RE: JD world class co.24 Feb 2019 17:55
Even though I hold there is short term challenges for Foot. Just because JD have got a 29% stake it doesn't mean everything is perfect. We will post a loss this year and our margins have to improve else the sp will collapse. JD know there is upside here but it will take time (5 years) to get us to their level.
Everyone on this board need a reality check if they think this is going to £1 this year. Why would it just because JD have acquired a stake, give me a break.
Fundamentals aren't great atm but will improve in the long term and that's why I am invested. 5 years plus Foot could do revenues in excess of £1bn however it will require significantly more capex and this should come from retained earnings however, we don't have any atm.
I am extremely confident we are going to 30p again but I could be wrong. As always dyor.
Factors to take into consideration:
- Is our market cap justified at these levels?
- Will JD buy out foot?
- How will foot obtaining funding for expansion (debt/equity)?
- Can they improve on margins going forward?
Answer the following as honestly as possible and you'll see why I think we will go back to 30p. You must remove emotion from investing. What are the facts saying. That's how to judge your investments, not on takeover rumours. Use PBT, Revenue, Bal sheet etc to judge.