Shoe Zone Share Discussion Threads

[edmundshaw] 13/12/2019 09:47

Having added big on the lows, I have sliced a few after a half-decent recovery. Just a touch of prudence. But still overweight.

[thorpematt] 13/12/2019 00:57

This is my biggest holding now, having bought in heavily after the fall and more recently seeing a rise. I see this particular stock as a buy and hold so unless it reaches a very high valuation I am unlikely to sell down. I rarely say that for most of my stock trades because quite simply put there are not many companies on the index that have high enough quality metrics. ROE and ROCE in the last trailing 12month are hovering at around 30%, the yield is just shy of 8% and we have net cash. Mid to long term these are fantactic things for owners of such a company.

[edmundshaw] 12/12/2019 14:31

Season's greetings, Andy! :))

[andyj] 12/12/2019 13:58

Having luckily bought in at 1.15 this has been a great Christmas present.

[edmundshaw] 06/12/2019 09:21

Share showing signs of life... 130p was always a knock-down price. If the business recovers well, 2021 final dividend includes a special, the yield will be around 14%!! Meanwhile, for this year the yield is still over 8%. The short-term leasing model is, literally, paying dividends...

[1hopefultrader] 25/10/2019 06:43

easy isn't it

[edmundshaw] 24/10/2019 21:42

Yep. It is always possible we might be wrong, but the chances are good here. Just the fact that another 20 Big Box stores are being pencilled in for next year shows strong confidence in current trading and the business model, in my view. Given the experience of some other high street casualties, it would be madness to build out like this if the projections were not pretty watertight.

[thorpematt] 24/10/2019 19:51

Sometimes the market gets confused. Certainly it appears to be rating SHOE as a simple high street retailer with downward pressure on sales. In reality the stock just keeps producing very high levels of ROE and ROCE. Despite its high historic yield the company consistently fails to utilse debt to fund its growth or cap-ex requirements. Despite the requirement to change its offering in recent years (and the increase in cap-ex needed as a result) the FCF has still been excellent. I rarely double down on stocks I have bought in at a higher price previously, but i made a recent exception for SHOE because quite simply it was an opportunity not to be missed. For me if its rare to see true quality stocks on sale and when one appears it seems wise to snap it up.

[edmundshaw] 24/10/2019 19:13

Incuding dividends I have a smallish gain. But sitting on an average price of 150p. I sold a few at 230p which has proved at least partly wise...

[darius12] 24/10/2019 13:25

edmund are you in a loss on these? I noted you are an old poster.. but i think the worst has passed here, might take a few weeks to continue adjusting up. And if the next trading statement is solid it will keep going up.

[edmundshaw] 24/10/2019 08:50

Thanks someuwin. FWIW I have added too on these numbers and a smallish rise. If progress is maintained, I see these worth 180p and possibly more. In years with the exceptional dividend in place, that dividend is almost 20p!! Even without it is 11.5p.

[someuwin] 24/10/2019 08:43

finnCap... Shoe Zone (SHOE): Corp Early signs of restored positive trading momentum Today's FY19 pre-close trading statement should be well-received by investors on multiple levels and therefore serve as the basis of a valuation re-rating: (1) we believe SHOE has delivered on recently downgraded PBT expectations of £9.5m, an important staging post in rebuilding investor confidence; (2) SHOE's strong cash conversion delivered FY19 net cash of £11.3m (FY18: £15.7m), well ahead of our recently downgraded expectations of £9m; and (3) underpinned by the continued growth of the successful Big Box roll-out combined with "strong Digital momentum", early signs of SHOE's return to positive trading performance, after a tough summer, are a cause for optimism. FY19 results on 8 January should provide additional quantification of current progress.

[someuwin] 24/10/2019 08:29

Looks good now. Bought a few.

[darius12] 24/10/2019 08:03

I grabbed another 5000 this morning - guess market hasn't yet woken up to the update.

[andyj] 24/10/2019 07:04

Ooh that is the update we were hoping for. In line with revised expectations and elements of the business growing strongly.

[dr know] 22/10/2019 13:49

There will be a trading statement on Thursday which might get things moving again. Hopefully the original founder is doing better as CEO than the guy that "left the group with immediate effect" in August.

[andyj] 22/10/2019 11:46

I bought in today. The downside appears minimal, the upside potentially huge and in the meantime there is that juicy dividend.

[edmundshaw] 04/10/2019 10:13

Without the special dividend, this is only a mere 9.8% yield. Yikes!

[dmdmdmdm1] 04/10/2019 08:12

Surely these are good value - not sure how they can keep dropping. I guess volume and spread are both contributing a lot here.

[andyj] 05/9/2019 12:36

That's longer than all of my wives put together. And they cost substantially more than that.

[edmundshaw] 02/9/2019 15:39

Two years? I bought walking boots for £100 and they lasted 15 years. And would have lasted far more if not for the pseudo-rubber soles that just crumbled away. Such a throwaway society. And no, they don't smell if you look after them properly.

[wildshot] 02/9/2019 15:11

You can replace the insoles ;-)

[spob] 02/9/2019 13:48

bet they smell real good after 2 years

[wildshot] 02/9/2019 13:03

Interesting comment Outlawinvestor. I bought a pair of slip on shoes from Shoe Zone just over a couple of years ago and wore them everyday for work. I've only just had to replace them in July this year. So nearly 2 years worth of close to daily wear is good value for my less than £20.