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Sell Greggs?

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Bouleversee
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Sell Greggs?

#142287

Postby Bouleversee » May 30th, 2018, 12:15 pm

Questor in the Daily Telegraph says it's time to sell Greggs because the increasing trend to buy on line is reducing footfall in shopping areas. I'm not sure I'd agree that that will affect Greggs to a huge degree. There are still plenty of workers in those areas who will need sustenance and head for Greggs. I know the bad weather affected business because a lot of shops were closed so this year may not be great but won't things pick up now that is behind us? I'm not going to rush into selling mine which have served me well since I bought in Jan. 2011 and still produce a very good yield on the price I paid then on top of a 124% increase in the s.p. even after the 20% fall earlier in the year.


If I continue to hold, however, I need to transfer them to an ISA which will incur costs (not c.g.t.) so I would be interested to know other people's views as to their future prospects. I've never visited one but the menus sound quite tempting. There is more to Greggs than sausage rolls.

Bouleversee
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Re: Sell Greggs?

#142326

Postby Bouleversee » May 30th, 2018, 2:26 pm

They were, of course, talking about general loss of footfall because fewer shoppers were frequenting shopping areas as they were busy at home shopping on line.

Bouleversee
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Re: Sell Greggs?

#142329

Postby Bouleversee » May 30th, 2018, 2:33 pm

FredBloggs wrote:
Bouleversee wrote:They were, of course, talking about general loss of footfall because fewer shoppers were frequenting shopping areas as they were busy at home shopping on line.

Yes, and like I said,as far as I can see the management are addressing that issue by opening in places where footfall is plentiful. Whether that will be sufficient to offset losses elsewhere, I do not know. I do not own Greggs but have watched them for sometime. I think that situation will remain until at least there is a "Card Factory" moment.


Thanks, Fred, but as I also hold Card Factory, that's why I'm getting a bit nervous.

westmoreland
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Re: Sell Greggs?

#145309

Postby westmoreland » June 12th, 2018, 8:31 pm

it's a very good business. it's more vulnerable than the like's of domino's as it doesnt operate a franchise model, so it doesnt have the same resilience an cash generation. it earns margins more like 6% compared to 30%+ that the franchisors do. it's more risky, but trades at a decent discount to them.

for what it's worth, the ones near me are very busy. it's a very popular business that has positioned itself very well.

14% lease adjusted ROCE, so a good return on capital. it's very conservatively financed. all in all, i'd be happy to own shares in the company. it's not a screaming buy, but just because the price has gone down doesnt mean you should sell.

jackdaww
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Re: Sell Greggs?

#192483

Postby jackdaww » January 10th, 2019, 4:50 pm

sold all mine today at nearly £15.

the market clearly liked the update.

i hope to buy them back at a lower price later.

they could be had for £10 last october .

:)

Bouleversee
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Re: Sell Greggs?

#192489

Postby Bouleversee » January 10th, 2019, 5:05 pm

jackdaww wrote:sold all mine today at nearly £15.

the market clearly liked the update.

i hope to buy them back at a lower price later.

they could be had for £10 last october .

:)


Tempted to sell mine and hope to buy back cheaper in ISA but I need to work out my overall cgt situation first. They certainly leap about a lot. I really must try out those vegan sausage rolls everyone is raving about. As they have given me a profit of over 218% to date, I should give them something back, never having entered one of their shops yet.

PinkDalek
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Re: Sell Greggs?

#192516

Postby PinkDalek » January 10th, 2019, 6:18 pm

Bouleversee wrote:... I should give them something back, never having entered one of their shops yet.


Without saying too much, I've been enjoying their sausage rolls and coffee over the last 11 months and hope to have boosted your investment. I've found the staff behind the counter both friendly and efficient but hope not to have visit the location for too much longer, for reasons known to you. ;)

Not really sure about the quality, mind you, and I often manage only to be given warm, as against, hot products.


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