The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Apparently city traders have a new nickname for Liz Truss. She is "Daggers" as it is two stops up from Barking! LOL
£770m of debt fixed at 4.28% until 2031. Energy hedged 100% until Oct 23 at pre-Ukraine levels.
CunningL, I was wondering about leases (actually for another stock), is that how they work? Leases are index linked/inflation linked? So that's why the lease liability is viewed as so important? Very interested in this area if anyone can shed detailed light on normal contractual terms or even specific terms regarding fixed terms on leases, renewals and how they're linked to inflation.
I have exited and I took a 50p hit or therabouts. I had even added a second position so it wasn't fun for me this morning. I suspect that 363 area is now on the cards so doubt I'll re-enter. I thought Shephard Neames results looked pretty encouraging this morning and that would help us here, but it hasn't. I suppose the idea of disposing of 30 venues has people worrying about finance etc. I wasn't hoping for a lot and would have closed out for 10p or so profit yesterday had I had the chance. We were in a pretty good trading channel up until this morning. If we close today below 414 I suspect it's a pretty bad sign and that 363 area becomes much more likely.
Jimbo, your bang on the money. He's selling the pubs before the banks take them over
Wetherspoons have a huge debt and it is not great to have debt when interest rates are going up. Also the energy bill will increase significantly across all their premises. The only solution I can see is for Wetherspoons to significantly increase their prices across the board. To charge 1.25 for a coffe with unlimited free refills is plain crazy...increase it to 2.00 and the punters will still come in. Increase drink prices by 15 to 20% and they will still go to Wetherspoons and the same with food. Finally, I cannot understand the rationale behind the decision to sell 32 pubs....who is going to buy any of them if Wetherspoons couldn't even make them a viable proposition.
Pubs named within https://www.thesun.co.uk/money/19939462/wetherspoons-sells-off-thirty-two-pubs/
Not really - if memory serves these are mostly leased pubs - with a lease there is an obligation to pay rent (probably linked to an inflation measure). Smart move if you can pass them on - there is probably not much capital value here - but if they manage to swap 20 leases for one great freehold in London at a discount then I’m happy.
found it looking at a different article
Cant see where it says 32 pubs , just 1 mentioned ?
When and for how much these pubs sell for, will then shed some light on the true value of the balance sheet
Leicester Mercury just reporting JDW putting 32 pubs up for sale. https://www-leicestermercury-co-uk.cdn.ampproject.org/v/s/www.leicestermercury.co.uk/whats-on/whats-on-news/loughborough-jd-wetherspoon-pub-risk-7633233.amp?amp_gsa=1&_js_v=a9&usqp=mq331AQIKAGwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=16642862026489&csi=0&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.leicestermercury.co.uk%2Fwhats-on%2Fwhats-on-news%2Floughborough-jd-wetherspoon-pub-risk-7633233
I was in Camborne yesterday morning and by 11am, and what is a very large pub was at 1/3 capacity. That is excellent considering all other pubs have not even opened the doors by that time
Stupmy, where are you looking to exit on this one?
I'm not here to invest long term, but it looks interesting from a trading perspective today. I've been in and out a bit recently profitably and have re-entered this morning around 468. I think we'll see a bit of relief from recent falls.
Steve, my and survivor have history so he'll understand it's just swings and roundabouts. JDW is a study case for me. I've done the analysis on the accounts and believe it is in a really difficult stage with current macros being against it for the last 3 years. I'm watching and monitoring to see how it unfolds but Survivor gives as good as he gets on other shares so he'll be fine.
Went to Manchester yesterday.
All I can say is that I have never seen it as busy. You couldn't get a table hardly anywhere. Had to queue at the bar for drinks continually. Quite simply, it was heaving...
Everyone was shopping, eating & drinking.
There seems to be a huge discord between the press and what is happening in reality! Mind you, it is the low life media's job to frighten everyone to death isnt it?
But unfortunately for them and their ****ty agenda, it's doesn't seem to be working - GOOD!
GLA all genuine holders x
drb - i said you had a bad smell about you !!!
if this stock was just an exercise. you would just be watching, not making negative comments.
With today's budget The Savoy should do well next year.
Sterling is turning into a basket case here. I don't think it will be long before the yanks start looking over UK plc.
"Alphabet Spoons", sounds like a spaghetti
Interesting article, still think they’ll be plenty of Spoons customers in a downturn but this presents those seeking more premium (more expensive) beers as well https://www.thedrinksbusiness.com/2022/09/people-to-choose-spend-more-on-premium-drinks-during-recessions/
Happy you've seen the light Survivor.
I want to know what that one guy at the BOE was smoking who voted for 25bps. He must have been short GBP
This looks like a test of the recent low is coming. Could be today if only a 50bps hike?
Managers Special is just a defrost special. They predict how many (fish for example) to defrost for Friday. Then if they have any left on Saturday (refrigerated not frozen) they will be discounted to sell before they have to be thrown away.