Leisure company - will definitively grow and leisure is increasing. PLEASE UPVOTE
Bump. I think this is a great looking stock. PE ratio looks ok - dividends 2.6% and growth has climbed steadily and everything looks very good on the financials side with low borrowings.
Would really like to dip my toes in this one.
It’s live on the app today - check it out!
Please add Hollywood Bowls to your list.
It’s already on Freetrade.
I think this company is buy for me now. I just have to wait until my next paycheque.
They have been cost cutting and securing support from lenders due to the virus:
- No interim dividend
- Pause on refurbishments
- Extended revolving credit facility by £10m
Monthly cash burn has been reduced to around £2.5m. Peel Hunt believes this should leave Hollywood Bowl with enough liquidity for a year.
Anyone bearish that wants to change my mind?
When are gatherings going to be allowed? August? Then before you realise it we are back in winter in time for a second wave? Is the stock likely to grow more than what you could get elsewhere between now and the end of the year? It has recovered from 70 to 150 down from a high of over 300 so the bulk of the recovery is done. I can’t see it reaching 300 for a while and 250 would probably quite an achievement given that it will be making a loss for 2020 and would have no guarantee of a profit for 2021. I expect in a recession entertainment trips will fall, so it will have less customers if it could open.
However, it has good profits historically when it could stay open, plenty cash in the bank and low borrowings. Good company, but I would wait until it dips again for the sole reason that it will definitely have to close again if there is a second wave. With the awful earnings and economic data due out there will be another dip yet.
This is on my radar. if it dips below 100 again I’ll probably jump in with maybe a 1% holding.
I reckon bowling spaces are perfect for any kind of germs and viruses to spread. Everything is greasy and people are in small groups next to each other in an air conditioned environment. The next year 2 years will be tough for non-essential businesses. How many will survive? The landlords would be happy for Tesco Express and Sainsbury’s Local to take over anytime.
I’m going to miss bowling.
I hope I’m wrong.
Tom and Jerry is a violent cartoon.
Yes, I will want to see when restrictions are lifted and keep my eye on other countries too. I do think BOWL is better placed than most though.
They are probably generating next to no revenue and it may remain like this for many months. If they never secured Airbnb-like funding, good luck to them because liquidity is everything .
I will also be investing in this stock next week, looks strong. Not the best environment right now, but every company is in the same boat, and all will get the same relevant government help if necessary.
What makes you conclude that every company will get the same government help? That is a guaranteed impossibility. The UK government will not be backing up entertainment facilities; crisis or no crisis. Airlines perhaps, banks yes. Not bowling alleys. If I do invest as @engineer cautions it will be later on in the year after reviewing the pandemic impact across the world as well as obviously its price. Note Cineworld; CINE - which even has a very similar share price pattern, but they are on the ropes because of a weak balance sheet and haven’t see the partial share recovery that BOWL has.
I don’t think think @Iamaepicki meant literally the exact same help. He said “relevant”. Not to nitpick.
Companies like this are also somewhat important for the population. They might qualify based on certain criteria. Or not, that’s a risk! But we can reduce our risk by researching what the company and the industry it’s in has been promised by the government.
CINE is a great comparison.
Well done to everyone that bought at 70!
Whats everyones current sentiment on Hollywood Bowl? I’ve got a small position in them and thinking of topping off, now they have fallen off recent highs.
According to IC, like-for-like turnover rose by 8.6%, against a growth rate of 4.4% for the corresponding period in 2019.
COVID had some impact of course. Free cash flow plunged 50% to £5.2m, largely due to the £3.7m in lease interest payments, while the roll-out of the new ‘Pins on Strings’ system pushed capital expenditure up by 24%.
The monthly cash burn of £1.2m versus estimated liquidity of around £35m.
Peel Hunt forecasts
- full-year 2020 adjusted pre-tax profits of £8.1m, growing to £18.4m in 2021.
- and and EPS of 4.3p, rising to 9.5p in 2021.
Anecdotally, I actually look forward to going there. Not sure that matters. Lockdown got the better of me and can’t wait to decompress.
Source of the data is this article.
Too risky to buy given the second lockdown will put this company and other companies into a second fall. It’s all about generating income and I don’t see that happening too soon or in the future.
Yet if we exclude the covid19 impacts, then fundamentally this is a great company to buy.