Debenhams Share Discussion Threads

[ltcm1] 26/10/2017 13:05

Simon thanks for results plus interesting graph Kazoom.

I don't buy any of this short interest stuff because no one knows if the positions really are short. For example you don't know what these guys are doing on the options market, they could be taking the opposite side there. Or it could be part of a pairs trade, say short Deb long M&S. It could be anything.

Edmund you sum it up well. All I would add is Debs has been on a downward trend for a long time and they have tried a number of these initiatives before. However it is a good brand and there is something there to build on. This might be the time things come good.

GLA.

[justiceforthemany] 26/10/2017 13:02

Dividend covered 1.9x even with reduced EPS of 6.4. More than enough cover.

[edmundshaw] 26/10/2017 12:28

44% decline in profits is 44% decline in headline profits, as already signalled in the last update, due to the cost of the changes Sergio is bringing. If you read all the results commentary, you will see a lot of positive signs and management actions that give good potential for future growth. Standing still was not an option.

And that potential is not being valued as yet by a cautious market with a cautious stance on retail and the general economic outlook. Indeed, even current trading is not being priced in, just a long decline or a risk of a sharper one.

As to how you estimate the risks and the potential, each to his own. But on balance I personally still think this is undervalued by at least 30%.

[qantas] 26/10/2017 11:48

New target price

Latest broker views 58 pence per share.


Date

Broker

New target

Recomm.


26 Oct Liberum Capital 58.00 Hold

[qantas] 26/10/2017 11:04

creddy

Best to cut your loses and move onto your next target so boring all this rubbish talk.

[creddy] 26/10/2017 11:01

if it hadn't been for dividend being maintained this would have tanked this morning. its not covered twice over anymore. thought it was a good punt for the yield but that's now likely to be offset by capital depreciation.

[qantas] 26/10/2017 10:49

Simon not the saint.

So sorry you are in such a bad place at the moment.

Move on to your next target..

[simon templar qc] 26/10/2017 10:38

The market not a bit impressed imo. For those that wait for the dividend it may be reflected later on with a sharp fall going x divi.

Profits going down year after year!

[niggle] 26/10/2017 10:31

I see you are all still bickering. 44% decline in profits and 59m profit. Good luck with that 7.5% 'dividend yield'

Intangible assets up £29.8m to a smidgen under 1Bn.

1Bn of 'intangibles'

Good luck all.

[stud-muffin] 26/10/2017 10:00

Results pretty much as expected - mostly good with the caveat around H2.

Press comment looks to be favourable.

As always with retailing its all about Xmas - again I expect that to be OK - not great but as planned - no big stock write downs.

Personally I believe SB will win round the City and the shorters will reduce over the next few months. I watch the Short tracker closely - Odey is a fool so his bets are just that, Blackrock however are much more shrewd - when they significantly reduce the share price will head back to 70p plus.

AIMHO.

[essentialinvestor] 26/10/2017 08:54

At least there is a more realistic approach to physical store estate
management.

[edmundshaw] 26/10/2017 08:49

Simon, I see you are in the market for a new crystal ball. I know of a second hand one looking for a good home, a bit cloudy but uncracked and with just one careful lady owner...

[ny boy] 26/10/2017 08:13

Buy those dips Sir, including Simon not the saint Templar, nor QC

[chinese investor] 26/10/2017 08:13

Glad I No Longer Hold !

[qantas] 26/10/2017 08:05

Simon not the saint Shorters still have to buy back at some point and this will have a very positive effect.

Please do your own research

[simon templar qc] 26/10/2017 07:57

But I don't profits after exceptional items slashed over 40%.

Dividend held good luck with that, we will see what city think.

[edmundshaw] 26/10/2017 07:55

Really pleased with the improvement in mobile sales. "Our partnership with Mobify and Sapient Razorfish to develop a progressive web app has already delivered a step-change in our mobile site, significantly improving speed and responsiveness. In the first three weeks since launching, conversion rates have shown a double digit percentage point improvement." A great, positive approach to the new electronic shopping reality.

Nice to see two stores already refitted or being refitted and re-ranged for its catchment. That is smart new management.

Planned store reductions and closures showing Debenhams is not completely shuttered in by long lease commitments.

I like the cut of Sergio's cloth...

[ny boy] 26/10/2017 07:53

Happy the divi has been declared 7%+ pa tks

Looks like they are on track with some interesting new Developments,online Sales greatly up too.

Stores closing are in secondary unimportant places, about time these were closed anyway.

Simon not the Templar nor QC ...how do you keep getting it so wrong🙄

[justiceforthemany] 26/10/2017 07:52

Full price sales up 2% also.
FINAL DIVIDEND 2.4P 8TH DEC Ex-Div.

[simon templar qc] 26/10/2017 07:41

Good luck all the market will decide.

[simon templar qc] 26/10/2017 07:39

Store closures:

"We announced in April that we had undertaken a review of our UK real estate and that as a result we had identified up to 10 stores that could become unprofitable over time and would be reviewed for closure. We have today announced the closure of two UK stores, in Farnborough and Eltham. These stores will cease trading in January 2018."

[justiceforthemany] 26/10/2017 07:39

Shorters pulled the share price down too far. P/E should be minimum 10 which means share price of 64p.

[justiceforthemany] 26/10/2017 07:38

Great results. P/E of just 7, dividend of 7.4% and 2x cover. EPS 6.4P. FINAL DIVIDEND ALONE 2.4p YIELDS OVER 5%. LFL UP. Debt DOWN.

[justiceforthemany] 26/10/2017 07:34

DIVIDEND MAINTAINED!

[libertine] 26/10/2017 07:31

Simon Templar QC
25 Oct '17 - 17:10 - 2470 of 2475 1 1

Dividend unsustainable on falling like to like sales so say shorters too late now.

My forecasts:

-Like for like sales continue to weaken.

-Final dividend cut or passed.

-Warning of exceptional costs.