Superdry Share Discussion Threads

[john09] 09/9/2020 15:56

I expect a spike at close

[john09] 09/9/2020 15:55

Questor: Superdry is worth £110m and should make £60m in cash in two years’ time. Buy
Questor share tip: there are, in the words of one investor, ‘very few risk-reward stories like this out there’

By
Richard Evans
9 September 2020 • 5:00am
A woman walks past a Superdry fashion store in Berlin, Germany
Reasonably priced casual wear puts Superdry in the right place for the pandemic

“These guys destroyed a quarter of a billion pounds of value for me and I’m determined to build it back up.”

This is what, according to one fund manager, the founder of Superdry is in effect saying about his attempt to restore the firm’s fortunes after his predecessors made, again in the fund manager’s words, a “dog’s breakfast of it”.

Liad Meidar of Gatemore Capital Management, whose Special Opportunities fund has a stake in the fashion brand, said Julian Dunkerton, its founder, had seen the value of his Superdry shares fall by about £250m when its market value plummeted from £1.3bn to £90m under the previous management.

This obviously gives Mr Dunkerton plenty of motivation to succeed – and it shows. “He fought to get back control of the company in April last year. There was lot of drama,” said Mr Meidar. “We think he is doing a lot of the right things to get the business back on track.

“He’s just as energetic and committed as before. He is a really incredible entrepreneur. He is renegotiating store leases, so fixed costs are falling significantly, and he is revamping the product line, breathing new life into it. And I think he’ll be around for a while.”

He added that there was “nothing wrong with the business” now. “Going into the pandemic there were a lot of factors that put it in a unique position,” Mr Meidar added. “One was it had net cash, a position that it managed to maintain into lockdown. It had had too much inventory but stopped purchasing and managed to clear it, while the warehouses for online shopping were kept running.”

He said Superdry’s “reasonably priced casual wear” put it “in the right place” as far as the pandemic was concerned. “This brand can do really well in this environment,” he added. “It was already in turnaround mode going into Covid – it was on the front foot.

“Now it is able to go further and get its cost structure right. For example, some shops could be closed but the firm could also open some new ones. Some landlords are offering variable-cost deals that in effect mean there is no risk for the tenant.”

He said Superdry charged “premium prices” but still offered good value for money. “You feel that you are getting a good deal, a good balance of quality and price.” The result is gross margins of about 64pc. Returns on capital tend to be in double digits, although they are depressed this year. “They could go into the high teens,” Mr Meidar said.


He said profit numbers were currently “all muddled” because of changes to accounting standards but the less volatile and arguably more important free cash flow figure should be more than £60m by 2022.

“A business with a market value of £110m is on course to produce £60m in cash in one year,” he said. “That reflects the bombed-out share price, which has arisen partly because some investors ‘short sold’ retailers.

“This is the type of opportunity we want. There are very few risk-reward stories like this out there.”

Questor says: buy

Ticker: SDRY

Share price at close: 134.6p

[john09] 09/9/2020 15:54

Link is above

Basically says this company can create free cash flow of £60m a year !! And its risk free.

I’ll copy paste

[onjohn] 09/9/2020 15:52

doubt newspaper readers spent £5m today

What did quester say

[john09] 09/9/2020 15:51

The 3m is because of Questor

[onjohn] 09/9/2020 15:50

True but no smoke without fire and 3m traded

[john09] 09/9/2020 15:49

Why do you think a bid is coming tomorrow? There’s no indication of that

[onjohn] 09/9/2020 15:46

44 min to wade in

don't forget statement coming in soon, with JC already the biggest holder and £60m cash he could bid and make it fund itself

[john09] 09/9/2020 15:45

Aha. I think it could happen in conjunction with the founder

[onjohn] 09/9/2020 15:44

Id laugh my socks off if there is a bid tomorrow from the hedge fund could be 100pc premia

[john09] 09/9/2020 15:16

3 million shares traded today . I always thought there was a seller at this level. I think its still there so this volume is Really good news to help get rid

[onjohn] 09/9/2020 14:27

Bowl up to 225, ten 400

[john09] 09/9/2020 12:22

Its a fantastic write up. SCSW is firmly behind this stock too . Should Move back to £4 at least in short order

[thomasearnshaw] 09/9/2020 09:53

Being taken private>?

[hibberts] 09/9/2020 08:13

Buy sdry in the Telegraph this morning.

[abarclay] 07/9/2020 08:08

Interesting start

[albanyvillas] 03/9/2020 13:40

when they're gone they're gone

[john09] 03/9/2020 12:04

Some numpty keeps selling when it gets near 150p . Amateurs

[albanyvillas] 03/9/2020 11:45

Looks like it will hit 300p I think - joul - see chart

[albanyvillas] 03/9/2020 11:36

JOUL will take off next

[the white house] 03/9/2020 11:30

Adding every 5p up, will stop when it gets back to 2000

[albanyvillas] 03/9/2020 11:15

500p comes here one day I suspect

[john09] 03/9/2020 10:59

This is definetely a corona bargain . It was £5 prior...

[john09] 03/9/2020 10:58

Chart looks good. Hopefully it has les this pm and tomorrow. Looks well poised

[nimbo1] 03/9/2020 10:10

bought here after SCSW article - half position and will wait for update to finish my position assuming its ok!