Tandem Share Discussion Threads

[stemis] 08/4/2010 09:35

No, the company has gone on for the last 6 years slowly doing what any accountant would love, generating cash, strengthening its balance sheet and building a very good business.

As at 31.1.04 the company had net assets of £7,300,000 (inc minorities of £749,000) and net cash of £265,000

As at 31.7.09 the company had net assets of £7,268,000 (no minorities) and net debt of £1,528,000

Don't see much cash generation or strengthening of the balance sheet.

[balcony] 08/4/2010 09:35

GG-Thank you

[balcony] 08/4/2010 09:13

I think he now as insider news,Also could not see the 70k yesterday

[grahamty] 08/4/2010 09:00

Where did you spot that 70,000 ?? Not reported on my system. Nothing from GG ? Wonder if he has been made an insider ahead of the results ?

[supreme mo] 07/4/2010 22:11

I hope GG has got back in one piece!!

Interesting that 70k trade went through at 1.05...

[supreme mo] 06/4/2010 15:42

For the first time ever a 1p spread!!!

bidding 12500 at 107.25 offering 3750 at 107.5p

not sure which mm's are bidding/offering for what...

[supreme mo] 06/4/2010 07:54

GG, my holding is minimal now... my shares were transferred into another persons name... (tax)

[greengiant] 05/4/2010 19:28

Skegby,

I agree, we always used to like companies who had good management, but which you could see lots of fat to get rid of.

My question regarding the stock outs is should this really have happened less than 3 months after the launch of the 2010 range?

I will post a full review of our meeting on this thread on Wednesday. Tomorrow will be good, I do believe that the management have done a good job in operationally running the company, BUT I CAN SEE THE FAT.

GG

[skegbyhouse] 05/4/2010 11:00

If you buy your bikes in China and have to pre-order in large batches it must be difficult to match your buying to a guesstimate of sales - especially with a new model.

A friend of mine worked for Olympus and they had this problem (along with many others - caused (in his opinion) by rubbishy, idle management. But they usually knew what the competition was bringing out and how good it was fairly well in advance. Whether this is true for bikes is hard to say, but very relevant IMO.

There are a lot of factors to consider here. Gross margin is a big one. If you order too many bikes the ones that don't sell through the normal channels at full retail price will stand you at the MARGINAL cost of adding one bike to your core order.

A couple of factors that may or may not be relevant. If you have ordered an exact number of containers full an extra bike will be expensive to transport. If you are merely topping up a container that you have already paid for the extra bike will stand you at less. Ditto the purchase of materials etc.

If development costs, advertising, wholesale margin and overheads (like 250K salaries! make up 80% of the retail price, then obviously the item itself is relatively cheap and excess inventory will be of little consequence.) If they are only 20% then unsold stock could be disastrous. It may be that 'clearance' of 10% of your bikes at 'bargain' prices would leave you at break-even for the extra ones. But it could be a marketing disaster.

My point is that these things are often complex and until you take the time to investigate the situation thoroughly they are hard to judge.

I am certain that the meeting on Tuesday will be very informayive.

One point worth considering; the worse that it turns out that Tandem has been run to date, the better news that is for current investors. If these guys turn out to be brilliant where's the value to out?

Skegbyhouse

[greengiant] 03/4/2010 16:26

watchout2

Thanks, but money that I have made has been from either
1) Supporting Good Management Teams
2) Getting rid of Bad Management Teams and replacing them with Good Management Teams.

Business is not difficult, and, I do believe that this Board (altho' not the whole board) can add significant value to TND. The secret now is to put all the issues that the company has had behind them, stop making excuses and concentrate on building this business - to do that they need expertise which they don't yet have.

On the issue of my "Market Research" - I visited another 3 specialist shops today and tried to buy a Claud Butler Torino. From all 3 shops I got the same reply - They do not have any in stock they have all sold out and they will get new stock in at the end of May. This goes for the San Remo, Echelon and Roubaix.

The general view was that the bike is very good (and it looks superb this year with new colours) the spec you get for your ££'s is better than any other bike. However, there is a frustration that the company has underestimated demand so badly. In one shop, the owner was telling me he could have sold another dozen since he sold out. There also appears to be frustration regarding the lack of marketing, people go into the store knowing nothing about CB, but often end up buying one because it looks good and has so many more features for the money. The belief is that if the company does not get the message out nearly well enough.

I then stopped some random guy on the street who was riding a CB and asked how the bike was - It was a long conversation, all really positive. He is a Mountain Biker, but uses a Racing Bike for fun, really like it - a bike snob would turn his (her) nose up at it, but it rides well and again, value for money cannot be beaten. (It was a 2009 Roubaix - altho 2010 colours look so much sharper).

Now there are a couple of issues here
1) Well done to Management, the bike appears to be superb and selling so very well.
2) Why was demand so poorly predicted.

The good news is that the Cape Wrath and the Road Bikes seem to be selling amazingly well - it is just a pity that the stock shortage has put a cap on this.

gg

[greengiant] 01/4/2010 14:37

dd - The issue here is that this company is run by people whi have no enthusiasm for Cycling. Now compare that to Boardman Bikes who are passionate about producing the best bike available. Also look at Trek, and Giant. Both sponsor teams in UK, States and Europe.

The issue here is that you have bike brands which are decent, but why bother? After all, why not just continue to milk the company and its brands? No imagination, no drive and certainly if the Board don't improve soon, no job! Remember, one board member HAS to retire every year. Makes my blood boil

gg

[greengiant] 01/4/2010 13:49

Just for interest this is he...



gg

[greengiant] 01/4/2010 13:47

SteMIS,

Exactly right, but interestingly, Chris Boardman owns equity within the company, however, the majority of the equity is held by Alan Ingarfield and Sarah Mooney.

gg

[davidosh] 01/4/2010 12:29

Bikes aHoy coming to a Tandem stockist soon....lol !

[stemis] 01/4/2010 11:27

reducing the share capital to reduce the number of small holders and thereby saving £50k per year

It was sensible move but relatively trivial to implement. It shouldn't be the only thing they do though!

Take Chris Boardman bikes

I presume this is not owned by Chris Boardman but he licenses his name. It's the obvious sort of thing a more marketing focussed Tandem should have considered.

[davidosh] 01/4/2010 10:33

gg....You certainly have the energy and the ideas and the CEO role needs looking at. I do not think many shareholders would stand up against that idea especially if you were showing the way by taking a low salary. We may allow you some nice options at £2 though....lol

I am mindful that it is 1st April but your idea certainly has some merit and you are the one who has brought hope to shareholders here.

[greengiant] 01/4/2010 08:33

This is an interesting one, the management will on Tuesday, no doubt state how they have increased shareholder value, by reducing the share capital to reduce the number of small holders and thereby saving £50k per year.

My argument to them is that their priorities are wholly misplaced. Take Boardman bikes, in the same period that TND saved £50k by consolidating - they trebled turnover, and turned a £50k loss into a £160k profit. Now let me ask shareholders, which one would you rather the company be focusing on?

Again, this is partly the argument for taking the confusion out of this company and building (rebuilding) a focused company, with a targeted product portfolio and a motivated distribution channel.

Maybe I will put myself forward as CEO for 1 year (I will even give the company my services FOC as I get paid through private companies for not doing much)

gg

[supreme mo] 31/3/2010 21:52

GG have you been on the buy again?!

[boll] 31/3/2010 21:46

supreme mo

There wasn't much worth nicking on my bike except a new saddle and one puncture proof £20 tyre. The transport police were absolutely red hot and i never heard from the again except for the offer of counselling for my loss!!!. I expect it got knocked off at some car boot sale. I replaced it with a second hand old fashioned racing bike which you can really build up a speed

[watchout2] 31/3/2010 16:31

I'll check that website later GG.

Seen that new Trek with the carbon flex for a chain so no more oil and grease !

You have to hand it to trek, they come out with some great bikes and ideas !

[davidosh] 31/3/2010 16:26

gg....Sounds a good strategy. Marketing and communication must be priorities here from the company through every channel.

Incidentally regarding the AGM which I am sure could be a real shareholder event this year and I would like to see held in London to encourage participation.

In the last three years AGM votes cast less than 15% of the shareholders have taken any interest whatsoever and only 6% of those still own shares in the company. In other words shareholders can now stand up and be counted as you will now have an exceptionally strong voice.

[greengiant] 31/3/2010 16:14

Watchout2,

Regarding acquiring Evans - this is something I would advise against. Purely because distribution chain integrations tend to destroy value. All types of issues regarding competing products.

To me, the best way forward is to identify whether the company's current strategy is valid or whether they have defined it too broadly (my view). They are trying to be a lot of things, but doing nothing exceptionally well.

Take Chris Boardman bikes - high margin. The company posted a c£250k profit in 2009 on turnover of around £1.5m. To me the company should be looking at acquiring them (thro' and and equity) with the view of keeping that management team in place to further develop that brand and revitalise existing brands.

Their website is even better than TND's and they understand the importance of marketing



gg