RE: Extraordinary deal. Balance sheet transformation4 Oct 2023 12:10
Mortgage rates are circa 6% at the moment - big deal. We in the UK have enjoyed false ultra low interest rates for well over a decade and so 6% is obviously a big shock - but it is very normal on a long term basis. I remember by parents weathering 15% mortgage rates in the 1989/90 crisis and that really was a crisis.
The big picture has the consumer feeling some pain now but things are getting better: reduction in inflation, higher wages, interest rates at or close to peak, high employment rate.
JD has taken out Bantry Bay and Hilco 'backstop' liquidity facilities to weather the current storm and ensure the company is well funded to be in a strong position to continue the transformation. These lending facilities may never be used! Selling £600m+ of stock per year during a cost of living crisis doesn't look like the sign of an out of fashion retail dog to me. Massive confidence booster that Reliance likes our brand for India, and even more amazing that we have a stake in that goldmine!
I am in for 70K shares at 75p and so yes, squeaky bum when at 38p - but with improving news the SP can move at 20% a day - so yeehaaaa - strap in for the ride :)