Tandem Share Discussion Threads

[jaf111] 02/6/2021 11:48

With the AGM being so soon (24 June) I think they should have said nothing today but given a fuller TU statement at the AGM....

[deanowls] 02/6/2021 11:46

I just think the company could have given a range. It does to me sound negative for a company that is seeing rising sales.

They are certainly not bombastic.

[jaf111] 02/6/2021 11:44

Some unanswered questions / uncertainties (which hopefully will be clarified at the AGM)....eg

Profitability was also considerably ahead of the prior year augmented by our cost base not yet returning to pre-COVID levels.

[gabrielsant] 02/6/2021 11:35

Group revenue up 24%

profitability ahead last year

Forward order books for bikes remain exceptionally strong.

Price down LOL, did I read thhe wrong yar?

[amt] 02/6/2021 11:19

I think Paul had deducted the intangible assets which is fair enough I suppose.

[castleford tiger] 02/6/2021 11:08

Can we also clarify what was the at year end.
My reading is 16.8 m not the 11.1 quoted.
Paul can you check this figure please

[gabrielsant] 02/6/2021 10:13

Tbh it makes me feel that it is still undervalued, share price should go higher. The update is more than good. Are concerns about costs and availability a news? I don't think so

Rebounding and new hig in

3...2...1 :)

[rcturner2] 02/6/2021 09:59

I suspect that a high figure like 50 comes from a small number of companies in the FTSE who have reported almost zero earnings for 2020 (in covid times) and so are apparently on PE ratios in the high hundreds or even thousands.

[rcturner2] 02/6/2021 09:56

My figures come from Stockopedia who are extremely reliable.

[amt] 02/6/2021 09:48

I got my number from Bloomberg.
I was surprised.
I dont believe 16.8. Thats way too low.
Many large companies loosing money but even if you ignore those on latest profits it must be way higher than 16.8.
Anyway even if it was 25 a PE ratio of 8 in a low risk, growing company is very cheap in my book.

[rcturner2] 02/6/2021 09:33

The PE ratio on the FTSE 100 currently is 16.8 not over 50.

[amt] 02/6/2021 09:28

Odd that Paul reckons a PER of 8 is quite cheap.
The ft 100 sits at over 50.
Even a dramatic recovery is going to put market averages over 30 for some time and with low interest rates we will probably get used to much higher PER not to mention low dividend yields.

[saurish] 02/6/2021 08:46

"Profitability was also considerably ahead of the prior year" is one headline I won't generally sell into. Also, it's not as if the share is on a premium valuation. Yes, there will be pressure on margins in the short term, but increased revenues should still give us a beat on LY PBT IMO and I for one don't see the demand as a passing trend. It's here to stay and should grow. And then there is the freehold land they bought in March where they plan to construct a warehouse and distribution facility. All IMHO DYOR

[castleford tiger] 02/6/2021 08:42

Sorry but Paul is way off the mark.

First half was 22p last year and I expect 30-35p.
Second half there are headwinds but strong demand and don't miss the big jump in D2C business which is higher margin.
To say..............

Or, if you’re worried that cost increases & supply chain disruption could damage H2 trading, then maybe 2021 could see a fall in earnings, maybe to 50-60p? That would raise the PER to between 11.1 to 13.3 - still reasonable

Just how can he suggest second half will only produce 20 to 25p eps is crazy.

Anyway value will be shown in time and I am happy to keep buying these dips.

Tiger
my forecast is 85-90p by the way

[rcturner2] 02/6/2021 08:19

Paul Scott on stockopedia:

My opinion - based on the current share price of 665p, the PER on 2020 earnings is 9.7, which looks about right.

Given that 2021 so far is “considerably ahead”, then an optimist might pencil in say 80p for 2021, which would drop the PER to 8.3 - quite cheap.

Or, if you’re worried that cost increases & supply chain disruption could damage H2 trading, then maybe 2021 could see a fall in earnings, maybe to 50-60p? That would raise the PER to between 11.1 to 13.3 - still reasonable.

Divis - it paid out 8.62p last year and is committed to a progressive policy. The yield is only 1.3%. Note that divis are linked to pension deficit recovery payments, which is a nuisance.

Balance sheet - when last reported at end Dec 2020 looked OK, with NTAV of £11.1m

Pension deficit required £477k funding in 2020.

Overall then, we don’t have enough information to accurately value this share, due to lack of guidance from the company, and no broker forecasts available. It looks to me to be valued in the right ballpark.

[deanowls] 02/6/2021 07:29

We don’t know the whole story tbh. Management haven’t always been so open have they here.

[18bt] 02/6/2021 07:26

Good update, costs and availability a little bit of a cloud. Not at all impressed with Juliet Barratt - less than 9 months shows some commitment issues ...

[luffness] 02/6/2021 07:09

Update reads well

[mossy m243] 01/6/2021 23:54

Hi everyone ,I read a thread from 2009 about Tandem and it reminded me as an absolute novice I bought 350 000 shares in MV Sports in 2000. Cutting a very long story short...I emigrated to NZ and found the shares certificates I actually had forgotten about.I'm after your help please. After my very average guess work am I correct in thinking the acquisition decimated my number of shares.Do you know what I now might be holding. I contacted the register at signal shares but didn't really get anywhere.Here's hoping you could shed some light?

[gabrielsant] 01/6/2021 21:20

I think it is a big news, professionally motivated.

All of our products are available to buy through our network of nationwide dealers. But in light of our rapidly changing world and an accelerated shift to online ordering we have developed this brand new website to offer you even more options to buy. We still firmly believe that the best way to choose and buy your new bike is through your local bike shop, but for those of you who know what you want we now also offer the choice of Click & Collect or direct delivery.

About that calculation I'm quite confident that you will see it rettified upward after the 1H by a surprisingly amount maybe :)

[w13ken] 01/6/2021 12:45

Liking the new site Gabriel. Looks like direct-to-customer sales but did they have that before across the range? If not, that would be big news.
I hope you're right about the DCF, the financials are not my strongest suit.

[gabrielsant] 01/6/2021 12:01

Call me optimistic, but, this number from dcf is going to be pretty much higher, it is penalized by the shortage at the end of the 2H. To me it is already worth a lot more than that

[w13ken] 31/5/2021 15:32

Interesting update from Simply Wall Street today. They are careful to say that they never give out direct tips but they are strongly hinting at one here with this title. On their Valuation page it suggests that a fair price based on their Discounted Cash Flow model would be £8.65.

Tandem Group (LON:TND) Might Have The Makings Of A Multi-Bagger

"If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Tandem Group (LON:TND) looks quite promising in regards to its trends of return on capital."

[gabrielsant] 25/5/2021 15:00

With some good news we could easily go close to 10 pounds, it is a mistery to me why we already aren't. The revenue for the year started 90% up, demand is already there, tons of squish bikes sold that hopefully will be replaced for a bigger bike quite soon,other than that we have a very well diversified portfolio through different promising segments that are growing.building a new warehouse that will boost revenue and so hopefully bring institutions,reasons for why I believe we should trade higher very soon,so I stay patient.