Eagerbeaver66
19 Apr 2016
Re: Fall overdone? GI, I appreciate the point you are making, a 1 pound anchor does eventually become out of date, but that's an imaginary boundary that will evolve when necessary. They already have more flexibly named brands in their portfolio, like Dealz or they can just rebrand in to a completely new name when time dictates. The important point is that their simple catchy-named theme hits a sweet-spot which gives them immense success (reflected in the number of copy stores that sprang up). Importantly, it establishes the company as a value for money brand, with products so low in cost that you buy without a second thought (and ironically my local Morrison's now looks like a pound shop where 10 everyday items cost you about 10 pounds as well).A few short term sustaining factors help; they have the power to get manufacturers to package products to their chosen size and price-point, there is generally low inflation, and China is still exporting global deflation', so maybe their label has another 5 year lifespan in this sweet-spot. But when the time is right but they will simply re-brand from one sweet-spot into new one taking all their loyal customers and brand-value with them. That is what makes Poundland sustainable 20% growth so attractive at these prices, it is just as enduring as Aldi or Lidl's and is available for investing in as a plc.
grahman
19 Apr 2016
Re: Fall overdone? The clue is in the title! £1 is all the are worth. Tesco and all the rest also sell lots of poundland products for less than a pound, their business model is shot and at present has no where to go but down. Have you been in their shops lately they are full of tat and woefully understaffed. Sell now before the share price reaches 99p.
gamesinvestor
19 Apr 2016
Re: Fall overdone? The fall does look overdone, but on a long term basis, is Poundland sustainable?If Poundland continues to expand it's building up a bigger and bigger exposure to what will be a realistic change at some point in inflation.Inflation will kill the Poundland concept, as they are stymied by their inability to increase prices.Also inflation will drive up staff costs, already now ready to jump in this years reported numbers with the new minimum wage.If VAT is forced to rise, that will be another hammer blow to Poundland.On top of this, you now see many other shops selling simple goods at the £1 or less level, like toothpaste, certain chocolate bars, soaps, detergents etc etc -- so the supermarkets and other discounters like Poundstretcher, B&M etc are positioning against Poundland, without the restriction of selling other higher priced goods.Poundlands marketing is catchy and will stick with many, but the economics of rising prices will not help the business model longer term. There is only so far you can shrink the packages.Games
weeneilly
15 Apr 2016
Re: Fall overdone? We had one smallish Poundland in West Bromwich until 8 months (Britain's second most deprived town) and now we have three, within 200 meters of each other. I can't quite work out how that makes good retail sense. We also have two massive retail park Poundlands within 3 miles. They are all pretty busy. Let's see.
oldwheels
15 Apr 2016
Re: Fall overdone? I personally believe the fall is overdone, however, I'm currently sitting on a near 60% loss, therefore I'm being optimistic.Banbury now has 2 Poundland's, one of them being a very recent conversion, unfortunately, they are within 100 metres of each other. The recently converted store is bigger and appears to have a wider range of stock, unfortunately, there were only a handful of people in it mid afternoon yesterday. I presume there will be store closures where duplication such as in Banbury cannot be justified?
Eagerbeaver66
15 Apr 2016
Fall overdone? I don't really understand the pounding that they are getting at the moment when they offer everything that Tesco, etc. shares. don't. They're growing at ca 20% per year; they offer a reasonable dividend which seems to be rising. Even if their earnings come in at the lower end of the range as guided, then the PE is still around 10.With 99p stores, they've increased their footprint by 30% from spending just 15% of their value. Even if there's a few unexpected extra costs along the way that's still a bargain.And their shops seem to be the busiest on the high-street, and busier than the supermarket-locals. What's not to like? - It's like having a Lidl or an Aldi that is publicly listed, and 20% growth is offer without any premium.
alanadale
15 Apr 2016
Poundland The shares seem to going down to suit their name -Poundland.
nk1999
31 Mar 2016
Re: Interim Results "When are next results due" - Pre-close Trading update is due on 14 April 2016.
Mrbusiness
31 Mar 2016
Re: Interim Results When are next results due?
gamesinvestor
31 Mar 2016
Interim Results Old now but worth a read if you are an investor here :-[link]
Clarence Beaks
15 Feb 2016
99p stores [link]
Clarence Beaks
02 Feb 2016
Re: Looking cheap! Dont confuse looking cheap with getting cheaper. Caught me out many a time and caused some major losses.GLA.
Ripley94
28 Jan 2016
Re: Looking cheap! Topped up. @ 141
Chocolate Dustbin
28 Jan 2016
Re: Long You may well be right but I reckon it's worth hanging on until the SP truly gets down to £1 land.
Sir Singh
25 Jan 2016
Long Great value. Huge growth 16/17
