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

Lump this stock in with Heywood Williams ( building accessories) and you have a belweather for the home-improvement/construction markets.

Unfortunately these are closely linked, mostly by the jobs-market and general fear.

I suspect this will fall further, at least until sales pick up - and - I guess most women will prefer to wear some new item as "feel-good" long before they suggest hubby strips the Bathroom, creates dust in preparation for new wall-tiles.

Unfortunately for tile-sales the product lasts nearly 100-years, so there is little in the way of "repeat-business" - hence I suspect they could use smaller outlets, reduce overheads, stock, etc.
However, Topps has always been ahead of the pack, so this is likley to be the first to benefit from any up-turn, provided they can stay the course.
- 25p soon, I fear...

split the difference say 20p would be fair value I am not impressed with Topps stores small and badly laid out.

22p now and I reckon 15p before Xmas they are going the same way as DSGI imo

Either it will go bankrupt or be taek over by a bigger tile company.

Mitzy, - a bigger tile co? Not aware of one, although some Spanish Co's must be - but, by doing nothing, (if Topps goes), they'll have whatever business they like, better to wait for Admin and pick the bones over.
HOWEVER, I'm not aware that Topps is heavily in debt - is this the case (ie payment for the Store-expansion)....weren't these profitable from Day-1? If so, then they've had quite a few years to repay....hence the high sp prior to the general Market-fall . . . . need to look at the detailed Accounts. Do you hold?

Today's Ann indicates Debt has been negotiated until 2012 and whilst at 92m it is high compared with the sp, that is "Markets"...the historic sp being much greater. So, what do you think?

Hi hangon.

I remember saying in January when the sp was 80p that it would fall to 20p by the year end so I was right there its the debt that worries me thats why I think it could fall to 6/7p .. perhaps a Spanish co will bid for them at some point..

I still hold these and sat on a large loss, hopefully the following extract will give some support :-Despite cutting their profit forecasts, analysts at KBC Peel Hunt reckon Topps Tiles has the potential to halve its net debt over the next three years.

'We believe Topps Tiles would still generate cash at a like-for-like sales decline of 27 percent, a point which gives us tremendous confidence in the outlook for the business,' they told clients in a note.
2517

Thanks folks, I wonder if Mitzy is right (and wrong at the same time)...?
Right that it's the Debt...despite Co telling us such things are OK
Wrong that it not the "debt itself", rather it's "the Banks" that find themselves unable to keep promises...they will recall a Loan at the drop of a hat (er, so it might seem).
It is this "uncertainty" that makes the Debt a problem, not the "Debt" itself.

Er, if that's clear...?



2517George, I'm not sure that 27% decline is spot-on ...odd number isn't it? I suspect that turnover is not the issue, rather it's Profits - and these are "made" on the little bit extra - so I suspect "profits" will suffer far more than sales decline,,,,and it will be this figure that Banks focus-on . . . .hence some shareholders are ahead of the game. Sorry to read yr loss, - if you believe in the Co (regarding the Debt reality), I guess you need to blow 10% of yr investment at "the bottom" which has a huge effect on yr Average.
I suspect it will be a long time before we see the peaks of 2007, when the Market was trying to deny things were bad....er, IMHO.

EDIT 27/28Nov08) Director-buying at 18-p ish up to 650k-worth. Well I don't know what this means - has the business suddenly found a whole wave of new customers?
Still, it shows these Directors are well-paid. These Buys have raised the sp 25% from an all-time Low . . . . . . . Currently 25p.

IC said sell on Friday and the shares go up.. best contrarian signal ever..

Big buys coming through time to buy I think

Always works..the minute IC say Sell do the opposite it works everytime..

Target 28/33p.

What supposrts this notion?
There will be plenty of time for this to fall sub 20p- before the customers come back in sufficient numbers to repay the rental costs....etc.

Nothing but a short term bounce this week I am betting they will be bought up by a larger company sometime in the future.

Moving in the right direction .

15% up today whats a reasonable take-out price 40p I believe.

mitzy - is this yet another stinker at which you intend to throw your dosh?

Hope not cynic I'm in @20p so a profit here also Pure (in @110p) now 160p and more to come.

I 'm also buying gold stocks.. POG for one..

Plenty of stinkers about I agree.

glad you got in at 20 and not at some silly much higher price ..... POG's little burst for glory suspect due to inclusion in FTSE gold mine index

what is PURE? ...... only know that as being the name given to fresh dog shit that was collected in victorian times for use in tanning high grade skins for gloves and similar!

I'm just a bottom feeder cynic..lol.