My buddy reckons there is board changes/announcements coming up here, no idea if that is true, although something is going down.
25 Aug '15
What a rollarcoast week! Wish I had bought back in yesterday and good luck to anyone that did. Steadyaswego my point re AA was the cash burn which reading my post I didnt make clear. My overall point is how quick is FC burning £. In terms of what I do for a living (or not) I will leave you guessing. Benjiben. FC had the consultants in 3 years ago in the hope of turning around the retail business. This turnaround has not materialised and many competitors have overtaken them and to be frank have hit them out of the ballpark eg Ted Baker. They still have many unprofitable stores which have 3-5 years to run on the lease. This was the year FC was supposed to breakeven and it ain't gonna happen. i have not discounted buying back in and buying in under 30p is worth a punt. Although there was a bounceback today on the markets expect a slight decline over the next few days then after that who knows.
25 Aug '15
what has changed dalooks1?
I think you and me both have been supporters of FCCN in the past. My view has always been that they would close unprofitable stores one by one, reducing their fixed costs, at the same time work on better products, grown their online and wholesale businesses. I was hoping for at least breakeven in 2015, then growth from 2016 onwards. It all seemed to be going to plan, up until March this year, all news was positive, what has suddenly changed since April 1, 2015? It seems to have literally fallen off a cliff from that time.
24 Aug '15
"American Apparal close to going bust due to lack of newness, store closures, unfavourable currency rates." Or maybe going bust because of its massive debt mountain and the losses that dwarf those of French Connection. I'm starting to think you work in the city or at a clothing company.
19 Aug '15
Getting interesting here. Couple of things over the last few weeks spring to mind. Ben Sherman sold for £49M and losing -£7M a year. What price FC? Austin Reed putting the lease up for sale on their regent store, reportedly worth £20m according to Drapers today, FC's store on Oxford st is 13,000 sq ft v. Austin Reed's 35,000 sq ft and in a more desirable location (arguably). American Apparal close to going bust due to lack of newness, store closures, unfavourable currency rates. My point is the next update for FC could be a disaster. I take it as a given their retail stores have been a disaster. However don't presume their digital business is growing, many websites have stepped back on the year in SS15. However the disaster could be priced in. I believe there are a lot of people guessing at the mo re which way it will go (including me) As I said this will go below 30p, if it goes anywhere near 20p then I am back in but this share is for the brave (at the moment).
16 Aug '15
yes bank balance currently strong with no debt. The issue is the rate at which they are burning through £. One can foresee in 18months - 24 months if the retail disaster continues, at the cylical cash flow low point of the year they will have to start to dip into their overdraft. That would mark a huge turning point in FCCN. The fact that there has been no guidance on performance (except to say performance is below market expectations), their own broker is not giving a target price and with no FD means this will dip below 30p before the next update.
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