Bill1703
31 Jan 2018
Re: A few stocks getting a battering "... don't think it is a bad thing that non card sales are growing;I think what the market is perhaps concerned with is that overall card sales are falling although modestly.So lower margin products are forming a larger proportion of a fairly static turnover."It is true, some people - on here, and probably elsewhere too - were previously calling for CF to sell more non-card products, but that was always misguided IMHO, as I (and others) pointed out on more than one occasion. There is no reason for CF to exist, let alone thrive, as just one more outlet selling mugs and wrapping paper, which they have to source from elsewhere. Yes, all well and good if they can exploit their high footfall to flog more products - but not at the expense of selling their high-margin, self-sourced cards.That said, I dispute the suggestion that card sales are falling, or that turnover is "fairly static". Overall sales continue to grow pretty healthily overall, and still decently on a LFL basis - the recent commentary is that card sales are currently merely "stable" on a LFL basis, with the implication that they are still growing overall (ie. new stores roll-out). This is consistent with all other evidence that the UK card market remains pretty resilient overall, with various sources projecting this to continue.The market worries about various things, at various times... doesn't mean that we, as long term investors, have to likewise panic on a knee-jerk basis. I would worry if our gradually ageing population was losing interest in buying and exchanging physical cards, and/or if card buyers were showing signs of rejecting the CF brand and offering. No evidence of either for me, either now or in the recent past.
Bribon
31 Jan 2018
Re: Still large sells In truth I don’t expect anyone knows who is selling. My opinion is they can’t see further than the end of their noses. This is a well run, highly cash generative business that pays a good dividend, even without the 15p special. It also continues to expand. Sellers have lost all proportion!
Gooffy
30 Jan 2018
Still large sells At this price, no one answered my question as to who is selling, doesn't make sense to me it was 350 not long ago.
Maverick
30 Jan 2018
Re: Hmmm Totally agree but "Catch a falling knife" comes to mind.The fall continues and a while back 180p was laughable and now seems plausible.Maverick
Bribon
29 Jan 2018
Re: Hmmm Karen Hubbard bought a load at 240p. She must have thought the SP undervalued the company at that time. Now it is nearly 20% lower! Even if the special dividend is not paid the yield is now about 5%. If the 15p special dividend were to be paid the yield is now about 12% at this SP. The response to the trading update has been a neurotic over reaction IMHO.
Gooffy
29 Jan 2018
Re: Non exec worked for Greggs Ps noticed a card section in Marks recently wasnt there before a lot dearer than card factory but still reasonably priced for marks no announcements made but I wonder??Just guessing
Gooffy
29 Jan 2018
Non exec worked for Greggs This one worries me so more research, they do produce there own cards and have an in house design team I think they are very good.Checking directorate changes and noticed this, Greggs havn't done bad so encouraged by this non exec director note.Card Factory, the UK's leading specialist retailer of greeting cards and related gifting items, is pleased to announce the appointment of Mr Roger Whiteside as an Independent Non-Executive Director of the Company effective from 4 December 2017.Roger is currently Chief Executive of Greggs plc, the UK's leading bakery food-on-the-go retailer. Prior to this, Roger served as Chief Executive of both the Thresher Group off-licence chain and Punch Taverns as well as having been a founding member and Joint Managing Director of Ocado. These roles followed a 20 year career with Marks and Spencer where he ultimately led its food business. Welcoming him to the Board, Geoff Cooper, Chairman, said:"We're delighted to welcome Roger to the Board of Card Factory. He brings a wealth of retail and leadership experience that will support the delivery and further development of our strategy." Sausage roll with that card anybody, ho ho
frusset
29 Jan 2018
Re: business model ?... CARD claims vertical integration, but do they do any production beyond printing greetings cards?
Gooffy
29 Jan 2018
IC Wrote to editor no response.Phoned will look at it and email me
Gooffy
29 Jan 2018
Hmmm Must admit I had hoped for a little bounce but seems stuck about this price.Update end of March should give details on dividend so not too long to wait.We had the director buy not sure what else she can do at the minute.Funny or not so funny how sentiment on a share /sector changes retail out of favour at the minute, too many retailers chasing the same busines, aldi and lidl doing well and they do cheap solutions so do we is my only comfort at the minute
frusset
29 Jan 2018
Re: business model ?... IGR has a volatile long term stock chart, with a 94.7% drop from 408.50p in July 2007, to 21.50p in Feb 2008. The stock is still not above the peak of 480p in August 2005. I checked out the big drop to see if it's likely to happen again. I believe the problem was poor management. The current CEO started in Jan 2009, and it looks like he's done a fantastic job of turning IGR around. The 2008 report shows a loss, after a profit in 2007, though the 2008 cash flow from operations was a tiny positive amount. The Chief Executive's Review blamed a weak UK market that management didn't respond to quickly enough, and operational issues with manufacturing in Latvia. The company had been aggressively expanding overseas, and the balance sheet was poor (IMO), with a big bank overdraft, and current liabilities more than current assets.As at March 31 2017, total liabilities of £64.7m were less than the current assets of £83.1m. Cash was only £3.7m, but with "effectively available facilities at over £125.5 million more than sufficient to cover even our peak requirements". A recent acquisition for A$8.9m cash, plus an injection of up to A$3m, making £6.84m, isn't big compared to Net cash inflow from operating activities of £27.6m in 2017 (with £7.6m used in investment).The news flow has been positive since "International Greetings reports surge in full-year profits" 23 June 2015 (Harvreaves Lansdown [link] ).The CFO was buying in December, from 403p to 406p, compared to 420p to buy now.Long IGR.BTW I noticed that when I put IGR into ii's search box it said "International Greetings", which is a bit out of date.
frusset
29 Jan 2018
Re: business model ?... "I would say didn't know abouinternational greetings ..."I didn't follow until I found "International Greetings Changes Name To IG Design Group" [link] (morningstar).
Gooffy
28 Jan 2018
Re: business model ?... Interesting postThere PE is miles behind ours and hardly a divi.We are expanding in ireland too 50 shops a year.Going abroad can be difficult is all I would say didn't know abouinternational greetings so thanks for that.
valeite
28 Jan 2018
business model ?... ....our much lauded vertically integrated model .....is it the holy grail or as it got a fault line? I've been looking at IGR who are in our business area and they are going great guns (I don't own these by the way) .they make all their own stuff like us but sell to 80 countries with 150 k customers and they're upping their profit guidance for the year . CARD is a very good story over the last 20 years but we are relying on a uk outlet system that may not be able to give us any more perhaps even a declining source of profit .if we are so good at what we manufacture (and we are ) perhaps we need to vary our route to the customer and think outside of the uk. perhaps a link up with IGR ?
hopefull2
27 Jan 2018
Re: Electronic v real cards Same as me and I'm not changing, I suspect that there are a lot of us also who will concur as well.I suspect the card v electronic question is over used at the moment.
