The Lemon Fool

SlickMongoose wrote:So they're continuing to pay out a special dividend while increasing their debt? I don't get it.

CARD's net debt as of 31 July was higher compared with the year-earlier level, but lower compared with the level at 31 January, when the most recent fiscal year ended. So it could be viewed as an increase or a decrease. In any case, leverage was 1.76x underlying EBITDA, which is well within the company's medium-term target of 1.0x to 2.0x.

Volatile share price!

Activist investor Teleios Capital Partners disclosed its ownership of a 5.1% stake in CARD last week.

https://www.investegate.co.uk/card-fact ... 25340596C/

Teleios played a role in PepsiCo's recent $3.2 billion purchase of Sodastream.

CARD has released its Q3 trading statement, and it looks OK to me. The key figure, like-for-like store sales, improved to +0.1% from -0.7% in the first half, and the full-year outlook was maintained. The stock is up about 1.5% as of this posting, so the market seems to approve.

looks ok to me , continue to hold.

That didn't last long, down 1.75% now.

Bouleversee wrote:That didn't last long, down 1.75% now.

1.3% down at close...not too bad considering! (191.5p....its been lower!)

CARD had a good Christmas, and is maintaining its profit forecast for the current fiscal year.

https://www.investegate.co.uk/card-fact ... 00046745M/

However, the stock is down about 10%, which I'm guessing stems from the outlook for EBITDA to be broadly flat in the coming fiscal year.

now down nearly 20% - what a market ...

Somewhat disappointing (and to me slightly confusing) trading statement but I can't see any reason to sell at this moment.. Reasonable dividend (twice covered) and modest p/e ratio. Buyers are returning and price is recovering, around 11% down on the day a few mins. ago. There are worse places to have one's money imho though I won't be adding.

Bouleversee wrote:Somewhat disappointing (and to me slightly confusing) trading statement but I can't see any reason to sell at this moment.. Reasonable dividend (twice covered) and modest p/e ratio. Buyers are returning and price is recovering, around 11% down on the day a few mins. ago. There are worse places to have one's money imho though I won't be adding.

Agree with all of this! I'm sorry I missed the "8:30am bargain basement" price. There are much worse places to have one's money as Bouleversee opined.

TMF article .. one of the Fools likes CARD.

https://www.fool.co.uk/investing/2019/0 ... r-instead/

monabri wrote:TMF article .. one of the Fools likes CARD.

https://www.fool.co.uk/investing/2019/0 ... r-instead/

Hopefully, I'll get my money back in due course, then. If I hadn't topped up in similar circs. previously, I'd buy more. They could be another Greggs

neil woodford has these , also john rosier.

paul scott of stockopedia is also favourable.

hope they are right - i am overweight.

If mine weren't already in my ISA I would be tempted to do a B&A at this point but I don't want to risk adding to my ISA losses and all these favourable comments were around at the time of previous top-ups so I think I'll just hang on and wait for better times. My not buying more will ensure that they improve and the yield on present value is fine.

Final results are out from CARD, and they look solid enough considering the current circumstances in the retail industry. Like-for-like store sales, the crucial metric, swung to -0.5% from +2.6% in the prior year, illustrating the pressure on the sector. However, LFL sales were -0.1% when Internet sales are included, indicating that CARD seems to be getting some traction in the online area, which is nice. Cost control was very good, the annual dividend was maintained, and management is signalling that another special divi will be paid out in respect of the current year.

It's nice to see the market reacting positively to CARD's earnings, with the stock rising 10% to 194.8 pence today.

Perhaps the market is finally recognising how well this business is run - in a very tough environment for retailers, CARD reported an annual underlying ebitda margin of 20.5% and an underlying operating margin of 18.0%, compared with respective figures of 22.3% and 19.7% for the prior year. Net debt fell 12%, another plus. And the following snippet from the results interested me:

Card Factory wrote:We are now also exploring other opportunities to extend our reach beyond 1,200 stores in the UK and internationally to drive profitable growth. Encouragingly, some initial trials with Aldi in the UK, in an Australian retailer, and with a franchise partner in Jersey show that the Card Factory brand is a footfall driver that has real resonance; we will pursue these types of opportunities to open new routes to market where we see attractive returns.

Sounds good to me. Bring on 5 June, when the AGM takes place and we will get a trading update.

Big write up by Tempus in The Times today with yet another buy recommendation. No intention of selling but still a bit nervous of adding again.

Fund manager Neil Woodford has doubled his holding in CARD to about 10%.

CommissarJones wrote:Fund manager Neil Woodford has doubled his holding in CARD to about 10%.

Is this the kiss of death, asks Doris, hoping that Betteridge's Law applies here as well