Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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TheSoundMan.
Back on my radar but I think you mean £1.10 lol
Think it may dip to £1.08 though
This is a strong buy now. If it goes sub 210 it becomes a screaming buy.
According to Bloomberg, 73% of every dollar shorted loses money.
Every time any stock falls there is always somebody blaming the shorts.
Today, the market is focussing on the next statement about the weather not helping current sales . FFS if JD was only UK based or if indeed next did'nt have form in talking down the future so as to outperform , asthey have done consistently for about 20 years, I could understand it. Still the shorts will be happy and if the sp falls further i will add.
This is JD's fourth major move into the US so they are not without experience in this region which is the largest sportswear market in the World. The current price is probably just a cyclical movement and may well present a buying opportunity.
Did JD just splash two-thirds of its cash reserve for the proposed acquisition?
That's a huge investment, I hope they got their strategy right. Little was said on whether they will rebrand, where to go from there, etc.
The market sees the risk and doesn't like it! We have to wait beyond the current financial year to see the acquisition reflected in the top and bottom line. JD is a recovery player for those willing to wait 1-2 years, provided all being well of course.
Exactly my thoughts, dare2. IMO, we have a confirmed break below the 50 DMA here now, so 112p - 120p or so might be a trade opportunity that comes into play.
Obviously, and as usual these days, the Fed will move the markets. So not sure I will jump in with a side pot, even if we see 112p, before JP speaks tomorrow.
Also agree with you from the longer term POV, Mary. GLA.
Hi Mary. I agree. Altho i will see to add around 112 i think. Possibility of 108 again? US Market doesn't look great at the moment with a retrace looking likely. Fed decision and comments Wednesday will be interesting. I have a feeling it could be a bumpy couple of weeks.
LT cheap as chips.
Not a recommendation.
Tav, whilst JD hasn’t bet the farm, it has committed significant resources to scaling in the US. If it works, JD will move on to the next level. If it doesn’t, it will cause many to question the BoD who have yet to prove themselves imho.
Only time will tell if the US adventure (and by implication the BoDs growth strategy) is to be a success.
Star, why do you say it is about positive US numbers?
The market doesn’t think JD can cut it in the US. This will weigh heavily on the SP unless and until JD proves otherwise. I expect this to drift until we see some positive numbers from JD or others in the US.
The BoD will be toast if the US adventure is anything other than successful over the next 12 months.
If the MA want to buyback shares in one of his company but shouldn't be allowed to instruct to buy 10m in another one of his companies. He is abusing his position to manipulate prices
Does it even matter what kind of customer a retailer caters? Money is money and at the end of the day, to an investor it is irrelevant it money come from the pocket of a 50 year old shopper or a teenager.
By comparison look at the PE of other retailers, such as Lululemon. Stellar valuation and the company may turn out to be a shooting star, a fad.
Correction upgrades his forecast by £10m 4 times per year. apologies.
Megla and Sean, why do you accept/agree that next deserves a higher valuation? It is UK focussed which is a huge risk whereas JD has exposure to better economies, further JD is a global brand which usually means higher pe. Furthermore JD has and is growing at a rate that exceeds next.
The only place where next excells is a more proven ceo who is a worldclass communicator who generally upgrades his forecast by about £10m per month .The fact that he cant forecast dose'nt matter if he upgrades . Take note JD.
The point of the comparison was to point out just how ridiculous JD’s share price is, even with the current fundamentals. NEXT is a good company and caters for a different type of customer, it arguably warrants a higher earnings ratio. However, JD does not deserve its lowly PE just because it’s listed on the LSE.
The recent broker ratings are shocking and a symptom of how sick the UK market is. It doesn’t escape me that the these poor valuations/downgrades come at a time of meaty declared short position, but maybe that’s just me being the cynic that I am.
Part of me would like to see the company upsticks and list in the US. But why this would necessary really escapes me. Why can’t UK listed companies command valuations inline with US peers?!
I looked up foot locker shares price and found it’s listed on the USA bourse. It’s simple to understand the huge share price difference as USA market runs on steroids compared to LSE bourse. FYI, I wasn’t been dismissive.
It’s just a comparison, Sean. Nowhere in the post does it say they should both have the same valuations.
But whilst you’re being so dismissive of a simple comparison, would you care to explain why footlocker has a much higher PE ratio than JD? A PE ratio that is more in line with NEXT. Are footlocker not tailored to a narrow market?
The comparison of Next and JD doesn’t add up. Next caters for a diverse range of groups while Jd is tailored to a narrow market. Both companies can’t have the same valuation.
115p is ridiculous. I do believe that 14 year old kids are issuing broker forecast on behalf of banks. They are as good at tossing numbers around as a n y b o d y else.
Duetsche bank have started their coverage with equal weight and a price target of 115p which is clearly not helping us. Given they still have a big operation in Russia and continue to make millions there they are not my favourite bank. Think they should move entirly ro russia and do us all a favour!
PBT Forecast
JD £940m (middle of range)
NEXT £960m
PBT Following Hibbett Acquisition
JD £1075m (not including synergies)
NEXT £960m
Net Debt following Hibbett Acquisition
JD £0
NEXT £700m
Market Cap
JD £6.23bln
NEXT £11.59bln
This actual platform has made an investment error too - some of the words (especially parts of words) that the programme censors is comical.
Took me a while to see what offence you had committed, TomBeef, in your response to the other poster. Orwellian stuff :)