Pets at Home Takeover Rumours (PETS)

RE: Last chance for the shorts to close Well fair play to Engadine they have increased their short again at 117p they are really going for it despite others just starting to reduce??? They are determined to hold this down as long as possible. Well my theory is they are being paid by a third party who is waiting to pounce? The longer that the shorts can hold this down then any approach for PETS will allow a lower offer under UK takeover rules. It requires a takeover to be at least as high as the SP has been in the past 12 months, which is currently around 200p.If the SP is held down for several more months then obviously any approach can in theory be lower than the current 200p that was in Nov 2017. Let's wait and see what happens. Aimho adyor!

RE: shorts Well Engadine have upped their short position yet again. They either know something or are possibility working with others to depress price pending takeover maybe??? Something is possibly brewing imho.

my 12 month outlook for PETS based on current market factors and recent dealings within this sector (especially vets consolations) is probably an agreed takeover circa 190p as per the latest broker guidance with potential huge losses for Hedge funds trying to close 65million shares. Just an opinion ADYOR!!

Well interesting little fact relating to the recent news in July that The private equity firm BC Partners is close to sealing a £700m takeover of VetPartners in a deal that will mark the fast-growing sector's biggest UK deal. I've also discovered that BC Partners is the owner of one of on of the largest Pets retailers in the World operating over 1500 stores in USA & Canada with 55,000 employees. I wonder if they will start looking at PETS or will it encourage others to come into the frame for a PETS takeover....???

RE: consolidation in uk vets ........what's even more puzzling about PETS current valuation is that this proposed takeover of Vetpartners is £700million. That's for just 260 vets practices, while PETS has twice that many vets, 450 stores and grooming salons, with a smaller valuation. Based on the same fundamentals PETS should be worth twice the current share price. Engadine an others are definitely up to something shady imho!

I wouldn't want to be short on PETS going into any weekend following todays outlook. Anything could happen including a takeover approach...Imho...adyor!

Yes I agree...Only a matter of time before PETS becomes a takeover target by one of many multichannel US pet chains...very strong dollar vs weak pound. Most US pet chains could only dream of returns PETS are making on a PE of only 9 vs US PE's of 30 plus....Imho!

Perhaps IIs have lent their shares for the same rationale... Takeover or bid target.... Regardless of shorts spouting the same thing... Pets have announced their reductions in new stores so all known. Expecting new buyers who see value when we enter Small Caps

Short sellers will have to pay out the 5p upcoming dividend in a matter of weeks Director buys £100k on the open market... Trade no. 208 140.1p this morning. Schroeder's reducing caused BOTS to go overdrive knocking 4% in minutes. However a Director has called time and effectively puts his mark. Debt is little unlike AA etc and this is making profit PE ratio low Oversold and hitting historical lows due to fear and sentiment Pets and animals are recession proof..you don't stop caring for loved ones...just not cricket Think we may have had a lot of fear but in takeover target. KKR bought Pets near to £1bn Market cap below revenues value. Enterprise value 164p I'm being greedy Buying more and for div tomorrow GLA DYOr

I'd suspect this could be hitting takeover territory... Ffs it's profit making and I find it's future strategy compelling. Little debt too. Divi looks great regardless... 150p return or 130p I'll buy more

Home retail group was almost 10% short prior to takeover. Not sure that was "arranged", probably just another struggling retailer. Sainsburys was 12% short prior to ASDA announcement. Nice to see fingers get burnt there!

Sometimes the conspiratorial side of me wonders if the shorting is 'arranged' to drop prices for a takeover, but so far its never happened with any share I've watched. I guess the shorters have only to get the scent of anything average or slightly below average to result in an exaggerated sp movement downwards. The same violent movements seem to happen upwards as well and can only conclude its a lot of programmatic buying or selling, with no strict rationale. I mean Royal Mail cannot be worth almost twice its lowest valuation within a few months, just because there wasn't a strike.

Interesting that PETS have decided to separate out retail and veterinary for 2019.Makes it easier to see the value in the veterinary business. CVS revenue £271m, for profit before tax of £14.5m, EPS 18.5p, share price 1000p Pets VET REVENUE £94m, EBIT £29m, contributing 33% of the basic EPS 13.5p, share price 140p. In terms of EPS (4.5/18.5 x 1000p)a standalone PETS veterinary business on a CVS valuation would be worth £2.43 per share. PETS veterinary business should attract a higher valuation though, as the businesses are immature, and we can expect double digit growth for the next few years. CVS have been collecting mature businesses which are unlikely to grow at the same rate. 15% shorting of this stock has made it vulnerable to a takeover or buyout. The price has been mostly under £2 since early 2017. Anyone want to rescue a pet shop chain- free to good home?

spotdog40 - 25 May 2017 - 07:26:14 - 616 of 1123 Home Retail Group also heavily shorted before takeover. spotdog40 - 17 Nov 2017 - 11:58:50 - 814 of 1123 hxxps://www.petgazette.biz/16838-pets-home-opens-new-store-within-tesco-extra/ This business would be a useful add on for any of the supermarket chains. Maybe Tesco will notice that now?