Sports Direct Share Discussion Threads

[ignoble] 07/7/2016 18:42

Where would they get the money to take the Company private ?
Can't see Banks too willing to fund it in the current iffy retail climate
imho

[eastbourne1982] 07/7/2016 16:57

I've traded this a fair bit this year however today I bought back in for the long term at just under £2.80, short term I couldn't care less what happens, if it goes to £2.50 I'll buy more, if it goes to £2 I'll buy a lot more.

The current valuation is silly.

The basics are:

Market cap - circa 1.7 billion

Profits - 275 - 375 million depending on which measure you take

Very little debt.

If sentiment towards this was normal it would have a market cap of anywhere between 2.8 billion and 4 billion in my view.

This is a bit like RTN (Restaurant Group), both have great balance sheets with very little debt and both make monster profits relative to their market caps.

[oggyrocks] 07/7/2016 13:55

They also said that they were going to be buying back some of the shares. I wonder how many ?

If they do buy back shares, then I guess this would add to MA shareholding ? Or would they remain owned by the company ?

[alex1621] 07/7/2016 13:53

I was being sarcastic. My view is that he certainly would take it private if the share price falls to the right level. So I take no comfort from the Board speak.

[festario] 07/7/2016 13:44

Yeah, but Ashley says a lot of things, he told told the Parliamentary Committee that he 'was shocked to discover the working practices at his main DC'Anyone like me who has done business with SPD will find that hilarious. (and sickening)

[alex1621] 07/7/2016 12:49

The Board made a specific statement about privatisation, no current plans, or something like that. And Michael Gove insists that he doesn't want to be Prime Minister, until of course the day that he does.

[rimmy2000] 07/7/2016 12:49

Rubberbullets that's a fascinating insight, thank you for that wisdom. Now everyone reading this thread can disregard the statement explicit in today's rns as follows: "Mike Ashley's shareholdingIn response to repeated press speculation about his intentions with regards to his shareholding in Sports Direct, Mike Ashley has confirmed to the board of directors that he has no current intention of taking the Company private, and has indicated his willingness for the Company to confirm this statement publicly."Ignore this guys, for rubberbullets speaketh, and it's now going private.

[rubberbullets] 07/7/2016 12:03

This is going private in the next year along with itv

[festario] 07/7/2016 11:53

The weak pound is going to lead to higher cost prices and weaker margins. I'm not expecting the next recession to be quite so buoyant for SPD

[yasx] 07/7/2016 11:38

A not inconsiderable amount of the disappointing numbers were essentially priced in - I think the recent falls are therefore overdone. Thus, I have taken a thick slice here.

[weemonkey] 07/7/2016 11:30

Internally disappointing ..Disappointing for Mike... but disappointing for everyone else? really!?

Market was expecting a lot worse.

Results were Quite good really + this company thrives in recessions

[oggyrocks] 07/7/2016 08:49

Had been heavily oversold in recent weeks and results although disappointing, we're better than was being reflected in share price. Low debt, low costs, share buyback. Could head easily back to 350+

[targatarga] 07/7/2016 08:40

I'm expecting a retrace after 9am

[discodave4] 07/7/2016 08:36

Never ceases to amaze me!.DD

[undervaluedassets] 07/7/2016 07:47

And of course reported profits are actually up.

Recession coming without question

But selling stuff cheap is what this business does; During the last recession SPD grew revenues by 15% between 2006 and 2009 .

[elsa7878] 07/7/2016 07:40

Yeah but: cash inflow from operations £135 million.

This year: affect of falling £:

10% v $ = approx £60/70 million according to recent research.

Plus in notes mentions option contracts on £/euro. 10% fall in £ = £65 million hit, though I guess this will be negated t osme extent by the increased value in overseas sales (and therefore profits).

[boonboon] 07/7/2016 07:35

On a reported basis the p/e is under 6.

[boonboon] 07/7/2016 07:34

The chief executive did forego his bonus though. At a p/e of less than 8 I'd be happy for them to buy back shares. It could significantly improve EPS in the future. I agree short term outlook isn't great, but in a recession I believe these should outperform the sector.

[undervaluedassets] 07/7/2016 07:33

surprised that they were not worse. .

It was well flagged that they were going to be weak. .

Revenues were up

profit dip of 8% really not dreadful given negative headwinds/Guardian select committee etc etc.

If you want to buy cheap clothes this outfit is sitting pretty.

[alex1621] 07/7/2016 07:30

We never met our targets, and that's disappointing ... not for shareholders silly, for us, so we're going to re-set the incentive scheme to make sure we don't lose out the next time.That, I think, was the message to shareholders.

[deanroberthunt] 07/7/2016 07:29

profit down markedly....in the face of a worsening economic outlook
personally, given the backdrop now, it could get mullered.

[edmondj] 07/7/2016 07:25

Omits the dividend but seeks to re-base the employee share awards (rewarding mainly bosses?) and to buy back shares. Sounds a less than (outside) shareholder-friendly muddle.

[edmondj] 07/7/2016 07:21

Omits the dividend but seeks to re-base the employee share awards (rewarding mainly bosses?) and to buy back shares. Sounds a less than (outside) shareholder-friendly muddle.

[harebridge] 07/7/2016 07:09

"The Group has delivered a disappointing full year financial performance, impacted primarily by a tough trading environment in the second half across our sports retail businesses"