Superdry Share Discussion Threads

[jamesto2] 10/9/2020 16:28

I bought 5k worth at IPO float £5 and sold today lol ... great pump n dump is over so may purchase again at 140p / 130p

[john09] 10/9/2020 15:39

2m shares again . Maybe this is more than Questor effect. Let’s see. I mean it’s was crazy bullish. Basically said it was a risk free dead cert !!!

[onjohn] 10/9/2020 15:32

Sdry all the way fella

[davethehorse] 10/9/2020 15:24

GEMD worth a look and putting on your watch list if your looking for another good risk/reward ratio. DYOR etc.

[onjohn] 10/9/2020 15:12

0 0 1
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

[john09] 10/9/2020 15:01

£2 possible in days

[nw99] 10/9/2020 14:47

This only the start

[clocktower] 10/9/2020 14:16

What is there not to like with this stock at this price,in a market that is served by few others if you really take a hard look at the products and quality.

[tjbird] 10/9/2020 13:52

I rate SDRY a conviction buy with large expected 500% returns over a long term holding period.

[davethehorse] 10/9/2020 12:33

130p to 160p not bad for some

[john09] 10/9/2020 12:26

It’s not risen yet!

[davethehorse] 10/9/2020 12:11

Good rise but surely profit takers will be moving in soon?

[tomv33] 10/9/2020 12:00

Bought in, looking good

[tjbird] 10/9/2020 11:54

Big climb up to £20

[tjbird] 10/9/2020 11:47

200p next stop

[john09] 10/9/2020 11:08

Another 700,000 shares traded today so far this am

[john09] 10/9/2020 10:18

This has been 170 and 180p DURING the pandemic !!! Its in a far better cash and trading position since those prices were reached

[nw99] 10/9/2020 10:17

Large position for me

[john09] 10/9/2020 10:04

Ooo 160p. Its been a while

[john09] 10/9/2020 09:55

Let’s hope so. I bought ‘many’ !

[nw99] 10/9/2020 09:46

Momentum is strong

[john09] 10/9/2020 09:29

Crazy volume yesterday was expecting a better open. A close at or above this price will be fine. 150p has been a barrier . Let’s see

[nw99] 09/9/2020 17:14

Excellent day

[onjohn] 09/9/2020 16:12

Gate more has multiple billions under management
They could snap this one up