Sports Direct Share Discussion Threads

[discodave4] 12/10/2016 15:23

BullWouldnt disagree, just don't agree that now is the "perfect time".DD

[bullorbear123] 12/10/2016 13:57

DD that sounds like a load of doom and gloom there! perfect time to buy then!. I like your comment as its got that classic end of bear market tone about it. Definitely a recovery play from here now then IMO.

[discodave4] 12/10/2016 13:25

Underlying EBITDA, eps, gross margins are all falling, that's ex growth IMO.The buyback is a positive but can't think of anything else that is in the shorter term.If your in all the best, it takes two opposing views to make a market.DD

[che7win] 12/10/2016 13:17

Disco, It isn't ex growth, it's rolling out stores, for instance a new flagship store in Belfast.It's also taken control of Heatons, giving them a presence in Ireland.The buyback will mitigate some of the set back this year.

[discodave4] 12/10/2016 13:05

SPD isn't JD, not anywhere near.JD is a growth stock and operates a completely different business model.SPD has falling earnings and profits and is ex growth.Besides all the bad pr, lack of a CFO, lack of governance, no adequate fx hedging, etc etc, this will not IMV receive the same rating as JD, hence my estimate. If you could provide your reasoning as to why you think this is worth more than 288 then would be interested to hear your views.DD

[che7win] 12/10/2016 12:32

Your post makes perfect sense....not:

JD Sports is on a forward PE of 20! If SPD were similarly valued, this stock would be sitting at £5!!!
I reckon SPD may pick up some business from JD if consumers become more price sensitive.

[discodave4] 12/10/2016 12:28

This is still over valued IMV.I make forecast eps about 24p. PE12 so fair value IMO is about 288.Will wait for this to settle down once day traders have had their play and hopefully pick some up around 250.DD

[bullorbear123] 12/10/2016 11:41

I on the other hand don't think he could get much better value then right now. So it wouldn't surprise me if he was thinking about it. Just because, I don't think there is much left in the $/£ to the downside and that the business is already looking cheap especially compared to JD. Two things that probably wont come around again.

[nortic 007] 12/10/2016 11:36

True but then he can manage the business without having to answer to shareholders plus he can then create value of which he can take all the benefits which is more than his current 55%.

[bookbroker] 12/10/2016 11:30

Why would he take it private, I do not know their hedging policy as regards $ for stock, and the EURO for their european business, but margins are definitely going to take a hit, this could go lower before materially higher!

[bullorbear123] 12/10/2016 11:21

Bigboots could you point me in the direction of where there is information on that story doing the rounds and also on MA denying it?

[nortic 007] 12/10/2016 11:10

Thanks for the heads up bigboots. Still thinks it's an option for him over the next 6 months. Closed period starts on October 16th.

[bigboots] 12/10/2016 11:04

There was a story doing the rounds that MA had teamed up with Cinven to take share price private, hence the rise yesterday

Denied by MA today,

Need i say more

[nortic 007] 12/10/2016 10:47

I don't disagree with you Festario. I just find it very annoying .I think Mr Ashley will come good in the end but the Chairman has to go.

[festario] 12/10/2016 10:43

Indeed, I never expected such a large fall today, and it's still falling. However, it's still a good investment case at this level.

[bigboots] 11/10/2016 16:22

Mikey babyyyyyy

[warranty] 11/10/2016 15:57

Seems an absolute bargain to me at this price and I'd bet on Ashley to quickly pull this one round again once the spotlight's off the company.

[bolador] 11/10/2016 15:06

Festario, good man. Early I hope !

[festario] 11/10/2016 14:42

The reality that it's badly oversold, some funds are buying this now, so I did too.

[blackbear] 11/10/2016 14:38

What's caused this big rise today?

[bolador] 11/10/2016 10:41

badwood

The old Aurora is gone, the Phoenix team took it over. Have a look at Phoenix Asset Management performance and you will see the point of having a look at Aurora. The new portfolio reflects their understanding of value. They do understand..

At 276 I am happy to take a position in SPD on a follow my leader basis alone.

[martinthebrave] 10/10/2016 21:35

badwood, thanks for the reply. They did say that they were invested for "long term" deep value!!

[liquidkid] 10/10/2016 14:02

Rumour from the city is that it was a MA account that was playing FX and got burnt overnight. MA either switched the losses over to SPD or there was some dark FX contract with SPD which favors him personally in a black swan event like this. Either way they should have been concentrating on their sock picking sock selling machine than fooling with binary FX options.