Warpaint London Share Discussion Threads

[davr0s] 19/4/2024 19:00

Lovely strong day in a mixed market with clear regular trades throughout pushing price up ie likely institutional buying. Looks like we are getting a run up into results next week. And then who knows what happens.Spare a sad thought for smelly who has been caught completely offside with his trades lol

[johndoe23] 19/4/2024 16:17

Buys at full ask still coming in, maybe one more tick up

[bigbigdave] 19/4/2024 15:36

New ATH :o)

[traderglt] 19/4/2024 15:01

Good job that short was fictitious :)

[villarich] 19/4/2024 14:39

Buuuuurn baby burn

[phg87] 19/4/2024 14:01

Results next week, spread slightly widened which is a good sign and new high after 2 big sells and drop in the market this week. Happy to hold

[johndoe23] 19/4/2024 12:02

Looks like two big sells gone through yesterday

[johndoe23] 19/4/2024 11:58

Full ask 435p

[davr0s] 18/4/2024 19:03

Have no idea where the price is headed but i do sense some background buying going on. Just steady background trades up around the ask price. Happy to stay holding even though it's my largest position now, by some distance

[davr0s] 18/4/2024 18:59

Thanks to Whittler for the private message. I tried to reply but ADVFN is stopping me for doing so for some reason. Nice to hear from someone who knows what they are talking about

[disc0dave46] 18/4/2024 18:39

Sharecast News) - Berenberg initiated coverage of Warpaint on Thursday with a 'buy' rating and 550p price target as it said the company's highly cash-generative business model and debt-free balance sheet support strong top-line growth. Warpaint owns the W7 and Technic cosmetics brands. Berenberg noted that its products are among the most affordable in their categories and are distributed across major retail outlets with significant store estates."Historically, the business has experienced some challenging periods of end-market performance, linked to the struggling UK high street," it said."However, it now has a more diversified and strengthened approach, delivering capital appreciation and persistent end-market outperformance. We expect this to continue given an array of structural and company-specific opportunities ahead."The bank highlighted a significant margin recovery, noting the gross margin has expanded by 800 basis points since FY 2020, which it perceives as sustainable."Historical margin expansion has been driven by growth in end-market volume, coupled with management's strategic decision to refine its non-branded sales focus and acquire its US sales and marketing platform."We forecast end-market growth to be volume-driven and supportive of further margin expansion. We project gross margin expansion of 120bp from FY 2024E to FY 2028E."

[bigbigdave] 18/4/2024 17:40

Looks like it :o)

[mortimer7] 18/4/2024 12:51

All aboard for a rally up to results on Wednesday 24th?

[johnkidd1] 18/4/2024 08:57

I only use PEs as a measure of valuation of similar companies, not as a reason to buy or sell. Agree this is a great long term portfolio company. But it trades on AIM so volatility can be useful when building a stake. If value drops in a market sell off then a takeover dream for larger competitor. Market sentiment is still weak for smes and will be while oil price fuels inflation keeping interest rates high. This keeps a cap on prices. Market volatility looks like its only going to get worse in the neer term due to war and the oil supply worry.

[big7ime] 18/4/2024 08:40

The p/e on its own is meaningless, the peg is useful in conjunction with it

[johndoe23] 18/4/2024 08:20

Read 100 baggers, PE matters not a jot

[villarich] 18/4/2024 08:14

Fully agree. IMHO the PE ratio is only relevant for established, cash cow type companies. Aviva for example. And even then shouldn't be viewed in isolation but as one of many measures.

[bigbigdave] 18/4/2024 07:58

17 April Berenberg BUY W7L 550 (420)

[davr0s] 17/4/2024 17:28

I learnt many, many years ago that the PE of a high growth share (which this one is) is pretty meaningless so I have ignored this measure for many years. If you see a high PE as a ceiling for share price you will miss out on the big winners. If you don't believe me go read O'Neil, Weinstein or more recently Minervini to name a few. People tend to buy shares when the PE is falling as they think it's "value" but more typically the best growth is behind it. We are not remotely close to that at the moment

[qsmeily456] 17/4/2024 14:51

And it's PE is way ahead now. Could see a decent drop here 🤣 and another another close out and rebuild bounce 🍾🥂💰

[tewkesbury] 17/4/2024 12:44

Good sales figures will endure regardless.

[johnkidd1] 17/4/2024 11:07

16 times this year's earnings is as high as you can expect in this market. Worth buying on any significant market pullback. Great company, good management with the right products at the right time when people are cash strapped.