French Connection Share Discussion Threads

[tomboyb] 26/3/2020 12:39

Online there are 37.5k shares at 4p -

Horrific spread though and at a 3millish cap for French connection -

[tomboyb] 26/3/2020 12:23

SOS has almost doubled from lows -

So anything is possible in this market -

[she-ra] 25/3/2020 21:54

Don't worry Smicker, he's an Ashley stooge.

[smicker] 25/3/2020 21:40

FWLIW...I have taken the view that there are many who held here expecting the strategic review would produce a sale and they have no appetite to hold once that option is off the table. Unfortunately for existing shareholders this news has coincided with the end of an 11 year bull market and there is now an avalanche of holders who want out at any price. I cant see why the company is worth one tenth of its value before the sale process started.

The results werent good but this is typical for these type of companies when their seasonal collection doesnt hit the spot and even next suffered from this not long ago. Once this happens all the doom merchants come out and an overreaction occurs.

Having said that i'm in here without great conviction but i cant see how they wont be back to at least 20p if they get through the next month or two. They have plenty of cash and the government wont want headlines of iconic companies going bust so i think the odds are in my favour. Once they close the retail shops as you mention i think the value will be released.

[jbfnfn] 25/3/2020 19:25

The market cap is now 3.3m.

Is this priced to go bust?
The market is saying there is currently very little chance this can survive. Or if it does survive there is little to no upside for current shareholders.

Any views on the chances this company can survive?

Can this company benefit from various government schemes. Presumably direct employees can benefit from the 80% wages scheme. How about store rents can they stop paying them for a while? Are there cheap loans they can get to stop going bust?

What if the coronavirus isn't too bad and shops are open in May?

What if the coronavirus peaks in the US at the end of April and the US shopper is back in dept stores looking for new outfits to celebrate?

I have a small holding here but my book cost is 50p a share, I've lost over 90% of my investment. Sadly hold these in my ISA so can't even use the tax loss.

I was holding on the basis that as they were closing expensive retail stores their profitable wholesale business would see them through eventually.

Any views from other holders?

[tomboyb] 25/3/2020 11:26

Still 10k available online or 380 quids worth at 3.8p -

[smicker] 23/3/2020 14:05

Big shareholder selling down with 6m left. Maybe bought in too soon?

[smicker] 20/3/2020 10:19

Could only buy these in 1k lots yesterday with selftrade. Any idea why?

[tomboyb] 20/3/2020 09:15

4p? -

wow!

[the millipede] 11/3/2020 19:20

She-Ra, I will take that as a compliment. Thank you. ATB TM

[cjohn] 11/3/2020 16:38

I've just take a look at these, in view of the discount to asset value.

The recent results were absolutely dire; the company's bleeding cash. One to be avoided.

Commiserations to holders.

[she-ra] 11/3/2020 13:11

The Millipede - Why didn't you post that under your main moniker 'Paulypilot'?

[the millipede] 11/3/2020 09:55

These are dreadful results though. Their plan should be to shut down the U.K. retail business but they are still opening stores.

Moreover, although the average lease time-to-go is given as around 2 and a half years, they say there will be 2 closures only in 2020.

I think it will be a while before this comes good, to be honest, and there is now a potential Coronavirus induced downturn to worry about. I think the risk of outright failure has gone up significantly anyway.

[she-ra] 10/3/2020 13:11

kemche - It has net funds of £8 million. Thats how its still trading.

[she-ra] 10/3/2020 13:10

Why did Stephen Marks' ex-wife who he enjoys good relations with purchase 2% of French Connection in late 2018?

Is Stephen Marks trying to get what he might think is his own company back on the cheap? Because I don't understand why he hasn't appointed a new CEO.

Is he right-sizing the business for himself?

[spob] 04/2/2020 11:54

anyone think Simon Thompson will include this in his bargain share portfolio on Friday

not saying it is a bargain

just looking at the moment

[davidosh] 04/2/2020 11:04

Does anyone know how many of the stores are not profitable and what the average lease length of those stores is?
It may be that there are just a handful of big ones in the wrong locations causing the problems so the length of those leases is key?

[the millipede] 04/2/2020 09:51

All they need to do is shut unprofitable stores as the leases expire.

Give it a few years and this will be a very profitable company IMO.

[middlesboroughfc] 03/2/2020 19:59

Bunch of vacant shops

[essentialinvestor] 03/2/2020 16:38

Well I think Mike may not rush to buy more retail!.

Can they turn the business around?.

[sbb1x] 03/2/2020 16:34

Spread is massive...

[nico115] 01/2/2020 10:54

That's great Thanks for that

[irishlass2] 01/2/2020 10:27

French Connection FCCN updates the market - its strategic review is over and company no longer ina defined Sale Period. Share Price drops to 23p, valuing the group at £22.9m

For comparison, FCCN sold Toast in 2018 for £23.3m, - and who had even heard of Toast?

Co is undervalued imo, and would be pocket change for Mike Ashley to integrate into his new 'Frasers' department stores.

Thing is they have a few residual, lingering retails shops that is creating a drag on the group.

I contiue to hold as I think the founder was being too optimistic in the price he wanted for group, but a valuation of £20m when sales are around £120m seems absurd. 20th Sept 18 they had £13m cash bank balance