Prada (1913 HK): Issues to consider
Management is talking about restoring brand to its forma glory.. As a result, Prada's share price has rallied.
But before you get too excited we suggest investors consider the following: 1. The family owns 80%, and it would appear the company is run in the best interests of the family. 2. How was the recent Fratelli deal in the best interests of investors? Fratelli makes losses and has declining revenue. 3. Prada has maintained gross margins that are similar to luxury peers - do you think these can be increased? 4. Operating margins have collapsed due to falling staff productivity - can this be maintained at the current level of sales? 5. Generous dividends have taken the company from net cash to net debt - can the company invest in the turnaround and maintain dividends? |
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Without making any recommendation about the company’s securities, we suggest that anyone interested in Prada might want to ask the following questions:
Please contact us, if you would like to become a client and get a full copy of the report. |
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Important
This note is written with the sole purpose of highlighting some issues we think are important.
It is not a recommendation to BUY or SELL any of the securities mentioned and should not be taken as such.
Readers should form their own opinions about the company and seek appropriate advice.
Please read the Bucephalus disclaimer.
This note is written with the sole purpose of highlighting some issues we think are important.
It is not a recommendation to BUY or SELL any of the securities mentioned and should not be taken as such.
Readers should form their own opinions about the company and seek appropriate advice.
Please read the Bucephalus disclaimer.