Member Info for Alessandro

I read that the spending on travelling is softening due to the cost of living crisis

£24k for a company director is a f**t in the wind

how much of a new is this?
https://www.lse.co.uk/news/jd-sports-spanish-subsidiary-ups-deporvillage-stake-to-98-ej03av8rwkv9eqz.html

what's their conservative valuation?

What would a fair share price of this be with interest rates of 6% and above in combination with a recession?

On the premises of how well the travel industry is doing, I don't get how the SP of OTB is so low

That doesn't make any sense, in the past the company had a different book value and possibly a different outlook, so the price of "yesterday" and today do not compare.
My advice is to look at the company's accounts, consider the long-term growth, estimate a fair price you would pay and compare it with the current market price.
ATB

Does that matter?

Not the best timing when JD is trying to rebuild credibility after a number of mishaps.
JD is really being hammered from multiple angles, the ousting of Cowgill, new management, the CMA, general declining consumer confidence spending. I don't see JD recovering to the old highs in 3-5 years., provided nothing else adds to this.

Onlyprofit, when new shares are issued the market cap doesn't change at all. The value of the shares is ""diluted", the net effect is to materially reduce the value of the shares for the current shareholders.
Stock splits and consolidations don't have any effect on the market cap nor on the value of the shares for the current shareholders, what changes is only the share price.
I hope it helps.

Peel Hunt has a forecast of 500p, that's a market cap of almost £1 bln, to justify that price I would need to see at least £40mln profits after tax, which OTB has never made!

Onlyprofit - to calculate the market cap multiply the no. of shares in issue by the share price.

I don't get how Unilever agreed to have an independent board in B&J to do boycotting at its own expenses...

Just over £6B. Why?

Onlyprfit - That article is from Jan 2022.
However, how did they come up with these figures:
Wallet Investor says the share price could reach £824.290 by 2027. For the years 2022, 2023, 2024 and 2025, the algorithmic service expects the share price to rise to at least £266.387, £393.598, £519.176 and £645.032, respectively. JD Sports has a long-term earning potential of 78.85% in one year.
That's a market cap of £50 billions by 2027! Totally unrealistic, I don't know how they can spit out number like that. Must be a new graduate in arts now working for a financial magazine.

What is the liquidity problem?

To add to that, I don't understand how it got as high as 400p in the past years... the valuation was way too generous

What is your evaluation of OTB shares, based on forecast earnings?
Say the a post tax profit is £15mln, how would it translate in a fair evaluation?
with a generous PE of 20, considering the number of shares in issue is 160mln, it would be about 190p. Does that sound reasonable?

What's causing the sharp drop here? Can dividends be considered safe?

I wish I waited before buying