This space is reserved for roddy10 to introduce himself.
I have read a lot of material on various websites on Frontier. I thought I would put down my thoughts in the following. Of course do your own research and the following is not investment advice. The issue that has particular bemused me is that a lot of commentary seems to be based on 'it has gone up so it must go down' rather than…
Let me start with a question - which of the following will perform best:1. A careful selected portfolio of 20 stocks?OR2. A portfolio of 20 stocks that are chosen at random but with strict money management rules?I am a value orientated investor but I would suggest that the performance of portfolio 2 might surprise many people. A lot of modern investment management is focussed on…
Following are the opening paras from an article in the FT today: Nearly three decades ago, Warren Buffett penned an annual letter to his adoring investors mocking an insidious new trend beginning to make its mark in the money management industry: the computer. “In my opinion, investment success will not be produced by arcane formulas, computer programs or signals flashed by the price behaviour of…
I have been trying to decide my own views on Just Eat. What is striking is the contrast between it's Value ranking, and its Quality and Momentum rankings:Interestingly, looking singularly at V, Q and M (or even QM) for historic returns brings home the contrast in potential returns.In May 2014 the company joined the FTSE 250 - so one of the questions in my mind…
I agree re the need to have various skillsets as a business grows. But a 'logistics expert' or a 'manager of controls' is rarely going to inspire a company or customers. An example of a leader who has, either directly or indirectly masters logistics, processes and controls is Jeff Bezos. Re branding and target customers - it may not be a bad thing to aim…
I like to split the capex into 'maintenance capex' and 'expansionary capex'. Roughly, for a company with short duration assets, the depreciation ought to be equivalent to the maintenance capex. So if I subtract that from the capex number it gives a rough idea of how much the company is investing in future growth. Obviously for longer duration assets one needs to make a guesstimate…
I think there is an important issue that you have not dealt with - management change. A business such as Superdry needs a passionate leader - not all management is 'by the numbers'. It may sound heresy but I think the market missed the internal loss of motivation at Superdry and the 'dash for growth' by attempting to put the Superdry brand on things that…
Looking back at this - was very prescient - especially the way that bear markets often creep up on one.
May I point you all to the company presentations at https://corporate.superdry.com/investors/results-and-presentations/ , in particular yesterday's presentation at https://corporate.superdry.com/media/2545/fy19-interim-results.pdf To me some of the presentation appears to be straight out of MBA school eg 'brand development', 'fundamental product repositioning', 'transformation programme', 'cost review'. Looking at some of the product comments (eg 'Wincheater - legacy products kept in range for too long' on slide 18 yesterday) I…
