Definitely good news an institution has taken a slice according to your news, hopefully the small PI can now enjoy the ride as it lessens the risk of any "unscrupulous" behaviour taking place .
I thought this would be sold off on the cheap back to management if I'm brutally honest, as the brand seems done for, albeit for a mighty revival plan.
Good luck to those profiting ! At the end of the day, it's nice when people make a few quid and not lose!
AIMHO, GLA, DYOR
In typical JV fashion, I expect an update in the afternoon or evening !
50k was certainly a buy. What a bargain somewhat get there eh!
Double digit revenue declines, Net Debt roughly 29mil and an underlying loss of circa 20 mil+, coupled with a CFO resignation.
Yet they are generating decent gross margins in the 50% range, which is indicative of their need to reduce overheads substantially...
I've seen it all before! Only one way this is going IMO, DYOR, GLA!
'What story can convince investors to come to SDRY?'
Hard question to answer, as to convince someone they have a relativley high likelihood of losing 100% of their investment, is enough to put anyone off an investment here IMO.
It's now really for the brave and ballsy, trading the swings as it becomes volatile, but as a mid-long-term investment; I honestly think this is finished.
I think the brand will live on though, just have a feeling that will end up resurfacing in Sports Direct next to the SolCal and Donnay heaps probably.
AIMHO,GLA,DYOR
Hedgehog, personally, I'm not investing in anymore shell companies, as I think the poor market conditions has been used as the scapegoat for many advisory companies taking a fair amount in fees off the shell companies to do DD on a company, which has very small likelihood of going ahead and ends up being aborted.
Only winners of late in this area, appears to be the companies "advising" the cash shells, and let't not forget some of these business have also been compensating the BOD via Salaries other compensation.
Aware ARA, does not compensate directors and has not yet signed a HOT to acquire another business, but just giving my personal experience of what I've seen happen as of late.
AIMHO,DYOR,GLA!
At least the 1p came true in the end!
I wonder if they have considered buying back the shares at this price. Unless they know of any impending investments which have potential to generate 100%+ returns in a relatively short time frame, it would seem a no brainer.
With the NAV at circa 25p and expectations of reaching/exceeding 30p if the the LS put option is excised, it doesn't feel unreasonable to me that 20p is out of the question in a short time frame, and that could still represent an opportunity for investors, still giving it a 33% discount to the prevailing NAV. Ie. 20p Market Price - 30p NAV.
Feels massively undervalued.
All views my own, please DYOR and GLA!
Could end up buying a falling knife with this one. Warning signs are all there, but it does feels like a brand Mike Cashley may consider taking on and putting in his Sports Direct Shops.
Trouble is, he's well known for buying the firms out of administration.
AIMHO,GLA,DYOR
Sorry, should say new shareholders are existing directors from the former company.
Ie, they've took the crown jewels from the struggling entity at a discount and left the old holding company with all the crap.
Not saying that will happen here, but I have seen it so many times the last few years that it would not suprise me if it does.
GLA, AIMHO,DYOR
If these comments are from a genuine source, that to me signals a massive sell on this stock.
Big shame, as I've seen so many of these scenarios the last few years where current PI lose the lot, but the the company carries on trading under different ownership, with the new shareholders directors of the new business.
In my opinion, that's actually a legal way of robbing someone. No wonder the public markets are in the state they are with such scenarios.
SP is too low IMO... I wouldn't be surprised to see investors start taking a sizeable stake here, especially those who bought in at the 21p placing earlier in 2023.
They must surely be considering bringing their average down, given the potential gains on offer here...
AIMHO, GLA, DYOR
It looks like someone could be accumulating given the uptick over the last few days, and no doubt it was always vulnerable to TO with the amount of cash it has in the bank.
GLA! DYOR! AIMHO!
Topped up a few more today, just whilst I can...
Lazy, I agree regarding the difficulty in securing equity funding for small cap businesses, but as you also highlight, deals are still being done.
Unfortunately there is likely disparity on the valuation of Line Hydrogen vs what the existing directors think the business is worth.
With interest rates at the levels they are, investors need stronger gurantees of the prospective returns they are chasing from speculative investments... Does Line Hydrogen provide that? I'm not entirely sure, given lack of any accounts/financials, which is concerning to me as a holder in NZI.
Wish you a Happy New Year in advance and hopefully a strong return for all holders in NZI for 2024!
People just don't seem to get it, but when the SP is back into the 20's, then at least you can say told you so!
Shaz, I personally think this could fly tomorrow, and so it should. It's too cheap and seems to have much more potential than the NAV it's reporting.
People criticize JV but he's done a stella job here IMO and good on him releasing the after hours RNS... although I think that is maybe due to timezone differences and not necessarily on purpose.
This brand was great 10-15 years ago, but I just think it's now had its day, hence the slowly disintigrating SP over the years.
It can't compete on price with the cheap and cheerful like Primark (nor should it ever want to) and it simply can't position itself as a premium brand, sold in the likes of Flannels/Diffusion.
I think it can be saved however, but it needs to collaborate with designer brands, similar to how Adidas/North Face did with Gucci (people might call me crazy but I geniunally think that could kickstart this brand as premium designer).
Clothing quality is decent, but the stores are packed to the rafters with stock... it's not creating a FOMO atmosphere with the consumer, it's further damaging the brand, especially with the younger consumers today!
I unfortunately see a further decline in the SP and for that reason, I wouldn't buy these yet... already lost too much on dieing clothing brands!
GLA, DYOR, AIMHO
Look at the buys! I'm expecting another TR1 tomorrow!
Misquote, the 20% CAGR is actually almost 30%. I was almost being as prudent as Jaques with that rounding!