Member Info for Quickdip

JW, If currys drops to 50p, I’ll buy in for a short term hold. Long term though I dot see any future in it. They are basically a free showroom for the manufacturers. Punters come in, have a nosey, before going home to buy on Amazon/ebay.

LG, true but it’s also over 80% down from its peak. From what I can see Superdrys cash call has put the frighteners on the whole fashion industry. Asos has 4% short, all of which are reducing, which has to bump the SP back up eventually. I’ve dipped my toe in with a small amount today and will go in big if it revisits the 500’s.

I guess everyone on this board likes shares that have tanked. Having been the 3rd biggest faller in the ftse today, I notice the Asos share chart is now looking very similar to 888. What are people’s thoughts?

Sold my position in this just 2 months ago at £9.56, having bought in a couple of weeks prior at £8.45. I’m now considering buying back in. Reason being, with 4% short, all of which are reducing, this has to bump the SP back up. What’s happened in the past 2 months to get the SP to this level?

You never do see a bid coming until the SP has already shot up…

JW, if you subtract goodwill from equity for WG there’s nothing left. Bid came in and SP up over 100% since September.

The vast majority of sells are automatic execution, while the vast majority of buys are people actively buying.
The sellers are obviously getting off the bus in the hope of getting back on tomorrow for a couple of pence cheaper, hence why we’re seeing this tight trading range.
Very risky game to play at these prices imo as it’s only a matter of time before the bus departs and they’re left on the platform shouting for the bus to come back! :)

Anyway, I’ve given my opinion on this stock, but that’s all it is, I’m by no means an expert, nobody can truly say which way markets will go. I’ll leave you guys to it, and GLA.

C2, I would agree with you there, but if a company is making a loss & has no assets/equity to borrow against, it’s just throwing good money after bad from an investors point of view, regardless of market cap.

What on earth are you talking about c2? Market cap is the combined stock value which is owned by investors so companies can’t borrow against. They borrow against assets/equity in the business (which often has no correlation to market cap!)

Keeping you company Glenhoss, and for the childish comments on usernames. Perhaps I should’ve changed my name to “long tank” before venturing on to this board.

Golgotha, I’m bemused by your comment “net debt v market cap”.
What can you draw from comparing these? they have no correlation.

Firstly, net debt means nothing in an asset heavy business. It’s like saying you’re insolvent if you couldn’t pay off the mortgage on your house immediately. If you’re going to include non current liabilities in your calculation, you need to include non current assets too.

Second, would you see it as a positive if the market cap was higher than net debt? Lower market cap just means it is trading low. Do you refer to buy when it’s trading high?

As a side note, 80% of Nex debt if fixed until 2028, by which time rates will have come down and revenue increased.

Goliatha, I don’t want to hijack a TUI thread but as you mention it:
A few key differences with Nex, in its 30 year history it has recovered from its lows 5 times. It is currently at its lows. It had 10 years of growth until the pandemic. TUI on the other hand has done nothing but fall since 2 years before anyone had heard of the pandemic, and has no history of bouncing off its lows.

The equity on nex balance sheet it almost twice it’s market cap, showing it is undervalued. TUI is in negative equity, and yet Nex is currently valued at less than half TUI’s market cap.

Nex pays a dividend.

Nex actually made £115m profit after interest and tax, but a goodwill write off turned it into a loss for tax purposes.

The last trading update told us demand now outstrips supply, and is above 2019 levels, when the SP was 4x higher.

Need I go on? Dyor

Glennhoss, if I’d bought in here at £15 you could call me dippy, if I kept those shares in the hope they’d go back up, you could call me dopey, but because I haven’t lost my shirt on this, you can call me dapper ;)

Sure, the TUI SP could increase from here just as Rolls-Royce did, they are equally in a financial mess, but it’s more of a gamble (with odds against you) than an investment. This stock is not undervalued, and the direction of the SP has been pretty linear for 5 years now. There are a few undervalued travel stocks with big growth potential, but this isn’t one of them imho.

Negative equity on balance sheet. Loss making. Currently valued by the market at £1.7bn. What makes people think it’s worth more? The share chart? Why would it suddenly change the direction it’s been going for the past 5 years?

All genuine questions and yet people’s only answer is “oh he’s a clown etc”

How else can they fund the losses? There’s no equity to borrow against.

Is funny how all the airlines quickly recovered from the oil price surge, while TUI continued to decline.

I’ll be back in 6 months even if by some miracle, it’s to hang my head in shame. For the investors sake I hope that’s the case.
I may have a punt around the 10p mark, on the off chance it can somehow be revived or get a buy out offer, but until then GLA.

Can we not have a balanced discussion? I like shares that have dropped a lot. My research of the balance sheet shows the equity is negative, thus the company is worthless. Just wondered if anyone on here had anything constructive to add since the balance sheet was produced. It seems not.

Dippy.