele] 23/11/2021 11:54

Just 95 to make round numbers from (ii) monthly deals with no charges,,
Still in the red though..never mind,It'll turn with news..g.l all you Lth's

[longterm95] 23/11/2021 11:49

How many did you buy? Some wild swings this morning from £2.27 back to above 2.40p again. Let’s see what the agm brings , think some peoples stop loss may have been triggered as well. All seems a bit odd how far it’s fallen over last few days