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Just been reading up on Gordon brothers , the acquisition of FCUK looks like a perfect fit for them , after buying Laura Ashley they are looking at expanding its wholesale market and pushing the licensing side of the business, they also purchased Antler luggage and plan to do the same .
Now Marks has finally decided to sell his shares at a reasonable price I don’t think anyone wants to miss this opportunity, Hilco arranged a 15 million loan back in July , part of that discussion must of included a potential sale in the future , that loan gives them a seat at the table.
Looking at Marks , he started the company back in 1972 , 2022 would have meant 50 years in the business , I think he probably was hoping to hold on till then , you know what these ex centric millionaires are like .
Anyway this is my last post on the matter because I am getting too obsessed this morning , good fun researching it though , I will sit back and wait for the fun and games to start which shouldn’t be long , these companies will have been reviewing this takeover for months so should see a bid next week , hopefully 45/55p.
GLA.
Apologies for the couple of auto corrected words I’m on my phone .
Just to add the last week has also seen more buys than sells which Is also a positive sign for me.
Looking at social media vehicles which is what this new world is all about .
Evans clothing sold for £25 million and has 125,000 followers on FB.
FCUK has 750,000 followers on FB.
Whoever buys them will be able to tap into 750,000 new customers at the push of a button.
50 p a share is not unreasonable
Like all these deals it’s not what’s happened in the past it’s what the potential revenue in the future.
What they are buying is 750,000 potential customers and a well established brand .
I got to agree with mostly what had been said. Looking at the information we have I think 40’s is very realistic, 50’s not sure but maybe.
The only negatives I can see is the loss’s over the last few years and the fact Mike Ashley sold his shares for less than 20p. However this is already water under the bridge as the shares are now 25p ish and they have spiked to 31p maybe he just wanted out.
Positives.
Strong brand name.
Cornavirus has made it easy to mortally move online and close high street shops.
Brands currently being snapped up by asos and boohoo.
Farhi holding her 2mil shares.
From what I can see all directors still hold their share and they all purchased them for 35p and above, mostly in the 40’s (very positive sign IMO).
The chap from Newcastle (without going back I can’t remember his name) that bought Mike Ashley’s shares has sold a small proportion of them at 5-10p per share profit in less than a week and so far kept the remaining, that’s I think snow confidence in the in both ways. He made a profit on some but still remains in.
As long as there are no pension black holes I can only see positives.
Feedback welcome or correct me if I’m wrong....
Debenhams were in administration with huge debts , for example their total lease liabilities to the end of their terms was £5 billion.
FCUK is a company which has ditched its bricks , anyone buying the brand can continue to sell clothes or license the brand for a fee .
As I said earlier they are already selling their ranges on numerous other websites even Next , who knows we have no idea who else is looking to put a bid in , maybe Next !!!
The main issue with this company over the last 5 years has been Marks who controls 42% did not want to sell or at least did not want to sell below a certain price.
For some reason maybe after realising the future is Boo and ASOS and time to walk away !
There is a big difference between a company which is drowning in debt and completely insolvent, where bond holders and creditors pulling all the string etc.
Making small loss is nothing big or unusual.
It’s how you manage and take the business forward.
It’s a designer brand, yes not at the high end of the market hence the market cap.
It’s very simple to cut costs for a new investor/buyer, just buy reducing the retail units will make the company extremely profitable, it’s a no brainier and these investors are experienced, they may even make it fully online.
Can you imagine how much money they will save, they will instantly get return on their investment, it will become profitable overnight instead of being loss making.
Not wishing to be negative, invested at just below 28p, but why would potential suitors pay £50m for a loss making distressed company. Debenhams brands cost boohoo £50m but they were making a lot more dosh than fcuk. Hope i’m Proved wrong.
That’s great news.
We should have a brilliant couple of weeks ahead.
As previously mentioned I’m very new to this party, so don’t know anything about it’s history and what you guys have been through, jus the general knowledge, it’s established and been around for a long time etc.
However I am still very happy and excited to join this party even now as the potential of great return is imminent .
For information Nicole Farsi is a top designer but also Mark’s ex wife .
I have been looking into FCUK and I can understand why it has become a bid target as I had no idea how many sites were selling their clothes , ASOS , Sports Direct, Amazon and even Next to mention a few .
They mentioned in their last trading update that wholesales orders were strong they are not kidding , we should be looking at a take out price of well above 50p !!
100% profit in less than a month.
Actually, yes your correct, just doubled checked.
Looks like existing shareholder. Its still good..
I think you are confusing the 8.3 and 8.5 forms with a TR-1
New shareholder.
Buy 2,000,000 shares, so that's 2% of company.
Perfect..
Any ideas new rns look like holding also a good sign.
Maybe he just heard that the shares shot up by more than 100% and just sold spontaneously as he was happy with the gain recovery.
Alternatively, maybe he just does't have that kind of time to go into meetings, negotiation for tiny amount of money for him.
I am not worried at all that he did some insider dealing, this is pocket change for a multi Billionaire, no one would risk going prison etc for insider trading for what pennies for him.
Agreed Harry, they already had 25%, why dump at 16p to Ghura, there is no was FFCN would be sold for less that 16p. Seems like just whispers to me
Doesn't make sense.
Try to buy it on the cheap, but realized it was going to sell for more, so dumped the stock?
Spoke to one of my contacts in the retail world concerning Frasers about why they sold their shares and the general opinion was they were hoping to buy it on the cheap .
It is quite clear that it is going to sell for a lot more than what they were prepared to pay .
I now believe the dumping of their 25 % is now a very positive sign that a bid is coming at 40p plus .
Nice..
If their budget range is minimum 50 million - 100M, then FCCN is perfect for them.
So even at their lower range 50 Million is approximately 50p per share so 100% + upside from now.
Lets finish the day past the 30p mark..
Next couple of weeks should be very exciting...
Had no idea how new this investment vehicle was , bagging FCUK will be a huge move for the fund . Looks like a 50 million cash offer is on the table , needs to be at that level for Marks to part with his shares .
Guys, it's pointless watching this constantly to expect an immediate rise, prospective bidders have up to 5th March to make an offer and this is going to dance around all over the place till then and around then and poss just after that date. If ever FCCN was going to get sold, if it doesn't get sold it will go up in a puff of smoke as Marks has run out of steam on his own, the future success of FCCN is a sale.
Some interesting current analysis:
https://twitter.com/pivotinvestor/status/1360149561419907072?s=20
https://www.pscp.tv/w/1vAGRwdNjvrJl FCCN at 02:40 - poss short-term of 35p (before offers made). GLA
Starting to show up now
No movement on SP for the first hour of trading why ?
Tomorrow hopefully we can end the week with a good finish.
What do you guys think, we can finish the week off at 30p? It’s very realistic and reasonable in my opinion..