December 27, 2017 11:29 am Good morning/afternoon, it’s Paul here.
I hope everyone has had a smashing Christmas break.
As you would expect, there’s very little news today. A couple of items caught my eye.
DFS Furniture (LON:DFS)
Share price: 198.25pNo. shares: 211.7mMarket cap: £419.7m
Acquisition – this is only of passing interest. DFS has bought 8 stores, and the intellectual property of MultiYork, a smaller competitor which went bust not long ago.
This sector is looking quite interesting, as there are several up and coming new entrants. Plus, Harveys amp; Bensons Beds are reported to be in financial trouble, due to a reduction in trade credit insurance. People often forget that it’s not just banks which extend credit to many companies, but also trade credit insurers can be even more important. If the trade credit insurers lose confidence in a company, and refuse to insure its suppliers against bad debts, then that can kill a business, as supplies dry up. An example was the original Game Group (now in a new incarnation of Game Digital), which went bust in Mar 2012, when suppliers refused to supply products due to withdrawal of credit insurance.
For me, its awful balance sheet rules…