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Agree with zstar’s analysis.
I bet shareholders would even see an offer from Next at around 30p as a Godsend compared to JD’s pathetic greedy offer. And he’d richly deserve it.
This is what I suspect. It's all pre packaged and ready for release Tuesday.
We might not even get the chance to get out.
Anyway, at 75% loss what's the point anyway. Might as well leave it in.
Enjoy Easter all. Nothing we can do. The money has gone and the sooner we accept it the better
Ray
*But something should have come out earlier in the day not end.*
I think it was pretty obvious that something was coming after hours. It's how these things work. The question was what was coming along - unfortunately, it was bad news. Also, any equity raise is likely to revolve around the share price at the close of the last trading day. I personally, wouldn't be surprised to see a flurry of pre-open RNS, including a suspension, a proposal for the equity raise, and de-list and so on. All will need to be approved by shareholders - 75%+, I believe.
Just speculation.
Temuchin
Agree the signs were there in the afternoon. Let's hear from SDRY, finance to Feb 2025, recovery stock without JD.
Ian and his wife obviously saw potential and I doubt that as a couple they were bankrolled by JD to stitch up the price higher.
A conspiracy too far fetched.
Watch the space and do nothing rash.
Https://i.kym-cdn.com/entries/icons/facebook/000/035/740/hopium_cover.jpg
Hopium is a portmanteau of the words "hope" and "opium" used to describe a fictional drug to help one stay hopeful in times of stress. It is frequently used in reaction image macros featuring Pepe the Frog hooked to an oxygen tank labeled "hopium". The term has been used among stock market investors to describe market investors who hold on to failing investments out of false hope, and more recently by Bitcoin investors in a similar way. It is also used in political circles (typically by those who lean conservative) to criticize people with hope in certain left-leaning policies. As a meme, hopium is closely related to copium.
Morning Mary. I stole it from one of these chat boards at some point, but it really is quite a splendid phrase. Not sure of the history of the word originally.
Hope you have a good Easter as well.
*That RNS could not be any worse in my eyes. It is dire. Cynical and dire.*
Agree with this. Obviously, JD saw a cheaper route than a takeout. No one should be surprised by the take private / de-listing reference - that was always the intended outcome here - just the route to it has changed.
It was always binary here - and thankfully, I left the party at 34p (minuscule £90 loss, since made back x 10, elsewhere). I would never bet more than a fraction of a portfolio on such a binary outcome.
The robot accounts are now expressing false sympathy.
Not quite sure where the Toffers account fits into the puzzle, but I'm always suspicious of hysterical posts either way.
Will be watching with interest to see what follows on Tuesday.
Good luck to flesh and blood people who have real investments here.
Morning LWHL
Hopium, is such a great word.
Thank you for that it was a new one to me.
Happy Easter to you.
Mx
Good Morning Gary
A balanced portfolio is key. There will always be duds, but the sun will rise tomorrow. My philosophy is that most paper losses reverse over time.
The increased SPT bid alone yesterday was worth 3 x my total investment here so fortunate too. Never mind SFOR, IAG DLG & JD.
Unfortunately others are not going to have a great weekend here. Unless in an ISA, a taxable loss so still worth your effective tax rate on be it 20 40 45% !
Losses can still be useful against other gains.
@Temuchin
I think your summary is correct and @justsomerandom’s comment that this is JD’s last desperate throw of the dice.
He failed to put a bid together
He knows the company is now susceptible to opportunistic hostile bids as suitors (ABG, Sycamore Partners, Next, Frasers etc..) no longer have to compete with an offer from him
He wants the company to be delisted so that rivals can’t buy it and he takes it on the cheap
He won’t go down the administration route as competitors with deeper pockets will buy it out and he’ll lose everything
So what does he do? Fabricates the need for ‘alternative structures’ to save face as part of his failed bid attempt and tries to act fast to take the company out of reach for other bidders. The company has £30m cash as of half year results and additional liquidity in the new facility so no need for either a raise or delisting in reality.
Personally I don’t think he gets shareholder approval (turkeys don’t vote for xmas) and the business continues trading with additional non core IP sales and cost saving measures. In the meantime potential bidders will see through his tactics and make an opportunistic move as they’d get considerable support for taking out the company at double Friday’s SP and could immediately sell all the stock and some IP rights for an instant profit with another brand added to their portfolio. They must pounce fast though to scupper JD’s plans. He’d then skulk into the background and leave the business entirely.
That RNS could not be any worse in my eyes. It is dire. Cynical and dire.
People have to remember JD is the largest share holder. We don't stand a chance.
Anyway, at 70% loss (if we are even given the chance to get out - there may be a new RNS Tuesday) I stand to lose around 15k. But IK stands to loose a lot more. He must be feeling foolish now.
But I made that decision and took the risk. The red flags were there for me to see all along.
GSA not closing short
Extension
First Seagull offloading holding
Hilco
Drop to 23p
Drop Friday around 2pm
When you see those, you should bail. Foolish to have thought that the CEO, who has run this company into the ground, was going to be our saviour. I didn't think he was this ruthless. It has surprised me. However, his reputation is in shreds going forward.
Temuchin, I cannot deny that there is still a fair amount of Cloak and Daggers going on. Doors are clearly being left open, in order for them to have got the RNS's out 'in time'. I have no definitive answer to your questions, because of the ambiguity that they have left behind. However, my feeling is that he would still have to offer 'full-value' (or the FCA would be called in to investigate and prosecute, if required), IF he decided to de-list. Not saying I am correct, as it is an unusual idea that they are throwing out there. Look, it's not ideal, but were I personally still invested, then I would sit tight, at least until the 'panic-mode' selling has dried up; say "wait and see" until May? Sorry that I cannot offer anything more solid, as it is all a bit woolly and open-ended at present. JD's 'goose is now cooked' as CEO though. He should certainly not remain in the role of CEO for as long as it remains a publicly listed company, in my opinion. To me at least, he has shown a total lack of integrity and has NOT had his shareholders' best interests in mind - which is precisely what a CEO is charged with doing . I'm sorry that I can't answer your specific question with any real accuracy, as they have left it all so wide open; again a bit shambolic on the part of the BoD (who he has in his pocket, I suspect). . . .Keep smiling! 😃ATB
Morning Mary,
Great post. Good you only had a smaller holding and loss wont be as heavy as a few on here. Thanks for being so transparent. Fortunately I didn't hold here yesterday. In the past I took a big hit on Tullow Oil. Bought at something like £1.50 on the Friday and the Monday opened at 71p where I was stopped out. Shares settled around 40p. Lost around 10k there.
So yes every investor has to take the punches and will have a hit along the way.
Have a good weekend
Glad you pointed that out, Rayte. Seems a lot of people have not read the RNS's properly, and some hopium is already starting to manifest itself.
Good in that sense that holders now have a few days to do so, get to grips with it all, in order to make a decision.
I would advise those of you who are perhaps unfamiliar with being a shareholder in a private company, to do some research this weekend into the nuts and bolts of it. See if it is for you.
In this scenario, you would have JD at the helm, so that might be a red line in itself - or perhaps the opposite. Entirely subjective, that one.
As always, you need to take the (understandable) emotional element from the equation now, and look at it pragmatically and dispassionately.
To be clear, I am not advocating for backing JD here, I would not fancy this option personally, because I think he has failed the commercial test, and I think he will not be successful in turning this one around, never mind all the other stuff that has been covered in great length here in the recent past.
But for every bear opinion there usually can exist a bull opinion. Maybe he will turn the ship around? How will you feel in 5 years or so if you do not go on that journey and it does become a multi bagger from whatever the starting price will be?
Not an ISA option, so be mindful of that as well.
GLA, whatever you decide.
A successful Dunkerton-less turnaround plan then it is.
Rayte, I missed that too. My posts apply in general then, not SDRY. The share should be suspended.
Rayte, when you say which part of it did I miss. I missed every part of that to be honest, whoops!
Happy Easter!
I remember writing back in very very early March, that he might shoot for an equity raise instead. Flood the Balance Sheet with money, close a ton of stores and tweak the Brand. That now looks like a very real possibility; which is a GOOD thing folks. Sure, you will be heavily diluted in the immediate turn. BUT, if you can lock your money away for three to five years, then you have a strong chance of seeing the share price recover pretty well, as Sales increase and Costs drop sharply. On Tuesday morning, do not panic. If you decide over the weekend that you really must sell, then my best advice is to avoid doing this in the first hour. Otherwise, hold on, as it's just not so bad as it seems, right now. Stay calm. Think longer term and you will, in all likelihood, see 'light' at the end of the tunnel and an actual 'opportunity' here. Sorry again, it was horribly executed by the BoD but it's better than it looks, as these things so very often are. Have a good (logical) think over the long weekend and do what is best for you of course; but it may actually NOT result in selling up! Best Wishes, Sheltie 😀
Which part of 'very material discount on condition of delisting' did you not see in the RNS
It could not be worse. It's terrible. JD is a ruthless b&£tard
Rayte, we were trading at 15p before news of a takeover.
At a 70% loss from here that would mean a SP of 8p, and you’re saying that would be good? Intrigued to how you get to this figure?
Assuming your short this stock? Congrats.
Are in denial about just how bad this will be Tue. I'm not trying to ruin your weekend. Remember it is only money. Your health is more important. Money can be made back. Look at those that are displaced by war and start again. We have made a mistake. Take it on the chin and move on. But be under no illusion how bad this will be Monday. Id say 70% loss would be good. JD and Superdry board have screwed us royally and cynically. No trading update Tuesday will prove once and for all they are fully behind JD. It's all been a smoke screen if you ask me. No wonder JD was full of smiles at the races. Despicable.
To me this whole thing has been orchestrated to let out those close to the company. First seagull is highly suspicious with his 'ripe for a take over bid' and then selling at the high. If a connection can ever be made between him and Superdry board then it's proven. It stinks and seems so obvious now.
As for Toffers. Their posts are despicable. For someone allegedly suffering from illness they sure are taking delight at others pain. Even someone with basic understanding of psychology can see in the recent posts what they are doing and it's disgusting. You are awful for posting like that. You will be blocked and I hope never to hear from you again.