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Pokerchips - yes debenhams are definitely carrying less stock, but in a very positive way. The autumn men's range looks good and trendy. The old stuff on the sale rack in oxford street was camoflauge trousers... who buys that except hunters and Local lunatics!
What concerns me is the fact Odey has already made a killing by shorting this stock, but does not seem to close out. What information is he privy to that we are not?
Hello Pokerchips - Can you elaborate a bit on your view of "shorts increasing could be a good thing". Genuinely interested as to how this could be a positive. Thanks
Debenhams is like playing a rigged game of poker where the dealer is in on it as well.... This is just nuts at the moment, daily falls of 2 to 3% are relentless. I am hoping for a close out of shorts in next few weeks but am concerned by how persistant they are. The shorters could be geting information from an employee on the inside, or finance team somewhere along the lines. They increased the short position a week back so are clearly very very confident. I still don't see Mike Ashley doing anything regarding a move on Debenhams.
I'm with PokerChips... selling Magadin Du Nord would be a bad move. This is a very profitable part of the business and helps hedge against brexit
The longer and busier Mike Ashley is with frasers the better, he is bad news for debenhams share holders. WTF were debenhams board doing when they sold off their property portfolio 6 years ago...madness.
Do we think this will have any significant impact on Debenhams ? They have a few concessions in Debenhams. Could still be saved with a cash injection. I know they are in Oxford Street branch, London, where else ?
Shorts are increasing over last few days ... gulp!!!
Debenhams current issues are not related to brexit, but they could certainly be made worse as a consequence. If the price of goods rises due to a weak pound then all high street retailers have an even harder battle ahead.
Anyone care to guess what APR (%) Debenhams pay on their debts, assuming £320 million ?
Thanks
Debenhams paying a dividend currently is pointless. People are talking of needing to restore confidence to the share price for the city... there clearly is no confidence in Debenhams right now ! Any profits must be for debt pay down or investment in the new model stores. I think they will report as expected (£30 to £35 million profit on 25-10-18) and the share price will not move either way. possibly back to 20p this time next year, but a very long road ahead. I am long at 21p, and just hoping to stave off administration this year.
I would be worried if Debs do pay a dividend on 25th October. Any spare cash must go towards debt pay down. They can turn this around with the newer stream lined stores, like the new Watford model.
I agree with what Mike Ashey just did (sacking the board of House of Fraser). These were very well paid excutives who ran the company into administration and failed in their roles. I really hope he does not cut any shop workers or suppliers jobs. Surely some closeures of Hof must be helping Debenhams sales ?
This is painful, but I am holding on this one and need 21p to break even. I was in Debenhams Oxford Street yesterday and the store was busy with lots of fresh new Autumn clothing. People will return, and this will slowly survive and rebuild. I don't see any chance Mike Ashley will go for Debenhams, he has too much on his plate. The one to hit the wall will be French Connection.
Hello Oldtimer - How do you think Debenhams can renegotiate their rent contract’s ? I would have thought these were binding contracts with no clause for renegotiation. Looks like HoF have just tried the same and come out of it very badly, with almost none willing to reduce. Surely these landlords will point to the company being profitable and play hard ball. Are there any examples of Debenhams successfully renegotiating recently ?
Mike Ashley calling others greedy..... "pot...kettle...black"
"Peel Hunt rating - Sell...Target 12p"....duh!... that takes some thinking about with a current price of 9.86.. :-)
People talk a lot of renegotiating rents but how would this work in reality ? The lease owner will point out Debenhams is in profit and likely to get a £200 ish million asset sale soon..,?
I hope they don't pay a dividend. Any spare cash needs to go towards paying down the £320m debt.
Hello Nomlungu - The less clutter was a definite positive. It felt like they are looking to sell classier ranges and far less sportsware. I think they have gone for fewer clothing lines and focusing more on the good sellers. The biggest queue was at the "click & collect" till....