Sports Direct Share Discussion Threads

[discodave4] 19/7/2016 12:46

Nope not short, was long but Brexit triggered my stop. Now just watching and waiting, trying to figure out what FY17 earnings may look like (finger in air though that's the issue here).This will come good eventually one way or another.DD

[undervaluedassets] 19/7/2016 12:26

You short here Disco? (Well done you if you are)

But fair play to shorters who have rode this down

Not sure that it will last forever - awful lot of bad news in the price and quite alot of good news in the accounts.

[discodave4] 19/7/2016 10:10

Think your forgetting: the profit warning/s, governance issues, hauled up in front of the Business Committee, no divis, ex growth.......and no $ hedging in place for a period when sterling is at 30+ year lows!......and still likely to fall when interest rates are cut in a couple of weeks.It's cheap on historical numbers, but they mean SFA, it's a new ball game now.DD

[weemonkey] 19/7/2016 09:23

I hear you DeanRH.

But Good numbers count for nothing here.

The loathing for this stock knows no bounds.

[deanroberthunt] 19/7/2016 07:10

Sports Direct International Key Numbers
P/E Ratio 5.55 Debt-to-Equity Ratio 0.45
Assets / Equity Ratio 1.70

Sports Direct International Results at a Glance
Date Type Turnover £(M) Profit £(M) Basic EPS Currency
24 Apr 2016 Full Year 2,904 279 46.80 GBP
26 Apr 2015 Full Year 2,833 241 40.60 GBP
27 Apr 2014 Full Year 2,706 180 30.80 GBP
28 Apr 2013 Full Year 2,186 152 26.64 GBP
29 Apr 2012 Full Year 1,836 106 18.68 GBP

[deanroberthunt] 18/7/2016 19:52

unrelenting doods unrelenting....

[undervaluedassets] 18/7/2016 07:46

This stock is underwritten by so many other assets too.

At last reporting they had £190 million in equity positions in other companies, not to mention property assets. This has resulted in a Very strong balance sheet .

growth in shareholder equity :-

2013 £644 million
2014 £817 million
2015 £1161 million
2016 £1384 million

As of todays Shareprice/capitalisation if you buy the company you get those assets and then you get the business virtually thrown in for free. Cheap every which way you care to measure it.

But all yardsticks of value have long since been chucked out the window when it comes to valuing this stock.

[tradesmarter] 15/7/2016 23:55

hoping 255 is indeed the low and ive landed lucky with 256 entry...too early to say, but it feels like 255/256 was strong support today and the scalpers targetting around 262....a move below 255 on a closing bases next week would be a hint of lower move down, but for now 255 is the number for support. For now this is risky but i see 220 risk for 330 gain. But I'll bail if we close below 248 for a 2-3% loss. Shares tend to trrend in patterns or boxes....the numbers on the way down will be reflected on the way up. Fundamentally I've read all the reports including investors chronicle "value trap" warning on Thursday (which likely caused the mark down) but with everyman and dog bearish on this, there is a point where all the doom n gloom is priced in and with targets from £2 low to £4 average around 255 area seems "worth the risk vs reward"....once the unknown is "known" the price will rally, its the uncertainty that has caused the "severe beat down" . My own view was the reaction to results was initially bullish indicating the numbers "were better than expected" and future uncertainty has caused another huge drop. Compared to competitors and sectors this is "way too cheap" and given all the negativity (mostly warranted) then you kinda have a perfect storm. But after every storm comes a rainbow and the question is will i be "bungled" or find a slice of that "pot of gold".......I have no idea, but from looking at everything the stats are saying "its worth a punt as the reward vs risk at these levels.....if I'm wrong I'll try again in the 220 region
(don't think we will see 200, but a quick shake to 220 possible if 255-250 fails)


free stock charts from uk.advfn.com

free stock charts from uk.advfn.com

[spob] 15/7/2016 14:38

Bought this back today 258p, having previously sold at 321p

[wallywoo] 15/7/2016 13:36

Bottom fishing, is incredibly hard to get right. The odds are if you buy now, it will fall further. Better to wait for an up turn. Even if it is tempting.

[discodave4] 15/7/2016 12:20

You keep saying this is now cheap, but you have implied it could get even cheaper at £2. My general point is that nobody knows if this is undervalued at the moment, historical fundamentals/metrics are no indication of what the future (FY17) will be.DD

[deanroberthunt] 15/7/2016 12:17

So is there any reasonable comparison....or is SPD unique?

[discodave4] 15/7/2016 12:15

Yep JD is a better comparison and is cheap, but JD are not ex growth, have a divi, are focussed on JD and nothing else, have fx hedging in place and don't have any governance or poor PR issues and have a completely different business model.DD

[deanroberthunt] 15/7/2016 12:15

I'll let you have ASOS, man enough to be wrong.

[discodave4] 15/7/2016 12:12

ASC 100% online and 100% fashion........and on a very very high PE rating, but was even higher a couple of years ago. So as a comparator it's about as much use as a chocolate fire guard.DD

[deanroberthunt] 15/7/2016 12:10

JD Sports £131m profit £2.4bn mcap
SPD £275m profit £1.5bn mcap

[deanroberthunt] 15/7/2016 12:08

apart from being in retail.

[discodave4] 15/7/2016 12:07

No comparison at all, completely different businesses.You seem bullish now after constantly calling this down to £2, guess you've bought in lol.DD

[deanroberthunt] 15/7/2016 11:55

asos profit £50m mcap £3.7bn

spd profit £275m mcap £1.5bn

[discodave4] 15/7/2016 11:52

I've been thinking 250.Will see.DD

[tradesmarter] 15/7/2016 11:49

Think 255 will see this reverse, but I'm in at 256 as down 64% in a year seems a tad overdone and....265-280 first target and if that holds then around 330 target...for now 250-255 area needs to hold and bounce otherwise I'm wrong, but feels like spike down "v" reversal to me.....risky but best of luck

[tsmith2] 15/7/2016 11:47

Need a day where it falls 10-15% without any real reason and then reverses.

[tsmith2] 15/7/2016 11:44

Chart break Down, need capitulation..

[deanroberthunt] 15/7/2016 11:31

If profit and ebitda were falling off a cliff and it was riddled with massive debt, I would agree with the valuation.