Member Info for adamj2021

Bleeding like there is bad news but I don't see any...

They could increase their dividend if they would decrease their buyback, but why would that be a good tradeoff?

Disappointed to see so many tutes shorting this stock, it's hard to get stock price apprecation with them betting downwards, and likely manipulating stock price on low volume.

There is extremely strong support at 70 area, don't see it breaking through there. If it does I will be upset.

That Citi downgrade is criminal, 1p just to add some downward momentum

America growing in a tough climate, Asia too, gym business doing very well. Lots to like. Severely undervalued.

Better yet, spin it off, so they are obligated to grow aggressively as a standalone entity.

What annoys me about JD Gyms, is that they are doing so great, but they just put so little money into the business to grow. Why is it only adding 10% gyms a year? Why not 20, or 30%? The ROIC is great, the money is there, the growth is struggling elsewhere, it seems so obvious.

I do not see why this is shorted going into Christmas results next Wednesday. Retail has shown great results over Christmas in the UK. The US economy is going great, and there was positive momentum in the US segment last earnings. Anecdotally all JD stores I visited were full over the holiday period. I am expecting a Gregg's style break out on Wednesday.

Lots of shorts coming out to play here, much like Greggs.

At some point JD will need to begin leveraging their massive number of stores to produce actual cash flow. In 2020, 5.9 billion gbp of revenue produced 1 billion gbp of cashflow. Now nearly 6 years on, 12.36 billion of revenue is producing 1.29 billion gbp of cash flow. If JD could use some operational leverage to get the % of revenue to cash flow to equal that in 2020 this would undoubtedly quadruple in stock price. Let's see if they can achieve this.

Long term holder, operating margin erosion is far worse than I anticipated. May be a lost year on this one, after a couple already. Depressing stuff. Once consumer confidence and savings improve this could rebound hard, but having dead money for so many years while the rest of the market rallies into the sunset is very painful.

As a long term JD share holder, it's quite painful to see people celebrating over a brief jump in share price. I wouldn't be at all surprised to see short interest to jump tomorrow, and that was what the spike was from. The buy back is nice, but the sales figures are not great... If you take away new store openings this is a very grim set of results. I hope for Christmas to give us a needed boost.

Hoka results great, puma results terrible, the common denominator is that puma is losing market share and Hoka is gaining. JD does not care which brand does better or worse, they just adjust their stores to have more or less of the winning brand.

Because it could double and it would still have a forward FCF yield of 6%

The stock price is where it was in 2017, despite revenue 4xing, and the number of stores 5xing and the number of gyms 10xing. A minor increase in operating leverage will dramatically increase the share price. Your lack of understanding of operating leverage makes you sound like you aren't suited to valuing businesses.

"I am thinking JD Sports could breach 60p at some point and become a permanent stinker just like Ocado." Sounds like you don't think very much if you think these two businesses are comparable.

"None of that matters if the share price drops and then sticks in the gutter" if you own a hotel, and some random guys in suits turns up and tells you they think your hotel is worth half what you paid, are you going to sell it? Stop thinking about stocks and lines on charts and think about fundamentals, and you will make money and not be so emotional / short-term minded.

Dwam, I am not sure how 5x'ing revenue since 2017 is 'not right', if you are naive enough to believe that broker's provide accurate price targets you are going to lose a lot of money, those targets are for institutions to make money not you. You sound like you shouldn't invest in equities and opt for an index.

"Growth at Footasylum sends JD Sports shares down"

Footasylum has 55 stores, JD has 5000 stores. That wasn't a typo.