Joules Share Discussion Threads

[smraynot] 09/10/2022 18:19

Joules have a massive future hence the stake building with the big boys. Look at Jaeger. Yes high risk but cheap for the name and upside. If this doesn't open at 12p+ I'll be amazed.😃

[debsdowner] 09/10/2022 15:42

harry-david

This isn't the case I was negative on Debenhams for years and the company went bust.

1data

Have already said the share price will probably bounce tomorrow what is negative about that ?

What I also think is someone got a whiff of an article comming up in the Mail sometimes yoo get a similar bounce in a share mag where the market makers get a whiff of the article before it is published. The market maker tend to mark up sharply before the buying starts then mark down when the buying slows. Market makers rely in psychology in trading.

All I am saying is the company has already warned on profits and already warned about debt, and unless the corner has turned investors take a large risk.

Now the guy who has invested 900K in Joules is taking a risk but it is small change to him.

Mike Ashley has done that numerous times he bought a shed load of Debenhams and lost more on put options. Ashley also lost a shed load in one of tbe banks cannot bring it to mind at the momebt could have been Halifax, but Ashley not a banker nor is the investor here a fashion guru.

I would have been more enthusiastic with Lord Wolfson building a stake then recommended people buy in.

But Lord Wolfson is far more canny that this guy who has increased his investment.

But good luck the share price will probably rise tomoorow and hopefully towards 20 pence.

But bear in mind there is no compelling reason to but at the moment the compaby has already warned of losses even before the economy worsens.

[1daka] 09/10/2022 14:18

Don’t get you. Why are you so down on joules? Disgruntled ex employee? Why keep commenting when you don’t hold? Sad.

[harry_david] 09/10/2022 13:38

It is good to read a whole lot of negative comments, it usually means the shares are oversold and due a bounce.

[debsdowner] 09/10/2022 10:16

MARKS paid £10 million for Jaeger brand with mo vanity head office and Jaeger now taken off. I know which brand I prefer Jaeger.

Debenhams had a turnover of £2 billion and went bust, BHS had amassive sales and went bust. Scroll theclock back MFI and Woolworth all good brands and went bust.

Joules is tiny compared to a lot of the above brands but tiny means you cannot make money from economies of scale.

What Joules will stuggle with is a deteriorating economy and spending comming to a halt, the company will not be able to sell at full price !

Order too much stuff and the company will be stuck with stock and have to discount below cost.

Anyway expect the market makers to jack the price up on open.

[debsdowner] 09/10/2022 10:00

One comments from comments section:

Kamikwasi economics, Kensington , U.S. Virgin Islands, 19 hours ago

"I guess the plan is get some gullible DM readers to buy the shares on the back of this article so this bloke from Doncaster can sell them at a profit!"

So who contected who? Did the guy call the Mail and said do this story ?

In any event the board may have approached the investor and asked him to meet the board but the company still restricted what they can say to him under "insider rules".

They could be looking for him to ask him if he wants a non executor roll but what does he understand about fashion ?

Motor sales is a different kettle of fish.


He says the company is cheap but half the High Street is as well !

The problem with Joules is it is mid market and there are too many brands out there all struggling for growth.

A company is only cheap if the market cap has fallen too low and profitability is to return.

I suspect more buyers will now plough in and the board will be hoping for the share orice to rise to do a placing. Maybe he will take a larger stake to pay down debt rather than do a placing but he would then be risking millions.

As an investor I would want to see signs of profitability before I invested or at least brokers reports showing some improvement.

Anyway good luck to holders I hope I am wrong with my opinion and the company is able to turn around.

[srpactive] 09/10/2022 08:03

Joules are on the move I feel, through the 8.37p.

My next target is 20p.

dyor.

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[debsdowner] 08/10/2022 13:31

From what I can gather from other posters the guy from stoneacre had a holding here then sold and then bought back, but haven't checked the RNS to verify and too busy in any event.

I agree it isn't about turnover, it means nothing how large sales are if the company isn't making money the same amounts to market cap. It doeas make a difference however if the company has turned around and the market cap is too low then a share can become a mutli bagger.

Both NEXT boss Lord Wolfson and Ashley are well clued up guys and it looks like Murray is as well but Murray was a property man and I don't think Ashley would have passed the reins to him if he wasn't sure he was up to the job. But lets face it Ashley is a large shareholder of Frasers and with Murray being his son in law I suspect they will be meeting or talking often.

[1madasafish] 08/10/2022 05:28

I don't think it's about market cap vs turnover. It's about Joules business model & whether it's robust enough to weather a high street storm. Very few small retailers seem to be able to succeed on the high street. Next for me seemed a good fit. Frasers even better imo as they could operate within a much larger store & use their vast economies of scale. Maybe as Ashley seems to be stepping away somewhat the new team won't continue his passion for buying up the high street ?

[1madasafish] 08/10/2022 05:19

Not much mentioned on here about the guy from Doncaster who owns Stoneacre who is the guy who recently bought 10% of the Joules stock. Little seems to be known about him other than Stoneacre turnsover almost £1b. Not sure how much high street retail experience he has but he's bought in for a reason. I'd really like to invest in Joules but there is too much risk imo. Having said that had I done so at the bottom id already looking at a healthy profit. I guess we have to wait to see what this guy or any other large scale influential has plans for Joules. For me I'm surprised Ashley hasn't made a play but we don't know what's going on in the background.

[debsdowner] 07/10/2022 17:52

Have just had a look at RNS Business update and it was grim:

"As a result of the recent softness in trading and the current weak consumer sentiment set out above, the Board expects a significant loss in the first half, followed by an improved performance in the second half as the benefits of business simplification begin to be realised. In light of this, the Board currently expects the Group to deliver a full year loss before tax, and before adjusting items, significantly below current market expectations."

If the company is still going to report a loss net debt could be climbing. No wonder SKY news talked about a CVA.

I wouldn't touch the company with a bargepole at the moment without knowing trading was going to imprive and the company profitable.

Even HUT group has a market cap of circa £450 million with 2 billion of turnover which again looks cheap but is losing money.

This is what pushed Debenhams to the wall high debts and losses.

[debsdowner] 07/10/2022 17:36

Glavey,

I tend to agree there is no clear reason to buy with so many uncertainties. I can recal when the share price was much higher and the market makers hiked the price up to then see if fall significantl again.

Maybe the banks are supporting them repaying dow the debt?

smaraynor,

Have seen this time and time again people quoting turnover and market cap. But all this is irrelevant in a deteriorating situation. The compaby is struggling with high debts and the banks have told the company they cannot pay a divi so they must be worried. The company statements been too ambiguous and there is something NEXT didn't like!

So I would put this question to you why with the market cap so low (at the time) did NEXT tell Joules they were not prepared to make a stake which would have paid debt down?

I can only think soemthing worried NEXT and NEXT isn't without cash it would have cost NEXT not that much.

There are too many unanswered questions to my mind.

Good luck to holders if Iam found to be wrong I will appologise.

[smraynot] 07/10/2022 14:26

11 million market cap for a 200 million turnover is a snip. A merger with Next is a recipe for success and I believe we will see negotiations around the 30p+ level. Could be interesting over the weekend. Cheers🥂

[glavey] 07/10/2022 14:23

This is like a Friday Foam Party where everyone jumps into the froth (only to find it has little substance).

[1daka] 07/10/2022 12:57

Plus these leaks to the press are not helpful. My guess is someone looking to get in cheap. Someone’s made a fortune by crashing this

[1daka] 07/10/2022 12:55

Next weren’t willing to pay what joules thinks there worth simple.
Too cheap down here.

[smraynot] 07/10/2022 11:47

I like the potential and Joules have a magnificent name and quality.

[oldvic] 07/10/2022 11:08

They have not said that they are walking away

[oldvic] 07/10/2022 11:07

Next have not said yhey are walking away !!!!!

[debsdowner] 07/10/2022 09:50

There couls be only ones reason for the jump speculators taken comfort from the holder thinking he knows more than the average invoestor, and the market makers hiking the price to make investors think they must follow.

You generaly find the price falls back again or alot lower than the first 2 hourse hike.

I think the risk here is too high.

I double very much whether the holder has any more info and if the compnay was worth investing NEXT would have done so.

Lord Wolfson is no fool he could have taken a 30% stake and turned away that suggests to me he didn't like the company or how it was being managed.

[srpactive] 07/10/2022 08:39

My post 1573 is coming through.

Just imagine if you knew the media article was about
to drop the other day, it sent joul to 4p.

dyor

[1daka] 06/10/2022 22:11

The debts not massive at all. Problem if no profit to service the debt. Overspending in the two big projects in the last year or two is the cause combined with a tough environment at the moment for all retailers.

[srpactive] 06/10/2022 20:56

He will have his reasons, he may have started buying after the
article that sent the price to 4p perhaps.
He is worth £100m so no fool.

dyor