Stockdog,

What do you think of the latest results??

I thought they were ok. Quite positive outlook from the Company!!
The retail sector seems to be improving. Like-for-like sales figures still down from '04 but then again that was going to be very difficult as 2004 was an exceptional year!
One point is that as long as nothing nasty happens in the High street, the next set of results can only look positive compared with 2005...!

The Gross margin is improving which is important + store openings are going ahead as planned so maybe 2006 will be a great year for Topps Tiles!
.....and as was hinted in the press, Topps Tiles might well become a Takeover Target within 12 months.

If that's the case, what's a reasonable Takeout price in your opinion?? 3-3.50?

Thanks for replying.

Oddie

Indeed 2517GEORGE -

From THE TIMES today:

"Topps Tiles put on 10p to 220p as a move into positive like-for-like sales at Carpetright, off 13p to 10.88, prompted Evolution Securities to repeat its 245p target on the tile retailer. Nick Bubb, analyst, notes that Carpetright trades at a 20 per cent premium to Topps, even though the formers 30 per cent market share in the UK gives it less room to grow than the latter."

TPT is the recovery play for 2006 according to many analysts, brokers etc...

Good luck to all & well done to those who had faith and held tight through the turbulent times!!

Oddie

Hello all.

I've noticed that both AXA and FIDELITY have recently bought a sizeable stake in Topps Tiles.

At the current price, 225p, it is too cheap, it's obvious, and the broker's 245p target is too low I believe.

If you compare TPT to Carpetright, it's trading at a big (and unfair) discount, so I'm wondering if a re-rating is on the cards for TPT?

A takeover story would not be too bad either....

Any ideas?

Oddie

Thanks for replying.
p.s this board has gone quiet...

Oddie
I have also noted that there has been far more selling than buying over the last week or so, but the sp is solid around 225p.
2517

Break through today above the 230p resistance on trading update wihch seems to be well accepted by the market. More tomorrow?

Hopefully stockdog. The news on first reading didn't look overly good but a broker upgrade and rising sales line was enough to break through 230p. I think there may be a little bit of profit taking but I also think we will reach the 250-270p range of this thread title by the beginning of the summer.

Hope so, queen1 - my small up s/b was triggered by rising through 232p first thing, a couple of pence clear of the resistance line (the immediate retracement was a bit hairy, but we seemed to make it through the day OK in the end). Here's hoping I don't get stopped out before we hit 270p.

Fingers crossed!

Well we've entered the bottom of the range for the tread title (250p). Where to now I wonder?

And does anyone have any views on the 54p per share offer?

Topps Tiles reports modest progress

Topps Tiles said it expects its first-half pretax profit to be about 18.3 mln stg against 20.3 mln a year ago. The UK's largest tile and wood flooring specialist expects operating profit for the 26 week period to March 31, 2007 to be about 21.0 mln stg compared with 19.5 mln in 2006.

Overall group revenue is expected to be in the region of 101.8 mln stg, up 14.9 pct from last year, despite a continuing tough retail market, while like-for-like sales are anticipated to be up 4.4 pct.

Topps Tiles added its current period overall revenue reflects, for the first time, the revenue from the Dutch stores following the acquisition of its joint venture business in October.

The company also said its executive chairman Barry Bester will move to the position of non-executive chairman with effect from October 1.

Although down 1.75p I believe TPT has gone ex div today so a reasonable day for them, so far. I have been increasing my holding over recent months at these depressed levels, at some stage retail will be back in vogue, but maybe not until 2009. I'm content to wait and look forward to the decent dividends until the sp appreciates.
2517

Well after a promising start due no doubt to a favourable comment in the FT over the weekend TPT ended in the red, my top-ups were @ around 30p above the current sp so looks to have been much too early. Right across the sector prices are as low as they have been for years, and with good reason, but at some stage retail will recover.
2517

May be this is the start of that recovery, in the main retail is stonger today.
2517

This is quite some rise, any ideas.
2517

Dropped back to 140 ish from recent spike up to 170p (no idea why it shot up, has anyone else) and seems to be on the move again, maybe somebody stake building perhaps?

I thought of going onto the 'Talk to yourself thread' but looking at the posts it seems I'm already there. Ha! Ha!
2517

2517GEORGE
You still on these starting to look cheap.

Hi driver------yes I am, in fact today I purchase more through my monthly sharebuilder account with halifax, this will be the 7th month running I have bought them @ prices from 195p down to whatever today (falling knives spring to mind), I prefer (pound cost average). Retail is dismal atm and will be for some time to come, but nothing lasts for ever and when it turns I hopefully will reap the benefits. They do look cheap and decent divi still, but other than slowly climbing back to 85p-90p I don't see much improvement.
2517

Several directors thought TPT were cheap, picking up around 5m shares between them @ 75p each.
2517

Directors havve "probably" done the right thing, although I expect sp to fall further... as Retail woes abound.
- I think averaging down is a bad policy - far better to hold and watch, pouncing at a Low! ( that's if you can't bear crystalising a Loss, better to Sell part-way down, say at 1 when the writing was on the wall)....by share-building as you reported, you are creating a large holding that's increasingly overpriced. It will be years before your (average sp) is covered, since any sales are treated as those last purchased (Tax Rules)....so you pay the greatest Capital Gain. ( keep below the allowance!).
The advantage of sharebuilding is illusion - it suits Halifax because they can lend out your stock for greater profit. ( but check this aspect)...also you are paying more commission, I'll bet.
Topps is a well-operated business IMHO and I used to be a holder at abt. 3 some years ago. There seems to be a branch in every major town. However, as credit crunch affects folk, new tiles are not top of their list. Better to buy children their toys, then tv, computers and family cars - after that it's Tiles and Holidays, I guess.

I think this has got another 15-20p to fall...