Tandem Share Discussion Threads

[castleford tiger] 25/9/2020 12:09

The MM are looking for cheap shares don't get caught out.

watch the buying continue
tiger

[davidosh] 24/9/2020 11:18

I think Tiger has picked out the key points here...

....I think there is a significant shift in the working lives of many people.
Working from home people are spending more on products for the house and garden.
That and the drive to fitness via bikes is not going away.
More cycle lanes and family cycling in 2021 can be expected.
Direct selling also increases margin.......


The next couple of years will see big moves in how people spend their leisure time and amount of time spent in their homes. Overseas holidays, second homes and car sales are likely to reduce dramatically but nearly all the Tandem products are going to be in high demand so supply will be important and providing a good service if selling direct.

E-bikes and E-scooters are going to be huge sellers. The government will want to encourage travel back on trains and buses or they will go bust without major support. Local travel with more time on our hands can be walking and cycling especially in the good weather. Families will not need three or four cars so expect at least one to go.

With Christmas coming bikes, toys and scooters will be in high demand as a trade off to give exercise a priority and redress the balance of all those hours on computer games.

I can see a very healthy two years of growth in revenues and profits.

[castleford tiger] 24/9/2020 08:55

Amt
The cash pile could be 8 million by year end but expansion of current business will come first.
I think there is a significant shift in the working lives of many people.
Working from home people are spending more on products for the house and garden.
That and the drive to fitness via bikes is not going away.
More cycle lanes and family cycling in 2021 can be expected.
Direct selling also increases margin.
Given the right infrastructure I think TND will be making 5 m a year pretty soon. That’s eps of about 100 p a share.

[amt] 24/9/2020 08:07

Good point to add some bolt on acquisitions and save some small companies going to the wall in these times. They will need cash for this though so have to balance this need for Dividends with building a war chest for when opportunities arise.
I suspect next year the market is going to be tougher than some are thinking. Discretionary spend will be under pressure due to the inevitable rise in unemployment and fall in living standards caused by the current economic crisis. The government will not be able to keep bailing the economy out.

[18bt] 24/9/2020 06:50

Tiger, really useful update - I was sorry not to be able to get there, but I couldn't rearrange one of the meetings I chair.

[bwm2] 24/9/2020 05:35

All
Thankyou for your comments and insight

[davidosh] 23/9/2020 13:59

Worth listing the highlights from yesterday and I have added a dividend line for comparison

Revenue increased approximately 6% to GBP 16,927,000 (2019 - GBP16,029,000)
Gross profit increased to GBP 5,556,000 (2019 - GBP4,911,000)
Increase in operating profit to GBP1,478,000 (2019 - GBP580,000)
Profit before tax after non-underlying items was GBP1,409,000 (2019 - GBP370,000)
Net profit for the period was GBP1,141,000 (2019 - GBP155,000)
Earnings per share 22.7p (2019 - 3.1p)
Dividend paid 3.12p per share (2019 - 1.56p per share)
Net assets increased to GBP 15,266,000 (2019 - GBP12,446,000)
Cash and cash equivalents as at 30 June 2020 of GBP6,322,000 (2019 - GBP3,740,000)

[davidosh] 23/9/2020 13:46

I already mentioned dividends at the presentation and there was healthy discussion. The board are well aware of shareholders views and working towards a solution that is good for all stakeholders. I think we are all moving in the same direction on this and the directors do have reasonably large shareholdings too.

[stabilo10] 23/9/2020 13:29

davidosh....Thank you for your reply. Will you be emailing those suggestions to the board?

[frazboy] 23/9/2020 12:23

Thanks David - good to hear.

[davidosh] 23/9/2020 12:18

Frazboy.....It is a slide presentation without audio. If you have questions then do send them via the email given in the RNS and I am sure they will reply so long as not commercially sensitive or price sensitive.

Overall...

I was very impressed with the comprehensive detail and explanations provided yesterday. I thought the team engaged really well with shareholders and we had an excellent tour and met many of the individual division heads so that we could see the full range of products on offer.

I felt very positive and my only suggestion beyond trying to increase the dividend so that it is at least a 25% of profits paid out each year would be to set a few KPIs and targets that shareholders can assess with say a three year time horizon. Without any research notes or forecasts in the market investors will want something to use as an indication of whether Tandem are performing to expectation.

I was very pleased to have met both our two new NEDs and Juliet certainly seems to have hit the ground running.

[frazboy] 23/9/2020 11:14

Did anyone get the investor presentation link on the company's website to do anything other than look impressive?

[...]

Specifically, is there audio to go with the interactive slide pack?

[frazboy] 22/9/2020 18:02

Look forward to that update CT!

[castleford tiger] 22/9/2020 17:42

Still en route home!

[bwm2] 22/9/2020 16:12

Good to see the comment about the supply chain issues being resolved.

Anyone care to share some insight from the presentation and questions..... it would be much appreciated

[castleford tiger] 22/9/2020 15:02

I am still pencilling in between 50/60 p eps.
Next year looking strong with the limited visibility they have

[amt] 22/9/2020 09:38

Yes true but look at the rest of the stock market at the moment and what is happening to US stocks which the rest of the World copy. I wouldn't be surprised if we got an October crash this year. Nothing is guaranteed about H2 and to be fair it has been held back by stock shortages which they reckon are now improving but only 3 months to go to recover from that. Plus they will need cash to build up stock again so it's no good looking at current cash and thinking the divi could be even higher as 18BT implies.

[castleford tiger] 22/9/2020 09:30

Buying what I can at these crazy prices.

Last year of the 39 p per share made in the year 36p was in the busier second half.
Just matching that puts us at 58 p eps.
With £1 per share in cash the current 400 p means we are are trading at just over 5 x this years earnings.
The shares should be worth 10 times so between 600 and 700 p
Certainly far too early to be getting off your bike.
Tiger

[18bt] 22/9/2020 07:43

Nice change in tone under the new Board (e.g. commentary on stock availability) and doubling of interim divi is a good start. It is well positioned. It would be useful to have a detailed review and exposure to shareholders of the strategy now there is a decent amount of cash on the balance sheet. COVID is throwing up opportunities and TND ought to be one of the beneficiaries.

[amt] 22/9/2020 07:27

Great results and despite C19 hope that H2 will be good also. Impossible to know of course since we have no idea how bad the virus might get in the months ahead.
Management in my view have done an excellent job over the years in developing a first class diverse business and at last the stock market has woken up to the potential here. Sometimes it takes a long time but the market gets there in the end. My prediction of a 4 or 5 quid share price I made a year ago doesn't seem far away. What a great investment this has been.

[balcony] 22/9/2020 07:26

That reads very very well.

[castleford tiger] 22/9/2020 07:11

Eps up to 22.6 p from 3 p last year
Traditionally most of the earnings come in the second half

Tiger

[davidosh] 21/9/2020 10:12

Juliet will be at the open day tomorrow so a good opportunity to speak with her and see what is on her wish list for improvement at Tandem.