Financial Trading Blog
Stock of the day 13/06/2016 – Poundland Group PLC
Since it announced its 99p Stores-takeover last February, something that initially sent the stock to all-time (£4.20-testing) highs things have gone decidedly wrong for Poundland. By the start of 2016 the stock was hovering at a an all-time low of £2.08, something quickly bested by the end of the first week of the year as the company posted a third quarter update distinctly lacking in Christmas cheer. Sending Poundland nearly 13% lower in one day, and leaving it circling £1.40 by the beginning of February, that update saw the high street retailer warn that full year profit would be lower after failing to get the ‘usual [Christmas] hike’, in part thanks to ‘depressed footfall’.
(Source: IT-Finance.com 13/06/2016)
A brief recovery in final fortnight of February, with the stock tickling £1.80, didn’t last long, and across March and the first half of April Poundland trickled back towards its February lows. That decline was compounded by the company’s year-end statement, with Poundland posting a whopping 4.9% fall in like-for-like sales across the second half of its trading year. News that plans to convert the remaining 99p Stores was ahead of schedule failed to compensate for the sales dive, with the stock at one point hitting a fresh intraday all-time nadir of £1.30.
Luckily Poundland didn’t linger at those lows for long, with a sharp rebound at the end of April allowing the stock to bounce between £1.60 and £1.80 across most of May. Poundland sits at a current trading price of £1.62 (IT-Finacne.com, 13/06/2016).
In terms of its full year figures things are expected to be pretty ugly for Poundland. Annual pre-tax profit is forecast to plunge 89%, from £36.2 million to £4 million year-on-year, following that huge fall in like-for-like sales across the back end of the fiscal year.
Poundland Group PLC has a consensus rating of ‘Hold’ with an average target price of £2.06.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
