Professor Glen Arnold

This method of valuation first examines profit after tax as a percentage of net tangible assets over a number of years to get a feel for the efficiency with which managers are able to employ shareholders’ resources. We use the historical information on returns to then estimate the future cash flows, which leads us to […]

Tandem Group (LSE:TND) reported excellent results for the year-ended December 2018 and the shares have jumped up to 180p bid, 200p offer (MCap is now £10m – up £2m since I bought and started writing Newsletters about the company a couple of weeks ago), with a rise in dividends to 4.31p for the year putting them […]

So far in this series of Newsletters I’ve described Tandem Group (LSE:TND) and that its shares are priced low relative to earnings achieved over the last ten years.  Also, financial distress risk is low, it holds plenty of cash and has a history of positive cash flow. Today I’ll outline what I know about the […]

Last week’s Newsletters on Tandem (LSE:TND) described its various businesses, and showed its share at the low price of eight times the average annual earning per share over the last ten years. A common reason for a low price relative to earnings is that the company in question faces high risk, particularly the risk of […]

Over the last 17 years Tandem (LSE:TND) has added a number businesses to its bicycle importing operation (the declining bicycle trade was discussed in yesterday’s Newsletter). In 2003 it merged with MV Sports, a designer of character children’s wheeled toys and other children’s outdoor products, such as bicycles, scooters and skateboards for the under-tens. MV’s […]

Seven years ago the selling of imported bicycles to British retailers, large and small, accounted for about 60% of Tandem’s (LSE:TND) turnover.  However, selling bikes was often unprofitable, so the managers gradually reduced activity here.  Today this part of the Group accounts for less than one-fifth of Group turnover having slipped from £17m to approximately […]

I’ve bought shares in Tandem Group (LSE:TND) for my Modified price earning ratio portfolio at £1.59. At this price its market capitalisation is 5.03m shares x £1.59 = £8m.  This company has been on a roller-coaster ride over the last 25 years, with its shares barely higher today than in 1996.  But there are reasons […]

The tables below show the performances (so far) of the shares bought for the portfolios I’ve been writing about in my Newsletters. The comments I made at the time explaining the rationale for the investment are available for you to read in older newsletters – there is nowhere for me to hide from my appraisals made […]

Coca-Cola’s share price responded well to the changes Roberto Goizueta and Don Keough introduced after 1981, rising 4-fold in the six years to September 1987.  Then the stock market crash of October 1987 brought it down by a quarter – see Figure.  And yet the annual report for 1987 showed good things happening to the […]

The 1970s were a decade in which the total return to shareholders averaged less than 1% per year. “Its empire was strung together as a loosely knit chain of very eccentric fiefdoms, affording Atlanta virtually no control over how its bottlers chose to grow, or not grow, their Coca-Cola business.”[1]  Unknown to the company, the […]