Tandem Share Discussion Threads

[horridharry] 31/1/2011 12:55

Well we know that the company will do very well out of the new licenses for this year. for the first time they have a decent batch of girl and boy licenses for example angelina ballerina and all the Marvel license. To me the issue seems to be the Claude Butler range which looks a bit dated where the dawes brand actually looks noce and fresh.

gg are you still around? you not been on here for a while hope all is okay with you

[neverforget] 31/1/2011 11:32

no trading statement yet, what happened to open and transparent. I was sure it was stated that the board would issue quarterly reporting.

gg, good luck with your trip to italy later this week

[neverforget] 28/1/2011 09:33

Went to the toy show at olympia and had a fantastic time. I must say that the mv sports stand was absolutely brilliant and I was standing around looking at the reactions and volumes of people passing the stand. Was probably the 2nd or 3rd biggest stand at the show and was well positioned. certainly bigger than hti.

[grahamty] 27/1/2011 08:13

gg

Are you expecting a pre close season statement ? Or as usual, no update on trading from October interims through to May finals ? (you reading this, MK ?)

[neverforget] 26/1/2011 12:08

I dont see ebikes as a major market more as an extension of existing products. I think the main reason behind the valuation is the consisent revenue and profit growth especially for Focus. This is something lacking at TND who continually blame factors which they have no control over when in fact it is just a very poor board that have not capitalised on a booming market and have just continue to run this company as a private company. It is interesting to see the share price falling now that gg has stopped his pending spree. Now the true worth of his management team will come out they are adding no value at all from the direction of the share price

[davidosh] 23/1/2011 18:31

I think we need to know much more about the company fundamentals before placing a value on the company even at an IPO. We do not know what profit or margins they are making but it would certainly be an interesting comparison. Are e-bikes really becoming so popular ?

[neverforget] 23/1/2011 18:25

so market cap at around 78% of turnover



Should value tandem at around 27m. think the difference might be management

[neverforget] 20/1/2011 21:01

anything to report?

[greengiant] 19/1/2011 21:11

Simon,

Did you bump your head! Are you okay now, did you have a lie down?

Found out today what Raleigh's performance has been over the last 12 months. Mmmm tomorrow will be interesting.

gg

[grahamty] 19/1/2011 19:51

Andrew, don't we dream of TND reporting a 33% increase on last year..........sorry getting a bit carried away...........woken up again..........." nervous.......cautious.........uncertain.........exchange rates.........royal wedding........( I made that bit up)"

[greengiant] 19/1/2011 07:24

Neverforget,

It is turning out to be a stupidly busy week, however, VERY beneficial. I have managed to get details of CEO pay for 1,192 AIM companies and where that company ranks (%) based on 3 Metric's:

1) Profit growth over 3 years
2) Balance Sheet strength over 3 years
3) Return on Capital Employed.

So I now know where Tandem rank both in terms of the Metric's and in terms of Director pay. They do not line up! Also with regard to Director's pay, it is fascinating to show what happens to the average if you take out the top 5%.

I note that Character brought out a Trading Statement today (they face exactly the same issues as Tandem - and remarkably similar CEO pay). Worth a read, remembering that this company is a peer in the same sector



gg

[neverforget] 18/1/2011 18:59

gg what has the outcome of your meetings been? At least the share price is stable now so the shares article had little impact

[horridharry] 16/1/2011 12:46

just read throught the interims and see that they were quick to blame the following factors

Freight costs
Forex
raw materials.

Now for freight


for forex


and raw material


What they going to blame next

[greengiant] 16/1/2011 10:46

Hi Shaun,

Posted thanks. I believe the results will be over market forecasts of £640k, but will fall short of last years numbers, This is my own thoughts so don't place any reliance on it. I can't see Tandem performing very strongly in the 2nd half, market conditions have been tough. This was what the board stated at half year:

"As a result we remain cautious about the Group's outlook for the Christmas trading period."

Again, to me, the company have had 4 years to put together a strategy to grow the company of the past 4 years and have failed to do so. I am sure they will be quick to blame "the market" however, when in effect they should be looking closer around the table.

gg

[mrshaungcm] 16/1/2011 09:18

apologies if allready posted -


Tandems - type of bike market place
Shaun

[horridharry] 16/1/2011 06:59

how has the board justified these salaries in the past. Surely they never thought they could carry on doing this indefinitely? Davidosh would be interested to hear your thoughts as you always seem to be a man of reason. Especially with regards to the current board and whether or not you see value in the parts being disposed/

[greengiant] 15/1/2011 19:26

Neverforget.

I have never ever stated that I was going to release my stake into the market. It does not have the capacity to absorb it and to be honest I wouldn't want to. As far as the rest of the article goes, the only way I will release my shares to another party (competitor or not) is if I was certain it was going to create value for shareholders.

As for management, I will be looking to make changes, there is no doubt about that. Whether these changes are effected will be determined by the owners of the company, not the directors (well for their 5%, they will decide). This management have had enough time and in a way remind me of the English Football Team, they always promise to deliver but always fall flat. Yet, history should tell us that without change this company is going nowhere and will just continue to feed its directors obscene sums for mediocrity.

This whole episode has strengthened my resolve to once and for all deliver value to the long suffering Tandem shareholders. How quickly those changes come about is dependent on how much appetite shareholders have for driving the company forward. Revenue growth, non existent, Profit growth non existent, why should we have faith in a management team that have not delivered in 4 years? If they were going to drive this copany forward, they have had 4 years to do it, why haven't they?

Greedy management? Maybe they have just become accustomed to not being challenged, both in a business sense and a remuneration sense. That has to change, and management have to change, period. An interesting statistic from HBR Dec 2010 edition : Only 7% of companies that have stalled revenue growth for 4 years or more actually recommence on a growth trajectory. Difficult to change mindsets.

gg

[neverforget] 15/1/2011 17:57

I'll post it for you gg:

"We suggest investors take advantage of the 164% rise in Tandem's (TND:AIM) shares since 11 March 2010 and sell out at 170p. Private Investors frustrated at the lack of revenue growth and large bonus payments tried to take action last year by building a stake in the bike maker and demanding action. One individual, Andrew Burgess, led the show and amassed a 22.2% stake but his request to become a non-executive director was turned down. It is understood Burgess is now looking for someone to buy his stake in the Birmingham-based firm and such a share overhang does not bode well for Tandem. The bike industry is enjoying a resurgence as people looking for cheaper modes of transport. This has given Tandem's shares a good boost, yet its financials still lag. There is no point investing in a company which is not driving revenue growth. It is a pedestrian company in a market which has legs. It is easy to get emotionally attached to a firm like Tandem as its brands have been used for years by keen cyclists but remember you are here to make money. We rate the £9 million cap in the same way as shares in football clubs. Be loyal supporters on the field, but never, ever buy shares in sports teams as they rarely see any capital appreciation."


A lot of true words spoken LAZY, GREEDY MANAGEMENT. No growth no success gg get rid of them please and replace them with people who can drive this business forward

[greengiant] 14/1/2011 10:21

Neverforget, I cannot because there are legal and moral issues here, hence the reason I am taking advice next week.

It looks like our seller is still in the market, at this rate the first offer I receive will be attractive :-)

gg

[neverforget] 14/1/2011 10:09

gg, what did Mervyn say? It doesnt suprise me at all

[greengiant] 13/1/2011 18:45

Asagi,

Cairn don't do this, you would have to move the broking away from Cairn and leave Cairn as the NOMAD.

The AIM Regulator being a member of the AIM Regulation Team.

gg

[asagi] 13/1/2011 18:29

Hi greengiant and board,

"My prefered option would be to appoint a new NOMAD and broker who could publish regular updates."

I have long had the idea that, in general, regular research updates will be published by a NOMAD, provided they are paid for doing so. Is a change of NOMAD required? Tony Rawlinson at Cairn is a respected figure in the smallcap community and in fact has a seat on the London Stock Exchange's AIM Advisory Group.

When you say 'the AIM Regulator' of course by this you must mean the LSE or a specific member of the AIM team - AIM is an Exchange Regulated market - which explains why some of the rules do not apply (Corporate Governance Code, certain requirement of the UK Listing Authority).

Regards,

Asagi (no position)

[neverforget] 13/1/2011 17:46

gg, I dont think anyone here can even question what you have done for this share. More than the directors have done in 5 years. Keep it up and remember pi's are certainly behind positive change

[greengiant] 13/1/2011 16:52

Hi David,

That is a very good summary of the current position. Let us start from the beginning.

I have no issue with the directors being paid significant sums of money, however, I do have a problem with those sums being paid for a lacklustre performance with limited turnover growth (if any) and no profit growth over the past 4 years. Especially seeing that the company had a solid balance sheet and favourable market conditions in which to exploit. Unfortunately I just believe that this management team had become complacent and saw Tandem as their own personal cash cow. No business can sustain that, and as shareholders, no shareholder should tolerate that.

I also believe that I could work with the majority of the board, however, I cannot work with the current Chairman - period. There is an arrogance to our Chairman which does not sit well with me, and anyone who attended the AGM would vouch for this. After comments like, we can't release that information because our competitors would see etc is rubbish, concentrate on growing your business, not on what your competitors are reading.

Few on here will know that I attended a meeting with both Mervyn and Andy (who I believe is a great asset) a few weeks ago. Things were said in that meeting which as a shareholder I cannot accept. As such I am taking advice on what to do next from both Lawyers and the AIM regulator, it is a bit more complex than "He said, She said'. I cannot work with the Chairman, and if I cannot work with him then there will be a clash.

As for PI's, I have been a devouted champion for PI's at Tandem, and have allowed many who thought that they would never see a return, actually see a return. Does that mean anything special? No, my interests are aligned with all shareholders, to increase the value of this company. After all, it is my own personal money invested in here, every 1p makes a big difference.

Will a competitor acquire this company. I am sure it will be very attractive to a number of companies. Would I prefer to sell or stay? Well, actually I would prefer to stay, however, only if changes are made. These changes can be done voluntarily or they can be done by me calling a GM, either way is fine by me, I believe that shareholders should have the right to say who is a NED or ED of the company. They should also have the right to determine whether or not a bonus payment should be payable this year based on the company's performance. To show how serious I am at pursuing this, I am willing to pay the estimated £15k to call a GM.

As for a broker note, I am fundamentally against a paid for broker note, especially one which was so woefully out of date in the first 6 months (BoD's fault not the publisher). My prefered option would be to appoint a new NOMAD and broker who could publish regular updates. This would initially cost more, but hopefully would be offset by greater exposure. Again, this is an avenue I am pursuing.

I am still committed to finding a solution, my one of 3 options, however, there are things which are non negotiable. If I do sell, it will be in the best interests of all shareholders and employees (you have to consider employees), as of today tho' I continue to buy shares in the market and will continue to do so.

One of my favourite sayings is from Sun Tzu: The more opportunities I seize, the more opportunities multiply before me.

Andrew