Tandem Share Discussion Threads

[tongostl] 16/1/2020 11:16

A pe of 8 this is still a stonking buy. CT what's your take on current trading within the company? Ps thanks for bringing TND and MPAC to my attention, just wish I had listened to you earlier :)

[castleford tiger] 16/1/2020 09:59

some of those delayed trades showing as sells were buys.

still a buyer out there
I am also buying

tiger

[norbert colon] 16/1/2020 08:31

From Halfords Q3/20 Trading Update today:Retail Cycling sales were up +5.9% LFL in the period, with growth broadly based across the bike categories. Our work to optimise the cycling space in our retail stores together with a more innovative and differentiated range has created a better shopping experience for our customers during the peak holiday period. This in turn has delivered strong sales growth as well as better margins and reduced working capital levels.

[castleford tiger] 15/1/2020 18:39

Indonews

I think you are out too early.......but its a profit I guess.
I am buying up to 300p and have been around a long time.

My take is with Jupiter out off the way the directors will have to start paying shareholders a fair return.

On a p/e of 8 we should be 300/400 a share.

Its an interesting point re directors.
Stick around as this could be a full blown bid.

Tiger

[tongostl] 15/1/2020 18:35

I'm under the impression management could be sharper at marketing the companys brands. This has got 'takeover' written all over it. Question is......what price would be acceptable? 400p? 500p? 600p?

[indonews] 15/1/2020 18:30

Streamline the business even more than currently? As I've said previously the only possibility of doing this is by closing/ selling tameside drive and losing or refreshing the current incumbent directors.
I've dumped my shares as these prices are incredible for a business that has limited prospects in the current tough retail climate, whoever is buying up all the shares is quite rightly looking to clean up in a take over bid or take enough control to push for much higher dividends.

[tongostl] 15/1/2020 18:28

Yup certainly more to go with the pe a mere 7. Any inclination on current trading?

[castleford tiger] 15/1/2020 18:11

yes but the 400,000 shares were sold and traded last Friday.

Someone is driving the re rating and its further to go

Tiger

[tongostl] 15/1/2020 17:06

Looks like someone with deep pockets has cottoned onto what has been discussed on here numerous times, and is taking a large holding to either A - press management to increase the div or B - build a stake pre takeover. It's crystal clear the company is undervalued and won't take many operational changes to streamline the business into something even more effecient than what it currently is.

[castleford tiger] 15/1/2020 16:16

Another 10% today and 300p looks on the cards tomorrow or Friday.

Who is bidding for these shares?

If its a big holder they will have to declare every 50k they buy.

any views?
Tiger

[norbert colon] 13/1/2020 19:13

https://tandemgroupplc.co.uk/Group website down.

[frazboy] 13/1/2020 17:49

David, Castleford

Thanks for the feedback. I have been reading through the board and understand people’s motives for holding stock here - a seemingly cheap company that should be able to pay good dividends, even allowing for the pension deficit. With that in mind and having watched the share price action today it does seem that the shareholder base churn seen in the last few days could be a sign of activism in the making. Possibly... anyway, for what it’s worth if shareholders should act to force the boards hand in any way then 25% is typically the magic number to make things happen (to push for an EGM) and to block any proposed action although perhaps this depends on the articles of association of the company (e.g. is company specific).

On the pension deficit, I’m fairly ignorant of the calculations made by Actuaries but my limited understanding is that the recent fall in Gilt yields is probably going to require higher contributions from the company this year to keep the scheme liabilities in check... plus, I noticed many years ago that Tandem was presumably a much larger company (judging my market cap) and thus may still have lots of members? I couldn’t find any number in the YE accounts showing the scheme’s total assets so have no idea whether this is a large pension scheme with a small company attached or the other way round.

I was surprised by one posters comments that a director at the AGM said the company could not pay out more in dividends than what the company paid into the pension scheme - I have never come across this before.

Anyway, I bought a few thousand today as a bit of a random punt... I see very little value in the markets generally, so why not.

[davidosh] 13/1/2020 17:25

Frazboy......I think Jupiter were the only institutional holder and they notified on Friday as follows....

The Company has received notification that Jupiter Asset Management Limited no longer has a notifiable interest in the Company.


That means all the shares are now either held by individual investors or the directors of the company and maybe some employees. I am sure that reading through the messages on here you can get a very good feel for what the vast majority of investors would like to see happening. The directors are all notifiable in the accounts at about 15% in total....

M P J Keene 250,000 250,000 250,000
S J Grant 250,000 250,000 250,000
J C Shears 170,000 170,000 170,000
P Ratcliffe 91,732 91,732 91,732
J S T Morris 15,000 15,000 15,000

Lots of new investors are taking an interest in the company and a few of us have been here for years. All are welcome and I think we simply want to see a successful company with a strong balance sheet able to continue growing turnover and profitability.

At the same time it really would be nice to see the board delivering a much higher dividend in line with most listed companies. The share price is likely to follow upwards if that became the norm. So a good company with income and growth potential is probably what new investors are seeing here.

[castleford tiger] 13/1/2020 17:09

Does it not depend on what the other-side hold?
Pretty sure agreement is the way forward .
The company really need to look at what is paid to owners of the business.
50% of Eps is the norm
Tiger

[frazboy] 13/1/2020 16:50

Folks,

I knew virtually nothing about this company until it caught my eye today. I see that some folk think corporate action is afoot - i note from a quick perusal of the accounts that the directors own at least 13.6%? Does anyone know if that’s the total? I ask because I assume they may be able to block any activist behaviour if they held enough, and were that way inclined.

[castleford tiger] 13/1/2020 12:56

npp
did you get within the quoted spread?

tiger

[npp62] 13/1/2020 12:54

I'm in despite the spread

[deanowls] 13/1/2020 12:50

I’d like to see CCT take them over. Still high director pay but similar markets and suppliers whilst a good growing dividend. Maybe with the peppa pig issue this will force some corporate action with their cash pile. Maybe wishful thinking on my part but lots of synergies I would guess.

[castleford tiger] 13/1/2020 12:45

Two new holders notify

Action coming?
Tiger

[indonews] 13/1/2020 12:42

Hi Maddox, that made me laugh! And my sentiments exactly! This is my worry that they are at the end of a long road on the cost cutting so the next few years will be very interesting as being stripped to the bone I think to grow the business significantly in any way then costs will increase quite substantially- unless the directors reduce their salaries to give some wriggle room whilst still rewarding the shareholders

[maddox] 13/1/2020 11:58

Hi Indonews,

Yes, but any idiot can cut costs, it's a management team that knows how to invest profitably to drive the business forward, that's what I look for.

There appears to be progress being made on this, as highlighted in the 19H1 narrative, but there is insufficient detail on the different 'divisions' financial performance to get a complete picture. Also, the 'strategy' is anodyne is to say the least.

Nevertheless, it's far too cheap and there is value locked away in Tandem.

Regards, Maddox

[indonews] 13/1/2020 11:28

Hi Tiger very good points made, the main problem is getting the ageing incumbent directors out of the trough - if that could be achieved then there could be huge opportunities here

[castleford tiger] 13/1/2020 10:54

Indonews
You are nearly right but slightly off track.
Whilst cost cutting and re organisation is key to any company this is not the only reason TND have made money.
We have bought other companies and finally got a on line arm that does very well.
Many changes have and are taking place to make the company more profitable.
These started a few years ago with the purchase of the warehouse and buying panels for the roof that gives us cheap electricity for many years.
The main gripe shareholders have is that not enough of the profit is paid to owners of the business.
The board defended its position by claiming they cannot pay more out than into pension scheme.
Lots of posts about this.

Last week Jupiter announced it had sold about 10% of the company and clearly some went to to our biggest holder Simon Bragg.
The market clearly feels a shift is long overdue and that this may become an income stock.
With eps between 30/50 p last year can you imagine how much the shares are worth if they pay 15 to 25 p dividend.
There is huge upside here as a pe of 4/7 is far to low
Tiger

[maddox] 11/1/2020 21:27

Hi Indonews,

Apologies but as a new investor I'm not fully getting your point and would appreciate understanding your view.

Certainly, revenue has been in gradual decline for several years and in such a situation cost control is pretty crucial.

However, the first half results looked positive with revenue up 26.5% and gross profit up 30% and an optimistic outlook, whilst operating expenses only rose 8%.

Nevertheless, too early to label Tandem a growth stock.

Regards, Maddox