Sunday Long Reads: Death of a Sherlock Holmes fanatic, Islamic State family, Monetising Nothing, Bad Electric Vehicles, Boat Accident
There is more fun this morning at Dignity (DTY) I see. Just under a month ago HERE, I wrote about the funeral related service company that its ‘underlying profitability is still sharply down as the heightened competitive realities continue to impact’ and the share ‘remains a strong avoid for me’. Since then the shares have been either side of 650p and are little changed this morning after the announcement of a ‘Response to statement made by Phoenix UK Fund Limited ("Phoenix") on 12 April 2021’. So what is going on?
Back in August I observed the Competition and Markets Authority giving funeral operator Dignity (DTY) a bit of a free bus pass. Back then I was wholly unconvinced this had changed the investment story sufficiently to warrant the share price romp that occurred, observing that 'it feels to me as if another shorting opportunity is building'. Well if you had got your timing about right that would have worked out pretty well, with the share peaking at just over six quid after the update before falling about two quid in the subsequent few weeks. Good darts if you are smart. I kind of feel that an akin opportunity is building again...
You have probably already figured out that I am not a great biblical scholar, but reading the thoughts of the Competition and Markets Authority (CMA) on the funeral sector today reminded me of the words of Saint Augustine who recounted that he would pray - in his earlier days - "Lord, make me chaste—but not yet." I do not want to come over as aggressively harsh so I will presage these thoughts with the observation that everyone impacted by the health consequences of the pandemic has my sympathy. However, the CMA has fudged its in-depth market investigation into funeral services in a major way - to the detriment of the average consumer - by citing the pandemic as a reason not to be fiddling with the sector at this moment in time...
You all know I have been bearish about funeral provider Dignity (DTY) for a long time, from my inaugural January 2018 posting as the shares fell from a teens quid share price here noting that the bottom of the page is not the bottom of the chart, to here back in March where, with the shares having a '3' in front of them, I switched to a 'popcorn' rating. Since then the shares have fallen further and now trade with a '2' in front of them. I should have continued listening to my own advice: the bottom of the page is most certainly not the bottom of the chart. I do have to give Dignity some credit with reference to today's update...
Unless a company is going bust, there is a point in most sells or shorts where even the sceptic has to admit that everything is priced in. Typically this happens when a company comes out with an update which is far from tremendous but the shares go up. Which brings us to Dignity (DTY), the funeral provider which I last wrote on in July – observing 'I seem to recall being hassled at the ten quid level by people convinced of value here. Dignity is not going bust but it is a changing world in the space. I am still avoiding it'. Today's update had its good and less good aspects…
The last time I wrote about the UK's largest funeral provider Dignity (DTY) back in March, I observed 'we cannot buck death...but you can continue to avoid Dignity's stock' due to all the challenges facing both the company and the sector. Today's first quarter update makes for continued grisly reading and - as I write - the share is down a further 6%...
Fresh from a brief trip north of the Watford Gap - from which I somehow returned without any obvious injuries or ailments - I see that my old pal Dignity (DTY) has puckered up another news update...and it confirms that life for the UK's only listed provider of funeral related services remains very difficult...
After a couple of days having a few business meetings in The Promised Land it is back to the reality of the UK market...and a basic observation that we all know about competition in food retail but we are all still learning about competition in the business of death. And you know the stock market really, really dislikes unanticipated extra competition…
Now this is what I call a proper 'earnings Thursday'. I will not have to tell the learned readership here that the quote above comes from Aristotle and it flickered through my mind as I read today's regulatory missive from the Competition and Markets Authority (CMA) on the funeral sector…
Funeral company Dignity (DTY) continues to fascinate me...as a slow moving car crash. The last time I wrote on the stock HERE I concluded that ''I am still watching not investing. This one feels as if - again - it is going to go lower" and this still feels the case…
Oh Dignity (DTY). After last week's shocker – commented on HERE, following the announcement of the CMA funeral sector review, today's AGM statement from the UK's leading funeral related services company continues to be desperately mixed...and the rationale for owning the shares remains buried below the harsh realities of a sharply changing industry.
I noted in my last write-up on under pressure funeral operator Dignity (DTY) that in its last earnings conference call they wished they could be more precise about future prospects. Well all the coffins are in the air again today as the Competition and Markets Authority (CMA) has announced 'a review into the £2 billion funerals market to ensure that people are not getting a bad deal'. Ouch.
I have never had as many comments to an article as my piece on Dignity (DTY) back in January. It was a very good debate as picked up by Tom a few days later HERE, and different readers have very different views on the stock. The reality is we are back to around where we were - just sub 10 quid a share - after the shafting the company took after its 'we need to cut the prices of our funeral plans' comments back in January after today's full year numbers.
If you listened to my bearcast of yesterday you will be in no doubt that I am aa big bear of Dignity (DTY) based on some simple maths. I take my hat off to a ShareProphets reader (Buy100ozSilver) for his maths in our comments section. His ( or her) post merits a wider audience.
As the old saying goes there is nothing guaranteed except death and taxes. Funnily enough I rarely have seen the announcement of a 25% cut in a product price helping a share price either...and that brings us to the large UK funeral operator Dignity (DTY).
Hello Share Scrimpers. Being a sensible sort of chap I do not have any life insurance. There is no point in an investment in my death, as I will get no benefit from it. True, my family would, but who cares about that? But my death fascinates me a bit. As a Christian I expect to carry on regardless in another life, but that is a different consideration. I’m getting round to looking at investment in Dignity (DTY) a share I’ve avoided researching in the past, probably out of a fear of dying as I approach my three score years and ten.
AIM listed Funeral homes group Dignity (DTY) is one of those companies whose shares always look expensive, but then always seem to head higher. You always kick yourself for not buying the stock, after all we have an ageing population and so death ( like taxes) looks a sort of one way bet. As it happens, that is not the case. At a share price of £11.02 the company is now capitalised at £603 million. Is this justifiable?
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