Shoe Zone Share Discussion Threads

[chinahere] 19/2/2021 12:33

And not much debt at all!

[netcurtains] 19/2/2021 12:25

clocktower: ASOS are offering 70% off stock and their share price is through the roof. I'm not sure you know how shops work since time immemorial.



Are you saying we should value shoeZone 50% more than ASOS because ASOS are discounting more?

Fundamentally you believe the £2 a share recovery within 2 years or you dont.
For me, this looks great.

The reason it looks great is hardly any quoted retailers are so much below their 2019 price.
Most are about 1/2 but we are nearly 3/4 down so we're a far better bargain.

[clocktower] 19/2/2021 12:19

Sorry to throw a spanner in the works but look at the level of discounting they are already doing online. Not a sign of good health at this stage of the game imo.



While they might benefit from lower rentals in the future, it is unlikely that will be a factor at present - as these sorts of issues are a matter between landlords and occupiers to sort out. If one has a sound lease from what looks like a secure company, the landlord is unlikely to give much ground imo.

68-70p fair value bearing in mind all the risks at present but I fancy being able to buy in again sub 50p - not that I would short the stock as you may all be right and I may have got it wrong about the prospects over the next six months.

[chinahere] 19/2/2021 11:49

Yes, they must be sitting on quite a bit of winter stock - not expecting Lockdown in December.

[eggbaconandbubble] 19/2/2021 11:37

OK, on a more serious note, the supply issue may mean that SHOE might just be able to shift a lot of their winter stock at a very profitable level.

[eggbaconandbubble] 19/2/2021 11:28

Devonlad, you've just found a use for all those cruise liners sitting in Torbay!!!

[zangdook] 19/2/2021 11:26

When it was £2 it was paying 8%.

[netcurtains] 19/2/2021 11:24

Devonlad: In that case, with constant margin, but slightly bigger cost of supplies, provided its a level playing field, bigger costs can actually equate to significantly bigger profits provided demand for shoes is pretty constant.

For example when the cost of crude oil rises, the big petrochemical companies (BP, Shell etc) profits rise.

If cost of shoes rise, and demand is constant, then SHOE profits might well rise.

[devonlad] 19/2/2021 10:59

There are supply issues with everything coming from ouside of Europe that is transported by ship atm. The issue is that a crew has to isolate for 10 days to land in a lot of ports, hence shipping rates have gone through the roof. That issue is for everyone that imports goods by boat, especially from Asia, not just SHOE.

[chinahere] 19/2/2021 10:46

I think that is right. If the rates are reduced and the rents are lower and the competition is diminished through closures then I personally think it could go even higher.

I think the prospective dividend is a real attraction here if it is re-instated in a few years time.

I must sit on my hands until then! (keep repeating)

[netcurtains] 19/2/2021 10:38

My view is, with reasonable rents (and possible business rates level playing field)
SHOE could get back to "normal" price range of £2 a share within 12 to 24 months.
That is a reasonable investment - probably especially after 8th March (eg once all bad news out in the open).

Why cant SHOE get back to £2 a share within 12 to 24 months?

[netcurtains] 19/2/2021 10:14

Typical example concerning Wellington Boot sales:

[clocktower] 19/2/2021 10:06

Just my view netcurtains but good luck but I got out much earlier and missed the recent big rise but a profit is a profit.

[netcurtains] 19/2/2021 09:58

Pretty sure SHOE have cleared their supplies of WELLIES - LOL.
Wettiest muddiest winter - OFFICIALLY - EVER!!! (mainly due to more families taking country walks)....

Since most shoes come from SE Asia I'm not sure supply is an issue.

Rents going down is going to make profits easier

I think clocktower has some points but then ALL stocks carry risks,
"you have to be in it to win it"

[tricky red] 19/2/2021 09:53

Well known that all shoe retailers will discount end of season gear to move to new season. I suspect this will be priced in.

[clocktower] 19/2/2021 09:51

Even netcurtains is right imo in expecting dire results, however does the current share price reflect the possible supply issues as spring/summer collections are very different to the winter ranges.

Will the closures leave them with winter stocks that they need to clear at a discount just to turn cash and prepare for next winters stock arrivals?

Can the share price continue to race upwards now with so many issues to resolve.

Good Luck if your still hanging in for possible further rises but I think there are now more risks to rewards.

[abarclay] 19/2/2021 09:48

Wife said kids need shoes

[mongrels3] 19/2/2021 08:12

hxxps://www.cityam.com/rishi-sunak-to-extend-business-rates-relief-and-furlough/

[nobilis] 19/2/2021 08:09

Not able to get quote to buy 10k now

[netcurtains] 19/2/2021 07:47

Glavey: I totally disagree. The news from Northern Ireland (and Wales) shows that schools UK wide will almost certainly be open in March and as such
a significant number of children will need new school shoes (growing feet).

And click and collect will mean they can get them no trouble.

Its not rocket science Glavey - use your brain.

[glavey] 19/2/2021 06:23

Have kids and people in general gone without shoes during lockdown? A little 'news from N.I.' isn't responsible for the share price rise, a lot of general ramping is.

[thecroots] 18/2/2021 20:27

Yeah seen that eggbaconandbubble

Thats why the bid jumped from 61p to 63p at the same time

[eggbaconandbubble] 18/2/2021 20:09

The last two trades recorded (sometime after 5 o'clock) 85,000 and 129,000 and listed as 'sells' did in fact go through at 08.15am and 08.18am and at 65p must have been 'buys'.

Bodes well for tomorrow!

[netcurtains] 18/2/2021 15:49

This is the reason for rise. (todays News)
NORTHERN IRELAND (so almost certainly this will be the minimum for the rest of UK too)
==============================================

primary school pupils in year groups P1 to P3 will return to classes on 8 March, PA Media understands.

Secondary school pupils in key exam years – year groups 12 to 14 – will return to face-to-face learning on 22 March.

At Thursday’s executive meeting, ministers also agreed to make relaxations to allow “click and collect” shopping from some outlets previously categorised as non-essential retailers.

From 8 March, click and collect will be permitted for shops selling baby equipment, clothing and footwear, and electrical goods.

NOTE FOOTWEAR - 8th MARCH and SCHOOLS GOING BACK