Member Info for alex1621

More likely to see Ashley selling … never a man to miss raining on a parade.

Perhaps the uptick in the SP in the last few days was due to leakage on the update today? Some green shoots, but I’m not getting carried away, still a long way to go.

I think this is more than just “chatter”. I recall similar chat surrounding Direct Line … which went on for a while before the first unsuccessful bid by the Belgian insurer which was followed some time later by Aviva’s eventual takeover.

According to Buffett buybacks make sense if the company is trading at a price below “intrinsic value”, and don’t make sense if the share price is at intrinsic value or above it. So if you believe the value of the company is not reflected in the current share price then it’s beneficial to a shareholder, according to Warren Buffett.

Ashley actively trying to sabotage the fund raise? Normally when outside investors build up a stake it’s with a view to a takeover and full ownership. It seems that Ashley wants control without doing that? It’s questionable whether he would have acted in good faith had he been successful in becoming CEO.

Another fund raise? Maybe not that surprising given the decision to take PLT off the market - that’s if it was ever for sale in the first place?

I have speculated about a Shein takeover for years, always premised on them floating on a stock exchange. I read yesterday that the Government is trying to make it easier for Chinese companies to list in London. That might put Shein back to a London float, perhaps? If more Chinese companies list in London scandal will follow. There was much talk of a Hong Kong float, but I’ve not heard much on that recently? Does anyone know?

I think if this share ever gets to 75p it will have to show growth, increasing profitability (profit after tax) and debt repayment. It would not get there unless there were real tangible results. And if that ever happened it has the potential to move higher.

But sadly we are nowhere near that currently.

It was a positive update, particularly in this trading climate. Still a very long way to go. The PLT announcement a bit suspicious? But if they can revive the brand I’m okay with that.

I suspect that Frasers only went up to 29% to wrest control of the Board. It wasn’t a precursor to a takeover. I think their initial investment was opportunistic, because they believed the business would bounce back and they would make a decent profit. Of course, that turned out badly. They may well bring their investment down to a much smaller percentage, which means more selling ahead, which will dampen any prospect of a SP rise.

The only answer to shorters or large sellers is good results. Let’s hope 2026 is the year that happens?

My theory for more years than I care to remember was that Shein would be a buyer after its IPO was out of the way. But the IPO has been dragging on for years due to Governance issues. I think Reeves has kept the door open for them in london by failing to immediately crack down on de minimis, but even this won’t work. After the Hong Kong IPO they may well buy PLT. I note that their CEO recently moved to the UAE, a Kamani stomping ground and home to Umar, I believe? That sale makes sense as Shein can do more with PLT than this lot. So I’ll reserve judgement until after the Shein IPO, whenever that will be?

I suspect it’s a number of reasons:

1) money raising for other ventures like shopping centres

2) Not being prepared to engage in a takeover.

3) realisation that board coup is not going to happen

4) realisation that buying out of insolvency increasingly less likely.

Now Ashley is offloading shares, now 27% … ish. So no takeover bid, but does this suggest his chances of buying from insolvency is diminishing?

I’ve posted the last few days but I’m going back into hibernation. I thought this board was becoming too toxic. Catch up later after the next update.

Percy - I’ve no idea what you are on about? If you are going to troll someone at least make it make sense?

SCB - I don’t think many of us expected the company to go from one disaster to another, the way it has done. During the Covid boost many of the analysts were predicting that the SP was heading to the moon. Post Covid it’s been a horror story, but my expectation was that they would recover after the supply chain and inflation issues died down. As we know, that didn’t go well. And If my memory serves me right I believe you did to? Indeed, you were one of the most optimistic posters on here.

As bad as things have got I still believe a recovery is within the realms of possibility, but it’s too early to be anything other than extremely cautious. I’m willing to hold on and see how 2026 pans out.

Okay Hexam, no issue and no harm done.

Yes, the market reaction reflected what market participants consider to have been a more positive outcome than they expected? Which was my point really. Saying “any of us expected” was simply a well worn phrase, not a pretext for you to get on your soap box.

Hexam - the business was valued like one that was near bankruptcy. Anything that suggests that notion is premature is a positive for me. If the results were as terrible as you are implying then the SP reaction would have been negative. What part of the Panmure Gordon recent analysis did you find dubious?

SCB - I did wonder whether the clampdown on serial returners contributed a big chunk to the sales declines? If you are taking in £10, but it’s costing you £15 to administer the return it might well make sense to take a hit on sales and build from there, as increased sales only generate higher losses. Let’s see how 2026 goes.

Whatever anyone thinks the result was better than any of us expected, and can at least be regarded as a “green shoot”. The key now is to see growth in the business model and real profitability and positive cash flow. If they can offload assets like PLT for a decent amount they can go from indebted to debt free. The economic environment has been miserable for several years but that doesn’t tend to last forever. So there is something there for the optimists, but you can’t disregard the fact that this company has been woefully managed these last few years. Dan appears to be competent, but I hoped he doesn’t get sidelined if Kamani decides to stick his oar in.