Could be good or bad for SPD. If they want to extend their substantial shareholding and make a major takeover and develop DEB to include SPD franchises, then the price they would have to pay could be lowered by the way DEB is going.
On the other hand, the value of their current shareholding has clearly fallen sharply, and that could adversely affect SPD's SP in the near term.
SPD's internet business -- is this growing as a % of it's overall business, as I noted that there is £5 charge for click and collect from the store?
Lots of competitors don't charge for this.
I saw this a long time ago though and it may have changed. It was due to this, that I never revisited the site, since the charge was punitive on some smaller value items.
If Mr Ashley cleans up on the sale of Newcastle Utd,then things could become become really interesting for the sp.He has had non stop grief off the fans from the club and the BBC Lefty brigade over SPD.He may even take the stock private and then get a real break from all the people that have tried to stick it to him.
Away the lads at brighton next game Sunday.Be good if they made the Champs league,but doubt it.Mid table finish and to win a cup for the long suffering fans would be nice.
Best outcome some wealthy folks come in and buy them,that would give super Mike lots of cash to play with.It is willing to sell,but not give them away ..................
"Seven weeks ago, high street budget sports chain LSE:SPD:Sports Direct published horrible-looking full-year results. Revenue was up, but margins had crumbled and underlying profit had crashed by 59%. But the share price is up over a third since, ..."
Mike Ashley is looking more and more like the man of the year to me.Theres never a dull moment and Sports direct sp is currently up over 33% this year.
He said at last years AGM he would turn things around "Just give us a year".
True to his word,this year to date he has been spot on.The sp has got to be worth another £1.50 for entertainment value alone.
"The issued share capital of the Company is comprised of 640,602,369 ordinary shares of 10p each. As 111,133,343 of these ordinary shares are held as treasury shares, the total number of voting rights in the Company is 529,469,026."
I am surprised super Mike Ashley hasn't got any NBROWN GROUP (BWNG).
Its a niche stock JD Williams, Jaco and Simply Be.This is the sort of stock that I thought would appeal to him.Currently up 36% this year,pretty much a good recovery play like his very own SPD,but pays a healthy div of 4.52% at todays price..............
So, buying at under 300p and sat here with a 14% paper profit in less than a year is foolish?
Making money is the game, it's binary, up or down and quite often common sense and reason doesn't play a part. Spotting an opportunity and acting on it. For me, SPD was always going to bounce given the positive news flow and the oversold position from where we were.
I'd much rather put my cash in with Mike Ashley. He backs his judgement with cold hard cash, unlike the majority of CEO's who barely hold a share, sell options as soon as they vest and draw millions in salaries regardless of success.
Is any one here actually reading the a/c?! Just for a laugh you might wish to consider, amongst others:
FX contract write back +£18.3m. Not on the face of the p&l. Tucked in the fin review with no note explanation. Significantly flatters the cost servicing debt. Oops
Unhedged $ fx hits gm%/op%. This won't unwind anytime soon. Accelerated depreciation (the previous policy undercharged for the companies assets, thus overstating 'profits'). This won't unwind full stop. Consequently h2 operating margin from retail pre exceps falls to 1.8%, which is dire. Also this indicates historic profits have been overstated. MA never takes a dy, he just received share bonuses based on overstated profits (as do employees) at the expense of the other shareholders. Arguably this is fraud. No wonder he hasn't had a FD for 3 years. Oops.
The major profit on the p&l came from the sale of Dunlop brand. With o/l brands on gm% ca 60% & 3rd party brands on gm% ca 30% this is selling the crown jewels & is v bad new for future profits/margin. Oops.
There isi no strategic use for the 'strategic assets.' This is MA gambling. Oops.
The strategic reposition is as feasible as rebranding/repositioning Lidl as Waitrose. Oops.
The derivative/fx trading is only valid if you wish to finance MA gambling again. Oops.
There continue to be payment streams to the Ashley clan. Either the Ashley clan are to retail what the Rothschilds are to banking or this is financial nepotism / aka dodgy payments.
I could go on. The above is hardlyt the full iceberg. The key issue is the real business of selling sports stuff is generating virtually no profit. If you want to finance MA's gambling addiction (sorry derivative & strategic trading) then that's your choice! But my view is hot with a barge-pole. For my part I have no holding in SD. I do however have a holding in JD & take comfort from the fact that their main competitor is somewhere between awry to imploding.
One for the very very brave or more likely the rather foolish. We shall see.
"With Sports Direct, it's always a challenge to focus on the company and not the media circus surrounding its CEO. Fortunately that's not too hard with their full year results for 2017, they're something of a mess.
The group buys its products in dollars and the collapse in sterling, combined with a complete lack of currency hedges, means its products are now significantly more expensive. That's blown a huge hole in the group's margins and, despite continued sales growth, sent profits tumbling.
That raises the question: why did the shares rise so strongly following the results? Well, Mr Ashley's plan to turn the business into the 'Selfridges of Sports Retail' seems to be bearing fruit.
The comparison with Selfridges may be overblown, but the group's new 'flagship' stores are delivering significantly better results than the existing Sports Direct estate. Displaying products in a more flattering environment may do something to heal Sports Direct's troubled relationships with the major sports brands as well.
The plan to 'elevate' the store estate isn't coming cheap, but the group is far from heavily leveraged and even in its straitened state still generates plenty of cash.
Sports Direct hasn't paid shareholders a dividend since 2010 - arguing that the money could be more usefully invested back in the business. That makes the recent decision to launch a share buyback notable, particularly since the shares are trading on a PE ratio of over 20 times next year's earnings, compared to a long term average of just 16 times .
However, our real worry is that attention isn't fully focussed on turning round the core business. The acquisition of 50 sports stores in the US suggests a trip across the pond is on the cards, and the US has been something of a graveyard for UK retailers. Added to that is an eclectic, and growing, collection of 'strategic investments' - which must surely demand considerable amounts of management time.
Combined with a corporate governance record that is erratic at best, there are plenty of reasons to be cautious where Sports Direct is concerned. "
What an absolute load of rubbish ! Do you really believe any of that or are you just trying to drive the share price back down for your own interest !
This company and Mike Ashley himself are really trying to make a difference here.
He believes in and truly cares for his company and his only fault is he is too honest in his comments sometimes. My favourite being his comment about flying to work in a helicopter shorty followed by the event where he pulls thousands of pounds out of his pocket in £50 notes while demonstrating a security sesrch amazing !
This company has been under valued for a long time and is well overdue a return to a sensible share price !
All my own oppionion of course but far more constructive than that last unfounded rant !
The a/c are awful (as is the 'strategic' reposition) with every dodge under the sun in them. I haven't quite seen anything quite like this for a couple of decades. I think there's a good chance spd implode. I've thought for a long time MA is the Robert Maxwell of our era. These a/c do nothing other than reinforce that view. Remember RM put considerable time, energy & ability into his businesses & in this sense he was a very gifted man (& MA is a gifted retailer) - but as for his integrity: oh dear! So I have no desire to be MA's junior partner. I suspect the outcome at some point will be the same. MA's body will be found circling sharks, as the RM joke went, with the end being swift & MA discovering he is friendless. These a/c beg an awful lot of questions. I rather think the larger funds will be trying to unobtrusively exit before the smelly stuff hits the fan.
Thanks for that.
Any thoughts - anyone on the BB - on the suitability / likely contribution of the new CFO, given the recent history of his last company's SP and the several years' management/mismanagement which led up - or down - to it? Especially the way specifically financial matters were dealt with?
claude reins m8,the starting a fire and the fire rises is the beginning of change in the Dark Knight Rises.In SPD `s case its good.Its a reference to the film which was released with these tag lines on the 20th July,just as the SPD`S prelims was released............
Well the shares have gone north, which is always good. I trust they have not gone north on the basis of the appointment of the CFO. I know there is always a question of being in the right place at the right time, and only being able to do what the big boss allows you to do, but the new CFO's time at UTW did not exactly push the UTW price up. This was the announcement last Oct that Jon - if I may call him that - would be leaving (on his own volition) at what had been a turbulent time for the UTW SP.
'Utilitywise plc (AIM:UTW), a leading independent utility cost management consultancy, today announces that Jon Kempster, Chief Financial Officer, has decided to step down from the Board and leave the Group to pursue other career opportunities. Jon has made a significant contribution to the strengthening of the day-to-day finance function of Utilitywise, creating a strong team to support the Group's growth, and the Board wishes him well in the future.'
When he joined UTW the SP was 180p; when he resigned it was around 120p and is now down to 68p. Bad luck or bad management?
Now he working for another headstrong top man with his own agenda. Mmm. frying pan into fire comes to mind, and also is he really the right man for the job? Hs he demonstrated the right credentials.
Perhaps the price rise today is despite his appointment or possibly because SPD has actually made AN APPOINTMENT of some kind, and has shown some growth - in sales as well as losses!
Could it be that Mike Ashley has a clever idea. I know Game only sell computer games but is there a chance that the characters in computer games could become emblazoned with sportswear adverts? Like footballers are now?
Mike Ashley has just paid 25p per share for a comapnay with equity of 75 p per share, is this purchase good or bad?
My first thought was this was done for an investmet in their property portfolio, but according to the Game annual report there property portfolio was sold of for £7.1 million and then leased back.
So why invest in a Game, not Sports Direct main product focus, only that it is a 'cheap purchase', companies are normally so cheap for a reason!
Perhaps he sees a turnaround strategy with a Sports Direct business model but for the gaming industry, I cant see trainers and computer games sold on the same properties as one doesn't go with the other but I am intrigued behind the business decision.
"Sports Direct (LSE:SPD)Mr Ashley appears anointed with similar levels of adulation the media reserve for Mr Trump, Mr Corbyn, Brexit voters, or the Scottish government. It creates a situation where we tend filter out "white noise" styles of ..."
Of all the recent news it was the IPO comments that caught my eye;
He didn't think the Sports Direct stock market float was a success
"The IPO was an unmitigated disaster," he told the court.
The 2007 stock market debut, which saw Mr Ashley raise over £900m, happened because it was the best thing for the business, he said. It wasn't necessary for him to sell shares to raise money.
"I was already fabulously wealthy. What do you think I did with the money? Went out and bought the neighbour's house? I already owned it!"
The shares fell from £3 to less than 35p following the company's stock market launch, as investors became worried about Mr Ashley's unconventional management practices - including the time he played a game of "spoof" with the investment bankers who had organised the float.
- just a reminder of how important sentiment is. £3 > 35p
As ever, I get interested under 280.
But, then I don't mind the occasional game of "spoof".
" SPORTS DIRECT (LSE:SPD) Mr Ashley appears anointed with similar levels of adulation the media reserve for Mr Trump, Mr Corbyn, Brexit voters, or the Scottish Govt. It creates a situation where we tend filter out "white noise" styles of ..."
Just some thoughts - agree that share buyback could be the ultimate way to take private. There will be some big player shareholders that will have a say in it assuming they don't get cold feet. A couple of points re trading outlook- what proportion of SPD's sales are to children: these would be relatively inelastic in tough times. Sports Direct are at the lower end of the market - this should weather any recession\uncertainty fairly well. Re hedging - you can only really hedge for so long. eg if SPD's import costs are circa now 20% higher then if it puts its prices up by 20% how much market share does it actually lose ? Eventually the whole market has to move anyway. More questions than answers I know but my view is that SPD's trading will remain relatively strong in the medium term.
Theres a rumour doing the rounds that a Chinese consortium may be about to bid for Newcastle United.If true and this happens it should be good for the sp as super Mike Ashley will have more money to invest and pay divs to SPD shareholders
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