simoan wrote:What a horribly aggressive post. I just can’t be bothered to reply to the points you make as I have no wish to discuss further with you.
Amptly demonstrating why you were right about such discussions being unsuitable for this place.
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simoan wrote:What a horribly aggressive post. I just can’t be bothered to reply to the points you make as I have no wish to discuss further with you.
BullDog wrote:Article today in The Telegraph about Burberry and what's going on there. It's not particularly comfortable reading. I note that company net debt today is apparently around £1.1 billion. More than 2x last year and what looks like about 10x what it was in 2021. Unfortunately, the article will be paywalled but for those like me who have been mulling over buying into the company it's worth a read. I think it's right to be cautious. I can only think it's a buy if you think a takeover bid is likely.
https://www.telegraph.co.uk/business/20 ... t-its-way/
BullDog wrote:Article today in The Telegraph about Burberry and what's going on there. It's not particularly comfortable reading. I note that company net debt today is apparently around £1.1 billion. More than 2x last year and what looks like about 10x what it was in 2021. Unfortunately, the article will be paywalled but for those like me who have been mulling over buying into the company it's worth a read. I think it's right to be cautious. I can only think it's a buy if you think a takeover bid is likely.
https://www.telegraph.co.uk/business/20 ... t-its-way/
monabri wrote:BullDog wrote:Article today in The Telegraph about Burberry and what's going on there. It's not particularly comfortable reading. I note that company net debt today is apparently around £1.1 billion. More than 2x last year and what looks like about 10x what it was in 2021. Unfortunately, the article will be paywalled but for those like me who have been mulling over buying into the company it's worth a read. I think it's right to be cautious. I can only think it's a buy if you think a takeover bid is likely.
https://www.telegraph.co.uk/business/20 ... t-its-way/
Source Telegraph ( as per link above)
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source Sharepad
[Copyright material removed.]
The increase in borrowing ( debt) seems to be a case of a reduction in "cash & equivalents" than more borrowing. This leads to the question as to what has caused the reduction...... See simoan's comment a few posts above.
(I was going to top up my BRBY holding but decided to use dividends in an ISA to buy BRBY but sell the same qty in my taxed general trading account - with a view to sheltering dividend paying shares/ Labour).
Edit. There was a big sharebuyback of £404m.
vand wrote:Gone ex-Divi today but that seems to have accelerated the fall!
Down to 903p as I type - dividend would be 6.76% if kept at current level.
Have to admit it's getting towards a chavtastic "worth a punt" territory.
simoan wrote:vand wrote:Gone ex-Divi today but that seems to have accelerated the fall!
Down to 903p as I type - dividend would be 6.76% if kept at current level.
Have to admit it's getting towards a chavtastic "worth a punt" territory.
If all you’re interested in is the dividend yield, then I would suggest there are higher and safer yields on offer. You’re correct though - at this point it is a total punt. I really don’t know why anyone would buy now when there is a trading update due in two weeks time.
vand wrote:simoan wrote:If all you’re interested in is the dividend yield, then I would suggest there are higher and safer yields on offer. You’re correct though - at this point it is a total punt. I really don’t know why anyone would buy now when there is a trading update due in two weeks time.
Because the trading update is just likely to confirm what the market has been pricing in for the last year?
But yes, we both agree its a bit of a punt. At this stage its on my watchlist - I am not afraid of falling knives but more due dilligence required and I have to question the wisdom of a company that just spent £400m in buybacks so recently while being oblivious the imminent slowdown in the business.
simoan wrote:vand wrote:
Because the trading update is just likely to confirm what the market has been pricing in for the last year?
But yes, we both agree its a bit of a punt. At this stage its on my watchlist - I am not afraid of falling knives but more due dilligence required and I have to question the wisdom of a company that just spent £400m in buybacks so recently while being oblivious the imminent slowdown in the business.
We don’t know what the trading update will say and IMHO it’s always better to react to the latest news from the company than to try and pre-empt it. If there is a further slowdown reported it could be a very quick way of losing money. I’d rather pay a premium on a more upbeat report and the first sign a corner may have been turned. Judging by the comments from other luxury companies, the situation in China has not improved and Burberry is very exposed there. Maybe the situation in the US has improved but that seems unlikely too. Given the balance sheet is looking stretched I would assume the dividend will be slashed for FY25, which I guess is all that matters hereabouts.
BullDog wrote:I agree. To my eyes the yield looks unsustainable. Buying only makes sense as a bid candidate. IMHO
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