4imprint Group Live Discussion

Bowman 10 May 2019

Boom The Investors Chronicle updated their “Buy” tip at the beginning of March. By Harriet Clarfelt, Investors Chronicle – 5th March 2019 Last March, 4Imprint (FOUR) set itself a target of achieving $1bn (£0.76bn) in revenues by 2022. In the same breath, the group – a direct marketer of promotional products – launched a brand awareness initiative, guiding towards an investment of around $7m for 2018 – with operating profits “flat against 2017”. That said, and as signalled at the half-year stage, the results of 4Imprint’s brand development programme have exceeded management’s expectations. And for the full 12 months to 29 December, operating profits edged up slightly, rising 7 per cent to $44.3m. This improvement came despite a slight reduction in the gross margin. In the first half, a sharp rise in order volumes weighed on operational capacity – and while this was mostly addressed by the mid-year point, the second half saw larger-than-foreseen order volumes in the fast-growing – but lower-margin – apparel category. Reassuringly, the gross margin should “stabilise” in 2019. Meanwhile, the group is bringing forward the expansion of its distribution centre in Oshkosh, Wisconsin, by one year – entailing a capital cost of around $5m. Management explained that one of the primary activities at this centre is embroidery on apparel; extra space is needed to cater for momentum here. House broker Peel Hunt forecasts adjusted pre-tax profits of $52.4m and EPS of 147ȼ, against $45.6m and 129ȼ in 2018. IC View A spike in EPS came courtesy of the “beneficial effects” of US tax reform – but increases to revenues and profits were encouraging, nonetheless. The forward PE ratio indicates that the operational progress hasn’t been fully factored into the share price. Buy. Although there was virtually no change over 2018 (Jan to Dec), the sp did experience a 600pt swing. The rise this year has been quite impressive. four.png1240x902 66.6 KB I am quuite well up on my average purchase price of ~£6.60 and I keep looking to see if I should continue to hold, or maybe top-slice the holding. My holding is still only ~3% of my portfolio. However, I have not seen anything that suggests it might be time to consider consolidating my gains. A marked change in the GBP/USD relationship could be a trigger, but I am not viewing a dramatic revaluation of the GBP as very likely at the moment.

johnymccarthy 10 May 2019

Boom “Up she goes again” was my comment in 2015 and 4imprint Group can’t stop doing it, a steady hold at around £20 in 2018 with a rising dividend and then off she goes to £25+ in early 2019. Whilst on holiday in Jamaica earlier this year I spotted a a number of adverts on the BBC international news channel promoting 4imprint which boosted my confidence even more in this growing company.

Bowman 07 Oct 2018

Results Yes we had a recent sharp retracement, but if I look at the 3 year chart there have been quite a few drops of a similar magnitude, in fact some have been much larger. We are currently quite a way above the 200 EMA, having been below it earlier in the year. I see little reason to sell or even reduce my holding It still scores quite highly in my selection programme (in fact it is at position 5), so I am actually tempted to add a little. four.png2812x2054 250 KB

johnymccarthy 07 Oct 2018

Results Now holding around the £20 mark having had quite a traumatic 6 months dropping around 25% and then slowly recovering. With a decent and rising dividend this company continues to look like a keeper.

Bowman 31 Jul 2018

Results Half-year Results. Profit only marginally higher, but reasonable increase in dividend. Market seems quite pleased, since the SP is almost 7% up so far today.

johnymccarthy 24 Jul 2018

Results Price recovery underway, I’m glad I kept the faith.

johnymccarthy 12 May 2018

Re: Results Regaining lost ground, the past 3 years have seen similar but not so dramatic price movements.Maybe helped by the Trump effect following movements in North Korea.

johnymccarthy 30 Mar 2018

Re: Results Back to 2016 prices and the directors buying at Tuesdays prices of 1818p.The exchange rate has not changed enough to cause such a fall.US jitters reference threats to interest rate changes and other commercial worries could hold or reduce the price but surely not to this extent.Perhaps just a blip or maybe a logical correction before the next move up.Ours is not to reason why, ours is but to do or ........buy or sell or sit on our hands.It is after all the end of the financial year next week and sellers may be consolidating capital gains ready to buy back next Fin. year.Any more ideas welcome!

Montyzuma 29 Mar 2018

Re: Results Any thoughts on today’s fall?I see that the directors bought to try and prop up the shares earlier in the week but they are still falling. Share has not gone ex- div either. May be a reaction to Berenberg’s downgrade which was not helpful - and prompted directors show of support.From a technical point of view , if the price does not recover today, it will presumably have broken the long term uptrend.....but I am not a technical analyst so perhaps someone could help on that front

Bowman 07 Mar 2018

Re: Results John,Whilst I agree that the long-term trend is still rising, the short-term trend is down. I had expected it to reverse with the results, but it has not, so there might be some more weakness ahead. In this case better buying opportunities may soon appear.My view was/is Hold, and currently I do not see any real need to dispose of any of my holding. I am up over 180% overall, excluding dividends, and my holding is only about 3% of my Portfolio, so I will be holding for a while unless the down trend starts accelerating (although I do not see why it should). I am keeping my eye on the 200d MA.

johnymccarthy 07 Mar 2018

Re: Results Patience.LTBH, look at the 3 & 5 year charts.

Bowman 07 Mar 2018

Results Market seem unimpressed with results, giving back yesterday's gain and more. We seem to be stuck in a down trend at the moment.Possibly it has something to do with the dividend conversion exchange rate, which makes the 11% US$ gain only a 2% GBP gain! A supplementary dividend is all well and good, but not if the SP declines to effectively take the extra dividend away.Not really sure if it is worth adding at this time, but will continue to hold.

Roger Baron 24 Jan 2018

Peel Hunt Nonsense Peel Hunt today downgrades its investment rating on 4imprint Group PLC (LON:FOUR) to add (from buy) and left its price target at 2050p.How can "Add" be a downgrade from "Buy"!

Albino Investor 01 Sep 2017

Re: Boom - Boom Wished I'd bought in 2013 as well ! Now looks too rich for me at this entry point ...suspect part of the rise is also because of the US$ impact as well. Will watch carefully for a correction .... too high a risk now

johnymccarthy 31 Aug 2017

Re: Boom - Boom 'Very tempted, Torotrak looks wonderful against mine in Quindell !!!'Surely not tempted by Torotrak!!!!!!!!!!!!!!!!!If it's 4imprint your tempted by I think the best gains may be behind us as the company matures.However the market they are in is huge and they appear to be making steady progress,97% in the US with operations based in Oshkosh, Wisconsin employing more than 850!A sound dividend policy coupled to potential capital gains make this a winner in my portfolio, I just wish I'd bought more in 2013.