Sports Direct Share Discussion Threads

[nortic 007] 08/12/2016 18:33

Would he give shareholders any kind of premium ?

[nortic 007] 08/12/2016 18:31

https://www.ft.com/content/2cb3f068-bd58-11e6-8b45-b8b81dd5d080?myftTopics=T05fTFNFX3RpY2tlcnNfZmV2LTIwMDhfMjIwMQ%3D%3D-T04%3D#myft:my-news:grid

[warranty] 08/12/2016 18:31

Well if the papers get the knives out and force the price down then I'm in for more. I do though agree with you Terminated in that he may be lining up a take out.

[nortic 007] 08/12/2016 18:25

Says even if earnings were to half they would still trade at a substantial discount to peer groups . Have a good evening.

[nortic 007] 08/12/2016 18:12

Good article in tomorrow's Lex column about SPD . They're basically saying that all the bad news is "baked into the share price". They point out he's no mug and knows how to sell trainers. I would try and send the whole article but I don't think it will let me. I do value The Lex column opinion because they have said it before about Mr Ashley. Also mentions how they look cheap compared to there peers ( doesn't mention anyone but guessing could be J D Sports). Looks like all the other papers will be getting the knives out .

[festario] 08/12/2016 17:41

Good one Nortic, you nearly had me there.Next thing Ashley will be running for US President, oh wait!

[nortic 007] 08/12/2016 17:18

Afraid not.

[philanderer] 08/12/2016 16:52

Yep , the jet will make the headlines

[nortic 007] 08/12/2016 16:39

Flat in the morning ?

[terminated] 08/12/2016 16:30

It looks obvious to me he is gearing this company up to take it private. His focus on acquiring more shares with shareholder capital guarantees a majority vote in his favour, not increasing debt, and then purchasing freehold property makes this an attractive target especially after a profits warning. He could probably raise the extra 800m by temporarily flogging the freehold rights he spent years acquiring, not that he needs to do that . Unfortunately FOR US he's the only one who can buy it. If he starts to increase his personal holding you can guarantee this will be private by April.

[nortic 007] 08/12/2016 16:02

Can you imagine all those nasty journalists sharpening their pencils tonight.

[extrader] 08/12/2016 15:29

Hi thevaluehunter,

Your figs look even better if you include SPD's 4.6% holding in JD Sports, worth abt £145M...

ATB

[thevaluehunter] 08/12/2016 15:02

Extension of QE from Draghi in euroland should help the value of the €1.1bn forward contract position that spd has in place.

[nortic 007] 08/12/2016 13:53

Seems like a nice rally at the moment . Don't think it will last . Beggers can't be choosers on a day like today.

[thevaluehunter] 08/12/2016 12:05

Fair point but at some stage the freehold and investments will need to be factored into the share price because the underlying business is looking way too cheap...Based on the current market cap of £1,720m add on net debt of £72m less freehold of £618m less investments in Findel £49m, Mysale £7m and Iconix Brand £62m gives an enterprise value of £1,056m doing say over £250m ebitda or over £350m when the currency sorts it self out.

[undervaluedassets] 08/12/2016 11:52

who knew - turnover is up

My concern was the customers might desert give negative media firestorm

Always been my contention that poor people buy what's cheap and scruples are the luxury of the rich

Clearly true - sales are up!

[terminated] 08/12/2016 11:40

Unfortunately the city rarely values asset value over profits. The main positives from results was that revenues continue to rise. Having recently come back from 7 weeks in India and nepal I did notice the pound recovered some 8% at the back end of my trip. I know spd seem to pay for goods in dollars but I also know trump wants to devalue the dollar to increase exports. Again all long term considerations.

[thevaluehunter] 08/12/2016 11:18

Based on the annual report and purchases in the first half sports direct now has over £600m of freehold property and the market cap is £1.7bn.

[terminated] 08/12/2016 11:14

The private jet will go down well in the press... Mind if I effectively controlled 55% of the company I wouldn't give a hoot as well. In for another 10k just now, long term this will come good, or at least better than now.

[timnicebutdim] 08/12/2016 11:02

Investing in freehold and a £40 million private jet. Way to go

[nortic 007] 08/12/2016 10:41

It's the Ashley bashing that accounts for a lot of the move. If there's no share buy back I'll be interested to see if there is some kind of director purchase to show some sign of confidence . I'm not counting on it but let's see.