Sports Direct Share Discussion Threads

[knigel] 27/7/2019 16:11

DebsDowner, literally no high street retailer is doing well at the moment.
TBH Brexit needs to be sorted one way or the other and business rates cut before we see any recovery.
Why SPD are buying back shares at all s/b an question to ask!!

[effortless cool] 27/7/2019 16:03

Are we supposed to rearrange those words into a sentence?

[zztop] 27/7/2019 16:01

Dont for still over 250 mill profit here

[still waiting] 27/7/2019 15:57

The plus side of all this!!!

He might finally sell Nufc.

[effortless cool] 27/7/2019 15:55

The continued buybacks are interesting. Given Ashley's huge holding in SPD, buybacks are inappropriate as they cut the free float further. However, they do allow Ashley to progress towards that key 75% level without spending any of his own money at all.

Perhaps the buybacks will lead to a delisting and an Ashley buyout.

[ignoble] 27/7/2019 15:36

Reading an interview with MA discussing Newcastle Utd.
He hints it was not a clever idea buying it and wonders if he will ever be able to sell it.
You kind of feel a sympathy with him as he bought it with good intentions but the Fans never took to him.
He basically thought that you need a lot more money than he ever had to make a successful Club

[debsdowner] 27/7/2019 15:24

The dire state of the group is the reason why the company cannot giver any guidance as to the future profitability of the group.

Its well and truly up the creek and the press and shareholders alike know it.

He certainly knows how to pick dud companies Debenhams could still enter administration its still in a bad state said the press last week and House of Fraser was in a terrible mess and I find it hard to believe he didn't know that when he bought it. Evans cycles is also losing money.

So he is isn't as clued up as some had previously thought and he has taken far too much on at once and I said as much when I posted on the Debenhams thread.

[debsdowner] 27/7/2019 15:09

A number of posters here know I predicted the demise of Debenhmams and well clued up on retailers shares, so don't disregard my posts. But first to answer this post:

Even if he took it private it is in a mess I any event and the future uncertain.
ignoble
27 Jul '19 - 11:09 - 6401 of 6426
0 0 0
Out of naivety, where might MA get the money to take it private?
Not sure how taking it Private works?

….

There are a number of ways to take a company private you take on the debt and then buy up the shares capital either on your own or with someone else.

The market cap is over £1.2 billion but Ashley already owns about 65% of stock!

So all depends what the share price falls to then multiple the shares he doesn't own and that gives a rough figure.

As an example:

If some on here think the share price would halve then the market cap would be £650 million - 65% = £227.5 million

He could seek a delisting which would force the share price lower and less money to find!

However due to the dire state of the company and not wanting to give the impression I am deliberately de0ramping happen to think that would be an outside chance.

He would need 75% of votes to delist and I also think it would be too risky to go down that route.

At the moment its a difficult call I think the share price will have a considerable fall due in part to press articles over the weekend and Monday morning anything could happen.

I do not think there will be a suspension as he has outlined most the risks but its not a good situation on a number of fronts.

[pugugly] 27/7/2019 14:51

The late Sir Jack Cohen said "Retail is detail" Looks very much like MA has ignored detail and only looked at the BIG PICTURE - very often sure way to go bust - Department stores have been in decline for over 10 years while on line and specialists have been eating their breakfasts - MA appears to have been way behind the ball in trying to be the high street White Knight - The City Boys will be laughing all the way to the bank now he is in trouble.

[eggy6198] 27/7/2019 14:47

By the way 8% drop leads to 5 minute action be mircale to get any trades in first 15 minutes

[eggy6198] 27/7/2019 14:41

You cant just suspend shares as results are rubbish where you getting this from other than bottom of a bottle?

[cautious7] 27/7/2019 14:17

You need to ask yourselves this, only if you wish!!!

Why were the results delayed by two weeks?

About the possiblity of of being suspended from the market, if theri i volaitilty and requires clarity, this will happen in IMO

the choice is yours!

DYOR

Regards

C7 - Hoping to make money day trading if shares active on Monday, we shall see.

[ignoble] 27/7/2019 13:50

Must admit, SPD were jogging along quite nicely.
If had been MA, I would have been quite content and been looking to plot my retirement and enjoy my later years.

Would also have thought about SPD paying a small dividend to provide income from my massive shareholding rather than keep spending money buying things.
Then again, I am not MA, lol

[ignoble] 27/7/2019 13:45

Does make you wonder
Everybody else had just about given up on Retail...
Custer's Last Stand, lol

[sum493] 27/7/2019 13:41

What baffles me and what I can't understand is if House of Fraser is such a disaster for SportsDirect why did Mike want to get Debenhams on board as well - if Houseoffraser is very difficult to turn around - how can Mike have hoped to manage them both!!? And why did he buy into some very challenging businesses like GAME - that will surely be very difficult to turn around as well?

[ignoble] 27/7/2019 13:39

Wonder if the Private Equity outfits are getting their slide rules out yet waiting to see if there may be some pickings to be had in the future

[effortless cool] 27/7/2019 13:31

Ignoble, you are not wrong, but Wapper is.

[ltcm1] 27/7/2019 13:31

Wapper regarding Shirebrook MA used the money to buy the Glasgow Hof freehold.

But your point about Hof is a good one, 54 department stores is going to need a vast amount of cash just in terms of buying for Christmas. The marketing spend is also huge, I remember Hof used to have a lot of ads on the telly a few years back, Debs and JL have massive campaigns.

My point is if MA doesn't fully commit to Hof for Christmas they are going to get massacred as so much of the trading is in that period. If he chops a bunch of stores it's going to have to be very soon I reckon.

[ignoble] 27/7/2019 13:30

I have a feeling SPD hold the shares that they buy back are held in Treasury rather than cancelled.
Could be wrong....

[ltcm1] 27/7/2019 13:14

I believe Sports Direct went a couple of years without having a Financial Director, one can't help wondering if this is related to this tax bill in some way.

Is it also possible the real reason why the accounts were delayed was because Grant Thornton found the tax problem during the audit??? To me it seems at least as plausible as the reason they gave for the delay.

I have no idea what will happen Monday but in the wider context how credible is the SPD explanation about this tax bill?

[wapper] 27/7/2019 13:05

The new share buyback programme maxes out at either £30 million or 10 million shares. Buybacks usually involve cancellation of shares bought back thus increasing the EPS without seeing any profit increase. Often great for management (e.g. if bonuses linked to EPS ) and advisors (get commission on shares bought back). Only good for shareholders if bought at price lower than true value of company (currently up in the air at SD).If shares did fall to 50p (as some here suggest) then for just £5million SD could buy back and cancel 10 million shares.Almost certainly a bargain and good for shareholders medium term IMO. SD have not paid any dividend and this seems to be a safer way of returning cash to shareholders once things settle down .
Of more concern is the Sale and Leaseback of Shirebrook. Seems a bit drastic unless HoF is draining far more cash from SD than we think.

[eggy6198] 27/7/2019 12:53

Trading monday will be amazing to watch i just dont see what is a good entry level here. Clearly it opens below 2 quid if it doesnt shorters delight.

Im with IG and no doubt they will close the market for shorts as they dont play fair. But as for it jumping about if your not selling at any price at the auction you are holding long tern. No II will touch this for days at least. At best its 200m euro fine and HOF getting closed down at worst its 600m euro plus and losing money.

My exit targey is 130 on short but be surprised if we get there but anyone buying here above 1 quid is playing dangerous game as might do straight line down.

Auctions likely to ruin action early and then we have mike buying in on tuesday with his war pot. Great fun to be had and must not get greedy

[fenners66] 27/7/2019 12:52

At least he seems to have done the honourable thing.... and unlike DEBS the board have accepted his going....