Dixons Carphone - DC Stream Log

I think the share price curve is steepening downward at DC. Reasons in my view are; imminent recession in the UK; sterling near historic lows - all imported product more expensive, squeezing profits for DC; ex-chairman and founder has sold a quarter of his holding recently (a bad sign); big pension deficit; as far as I can see, practically no cash - the business seems to be operating on cashflow which relies on suppliers waiting a long time to be paid; increasing online competition; a massive and costly bricks&mortar estate; a huge workforce creating high operational costs; very few customers in the shops whenever I've visited; warning from the management of 'more pain' to come due to the change in smartphone purchasing dynamics. From what I can see, there are practically no positives for DC; an outdated business model with huge legacy costs.

Read Beaufort Securities's note on Dixons Group, out this morning, by visiting Research Tree "Dixons Carphone delivered better than expected result for the Q4 2016, recording strong LFL revenue growth and expanded market share across electricals and mobiles in its key division. A strong performance in the final quarter enabled the Group to narrow its headline pre-tax profit range from £440m-£450m previously announced in Christmas to £445m-£450m, against current consensus analysts' estimate of £446m. This range suggests an increase in pre-tax profit of c.+17% year-on-year. The Group continued to improve its all-important customer satisfaction and price competitiveness rating across all key markets. Recently, on 21 March 2016, the Group announced that it has entered into an agreement to acquire Simplifydigital, the UK's largest broadband, TV and home phone switching business for an undisclosed sum. This acquisition enables it to significantly improve its Services business, where Dixons Carphone provides independent advice and allowing it to become a trusted partner in customers' homes for responsive, accessible, expert and affordable technology support. In view of the Group's encouraging LFL revenue growth..."

Welcome to the new Dixons Carphone stream forum! Messages posted in the Dixons Carphone stream will be logged here for posterity.