Tandem Share Discussion Threads

[grahamty] 12/3/2010 17:12

Is Andrew Burgess the Carlyle buy-out king ?

[wapper] 12/3/2010 14:35

Bulk of TND bike sales are small orders to Dealers. So no benefit from Direct delivery. Littlewoods are biggest customer & bikes go direct to consumer.Did a big deal with Asda last year for 50k bikes but won't get repeat order IMO as almost half were returned due to QC problems I hear.Approx 340 adult bikes in a 40' Container (High Cube). Ocean freight up from $1200 to almost $4000 this year alone.
Steel up since Xmas.Rubber up 15%...Aluminium up. Plastics up. Around 12% increases on bikes since Xmas.Even Carton costs up over 10%.
Only 3 countries with Duty free producing decent bikes....2 or 3 factories in each. TND can only source from small number of these factories.ETC ETC...

[wapper] 12/3/2010 14:35

Bulk of TND bike sales are small orders to Dealers. So no benefit from Direct delivery. Littlewoods are biggest customer & bikes go direct to consumer.Did a big deal with Asda last year for 50k bikes but won't get repeat order IMO as almost half were returned due to QC problems I hear.Approx 340 adult bikes in a 40' Container (High Cube). Ocean freight up from $1200 to almost $4000 this year alone.
Steel up since Xmas.Rubber up 15%...Aluminium up. Plastics up. Around 12% increases on bikes since Xmas.Even Carton costs up over 10%.
Only 3 countries with Duty free producing decent bikes....2 or 3 factories in each. TND can only source from small number of these factories.ETC ETC...

[asagi] 12/3/2010 14:35

Ho ho ho! Green Giant.

[balcony] 12/3/2010 14:27

looks like MM sold 10k at 83p and bought 10k at 68p,nice work if you can get it

[greengiant] 12/3/2010 14:21

Wapper, I believe the company will suffer due to exchange rates - I have said this from when I started looking at it. Freight costs are controllable as I have done with another China based company I do some work for and should be partly offset by direct deliveries.

Value your contributions so would gladly have you post all you know here.

gg

[willybaby] 12/3/2010 14:20

I guess that's your RNS then gg, nice work!

[spooky] 12/3/2010 14:10

I would have thought that in recent years being "close" to the company and being a significant long term shareholder would have been mutually exclusive.

[wapper] 12/3/2010 14:09

Davidosh...My knowledge of this Co. goes back to the Casket days (before reverse takeover by EFG & name change to Tandem around 95/96 and to period several years before). I don't want email contact as I do not want to compromise myself.But feel free to ask anything via this bb.
Right now margins under pressure from exchange rate movements / big increases (double) Ocean Freight from Far East / price increases @ factory gate in far east. Worse to come & that's certain.TND no need to issue Profits Warning as no-one covering TND with forecasts etc.

[davidosh] 12/3/2010 13:48

Wapper....Can you email me as I need to check out a couple of issues with you re your concerns over past few years ? I have only been here for last two years so your knowledge bank will be useful.

[greengiant] 12/3/2010 13:44

nick - As some here will confirm, I have no problem with directors paying themselves a very good salary. I think it is important to hire the best and usually translates into enhanced shareholder value. This is not what I see here.

gg

[wapper] 12/3/2010 13:41

I am close to TND & know what going on. Yes Management needs changing at top ( read my posts...been saying it for years). But very eak Operational guys too IMO.Needs a clean sweep.Good Luck. I may return in future but too risky right now.

[nickcduk] 12/3/2010 13:39

I would be happy enough for change to come about even if it involves a profits warning in the meantime. The company needs to be split in 2 and preferably sold off. Management here don't seem to be doing a particularly good job and those salaries are way out of kilter.

[davidosh] 12/3/2010 13:30

Wapper.....maybe you have been the large seller that has weakened the price over the last few months but that has allowed lots of strong new holders to take a position and who wish to see major change. There is a future for Tandem.

Where did you get all that information about containers and change of suppliers btw ?

[greengiant] 12/3/2010 13:21

Wapper - I hope you are right. It would make a change at the top easier. And I believe a change at the top is needed.

gg

[cwa1] 12/3/2010 13:20

Seems to be happening already gg. Very much doubt management will be able to continue to bury heads in the sand much longer.

[wapper] 12/3/2010 13:18

TND bike division are not doing very well I hear...Still got massive stocks of 2009 models to clear which impacting 2010 model sales. Lots of returned goods stored in containers which are being sold off @ less than 50% of cost.
Have had to change suppliers due to main long term supplier losing duty free status. No longer very competitive.Several other issues too. Wait for next results in May before buying. Have sold all my substantial holding over past 3 months.

[greengiant] 12/3/2010 13:15

PS - I will continue to add at above market value for the time being so it may be that my aggression will push this higher.

gg

[greengiant] 12/3/2010 13:12

Hi all,

With regards to the AGM, I am in favour of all shareholders turning up. Psychologically speaking it would portray unity and give the BoD a huge problem in where to seat everyone. As far as questions to the Board, I believe that Davidosh would be best placed to ask the probing questions altho I an quite happy to help. As long as shareholders act in an orderly fashion, there should be no issues. After all, the Board have had a lot of warning about this issue. Again, if the Board resigns on mass, I have no issues - I have turned around and been involved in enough businesses to ensure it continues to run smoothly until an industry expert is appointed. I will be questioning the company on its strategy and on the role of an MD

gg

[davidosh] 12/3/2010 13:11

whoppy.....Nice one and good to hear how everyone feels and the directors need that feedback to IMO. I have also had emails from holders of nearly 4% along the same lines as those who have signed up on the freesharedata website. The communication both ways has been really poor in the past and I aim to change that completely. Tandem has products which should do really well in this economy and the company is well run too IMO although I have not been to see the operations closely. I will be requesting an open day for investors/shareholders as a priority. I also want more visibility within the City and broker coverage etc.

[whoppy] 12/3/2010 13:04

Have added to the shareholder poll toady (holding 1640). Think this is a good company which is overlooked. Appreciate what you guy's are doing, so thank you.

[cwa1] 12/3/2010 10:42

Seems to be a little momentum gathering for a change now, that's good.

I sent them a polite email back in November asking them to consider the issue of non exec appointments and suggested some possibilities. I got a perfunctory: will pass it on to the board for consideration one liner in return. Since then, about 4 months ago, I have heard nothing which is most frustrating.

I believe that they(the BOD) read this board so surely at some point they will realise that there are tanks parked on their lawn and will have to open some dialogue with shareholders, look at appointing some decent non execs and generally upping the profile of the company.

[greengiant] 12/3/2010 10:24

Asagi, have just been offered a meeting. Politely declined for the time being

gg

[greengiant] 12/3/2010 10:23

PS - Overhang just about gone now. KBC have now moved

gg