Tandem Share Discussion Threads

[evaluate] 02/9/2010 12:24

David,

Can you add me to the list for next Tuesday's meeting please.

Thanks,

Paul

[greengiant] 02/9/2010 11:50

david, lol.

Looking forward to Monday and Tuesday, I just hope Tuesday can be an open discussion with all directors

gg

[davidosh] 02/9/2010 11:30

Blimey cannot be far from renaming the company and the epic... LOL

Burgess Bike Co. BBC !!

[greengiant] 02/9/2010 11:26

Acquiring shares is like walking through treacle at the moment. Where are the usual sell on a spike brigade? (all those nasty pump and dumpers)

gg

[greengiant] 01/9/2010 14:11

dd

It appears to be the relationship between Evans and Tandem (???)

gg

[greengiant] 01/9/2010 07:31

Davidosh,

I agree with you about giving Steve a chance, I like Steve, he is knowledgeable about his industry and obviously a good relationship with customers and suppliers. However, one of the key issues to me is quantification of the value of this businesses individual parts. It does not mean that you have to sell all the individual parts, rather it acts in 2 ways:

1) It sets a bench mark - If the individual parts are worth £8m (including cash) and the Market Cap is £6m, then the directors have to be convinced that they can deliver the additional value. They have to be held accountable for delivering that value.

2) It also refocuses the business and makes them ask the question if the individual parts are needed or whether they are truely adding value. Or would the money be better placed being channeled into the parts of the business that are going to yield an increase in future profits.

gg

[davidosh] 31/8/2010 20:36

Has anyone tried ringing around various branches of Evans to check availability....maybe just one shop was out of the loop or badly run ! On a general note with just under 3% I am very clearly motivated towards extracting shareholder value too but we must give Steve Grant and the team a fair chance to deliver from here. I think shareholders are best to consult with the non execs on the remuneration committee with regards our views on director incentives and remuneration so that we are clear from the outset on what the owners find acceptable.

[greengiant] 31/8/2010 19:19

Just done my bit for Claud Butler sales and bought a Cape Wrath 4 - no issues on stock for this product, which makes the lack of availability on Road Bikes even more unforgivable.

gg

[lcairns1] 31/8/2010 16:53

nice one.

good man, you can remove it now i have it

[lcairns1] 31/8/2010 16:49

i am going to be back in the uk next week, and may be able to attend this meeting

davidosh/anyone, do you have a disposable email address that i can contact you on? or is there a decent secure method of me contacting you?

if you put your address up soon, please note that i will be off line from 5pm bst to 7pm (ten minutes from now), in case you want to keep it from the advfn/internet loons

[greengiant] 31/8/2010 15:15

davidosh,

Many thanks for your superb efforts in bringing this to the attention of other shareholders. It will be interesting to see how many additional people either the company or its brokers have managed to encourage to attend. My guess would be few.

In the meantime I will continue to acquire shares with an agenda in mind. It is my desire that this company enhances shareholder value through trading, or if it is not capable of enhancing shareholder value that way, through a systematic disposal. I have done my homework for next weeks meeting and have looked at the systematic destruction of shareholder value in the past and will not allow this to happen going forward.

Things will change here, as I stated from the start. Management have 6 months left to show they can deliver.

gg

[davidosh] 31/8/2010 14:25

I am keeping a running list for the investor presentation at the offices of Grant Thornton, 30 Finsbury Square, London EC2P 2YU at 10.00am on Tuesday 7 September 2010. Those wishing to attend are asked to also email our Nominated Adviser ([e-mail]) or telephone [phone] to confirm attendance.

greengiant
marben100
davidosh
skegbyhouse
supreme mo
devymaster (TMF)
grahamty
DaveBrickles (Stockopedia)
Cornelia (TMF)
Elwyn (TMF)
asagi
ecrip (TMF)
taylormade (TMF)
Blackjack (TMF)
campmar (TMF)
meict
lcairns1

Any more interested from here ?

[greengiant] 31/8/2010 11:26

DD,

This is an issue I plan to bring up next week. The company can speak about the difficulties in $ exchange rates, labour shortages, freight costs. However, FUNDAMENTALS deem that a product should be at the right place at the right time at the right price. This is a fundamental failure - or Tandem have deemed that Evans is not a good outlet for their products.

Rapidly losing faith

gg

[davidosh] 31/8/2010 11:21

There is no way that Evans will have been on credit hold IMO....maybe a number of independents but very unlikely that Evans were a problem. Tandem surely employ a guy who goes round doing all this test buyer stuff and finding out exactly what is happening around the country just as we do ? If there are real issues there should be every chance to solve them. If the product is good and the supply chain working then we should see the benefit of market growth.

[alunmorris] 31/8/2010 09:59

>On speaking to the sales assistant, the guy was dismissive of Tandem stating that this year, the products have never been in store when needed, that Raleigh, was also out of stock on one or two lines but on the whole was in stock.

IIRC the board answered this at the AGM saying shops complaining about slow delivery were on credit hold.
Funny how these shops with poor payment records manage to stock anything at all!

[greengiant] 30/8/2010 08:40

Interesting Read


VITAL STATISTICS: Mintel Bike Market Report 2010
Aug 27

The big picture: Market research giant Mintel has just published a major report on the UK bicycle market. BikeBiz provides some exclusive highlights...

Market performance
● Measuring the UK bicycles market is surprisingly difficult due to a number of factors. Imports fluctuate according to retailer stock levels, and volume sales are difficult to grow due to the lifespan of the typical bicycle and the prevalence of second-hand bikes in the marketplace.

● Sales values are subject to deflation in the general leisure market as well as the current inflationary impact of weak sterling on exchange rates.

● Taking these trends into account, Mintel has used Coliped's market estimates and trade feedback to estimate 2010 values at £698 million – eight per cent growth since 2008 – and unit sales at 3.6 million, on a par with 2008 figures and a slight decline on 2009.

● The adult to children's bicycle sales ratio is approximately 72:28, however this excludes children's bicycles under 635 mm in saddle height.

● Growth sectors have been road bicycles, due to the popularity of sportives, and traditional/hybrid bicycles, due to commuters and first-time buyers.

Interest and participation at record levels
● The level of interest in cycling has been unprecedented, reflected in highest-ever membership statistics for key cycling organisations such as CTC and British Cycling. Hundreds of cycling events took place nationwide during 2009, and 2010 highlights include the Mayor of London's Skyride which is set to surpass 2009's turnout.

● The core consumer dynamics are signalling that cycling is on the increase; more consumers are cycling (regularly and occasionally), more consumers are watching and Googling cycling on the internet. Sport England's ongoing tracking of participation (Active People Survey) reveals an encouraging 4.46 per cent of the population now cycle at least once weekly – up from 4.26 per cent in 2008/09.

● Two thirds of adults are non-cyclists; a combination of lapsed, unmotivated and disinterested consumers. The increase in cyclists on the road should help motivate others, and anecdotal evidence suggests that the more cyclists there are, the safer the roads become.

● Motivations for cycling are primarily fitness and fun. However, commuting has become increasingly popular and even aspirational as those who don't currently cycle to work are thinking it's a good idea. Other incentives to cycle include easing congestion, saving money, and cycling when on holiday.

● Men are the greatest cycling enthusiasts; women seem to identify with mainly the 'green' aspect, preferring to exercise indoors as part of a group or in front of the TV. While cycling as a family is the main motivation for the general public, road safety is still a major barrier to take-up. The National Cycle Network is expanding the number of cyclists quicker than it is establishing the infrastructure of its routes.

Innovation gets technical – in models, parts and accessories
● Each year, new models are introduced to stimulate the interest of the cycling community. Due to a stock shortage in 2009, some 2010 models were brought forward. Within the fragmented supply chain there has been some consolidation, with brands such as Raleigh, Giant and Specialized creating own-branded stores where they can raise their profile. Some are also starting to manufacture and brand their own components.

● Electric bikes, or e-bikes as they are commonly known, may be snubbed by the cycle-snobs but they really are generating excitement in the industry. There has been considerable investment by brands in making them more lightweight, compact, and aesthetically-pleasing. Retailers have been making sure they have key brands in stock ready for consumers to catch on, and specialist advisors ready with purchase and repair solutions.

Routes to market
● Independent cycle retailers have survived the recession for the most part well. Cash flow is one of the biggest challenges as in other industries, although extra revenue from parts and accessories has been an unexpected boost. While increased sales of bikes have begun to filter through in the last 12-18 months, the high demand for parts and servicing reflects the volume of second-hand bikes which are in use.

● Halfords' overall portfolio has benefited from bicycles' growing popularity, and investments in above-the-line advertising and children's and premium range development have paid off.

● The Cycle to Work scheme has been a huge incentive for consumers to start cycling, and furthermore encourage consumers to spend up to a third more on their purchase. Retail finance schemes have proved valuable in keeping the wheels of commerce turning during the recessionary period.

● The forecast for the cycling market is as good as it gets in the current economic downturn, but its fortunes are ultimately determined by certain factors it cannot control; namely the weather, currency volatility (which impacts on prices) and government funding. However the investments in infrastructure already made by public and private bodies should make cycling a sustainable market for the foreseeable future.

[neverforget] 30/8/2010 07:40

Good morning fellow campers. I just wanted to point out that I can no longer attend the Investor Presentation, where I had a day off from the 9-5 grind in order to attend, alas I was told on Friday that I could no longer have the day off. Obviously I am too important to my current employer to have 1 day away from the office.

I have spoken in detail to the jolly one and expressed all my concerns and he has promised to raise. Apologies to all but dont let the remuneration issue rest

[neverforget] 26/8/2010 08:57

Good Morning All, I have just returned from a 2 week holiday and feel bright and bubbly. Just a few comments regarding the above article.

Why does Tandem not supply Halfords. When I have spoken to people in the past it has been answered to the tune that they believe that it will destroy their Brand. Why?

Reebok are there
Raleigh are there

I would say that those 2 brands are already worth significantly more than the Dawes and Falcon brands.

I went into a cyclelife shop yesterday (Nottingham) and the store looked good but I would guess that there is a flaw with Raligh's strategy. They are converting shops into their own brand stores but are ignoring the rest of the IBD's. Should Tandem not aim its lasers at the IBD's with the view of incentivising them to get people away from cyclelife and into independant bike stores?

[davidosh] 25/8/2010 13:22

Ouch !! If you cannot get yer bike at Halfords there is always a local independent Falcon, Dawes or Claude Butler stockist nearby !



I see our friendly greengiant has gone over 17% now too.

[greengiant] 25/8/2010 06:25

whoppy,

The problem is not Golf per say. If the company plans to be a outdoor leisure company it will suffer from a lack of focus. This is a company with a lack of resources and such should not spread itself too thinly. This is the acid test for the company. You are right about Golf being an obsession, I always use the eye test, I play a lot of golf at a lot of courses and always look who has Ben Sayer clubs. The answer is very few. That is exactly because golf is an obsession for so many. You start of with rubbish clubs, then the bug bites and you start to buy "proper" clubs - very few go from Rubbish clubs to BS, they move straight to one of the bigger names. Do the eye test.

Since acquiring Ben Sayers on 25th February 2002 - over 8 years ago, how have Tandem developed the business. What has the increase in turnover and hence profitability been? That is the acid test - unless you have seen tangible growth, then why continue with it? How have the company developed the distribution channels of the product? Golf shops don't stock it, there are a few Pro shops that stock it, but the majority is via on-line. The product is good, I keep the BS Hybrid in my golf bag.

The key thing here for me, is if the company is going to become an Outdoor Leisure Company, you have to ask the following;

1) How will it develop the brands that it acquires - we have seen with BS that there has been very little Brand Development and very little investment in the distribution network.

2) What markets does the generic term "Outdoor Leisure Products" encompass? Will we see an expansion into Tennis Rackets, Bowls, Government Parks? Again, with the majority of these products (golf included) you are trapped in a very difficult position. Whilst I am not a great fan of the teachings of Michael Porter, he did say (which I wholly agree with) that being stuck in the middle between Cost Leadership and Differentiation is the land of the dead. Retailers offer own label brands on the cheap side and the likes of Taylor Made are on the premium scale.

Is it not better to narrow your focus and concentrate on developing the products which will yield future profits? Spend your money and time on investment in the products you have. If management can show that they can do that with all the existing brands then great - but they will be held accountable. There can be no more future for stagnant growth, stagnant profits and large salaries.

gg

PS - What did we do before WI-FI in airports?

[whoppy] 25/8/2010 00:13

Err.. how many people play golf..last time i looked quite a few...in fact i believe the Ben sayers 'Benny' has had some good reviews. Golf is a sport for everybody and indeed an obsession for most. For those who can't afford the expensive clubs, which generally is most, then a Ben Sayers is just the job. I think as a hobby, Golf is a money earner and should not be under estimated. Although outdoor leisure products are at the mercy of the weather and recessionary pressures and so sales do get affected.

[supreme mo] 24/8/2010 20:46

GG,

Totally agree with your view on Ben Sayers. This company doesn't exactly fit well within a cycle business!

If it were up to me I would offload this business - for the right price of course. How much does BS contribute towards profit?