Member Info for DC2007

IR part seems to be in meltdown - RNSs have disappeared from this morning and first thing they had posted Sports Direct's RNS to their own feed!

I'm with Jones about the £99m - there was nothing in the RNS to say drawdown had to be today, only that it would be available on certain milestones being met. One of these milestones was that the company would be taken pre-pack. But another milestone given was a rights issue.

SPD's RNS clearly states they are ready with funding to underwrite a rights issue. So that also is a milestone satisfied. Ball is back on DEBs side of the net - they could still elect to go pre-pack if they wanted. DEBs RNS have been scarce and then frustratingly opaque. Visainn's cautionary tone though is very appropriate and I am in agreement with that.

Until there is some formal communication from either party, we are still speculating about what this £150m rights issue might look like. Based on the FT article (and they claim to have seen the April 5th letter) I read it as MA's underwriting would extend to buying the rights of those existing shareholders who do not take up the offer to new ones.

If - and it's unlikely as he only needs a few million more for effective control - everyone took up their rights, then all current shareholders would end up with exactly the same interest (so MA would still have 29.9%).

You've so obviously never ran a business esecallum. I doubt you could run a tap.

I put a lot of blame on Redesigned, and that was SB's idea. Before he started, the business was steady, if a bit stale. It wasn't going anywhere fast, but consistently putting out earnings of ~£80m a year. Redesigned was meant to invigorate these figures - it has utterly torpedoed them. It has been doubly incompetent by costing far too much AND harming revenue.

All done in record time too, two years from doing okay to near insolvent. Once they take over next week, creditors would be crazy to keep the current BoD; they have damaged, beyond repair, a viable business. Were the previous management from circa 2016 still in charge, we'd be ticking along okay.

Now, with a deserting customer base and no clear idea of who a Debenhams customer is, it's hard to foresee any recovery, irrespective of who has control.

Sensible stuff always, meta, wood, and others who responded in the affirmative to the original poster. A tonic to the breathless nonsense recently from 'contrarians' etc., who even still now insist all will be well and they well timed PI can take 3-4x from this.

Broker ratings and price targets are near useless. Mostly their figures and ratings seem plucked from thin air. Ignore them in my opinion.

Maybe not quite for bankruptcy, but price sinking towards it. The debt load has been allowed to get too high vs the revenues and earnings. I can't see how it can be brought back to reasonable levels before 2022 when it's due.

Very hard to weigh up if this is a turnaround/recovery or not. Very high risk for anyone getting in here or holding from a few months ago or more.

This and similar comments about the MMs always strikes me as conspiratorial. For anyone that really thought this - i.e. that the market is not fair - then it would not make sense to buy equities.

The MMs are not all sitting in room deciding what price something buys and sells at. It's only a bunch of computer code matching orders based on supply and demand. People usually invoke the conspiracy stuff when they're losing.

"Exactly. Should be a sea of red on open. Maybe even gap down to 1.65p area."

Hilariously wrong again!

Yes, obviously this is what will happen next.

Is this a different 'level' of sure then? Because you were sure last week about a bid on Monday. Bid is one possibility yes, but other outcomes are also in play for non-wishful thinkers. Clues all in the RNS.

Nah that's rubbish. You were full of it being a bid first thing Monday morning. I mean you were absolutely certain, so much you were counting the 3-4x that was already yours. You're the new Pearls...endless stream of ad-hoc reasons so eventually something you say will turn out right. You're a gambler only.

The planet of reason rather than the planet of febrile hope.

Fair enough, hope it pans out well.

DC

Scully,

Your post said you originally bought £10700, then added £20k. Took that as truth, so belief is nothing to do with it. Your risk to take, just poor judgement if you can't afford to lose it. You're trying to convince yourself of the upside and switching off entirely to the downside.

DC

Bad luck on the December trade Johnson. May chance be favourable next time around.

Yes Scully, my post below was in response to your statement of your invested amount. I've never posted on ADVFN.
Enjoy the sun.

Madness, absolute madness to put £31k at risk that you can't afford to lose. Could easily lose the lot on this.

Nearly a quarter of the entire issue changed hands today. I wonder what the record is for the London exchange?

Sound, hope the bell treats you well.