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I have sold most (80%) of my holding this morning at 248p. That's not because I necessarily think this is the top (like all of us I just don't know) But because having bought at ~100p only a year ago I am happy to take my near 150% rise and bank it. I have become more cautious over my investing life and my mantra is to buy low and sell higher, obvious really, but a surprising number just don't do it.
My other guiding principle is that of opportunity cost. With the cash I draw from here, I hope to invest in other places where the SP has IMV, further, to run.( examples with no promises, DGO, RTO, PSN, CCL.) I may find that I miss further returns here but I can live with that.
For those of you still holding I don't see an SP crash from here, but I do suspect that there may be a retracement or flatlining. MKS has for many years found it hard to turn stable and rising revenues into profits, that may have changed permanently but I'm not convinced, I think management are better than in recent years and distinctly better than their immediate competitors but it is still a tough environment to make consistent profits in.
Today's euphoria may well dissipate to be followed by a more sober analysis.
whatever, I wish continued holders the best.
Indeed excellent numbers and they should do well over the Festive period.
After several years in the doldrums they do seem to have hit a winning formula.
Today the bod have focussed attention on investment grade and its motivated capital allocations including divi, net debt reduction of 12%.
All down to Moody’s,Finch and S&P now and their grading opinion of the balance sheet.
Jaegar and Gist acquisitions have been pivotal on the £150m cost saving reductions for TY.
SP improvement has more than made up for poor 1p divi and if Moody’s agree there’s a lot more sp to come.
Strategically the decisions today by bod seem solid.
Obviously the profit improvement largely comes from lower bonus payments to Ocado for not achieving targets to date.
Let’s see where sp goes fingers crossed for PM today and tomorrow.
Come on get over £2.50 🚀
I listened in to the post results presentation. Too much in it to give a blow by blow account. You can find the link to the recording here:- https://corporate.marksandspencer.com/investors
Yes, good results but further to go; they know it and I think they are focussed on it. I liked the phrase "positively dissatisfied". I was impressed by the resent progress but more by the determination to re-structure the business over the next two years. They warned against expecting "linear growth" and the all important Christmas period is just coming up, as for next year (y/e 2024) they were lowering the expectations bar and suggesting a weighting to the first half.
The shares have bounced today but if you believe the story, and I do, the shares will (IMHO) outperform the market on a two year view,
Dividend is spot on; the bod have shown they know how to handle our monies. Lets see continued growth. There is a lot of money in the hands of our typical customer with an enhanced winter fuel payment of £500. FYR could be out of this world. Hang in there. JJ
Well done to all LTH. It's been a long and bumpy ride... As my biggest holding I'm obviously over the moon. For me this is now confirmation from the market of what we have been saying on this on the board for a long time. M&S is back, it has upped it's game in all areas, benefits from the retailers that have disappeared from the high street and it's customers are still prioritising quality and shopping experience... Even with the cost of living crisis
Fantastic day. Well done all... Especially the regulars on here... I don't post often but have continued to read here... One of the better boards for sure.
A bit of luck hopefully. Wifes 3 year, £500 a month option, at 82p due to vest in Jan.
Schwee
Not the case - the real profit from Ocado Retail is hidden - it comes from the profit on selling M&S branded products on Ocado.com and economies of scale gained with those products.
Also look at the way Waitrose has declined since they stopped trading on Ocado - they lost out.
As sales increase at Ocado Retail - up 12.6% in the last 12 weeks [Kantar] - the profits will flow again as excess capacity - already paid for - is used up.
But they probably wish that they had never touched.Ocado with a bargepole
Fforestgwmp lol
the ride has only just begun, lets sit back and watch the value of our investment grow.
New year high set at 2.48, your rocket has taken off PSK.
As a long term (and suffering) shareholder here it good to see the share price moving up.
As a M&S customer and indeed a UK wide consumer though, it does bring home to me that the huge inflation we have seen since the Ukraine war has been a heaven sent opportunity for many Businesses to raise their margins with muted customer reaction.
Neilhumphreys5ya
oh them shorts are burning now lol
Welcome surprise!! I've been burnt with so many shares this year posting great results and dropping (EZJ for example). Let's hope it sticks and is a sign of things to come.
2.45 paid, you can do it only 0.5p to go...
Marks and Spencer (M&S) racked in hefty profits during the half year, as the firm’s reshaping programme continues to show signs of paying off.
https://www.cityam.com/ms-reinstates-dividend-and-ceo-stuart-machin-promises-hes-not-done-yet/?utm_source=CityAM&utm_campaign=7111929a82-EMAIL_CAMPAIGN_2023_11_08_06_41&utm_medium=email&utm_term=0_-7111929a82-%5BLIST_EMAIL_ID%5D
There we go open above 2.40, only a few more pence for year high. You're looking good girl, your time to shine.
Sometimes people need to actually look at forecasts and stop being so pessimistic. This was a massive beat on all fronts
Https://www.theguardian.com/business/live/2023/nov/08/ms-posts-better-than-expected-75-jump-profits-house-prices-niesr-jeremy-hunt-autumn-statement-lloyds-slavery--business-live
https://www.bloomberg.com/news/articles/2023-11-08/m-s-brings-back-dividend-after-four-years-as-profit-soars
So today's headlines, 75% increase in profit, who can ignore that, and divi reinstates without mentioning 1p or Christmas ad. Fantastic
Forgot to set my alarm. Yep, those are M&S results we expected perhaps even better looking at the increased sales and margins. Think 1p divi may not be viewed as well as hoped, yes it only needed go be symbolic for now but atleast credible. Let's hope, combined with results it does result in investment and broker upgrades.
Key statement, - we're only just beginning. Lots done, lots to do, lots of opportunity."
Well done and gla
Point taken, HI100. I do get where you're coming from and it wouldn't surprise me at all if the SP does fall back a bit initially in this market. But I do feel the management here is wise to tread very cautiously by way of setting-up expectations in these economic times whilst managing their plan admirably.
I read it that the dividend is purely to attract funds that only invest in dividend paying stocks
In balance with a general mrkt down day today, I'd say Investors will be disappointed with the divi and foreward pessimistic (some may say realistic) statement regarding the wider economy. The markets will probably mark this down to 215-220 this morning I'm afraid.