Jd Sports Fashion Share Discussion Threads

[alphabeta4] 17/4/2018 11:39

This may be a bit left field but I think this has an outside chance of being a takeover target. Finish line was on PE13 with flat revenue and JD's forward post acquisition goes down to 12 with £200m cash to be generated so from Peel saying the post acq start position was £50m debt add £200m gives £150m) for a cash adjusted pe of c11.4.
That can't last IMHO - either the share price goes up or on 20% earnings growth again the forward pe drops to 9.5!

[barvin] 17/4/2018 09:05

JD, absolute powerhouse. Always overdeliver on results day, a no brainer every year. Hopefully we will see a nice rise over next few days too. P/E of 17 at £4.25, not a terribly liquid stock. So some institute buying should really push it on. £4.50 previous high, no reason why this shouldn't be near that again

[asturius101] 17/4/2018 07:45

yep, if the US does as anticipated mc will prob triple

[valuehunter1] 17/4/2018 07:41

Excellent results, big beat as well ahead of market guidance. Cash machine this one.

[alphabeta4] 29/3/2018 09:27

True, I've seen the net debt position is supposed to be around £50m post transaction, take say 5% interest gives c£2.5m to take off, then there was £0.3m credit interest paid in the interim accounts so c£0.6m there. Total of c£3.1m vs £286.31m shouldn't really be a big deal.

[shanklin] 27/3/2018 12:32

Thank you Alphabeta4

I guess we should deduct a little from there to cover the interest to be paid or foregone.

[alphabeta4] 27/3/2018 12:00

Not that I can see just yet, I only have parts of the Peel note. The forecast eps before was 26.34p, 973m shares so £256.29m. Finish line had PBT £38m x 0.79 (US tax rate 21%?) + 256.29m = £286.31m. New eps 29.44p assuming no synergies etc.

[shanklin] 27/3/2018 11:28

Are there any updated forecasts available please, reflecting the effect of the acquisition

[alphabeta4] 27/3/2018 11:11

I've also been doing some comparisons:

At £3.40 JD has a forward of c11.4 and net debt of 1.5% of mcap (based on Peel numbers). Next has a forward of 12 and net debt of 13% of mcap. Next forecast eps is flat, JD's was 8.3% before the acquisition.

Marks and Spencer has a forward of 10, earnings have been struggling for years (albeit expected to grow 10% this year) and debt is 41% of mcap.

Given JD's track record of earnings upgrades the valuation to peers looks way out at the minute IMHO.

[alphabeta4] 27/3/2018 10:59

Peel Hunt view:

FINL is a very well regarded name in the space but, in common with a number of its peers, has found the last few years tough, as footfall to malls has reduced and innovation in footwear has waxed and waned. The stores are in good condition (80 refits in the last two years) but lack theatre and the range has lacked exclusives and the real cutting edge product, both of which are issues with which JD can help. The Finish Line fascia will remain to begin with but JD will trial some rebrands over time, using similar tactics to those seen in a number of European countries (and Australia). Finish Line management is being retained.
A sensible deal at a sensible price: JD is purchasing Finish Line in cash, the deal leaving it with roughly £50m of net debt (FINL has $30m of cash). Using guidance and the Thomson consensus, JD is paying about 0.3x sales, or an EV/EBITDA multiple of about 6x: it’s only 4x peak EBITDA. Not every shareholder will be thrilled about the notion of taking on the US, but it is a key move in JD’s desire to be a global player, and on a decent multiple for such a large footprint, it strikes us as eminently sensible.

[gripfit] 26/3/2018 17:21

£3:00 again

[treble in 1999] 26/3/2018 16:38

well this aquisition has gone down like a lead balloon

[martinc] 26/3/2018 11:21

I wondered if they might go to the US. The only thing that worries me is that US acquisitions often seem to go pear-shaped. Ask tesco or greencore. Hope they know what they are doing.

[pen8] 13/3/2018 16:35

Same question ? What just happened ?
I guess in its trading range but wow !

[martinc] 13/3/2018 16:08

What's happened here today ;down 8%?

[alphabeta4] 01/2/2018 19:39

Consumer confidence surveys on the turn and inflation going down..and upgrades since £4.60 for free. What's not to like?

[bricktycoon] 01/2/2018 01:48

Amazon set to soar on blockbuster results buy buy buy

[villarich] 19/1/2018 08:18

Agreed. Even the winners in the retail section get hammered on any sniff of negative news

[fangsforthememory] 18/1/2018 19:30

Took profit yesterday on this one at 3.88 Retail is so difficult at the moment.

[villarich] 18/1/2018 16:25

Price currently bouncing off the 200 day SMA. Let's see if that hold as some form of support.

[michaeljames1] 17/1/2018 07:35

Brickty, incessant ramping actually does the opposite of what you aim for it to do. If youve posted once then it would have a lot more effect that constant posts that take up the whole board. You can be positive about a share but posting constantly just takes up the board space and wastes peoples time, especially when there is no merit to what you are saying and no worthwhile information.

[bricktycoon] 17/1/2018 06:25

Villarich u fool tank on open hahahahahaha do you loose your villa with that short

[bricktycoon] 16/1/2018 08:17

Boooooooom 450 today gla