Tandem Share Discussion Threads

[davidosh] 13/1/2011 15:12

In some ways the company will benefit this Christmas from the fact that the business has two main divisions as I sense that bikes may have been tough due to the weather factor whereas toys will probably have continued their strong performance over the last eighteen months.That is not to say that I do not agree about focus on the core and deciding where the marketing spend and strength should be etc.

I cannot see the company providing an update just because you are meeting with them unless there is information which needs to go into the market or they are not going to meet or are ahead of current forecasts by the usual level of tolerence. That od course brings into question forecasts and why we have not yet had an updated broker note ? It is pointless bringing information into the public awareness just one and then hoping that one note will last through the whole year!!

I am afraid there are still issues here but I do think the new (or at least reshuffled) board will be willing to listen especially as our largest shareholder has such a strong position to play his hand from. My only concern would be to ensure ALL shareholders are able to extract value from their investment and that ALL employees are fully considered in the event of a material change in ownership of the company.

Frankly the directors must have known that there would be a clash at some point if the bonus structure of the last three years was set to continue unchanged and it should have been the first thing on the agenda of the new board and passed to the remuneration committee for urgent attention. I have always been the number one protester in that respect and my battle started two years ago when I first saw what I thought was an unwarranted jump and very significant bonus payments that were simply not in the remotest attempt explained to shareholders.

When marriages lack in communication they tend to end in a battle over something and a divorce can follow. I think we are at the crucial point in the relationship. With huge savings for a competitor or new entrant to the UK market and very significant sales plus a listing and wide shareholder base this could be a great opportunity for a third party. Personally I am sitting tight as AB will not sell cheaply if he so chooses and that price would need to be offered to the rest of us if they want control of the company.

[greengiant] 13/1/2011 13:45

Neverforget,

It is just common sense and it works, if you want to read a very good book, read Profit from the Core. Not usually one to praise a book especially on related to strategy, but it makes very interesting reading and talks about focusing on a core, and then expanding out from that. However, with TND there is no definition of what its core actually is (Bikes, Toys, Golf). It also talks about how sometimes it is better to shrink a business and grow it from a smaller but stronger base.

There has been a seller in the market all this week, (15k sell, 12.5k sell, 4.8k sell and 8.4k sell). With Halfords trading statement, it would be nice for the Board of Tandem to issue an update before my meeting with them next week. To highlight to the market how Christmas went and what its expectations for the year are.

gg

[neverforget] 13/1/2011 13:19

gg, I agree with your argument re the bonuses maybe if management had the same incentives as shareholders and were concerned about wealth creation instead of systematically drawing high salaries and bonuses every year for little or no growth. Where is the incentive in that? I do not agree with your view on the current market. I do think things are going to get worse before they get better and I am coming around to your way of thinking that you cannot focus on a toy company, golf company and bike company. You have to focus on one and execute a strategy on that one utilising all the companies resources not just a part of a thinly spread team because they have their fingers shoved in too many pies

[greengiant] 13/1/2011 13:06

philjeans,

I wouldn't listen to what Shares Magazine says. This was the same magazine that told people to take profits at 95p. As for me looking to sell on my 22% stake well that is one of 3 avenues which I am currently exploring. The other 2, I am not going to go into, but you will start to see events begin to pick up pace in the next 7 - 10 days, but there will be some fun and games.

Neverforget,

I saw the Halfords statement and it is one matched by other bike companies, it would appear that the ones that built up momentum over the past 3 years are best placed but also saw sales slow in December (maybe just bad weather - who knows).

This to me strengthens my argument that bonuses should be paid only on achieving profitable growth - that is it. Standing still has never been an option for me.

gg

[neverforget] 13/1/2011 12:56

Could be the major reason for the drop over the past couple of days:

Taken from Halfords Trading Statement
Cycle sales were -16% LfL as fewer children's cycles were given as presents and premium bikes were affected by the temporary slow-down in Cycle-to-Work sales

[philjeans] 13/1/2011 12:35

Interesting piece in Shares Mag today on TND; recommend a SELL; state that gg (ab) is looking to sell on his 22% stake.

Brought a few sellers out already, it seems.

Can't copy - bought the mag.

[greengiant] 12/1/2011 16:10

horridharry,

Over the past 4 years, if we examine the Full Year Balance Sheet we can see the following:

The Net Assets in the Balance Sheet have increased from approx £5,062k in 2006/07 to approx £7,003k in 2009/10. That is £1,941k improvement (of which movement of Pension Deficit is one of the largest contributors!). For this £1,941k improvement the Board have paid themselves £2,054k. Good Business sense?

After todays exchange of e-mails I have decided to speed up my course of actions.

gg

[horridharry] 12/1/2011 15:57

gg, but the balance sheet has strengthened hasnt it?

[greengiant] 12/1/2011 15:45

horridharry,

My position is clear and is strengthened every day. This management have to be held accountable for performance. It should be paid based on performance and performance is not standing static, it is about moving this business forward. Moving this business forward is something that this Board have failed at over the past 5 years, yes they have managed to remain static (well actually this is not the case - they have had to write off the value of their prior acquisitions in past years). So at best they have remained static.

Consider after exceptionals, Interest and Tax, this Board has generated a profit of £3,229k cumulative profit over the past 4 years.

And for this they have paid themselves £2,054k cumulative (2 Execs and 1 NE Chairman). That is 63% of total retained profit. Has it been worth it? No profit growth, no turnover growth? However, Salary growth. You make up your mind. I have made mine up.

gg

[horridharry] 12/1/2011 13:42

gg, I would be interested in Tandems executive team stating why they deserve a bonus for underperforming there competitors and basically paying themselves silly amount of monies to stand still. After all whats the point of standing still if everyone is moving forward, isnt that the same as going backwards? I would be up for attending any meeting.

[balcony] 12/1/2011 08:59

Davidosh=Thank you for such a prompt reply,Hope life and your investments are treating you well.

[davidosh] 12/1/2011 00:35

6.25 old for one new one from memory. For every 100 get 16 new ones

[balcony] 11/1/2011 19:01

Hi, can anyone tell me what the ratio old for new shares was.

[neverforget] 11/1/2011 15:26

Nice work if you can get it!

[greengiant] 11/1/2011 07:43

Neverforget,

This time it wasn't me.

gg

[neverforget] 10/1/2011 17:46

gg, that is what I was thinking. Strange to pick up 16k in itself, wasn't you was it.

Shows the importance of online as a distribution channel, can only see this getting stronger

[greengiant] 10/1/2011 17:26

Thanks Shaun, insight is always valuable

neverforget, I can only imagine the MM's had a buyer and seller lined up the 16k didn't touch the price and it is unusual to be offered 15k to sell.

gg

[mrshaungcm] 10/1/2011 14:33

i have been in the trade 13 yrs and have close relationships with directors/reps(notorious gossips LOL) and have contact with other IBDs locally and through the bikebiz trade forum

for info - not invested (should have done!!!!!!!!!!)

[greengiant] 10/1/2011 14:29

Thanks Shaun

Don't tend to listen to chatter. Speak regularly to around 6 very close IBD's to keep up to date and none have mentioned the above, but thanks anyway

gg

[mrshaungcm] 10/1/2011 14:27

up to date chatter in the trade - is that cycle scheme sales - which account for circa 20% sales for IBDs has fallen off a cliff - due mainly to the buy back rising from 5% to 25% - cash flow problems with employers and Gov cut backs - health trusts/police/fire/ambulance - where big subscribers to the scheme
Shaun

[greengiant] 10/1/2011 14:21

MrShaunGCM,

I would have thought a more contentious issue would have been the transfer of ownership issue which to me seems to disincentivise the scheme.

Also cyclescheme state that around 100k bikes are sold through the scheme - out an anuual sale figure of 6.6m units, that is small fry. Hardly around 20% drop.

gg

[greengiant] 10/1/2011 14:08

MrShaunGCM,

I fail to see what you are saying, the average as publeshed by BikeBiz last year was 3 years, so effectively no change. Where is your info that employers are unwilling to do it? When in fact the average is all ready 3 years?

The average Retail Price of a CB is £250 - £350. You are not going buy a £1000 CB bike, you would rather go Specialized or Giant

gg