Member Info for Alessandro

This will be £6 in the near future.

Gains from the past two weeks have evaporated.

With JD continuing opening new stores, revenue has fallen in Q1. Company still massively underpriced though. How long can the market stay irrational? Hopefully until the end of July, when the buyback will be completed.

Trading update on May 21st.

I can't believe Sketchers was valued $9bln. On the other hand.. I had no clue that Sketchers had a turnover bigger than JD Sports. Surprisingly they have good margins, although their shoes are cheap. I assume JD pays a lot more at wholesale.

Trump is showing how unfit he is for presidency.

He must review very carefully his trade policies with experts and do exactly what told.

Was PatBase a distressed sale?

Brmmy what do you mean by "regarding the badly worded RNS last week". What do you think was miscommunicated in the RNS?

It is insane that the market valued JD Sports at £12B, 3x as much as today. I can see JD trading at the same level within one year, purely based on logic but market sentiment has evidently deteriorated.

Incredible how low the SP is holding, this will definitely help the BB, although there are still 3 months of BB to go through, the SP may hedge higher, I doubt it will go ballistic by the end of July. It should work out fine.

What I never understood is how much of somero revenue is recurrent and how much they need to chase new leads.

Recurrent revenue is much more predictable and if so investors can be reassured.

The market will be careful as it may see more profit downgrades coming.

Oi_Oi_Savaloy the buyback are insignificant (in the order of few $10s of thousands), and executed to avoid minor dilution from employees performance awards.

The company remains cash generative and virtually with no debt. However the share price is reflecting the profit downgrade.

What is this mysterious "increased amortization"?

Something is wrong in their accounting practices. This is not the fist time that I see RWS playing with figures (referring to the revaluation of the building in Chalfont St. Peter, if I remember correctly).

Drop seems overly exaggerated, glad I sold way back at a small loss around 180p.

The management is doing an underwhelming job.

Revenue will (or should be) 10% down. Somero has high margins which translates in 4mln reduction in gross profits.

If I am correct, Somero has total headcount of approx. 250. A 15% reduction is about 35 people. If each employee costs $60K. Somero should save about $2 mln.

Considering the offset from workforce reduction, Somero should suffer a $2 mln reduction in gross profits, about $1.6 mln in net profits.

It is a hit but it could be worse than currently announced.

This trading update came out of the blue. A few weeks ago they were announcing attractive opportunities, now instead a profit downgrade and a 15% workforce reduction.

What is your exit point?

I am tempted to say £2. Beating estimates should take us above £2 but that may be wishful thinking.

Hesham90 - I would give it perhaps 3 days to settle. I prefer missing an opportunity than catching a falling knife. This may go well below 20 with all the uncertainty of macroeconomics and the firing-and-replace of the management.

Is the buyback supposed to be completed before end of July?

Transan, are you suggesting that PETS has no competitive advantage (apart from scale) over its competitors?

Regarding the CEO, it is not reasonable, and quite pointless tbh, for a CEO to visit each and every one of the 450 stores in the UK. The CEO would spend every working day for 2 years just to visit one store per day.