Market's view on Dfs Furn
Published on April 2024
- Stock watchers discussed the potential short-term cash shortage when stripping out intangibles.
- Concerns about the company’s cash situation were related to an opening stock price prediction of 90p.
- Discussion on the company’s results expected the following day.
- The sale of Brother SCS to a large European sofa company at a premium was noted.
- Observations on stock price spikes and subsequent declines were highlighted, with specific references to influence from poor results in related sectors.
- The company’s strategic response to higher debt levels and potential vulnerability due to high debt amidst tough economic conditions was critically discussed.
- There were predictions and concerns about the stock price potentially dropping below £1 based on poor chart performance and capital management decisions.
- Discussions included the impact of high bank debt and a softening in order intake in recent weeks.
- Positive notes were mentioned in a trading update including a good start to the winter sale period and a reaffirmation of profit guidance.
- A stock watcher discussed selling a significant portion of their trading stock, which was acquired at a low price point.