SSG - Shaver Shop Group

[System]

Shaver Shop is a specialist personal grooming retailer that has operated in Australia for nearly 30 years. There are 93 Shaver Shop stores located across Victoria, New South Wales, Queensland, South Australia, Western Australia, ACT, Northern Territory and Tasmania.

It is anticipated that SSG will list on the ASX during July 2016.

http://www.shavershop.com.au

 

[skc]

Shaver Shop is a specialist personal grooming retailer that has operated in Australia for nearly 30 years. There are 93 Shaver Shop stores located across Victoria, New South Wales, Queensland, South Australia, Western Australia, ACT, Northern Territory and Tasmania.

It is anticipated that SSG will list on the ASX during July 2016.

http://www.shavershop.com.au

Is it just me or does this smells like a flop ala Godfrey style?

I can see the headlines already...

- Shaver shop shaves profit forecast by XX%
- Investors take a hair cut on shaver shop
- Shaver shop survives a close shave with the lenders

Actually I haven't read anything about them. I just like making up imaginary headlines.

DYOR.

 

[systematic]

This 97yo reckons both (Godfrey's and Shaver Shop) are a good go...SMH article here

My headline attempt:

"Godfrey's investor cuts his losses and gets into a lather over Shaver Shop"

 

[Knobby22]

Cut throat result for Shaver Shop investors.

Norman Gunston rings bell at Shaver Shop flop.

Shaver Shop pins hopes on rights to exclusive six blade shaver.

 

[VSntchr]

With exciting competition gaining steam like Dollar Shave Club, I can't see how these guys won't have a razor taken to their margins over the coming years.

 

[skc]

Cut throat result for Shaver Shop investors.

Norman Gunston rings bell at Shaver Shop flop.

Shaver Shop pins hopes on rights to exclusive six blade shaver.

Shaver shop pins growth plans on the 12 blade shaver. Promises this really is the best a man can get.

 

[notting]

Shaver shop pins growth plans on the 12 blade shaver. Promises this really is the best a man can get.

What an absolute predictable joke. Slightly better than Big Kevs prospects were.

The only thing I have ever found compelling in the Fin Review is the cartoons and some of the pictures.

This picture is a cracker too-




Go for it ........



Float your life's work, see it get destroyed, have a heart attack and die. Oink

 

[skc]

Is it just me or does this smells like a flop ala Godfrey style?

I can see the headlines already...

- Shaver shop shaves profit forecast by XX%
- Investors take a hair cut on shaver shop
- Shaver shop survives a close shave with the lenders

Actually I haven't read anything about them. I just like making up imaginary headlines.

DYOR.

And here we go... Shaver shop trading update.

I love this bit.

Importantly, if the sales contribution from the Queensgate store and the Hair Styling category are removed from this year (YTD) and pcp, like-for-like store sales have increased 4.5% in December month to date (up to 22 December).

Great stuff... everything worked perfectly if you just exclude the bits that didn't work out.

 

[Miner]

folks
who are following SSG might have noticed all four directors have invested more than $1 M last week.
The share price dived to 50 cents and directors bought at 58 cents. Now it has rebounded at 58 cents. I was thinking it will go down below 50 cents but stepped in at 58 cents.
Something must be happening otherwise why should directors put such a high amount >
Just a punt for me but watch out.

 

[skc]

folks
who are following SSG might have noticed all four directors have invested more than $1 M last week.
The share price dived to 50 cents and directors bought at 58 cents. Now it has rebounded at 58 cents. I was thinking it will go down below 50 cents but stepped in at 58 cents.
Something must be happening otherwise why should directors put such a high amount >
Just a punt for me but watch out.

Yes I saw those and thought the share price might pick up a few ticks on the back of that. It's a thinly traded stock though so it'd be hard to see a sustained rally imo. Nonetheless, it's headline valuation is definitely not expensive <10x so anything can happen I guess.

I am not a fan of the business. It has little unique selling point, endless competition, limited history as a listed company (apparently it only made $4-5m back in 2014/15) and poor start in terms of management skills on display.

Best case scenario it's earning might fluctuates between a wide range depending on whether they get their products / promos right. But it's too early in the day to even try to establish that range.

 

[Miner]

SKC
Thanks for your well balanced posting on SSG as always.
I wonder if I should hire your services (in case you are willing to offer) and develop my own SMSF with your advise.
Mate that will be far better than those investment planners supported with so many disclaimers.
Good work

 

[skc]

SKC
Thanks for your well balanced posting on SSG as always.
I wonder if I should hire your services (in case you are willing to offer) and develop my own SMSF with your advise.
Mate that will be far better than those investment planners supported with so many disclaimers.
Good work

Miner, no I would be terrible at managing your or some other people's money. The mindset of managing other people's money is totally different. I once tried to build a portfolio for my Mum and I ended up being terrible at it. I tried to second guess myself, or what she would think, or want to take short term profits etc etc. It just didn't work.

 

[Ann]

This may be a turnaround story. Twiggs weekly Money Flow is rising, the Negative Volume Index is bullish. It has just lifted above its long term falling resistance line. Let's see if it can keep moving higher.

 

[BlindSquirrel]

This ticker has bounced nicely today!
I can't remember where I got the idea to go with this one from.

Nice call there, Ann!

 

[rederob]

I bought 10k SSG for the March 2019 dividend as I was scanning for yield late 2018 and it popped up as a big % (this was a "personal" buy from pocket money rather than through our SMSF).
It was totally speculative as I knew little about them, apart from their small footprint at the local shopping centre.
Today I read their Report and have to say that their strong yield looks close to sustainable as their online platform increased sales by 62% in the first half f/y 2020 to now represent over 17% of total sales. As online sales have a high margin, further increases in 2020 should deliver another +2cents final dividend. Even after today's price hike it is likely to deliver a grossed up yield of +8%.
Not too shabby for a stock that pretty well traded under 50cps for the past 18 months.
The other thing that attracted me about this small company is that they began through a franchising network but realised it was so profitable they bought back most of the franchises. One franchisee is still refusing to sell back, which suggests these tiny stores have no natural competitors and deliver excellent returns.
The only thing I have a gripe about is that they don't have a shareholder discount card. But I did buy this blade sharpener for half price and now replace blades every 2-3 months, so won't complain.

 

[rederob]

Big day for SSG with its share price increasing by a third at open and falling back 4 cents to close at $0.56.during the trading session.
What I definitely missed was SSG's massive growth in online sales.
I missed it because a recent across-industries sales report said that personal product sales had declined.
Clearly SSG was an outlier to the industry-wide trend.
This is a minnow of a stock, and tightly held.
Present yield is above 10%, plus franking credit.
It appears on track to outperform last year's result despite foot traffic sales being affected by COV19.

 

[Bill M]

It's pretty good Rob but can they sustain it? All the salons and barber shops have been closed for the last 2 Months so of course their sales would have boomed. But as things start opening up now the growth might slow. I bought a Wahl Clipper 19 years ago from them and I'm still using the same one. It's not like you need new gear each month. I heard on the news a lot of sales were online too, they have a presence on ebay plus they sell direct off their own website. Good luck anyway, hope it continues.

 

[rederob]

It's pretty good Rob but can they sustain it? All the salons and barber shops have been closed for the last 2 Months so of course their sales would have boomed. But as things start opening up now the growth might slow. I bought a Wahl Clipper 19 years ago from them and I'm still using the same one. It's not like you need new gear each month. I heard on the news a lot of sales were online too, they have a presence on ebay plus they sell direct off their own website. Good luck anyway, hope it continues.

All the barbers and salons at our large shopping centre have been open throughout, but I take your point.
Assuming a near return to business as usual SSG is still likely to outperform on last year.
It is too small an organisation to go gangbusters as it simply does not have the sales volumes nor margins. But it does have a niche market for now, and while it has it, is likely to be a better than average "retail" equity to hold for yield.

 

[rederob]

SSG has risen some 30% since the previous post but still shows a yield of 6% plus franking (80%).
Last market update suggested FY20 EBITDA up by 28-35% over the prior year.
Probable final franked dividend of 2.6-2.8 cents will continue to make it a reasonable investment going forward.
Victoria's lockdowns from today will impact FY2021, but given that online sales over-compensated for loss of foot traffic during the early year nationwide lockdowns it will be interesting to see if this sales channel can continue to give this minnow a further price spurt when next it reports.

 

[galumay]

I should probably have a deeper look at SSG.