Dominic Fisher presented his in-depth investment thesis on Dixons Carphone (London: DC) at European Investing Summit 2017.
Dixons Carphone is a retailer with sales of 10 billion pounds, deriving revenue from UK electricals, UK mobile, Nordics, Southern Europe, and services markets. Brands include CurrysPCWorld and Carphone Warehouse. Management has deep industry expertise and has in the past generated value from capital allocation. The latter has weakened following the merger of Dixons and Carphone Warehouse in 2014, as working capital has increased and the company has invested in the remodeling of stores. The founder of Carphone Warehouse, Dunstone, owns 12% of the company, giving him an incentive to maximize shareholder value, either through a combination of organic growth and return of capital to shareholders or through an outright sale of the company. The shares appear attractively valued at a forecast P/E of 7x.
About the instructor:
Dominic Fisher started Thistledown Investment Management to invest in undervalued assets with sound finances that pay a reasonable income. He has more than 25 years of investment experience, having started his career at Hambros Bank before joining Mercury Asset Management in 1992. As head of the team investing for charities he resisted the dotcom mania and the pressure to invest in a “new era”. He joined Singer and Friedlander in 2001 but left in 2002 to run his own business for three years. He then worked at OLIM, a subsidiary of Close Brothers before establishing Thistledown in 2009. Dominic is Chairman of the Officers’ Association, a charity that cares for ex-officers and head of the investment sub-committee of the Armed Forces Common Investment Fund. He is a director of Aberforth Geared Income Trust Plc. and a founder member of the Value Investors Special Interest Group of the Chartered Financial Analysts’ Institute (UK).
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