Watches Of Switzerland Share Discussion Threads

[angersharkz] 17/5/2023 10:18

Someuwin - That’s a good point. Extremely high end or rare pieces, specific brands…..all hold their value extremely well. Sometimes increase in value over time.

Gold is a solid hedge in the current environment.

[someuwin] 17/5/2023 10:13

In some ways, the high inflationary environment is good for high end watches. People seeing their savings evaporate due to money devaluation seek alternative assets. Expensive watches are a good store of value.

[johndoe23] 17/5/2023 10:09

Exactly, there had already been a discount to the share price in the last few months.

[angersharkz] 17/5/2023 10:04

Nobody is immune to this downturn. It’s generationally high levels of inflation and its weigh on the global economy.

So unless you want to take your money and inhabit Mars for the next two years and return to earth when it’s all blown over then the next best thing is to look for good businesses that will return once inflation is brought under control.

WOSG has done exceptionally well over the last few years and they’re well ahead of their long term strategy. Given the market has already discounted this over 50% from its all time here it could be a fairly solid recovery play.

[riverman77] 17/5/2023 09:51

Yes the very wealthy will be unaffected, but a lot of people who buy watches won't be hugely wealthy - they may have had a bit of spare cash and be fairly well-off, but certainly not immune to a downturn.

[johndoe23] 17/5/2023 09:43

Think RFX reported a while back, that demand for high quality watches was strong. The wealthy couldn't care less of a recession, they will still spend money.

[angersharkz] 17/5/2023 09:22

Fuji99 - I’m not seeing how the geopolitical tensions in Taiwan and China are going to have a direct or quantifiable impact on WOSG and the luxury watch market?

I think unlike a lot of other retail businesses physical stores supersede the e-commerce side due to the nature of purchasing such high end pieces. I would imagine that the most lucrative purchases will be made within store. I for one would not be purchasing (not that I can afford it anyway) a £30k watch online….which is why the opening of new stores in lucrative, affluent areas is a big driver for the business.

[fuji99] 17/5/2023 08:58

Regarding China, they can also buy online and their tourists all over the world love collecting luxury goods. If their economy is slowing down and if they are hit by the West due to Taiwan, they won't be able to afford to buy more luxuries as they will also lose their jobs - For information they have more than 300 million unemployed people since Covid.

[someuwin] 17/5/2023 08:50

Long term chart shows how much this has fallen in the last 18 months.

At some stage it will surpass those highs.

[someuwin] 17/5/2023 08:43

Bought more for the long term outlook here.

[hjs] 17/5/2023 08:40

Outlook

-- The Group has made excellent progress in the first two years of its Long Range Plan and enters FY24 significantly ahead of schedule
This is what will push the share price up going forward ...it is down today because of Q1 likely fall in profits.

[extrader] 17/5/2023 08:38

LVMH has recently become Europe's largest co, AIUI, on the back of sustained demand for luxury goods by the wealthy and aspirational.

No position.

[angersharkz] 17/5/2023 08:35

I wasn’t aware that WOSG traded in the Chinese market? My understanding that they conduct business in the US, UK and Europe?

I also don’t think that staff at google and Vodafone that are being redundant are the clientele that are buying Audemars Piguet and Rolex watches…..the demand for luxury watches remains strong and there is a shortage of supply.

[fuji99] 17/5/2023 08:27

True, the market is always harsh when it punishes but there is no doubt that high inflation and tensions with China (where luxury goods are popular) due to Taiwan are not helping. People will not spend on luxury when their salaries are chopped by inflation or when one sees the numbers of redundancies going on everywhere in the world (From Googles to Vodafone (11000) yesterday). So when the horizon is full of uncertainties, this is when the likes of WOSG and even BRBY would suffer. Is BRBY the exception ? Time will tell.

[johndoe23] 17/5/2023 08:16

Weakness yes but harsh reaction. Brutal market

[gswredland] 17/5/2023 08:15

I got out as I didn't like CFO change and I thought that was the problem, but weakness flagged seems to be the problem here.

[molatovkid] 17/5/2023 08:15

results looked fine to me...bizarre price action

[fuji99] 17/5/2023 08:13

As expected, some weakness and uncertainty flagged up for Q1/24 with no mention of "bid approach".

[babbler] 17/5/2023 08:11

Wasn't my 100k lol

[babbler] 16/5/2023 14:52

Someone took a big gamble there on results tomorrow buying over 100000 quids worth.

[fuji99] 16/5/2023 13:29

The medium term for the share price direction will all be in the Trading Update tomorrow. Two important points to watch for are 1/ The business outlook and 2/ Any information regarding the possible takeover. With inflation and interest rates at their highest everywhere in the world, luxury business could stagnate and the bid could also be ditched if borrowing becomes more expensive. IMO any prospective bidder will wait until the share price is at its weakest.

[gswredland] 16/5/2023 11:17

I think the whole CFO thing has rattled these.

[johndoe23] 16/5/2023 10:49

Trading update tomorrow, hardly positive price action today