Back in Another £50,000 director purchase today. Not too shabby for a retail store at the present time. Must see a change of fortune in the cloud (s)
Back in Back in on news of Director buys and a recovery plan. Very risky of course. Feel the brand still has some value.
NEW ARTICLE: Bombed-out Mothercare offers hope "Investors holding out for a LSE:MTC:Mothercare recovery were given some hope today as the retail chain revealed its strategy for a firmer financial footing.Taking the now well-trodden path of a Company Voluntary Arrangement (CVA), Mothercare ..."[link]
Administration? Certainly looks possible, if not inevitable.The high-street is in complete meltdown and you have to look at the impact of living wage, auto-enrolement and of course business rates. All taxes that impact far more heavily on the physical retailers rather then pure on-line. Could MTC survice as a pure online play?Worrying times.
Re: Oversold more oversold again now BBB.. recent trading performance not a disaster but could easily turn further down and covenant waivers always scare ...do this might well go lower again too.. I left a very small bet on here which is now 80% down .. but my instinct is mothercare will not go under this year, at least... and so I would do a small top up at 15p ish in hope of a decent bounce, for one reason or other .. but it's pure gambling..
Oversold Mothercare are 42% online now and also have broadly based international business.They already closed dozens of non performing UK stores and cut central overheads in line with their strategic planning.This is a buy now at 25p , panic selling this week after Toys r us and Maplins news is rediculous.IMHO - DYOR
For the brave Sell off due to nervousness in retail sector following Toys R Us and Maplin? For some brave investors perhaps a buying opportunity
NEW ARTICLE: Eight funds and trusts for small-cap investors "Smaller companies - superior returnsThe UK smaller companies sector staged a strong recovery in performance last year following a sharp sell-off after the Brexit vote. Following the EU referendum in 2016, larger companies have outperformed their ..."[link]
Re: Overall Group performance below ... You are very Brave SOIMTC is struggling and their profit margin shrunk to the lowest ever and forward looking profit between 1.5 M.No Divi and none likely in the next 24 months...I fear for their future, I just hope that I am wrong.As always DYOR
Re: Overall Group performance below ... HiIt looks bad but forever the contrarian have bought shares and gone long SB.I feel the fall overdone.ATB & GLsoi
Overall Group performance below expectations NOT GOOD IMOMothercare plc, the leading global retailer for parents and young children, today issues the following trading update, which covers the 12 week period to 30th December 2017. UK· UK like-for-like sales decline of 7.2%.· Online sales decline of 6.9%. Online sales now represent c42% of total UK sales.· Total UK sales lower than last year, reflecting ongoing store closure programme.· Retail space at the end of the period reduced to 1.4m sq.ft, as planned, with 143 stores (139 Mothercare and four ELC).· Lower gross margins due to higher discounting, but positive sell through of stock and cash generation. International· International retail sales were down 3.0% in constant currency and down 6.8% in actual currency, but key markets showing signs of improvement towards the end of the period.· Online sales growth of 8.5% in constant currency and 7.4% in actual currency.· Retail space at the end of the period c2.9m sq.ft with 1,131 stores.TO READ THE REST:[link]
Director Buy no means an insignificant purchase by the CFO.Bought more today, confident Mothercare will recover nicely. I think the Directors are too.Screaming buy.GLA
Re: This might be cheap now I've taken what could be a quite costly/rewarding punt too (and it does feel like a punt with Mothercare) but going on the basis that population GB is continuing to spend, hoping that the turnaround that they've been on for many years might just be on the cusp of actually going somewhere, and the always faint possibility that the US firm (or another) might see sterling's weakness and MTC share price weakness as an opportunity to take it over, I got in at 96pence. The flip side risk of course is that the board hasn't done enough and the laggard parts of the business - middle east etc - have a bigger drag than expected in which case we'll bomb. As I said - it's a punt!
This might be cheap now and I had a small position here that was well under water and have recently doubled down on it..I'm not too confident on this and see it as more of a punt...I don't mark it a buy therefore ..Generally The middle east market may remain average if oil doesn't recover further and the uk market may be challenging going forward..but Europe should pick up a bit..and their revamp programme should continue to help.. not least the web side of business becoming better..Also the s/p must be at an all time low now ? And so some sort of a bounce might occur for cheapness on base financial metrics reasons ..or it may be an attractive takeover proposition at these rates .. ps from memory they did a rights issue in 2014 and so the takeover bid price then and any takeover bid price that might materialise in the future are not directly comparable...
Takeover? 300p/share offer was rejected in 2014 when business was still making losses.Projected P/E only 7-8x now********** ********** ********** *****Mothercare has rejected two takeover proposals from US firm Destination Maternity, which value the mother and baby products retailer at £266m.Destination Maternity said its latest offer was worth 300p per Mothercare share, a 29% premium on the firm's closing price of 232.5p on 1 July.It made its first approach to Mothercare in May and said it had not ruled out a revised bid.Mothercare said the bid did not reflect the "inherent value" of the company[link]