French Connection Share Discussion Threads

[bamboo2] 31/10/2013 07:54

Would Marks sell the whole business or split it up and if so what would he keep?

Volume and share price rise from yesterday all very positive.

[loafofbread] 30/10/2013 10:32

I did notice a late trade last night of 1M @34p.

Assume from Friday when the fun started.

[bamboo2] 29/10/2013 09:56

Thread FXD has an interesting FCCN chart.

[minky] 29/10/2013 08:12

Even so, that is a lot of buying volume in the last 2 days compared with recent history.

[frenchfry] 28/10/2013 22:55

Other than a large amount of cash in the bank, there is little to rate this as a compelling growth stock: the latest results barely dented losses of around £6m, and I would have expected a "new" management team now in place for a year to have had a material impact upon performance by now. Well, Mr Marks has reduced stock levels,there's a start!
I prefer to look at a comparable high-street retailer,Moss Bros: cash-rich, innovative, growing and,yes profitable.
The Fccn share price rise strongly suggests the speculators have got ahead of themselves.

[dewtrader] 28/10/2013 17:51

yeah all superdry

Supergroup Q2 trading update on 7 Nov. Its going to fly imho

[bigboyo] 28/10/2013 13:24

Hi Paul,

Unless the lease specifically prohibits keeping a shop closed I can see no reason why a shop cannot be left empty as long as the rent , rates and utilities (inc security) is being paid. What was your experience of this when scanning lease documents ?

As far as subletting goes, this defrays part of the rent (even if you get 50K and you pay the other 50K you save on all the other costs like staffing etc) so in effect your half a million loss could be cut to maybe 100K loss ... far better and it has an immiedate effect on cash flow.

Mr Marks has to play hardball.

I was amazed at the share price but took the opportunity to offload a fair chunk. I am looking to get back in on drifting and have a limit order in already.

[paulypilot] 28/10/2013 11:36

Hi bigboyo,

I don't think you are allowed to leave a shop empty, unless you're insolvent.
So this is where FCCN's financial strength actually hampers it - because landlords know they have got the cash, so insist on the full rent. Also landlords won't usually allow a financially strong tenant to assign the lease.

Subletting is one idea, but you'd have to accept a far lower rental than what you're paying, and again I think the landlord would have to approve any subletting. So it's a big problem when you end up in an uncompetitive lease.

Over time though, those issues will resolve themselves - as the problem leases gradually expire, you just hand them back to the landlord. Also, the rents are fixed, so over time, compound inflation should also make a dent in excessive rents.

I'm amazed at the shares shooting up so suddenly on Friday afternoon & today. Maybe the market is starting to realise that the company has a good chance of turning itself around, and has enough cash to survive?

Cheers, Paul.

[bigboyo] 28/10/2013 10:00

Paul

In your analysis costs other than rent and rates are 220K so vacating the shop and leaving it empty loses you 220K less per annum.

So surely its better to take a small upfront hit (redundancy etc) and close the shop and leave it empty OR sub-lease it as long as there is no restrictive covenant. Most shopping centres do not like empty shops and Marks needs to play hardball with the property owners.

[mr_bluesky] 28/10/2013 09:31

dewtrader:

I would'nt keep mentioning FCCN on CR's main thread as he set up a FCCN thread in Feb 2011 when the price was 130p saying it was one of the best recovery stock around at the time.

It fell all the way down to 20p.

It brings up bad memories for him ;(

Mr Bluesky

[idomeneo] 28/10/2013 09:19

This rise certainly isn't sales driven as they are lamentable. I assume the ranges for next year haven't been announced yet so can't see this going much further without either press comment or a big announcement about store disposal or Marks-led buyout (which would seem unlikely).

[mr_bluesky] 28/10/2013 09:08

FCCN has broken out over that important resistance of c.40p.

I will wait to see if it holds towards the end of the day and buy in just before close.

Mr Bluesky

[dewtrader] 28/10/2013 08:49

or might tumble if they say there is no news

[loafofbread] 28/10/2013 08:45

Must be a statement due?

Marks taking it private or a deal on a chunk of shops.

Long time coming.

[dewtrader] 28/10/2013 08:39

42.75-43 what a breakout

[safman] 28/10/2013 08:38

Post 2339.. thanks for that..

saffy..

[dewtrader] 28/10/2013 08:10

FCCN flyingf

[bamboo2] 28/10/2013 07:56

re, "big gap towards 60p then £130"
I suppose anything is possible. :)