"Yes I asked the question and got an answer below, 10 for one still seems too cheap for me ..."
Found it - "Our multi-buy offers are carefully managed in line with customer insights and demand, at an acceptable margin. We also find that many customers who visit our stores in search of cards, are often attracted by the other products on offer such as dressings, balloons and gifts, which generally increases the average basket size of most customers." (just part of the reply)
There was a stand facing customers as they walked in, a few feet past the tills, with a sign saying 10 birthday cards for £1, or an individual price a lot more than 10p but I can't remember with certainty. It wasn't conditional on buying anything else. The only other thing I bought was a book of six postage stamps. I don't suppose there's much margin on stamps. I looked on the Royal Mail site and a page with info for retailers didn't give any clue to the margin that I could see. I've never bought anything other than cards and stamps at Card Factory, and obviously some people do buy the other stuff.
I think the stand was about 10 cards wide by 6 deep, but I'm not sure and I wish I'd counted.
I only noticed two other customers, old ladies who didn't move from the 10 for £1 stand while I was there. It was about 9.15 am, and I'm sure it would have got busier.
I thought, if there was a sign at the front, and the cheap cards were at the back, customers might see Easter cards or something else they might want to buy, instead of going in, grabbing 10 cheap cards, and going to the till, as I did. But, the shop gets congested when it's busy. Two people browsing opposite sides of an aisle can block the aisle when they're close. The customers are well behaved and no-one's punched my nose when I 'scused past them, but I still prefer to go early.
It might be something to do with the effect of MiFID II regulations, which are causing changes including brokers specialising. Institutional investors are getting research from a smaller number of brokers (or maybe "sell-side houses" is the proper term). I don't know if that's anything to do with CARD and Investec Bank. Maybe someone could ask IR. I've already asked Wandisco's IR about their extra broker, and while I've no complaints about the response, I've spent as much time as I want to on researching the extra broker question.
BTW I got 10 cards for £1 at Card Factory this morning. I hope they make some profit on it.
"I don't like broker changes myself do you see this as positive."
This started as a somewhat cryptic thread, and isn't getting any less esoteric...
There is no broker "change" here... Investec have merely been added, alongside exisiting broker UBS. They are small/midcap specialists, so probably appropriate for CARD... their research stance has always been generally supportive too, I generally don't think that's a great reason for formal brokership appointments, though it tends to help. All in all, no big deal, either way.
And the other announcement saw Artemis selling down their holding - by around 200,000 shares. They've still got some 34 million of 'em... a very significant overweight position. Again.. neither here nor there.
So overall, it's a case of, as you were. CARD creeping up slowly - but surely?
I am sorry to say the market lumps all retailing into one bundle and punishes the lot for the failings of a couple of retailers.
It is as though nobody will buy another greetings card ever again because a toy or electronics company has failed. Bonkers as ever!
While we are not permitted on an individual basis to disclose such information about forward contracts, please rest assured that mitigating the impacts of currency fluctuations continues to be a key priority for the Board.
Were pleased to hear that your local store was suitably busy when you visited and that you were impressed with the price points of some of our card ranges. We are committed to providing value to our customers, and are able to have such low price points due to our vertically integrated business model; we design, print, distribute and retail the cards in-house, so are able to keep costs low and provide unbeatable value to customers. Our multi-buy offers are carefully managed in line with customer insights and demand, at an acceptable margin. We also find that many customers who visit our stores in search of cards, are often attracted by the other products on offer such as dressings, balloons and gifts, which generally increases the average basket size of most customers.
We always consider new routes to market, but have nothing to announce in relation to the Supermarkets, or other channels, at this stage.
Regarding recent share price movements, we note that there have been a number of seemingly severe reactions from the market to new guidance from various companies, particularly across the retail sector. However, Card Factory remains highly cash generative and the Board continues to believe that its market leading proposition and unique vertically integrated model provides the Group with a significant competitive advantage. This view is reflected in certain independent research coverage issued on the Company. Investecs latest note, for example, states that the valuation in our view does not reflect Card Factorys robust and highly cash generative, vertically integrated business model with advantageous lease structure and low capex requirements.
As previously stated, Card Factory principally operates through its nationwide chain of over 900 Card Factory stores as well as its online sales channels, rather than through supply arrangements with other retailers. In the UK and the Republic of Ireland, we continue to target a cost-effective estate of 1,200 Card Factory stores, across high streets, shopping centres and retail parks, capable of driving strong returns whilst maintaining the quality inherent in the Card Factory brand.
We will of course take your feedback on board and Card Factory will update the market in line with its regulatory obligations, when the Groups full year results are issued on Tuesday 10 April 2018.
Minding my own business in Redhill I did a double take seeing a shop called Cardsdirect, a purple-and-gold replica of the Card Factory outlet imagery, pile-em-high model but maybe even cheaper the biggest sign said something for 18p whereas CF has one saying 29p.
The direct means er ... well it is not mail order is it, so maybe it is a recasting of CF's direct supply chain model? How rude, a bit like someone opening a 99p store next to Poundland.
Finding it very hard to discover who this is officially ... I think a 2012 start up from Barnet now 20 odd stores across the South East, but very confused branding between Cards Direct UK, Cards Direct Retail, Cards Direct Ltd which went bust in 2015, a facebook presence intercepting cardsdirect.co.uk and using @cardsdirectuk on twitter but a different business to cardsdirectuk.co.uk and cardsdirect.com.
Not obviously profitable, net assets less than £1M mostly in 'fixtures and fittings', but enough progress in 5 years we should take notice, still claiming small company reporting exemption but not for much longer on employees at least.
Assuming it to be the one registered at New Derwent House eg with the accountants Haines Watts eg CARDS DIRECT RETAIL LIMITED Company number 08113467. A 78-year old sole director called Vachhani from Hendon, wholly owned by Pioneer First Holdings Ltd, loaned £225K by HSBC, in the operational control of Kushal Kaneria of the Picadilly Greetings Group Ltd.
Pioneer First Holdings is registered in the BVI.
Picadilly Greetings Group Ltd is a designer, manufacturer and wholesaler on the cusp of exceeding small company turnover reporting threshold, funded by a £330K mortgage from AIB over its warehouse in Hemel Hempstead.
Wholly owned by Floret Holdings Ltd registered in the BVI.
"... Simply it was oversold. Also most sellers have gone... And if that's not enough stocks... not dependent on foreign earnings are now the great contrarIan play... The domestic UK market is so oversold the smart money is dipping its toe in the water."
Oversold, yes SM (et al) - though that hardly separates it from your UK-exposed pack. And the latter have been the "great contrarian play" for (at least) half a year now - only that bit more so now.
I suspect the technical point, that most sellers have already been and gone, explains this very short term "outperformance" - but who knows, we could also be seeing the first green shoots of the (inevitable) rotation back towards underappreciated 'Value'. At least in relative terms...
While UK exposure is not without risk, it is impossible not to marvel at the disconnect between the BoE warning of higher/faster rate rises due to a stronger UK economy and the apocalyptic scenario implicit in some silly current valuations - and there is good reason to hope that the two pantomime villains lurking behind this disconnect (Hard Brexit and Uncle Jeremy Corbyn) might well never "happen" (though of course they might, and one will likely presage the other).
I wouldn't call CARD's a "silly" valuation, merely a seriously undemanding rating for the compelling cash flow characteristics and unique market presence... Here's hoping that recovery back to £2 is merely the first stage in recovery back towards something more "reasonable" (I am still at 275p 'fair value').
And I certainly wouldn't call it "smart money", but I am seriously contemplating sinking new money into the UK 'Value' waters over the coming days. And more than a toe-dip....
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