I bought N Brown earlier this month as a pick for my 2018 ISA;along with Headlam & City Pub Group,as I felt it was very oversold.
I do not think we will see a return to previous share price level as growth is likely to be modest and hard won but I think at around the present price level it is a good value proposition.
"A record-breaking Christmas came at a price for home shopping retailer LSE:BWNG:N Brown and its investors today, with shares pummelled over weaker than expected margins.Even though product revenues surged 2.7% in the 18 weeks to January 6, the ..."
The divs around 6% Zacchaeus ,that should be reason enough to hold in this environment.I like how the power range numbers are up and the breaking into America part.Next stop unless something dramatic happens is the prelims in 26th April.................
I agree. Trading statement looks good. I think a lot of short term money had gone into the stock and so the fall on results day is traditional as per Boohoo and Just Eat. It is on my radar to buy. I held in the past.
Good to see NEXT getting tw*ted today as I write ,down 5% and BWNG up around 2%.
BWNG must be munching into NXT `s catolgue/directry margins.
Chartwise we where right on the trending down channel line yesterday of the rising overhall rising channel.If this stays intact its usually a good sign.I would like to see the sp somewhere around £3.20ish for a while...............
I bought these in August 2012 at 276p each. Hardly set the world alight but the dividend's been pretty good, which was the reason I bought them....... currently 4.6%. Better than keeping it in the bank.
If we reach 350p it would be really helpful. . . . . . .
Still in a rising upward channel at the moment.Historically this is round about when the sp falls and then recovers before Christmas or just on the other side of it.
Seems well over done in the sp fall yesterday,fair do`s when the half yr results came out on Thursday.Maybe its some broker giving their as per usual 5hite advice and downgrading the stock.For me nothing has changed and looking forward to the div and next update in Jan.........
"Retail has rarely been out of the headlines these past few days. Grim sales data, interest rate fears and the growing threat of Amazon after its acquisition of Whole Foods caused widespread concern.But this week, Britain's nation of shopkeepers ..."
I note that the Company is due to deliver first half results on 11 October.
So the downward movement in prices today makes me, as a holder, uneasy. The quarterly report was generally encouraging but several other retailers with a big online presence, such as NEXT, have reported on tough conditions.
N Brown could also be affected by the changing exchange rates, as much of the product is sourced overseas.
Not long to wait!
Singers put out a note this morning on Research Tree:
"In our recent note we highlighted the possibility of its FCA authorisation being granted this autumn. In an RNS yesterday afternoon investors were rewarded as this was confirmed. We felt uncertainty around this was weighing on the valuation and anticipated this news to be a positive, potentially significant, catalyst as a result. However, the RNS contained two other bits of newsflow, both negative for forecasts and sentiment 1) another FCA redress charge and 2) delays to the F4F systems programme, the specifics of which are yet to be finalised. We have downgraded our EPS by 4.0%/3.5% and net debt by £6m/£14m in FY18/FY19 respectively. Investors will need to wait until the interims (11 Oct) to ascertain what of the £45m targeted F4F savings by FY20 might fall in the coming 2 years."
I don't think that is much of an issue. The drop in currency versus Asian source markets is not much different to prior movements in the last decade, and then there's the price mark up on clothing, which can easily absorb currency movements like this.
What's suppressing the price most of all IMO can be explained by a couple of articles in the FT in recent months. The company is moving from OFT to FCA regulation. The FCA are looking at changing credit rules for all, which could affect finance related profit for companies like N Brown. IMV the market is pricing the company for all their finance related profit to be wiped out, which I don't think is remotely likely.
If you want to read up on this the two FT headlines are:
Minimum repayment pressure for N Brown?
N Brown's credit addiction
The former of which can still be read before being archived behind the paywall (type headline into google news which passes round registration requirements in some cases)
The market likes moving to defensive positions and assuming the worst, but once these clouds blow over this will move up sharply IMO, might have to wait the best part of a year though I reckon...
Isn't the problem the fall in sterling? Brown must be buying the bulk of their clothes from abroad like most other clothing retailers so the cost of stock will rocket while they will probably be unable to pass those increases on to the customers who, for a while at least, will refuse to pay.
I think the market has moved to a defensive valuation whilst some major one off spends are enacted and we wait to see what effects such spending will have. Perhaps the current undervaluation is a reaction to the overvaluation of a couple of years ago, where the stock got well ahead of itself.
They are heavily undervalued right now and I am looking for 250p minimum in the next 18 months.
This is from Retail Gazette earlier this year..... "N Brown, the British home shopping business aimed at plus-size and more mature customers, says online orders now account for 66% of its sales. The rest are a result of the catalogue business.
E-commerce sales rose 13% in the 18 weeks to 2 January. N Brown said three quarters of new customer demand was generated online during this period, whilst 68% of website traffic came from mobile phones."
"Consumer credit rises at fastest pace for 11 years" ...... The Guardian, April 2016.
Not sure what else N Brown should be doing ??????
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.