Market's view on Shoe Zone
Published on April 2024
- Stock watchers anticipate that lower shipping rates could benefit SHOE, potentially leading to a higher share price, though patience is needed.
- A stock watcher notes that Anthony Smith is likely to address any potential issues diligently given the significant equity held by the Smith family.
- Discussions about the trading of 56k shares with no significant price change, questioning the purpose of such transactions.
- Concerns are raised about SHOE being a poor investment choice.
- The CEO’s hands-on approach to addressing company issues is praised, indicating strong leadership and passion.
- Confusion and speculation arise regarding the CEO stepping down from the Board, with some watchers considering it a negative sign without a clear explanation.
- Positive note on SHOE as the only retail share not dropping in price on a particular trading day.
- Reassurances given that the CEO remains involved with SHOE despite stepping down from the board, though challenges like high container costs are acknowledged.
- The CEO’s decision to focus more on retail is seen as potentially causing short-term difficulties but ultimately beneficial due to his expertise.
- Frustrations are voiced over the high spread in SHOE’s shares, making trading challenging.
- Speculation that the CEO’s increased focus on daily business operations might indicate poor spring sales.
- It is noted that CEOs not being on the board could lead to non-disclosure of their remuneration, a growing trend among companies.
- Positive sentiments about the company’s share price and speculation about a possible share buyback.
- The CEO’s board resignation is interpreted by some as a proactive measure to resolve internal issues, potentially stabilizing the share price.
- Constant demand for sensibly priced footwear is highlighted, suggesting a stable market need.
- Market makers are accused of manipulating SHOE’s share price through spreads, especially during low-volume trading.
- Adjustments to earnings forecasts are discussed, with a focus on the impact of container prices and wage increases.
- Explanation of the recent decrease in forecasted EPS and its impact on company momentum.
- AGM statements indicating that FY24 trading might be slightly below expectations due to higher costs and wage increases leading to a cautious outlook for H2.
- Discussion about whether the term “marginally” in financial updates implies significant issues or not, with observations on recent stock stability and market conditions.