The buzz
30 Nov 2017
Re: EPS Hi BB,I have been away for a little while and just catching up on what has been going on. Wow WGB have really had a bad time recently! I used to be a strong follower of WGB (even visited their New York showroom!) and at times held far to many. However I sold out a year or so ago as I felt that they were getting over valued and my perception that that the management were getting progressively more greedy with their take. The yield was not that great with lots of future good news factored in.That said they have been having a charmed life up to now with some good trading progress. However, the furniture market is now going through hard times eg MultiYork (who offer WGB fabric coverings) have just gone bust. I am not sure how the value of he £ has been affecting things as WGB use to import lots of materials, in particular from Italy. The big opening should be the USA with the low value of the £. I will have to study further but my recollection was that whilst some progress has been made, they are not really as well established as other players such as CFX. Now that is another story - WGB seemed to be getting enough market cap (but now almost halved at £87m) to take on CFX (£50m). Now that seems to be a distant hope, CFX once considered buying WGB but missed the boat - now they are too small and their Chairman is very conservative as his share holding is his pension pot! In a nutshell I do not think there will be a takeover of WGB in the short term, especially with the uncertainties of Brexit negotiations.That said, the share price is back down to a level where I might start to think about building a small stake. Although I am still heavily invested in other shares (such as APF) whom I think are going to do well in the near to medium term, but as their value is achieved I will be looking for new targets.The B
The buzz
30 Nov 2017
Re: EPS Hi BB,I have been away for a little while and just catching up on what has been going on. Wow WGB have really had a bad time recently! I used to be a strong follower of WGB (even visited their New York showroom!) and at times held far to many. However I sold out a year or so ago as I felt that they were getting over valued and my perception that that the management were getting progressively more greedy with their take. The yield was not that great with lots of future good news factored in.That said they have been having a charmed life up to now with some good trading progress. However, the furniture market is now going through hard times eg MultiYork (who offer WGB fabric coverings) have just gone bust. I am not sure how the value of he £ has been affecting things as WGB use to import lots of materials, in particular from Italy. The big opening should be the USA with the low value of the £. I will have to study further but my recollection was that whilst some progress has been made, they are not really as well established as other players such as CFX. Now that is another story - WGB seemed to be getting enough market cap (but now almost halved at £87m) to take on CFX (£50m). Now that seems to be a distant hope, CFX once considered buying WGB but missed the boat - now they are too small and their Chairman is very conservative as his share holding is his pension pot! In a nutshell I do not think there will be a takeover of WGB in the short term, especially with the uncertainties of Brexit negotiations.That said, the share price is back down to a level where I might start to think about building a small stake. Although I am still heavily invested in other shares (such as APF) whom I think are going to do well in the near to medium term, but as their value is achieved I will be looking for new targets.The B
The buzz
30 Nov 2017
Re: EPS Hi BB,I have been away for a little while and just catching up on what has been going on. Wow WGB have really had a bad time recently! I used to be a strong follower of WGB (even visited their New York showroom!) and at times held far to many. However I sold out a year or so ago as I felt that they were getting over valued and my perception that that the management were getting progressively more greedy with their take. The yield was not that great with lots of future good news factored in.That said they have been having a charmed life up to now with some good trading progress. However, the furniture market is now going through hard times eg MultiYork (who offer WGB fabric coverings) have just gone bust. I am not sure how the value of he £ has been affecting things as WGB use to import lots of materials, in particular from Italy. The big opening should be the USA with the low value of the £. I will have to study further but my recollection was that whilst some progress has been made, they are not really as well established as other players such as CFX. Now that is another story - WGB seemed to be getting enough market cap (but now almost halved at £87m) to take on CFX (£50m). Now that seems to be a distant hope, CFX once considered buying WGB but missed the boat - now they are too small and their Chairman is very conservative as his share holding is his pension pot! In a nutshell I do not think there will be a takeover of WGB in the short term, especially with the uncertainties of Brexit negotiations.That said, the share price is back down to a level where I might start to think about building a small stake. Although I am still heavily invested in other shares (such as APF) whom I think are going to do well in the near to medium term, but as their value is achieved I will be looking for new targets.The B
TX2
29 Nov 2017
Re: EPS Unfortunately however nobody else seems to think it might have value around this price!!!!!!
winningstreak
28 Nov 2017
Re: EPS TX2 - I stand to be corrected. Sorry for my erroneous interpretation. ws
TX2
28 Nov 2017
Re: EPS To clarify I was suggesting that if conditions indicated in the recent trading update which covered trading,current & expected, from mid October on to company financial year end based on present/likely order position persisted beyond the present year end (Jan 28 2018) into all of next financial year that has caused the company to indicate that earnings would be down by 10% this financial year. This would translate into a profits drop of circa 35% for next year.We are talking profits drop not turnover.Turnover would be reduced by a much smaller amount as the problem seems to be mainly in high end products in UK.
winningstreak
28 Nov 2017
Re: EPS TX2 - A reduction in T/O of 35% would have an impact larger than35% on profit,, as fixed costs will not come down in line with T/O.ws
TX2
28 Nov 2017
Re: EPS The cause of the likely 10% fall in profits relates to trading in the period from mid October thru to the year end in Jan 2018.If this fall off continued thru next year it would imply around 35% reduction on an annual basis in other words a reduction in earnings from around 15p to 10p.Whilst this probably presents a too gloomy picture particularly as some parts of the business are growing,for example Clarke & Clarke,export sales & license income it is unlikely that sales of high end products to UK market will suddenly bounce back in February.Recovery is probably going to be gradual.On the positive side this is a good business,soundly financed with upgraded printing facilities at Standfast in Lancster thanks to Storm Desmond and excellent brands and we are also looking at a much more modest valuation even when viewed at earnings of say 10p.However I do not think anyone should buy with the idea that we are going to see an early return to the £2 plus level.You need to look at its merits at present price and take a long term view.
leperky
28 Nov 2017
Re: EPS I'm in for a few...to much bad news already in the price IMHO. I think the anticipated slowdown in luxury furnishings may not be so bad as expected (and judging by the fall, it's gonna be awful)As BB states, we'll see at next update..
winningstreak
28 Nov 2017
Re: EPS Bernie - A second profit warning would certainly not go down well. The way the share price is behaving (still falling) suggests thatthere is considerable fear of further profit warning/s. ws
Boring Bernie
27 Nov 2017
Re: EPS Personallly I'd hang fire until February.If there's not been another update by the end of the first week in Feb, then I think it'll be safe to assume the warning was just a blip, but the market will now be nervous about the possibility of getting another warning before then.If the expected eps of 14p is delivered along with an optimistic view for the next FY, then the current sp will be seen as being cheap, but beware the old adage about profit warnings ...BB ... stating the bleeding obvious I know !
winningstreak
27 Nov 2017
EPS After the recent profit warning, the forecast EPS has been downgraded from approximately 16p to approximnately 14p. That, in my view, does not warrant a share price fall of anywhere near to what we have seen / are seeing. With export trade rising, I would think the fall in the share price is grossly overdone. Other opinions pleaee?ws
winningstreak
18 Nov 2017
Bought / speculative I consider the sharp fall somewhat overdone, I bought inyesterday at 140p. I cannot see WGB wiped of the mapas a result of a reduction in sales.ws
II Editor
17 Nov 2017
NEW ARTICLE: Stockwatch: A speculative AIM trade "Is it time to buy into AIM-listed provider of quality interior furnishings LSE:WGB:Walker Greenbank, having plunged nearly 40%?Barely a month ago, I compared it with LSE:TPS:Topps Tiles with a caution about the near term after a vague profit ..."[link]
II Editor
15 Nov 2017
NEW ARTICLE: Could there really be 63% upside at Walker Greenbank? "Today's share price slump at upmarket wallpaper and fabrics maker LSE:WGB:Walker Greenbank has been made all the more stunning by the speed at which its fortunes have turned.At the start of last month, the company behind brands including ..."[link]
