Member Info for Rahan

The movement of above 1 million shares traded last friday is because something is going on, and it seems a positive thing as the exchange have been made at a very high level compared with the minimum.

Hi BTFATH,
What is the main reason of investing in PHD? I am having a detailed review of the company since it started trade publicly, and I have seen that the debt has soared in the last FY. I haven't finished even half of the revision I am plannigin to do, but just the very fact that debt is increasing and net & gross margins is volatil, keeps me for now sceptic.

I like your opinions and I am very interested to know what drives you in.
Thanks!

BTFATH1 I like your messaged and I was also invested in FOOT during the last months and we may have exchanged some posts in FOOT's chat. But I have to say that the statement isn't that excellent as they have just published what they anounced in the last update - so the good news is not having a suprisely negative statement.

For the International market, I don't see any strenght here. If you analyse what is actually the international market of QUIZ, it says that 3 stores were openned in Spain (in my country btw, and I plan to visit the stores soon to see whether they are really successful - as I did with FOOT Stores) and the remaining revenues comes from countries where... I don't see them as a target market for QUIZ clothing line. I mean we are talking about a Saudi Arab company who has QUIZ franchizes openned around the Arab Peninsula.

To be honest, I am not buying into this story. I like the ONLINE growth and that's why I am invested in the company. But as of today, I do not consider international market to be relevant as they have not deployed further effort in making their brand known in countries like Germany, Spain (out of Madrid due to there 3 stores, they are not known). I think company wants to build its brand abroad, and it is not just a matter of translating there websites into european languages, but the challenging market nowadays are not letting them to deploy the necessary cash for abroad marketing and expansion. That's whay they have stopped openning stores abroad, because since those 3 stores in Madrid... they haven't give any further news.

But... I have to say that even my concerns in this regard, the company is really UNDERVALUED, and the risk here is the lowest I have ever seen. I agree that it is a bigger opportunity than it was FOOT at 30p

And this is the brief analysis:
Online Growth is still significante (34%)
Overal Revenue were slighlty better than the last forecast (by +1.9m)
The EBITDA has not suffer a further revision, which was my real concern as market hate surprises. So we will see 4.5 million of EBITDA due to what we already know that QUIZ went through during the FY.

Points that concerns me:
What is the current cash level as of YE? I would like to see it.
The revenue from DEBENHAMS (DEB) are quite significante, representing 23% of group's overall revenue. So... let's hope that what one thing wasn't suitable for their shareholders (the prepackage administration) will be really effective enough for the other stakeholders, like suppliers, clients, employees and pension beneficiaries. We will see some downturn in revenues as DEB starts restructuring the company, meaning closure of some stores.
But.. what worries me is if the footfall is falling and nobody wants to shope anymore in the high street retail... then this trend will still impacting negatively our business.
UK Stores and concessions still represents 51% of overall revenue, QUIZ needs to keep moving to the ONLINE as the survival is only there.

I hope that balance sheet items such as cash or inventory havent changed significantly since the last update...as they have not published any further detail. (Should I be worried)

Not sure if the statement is really a boosting one and we will see any significant increase in sp today, but at least it is not another "negative" one, I would say that it is neutral. And that is a good thing for all who are invested here for the mid-long term.

I am asking the very same question. How comes that ODDO keeps buying & accumulating? They are not acting on behalf of JD as per the forms being submitted.

Are they expecting to accumulate enough to block the deal? 3 to 4% was exactly what JD and FOOT current owners needs to accept the deal to reach to the minimum approval required (90% of shareholders). But in any case... I assume that kind of 8-9% is still in hands of small investors which... I am assuming that they won't fight too much before selling their holding at current level.

Totally agree. I was also in FOOT and sold yesterday after the cash offer, which in my opinion has bean an steal from JD but... we can't do nothing, just be happy of the profit we were able to materalise in a very short term.

Regarding QUIZ, I have been evaluating its peers (Bohoo group, which has 3 very known brands with an excelent performance) and I still do not see the risk in QUIZ at 16-17 pence level. The reason that risk has been reduced is becuase optimism has been eliminated due to "challenging retail sector news & UK high street crisis", and this is positive for QUIZ at this level as you are literally buying the Brand & Trademark, the Non-Current Assets, the IT channels and its customer base FREE. How? Well, you just take Trade Receivables, Inventory and Cash balance, and reduce any liability, meaning Trade Payables, overdrafts and borrowing if any, and you will see that... the result is 16 pence per share.

And you are exactly able to acquire the "whole business" at the price of its liquid assets. Meaning that :-) in the worst case scenario, in case of QUIZ going into liquidation, you will MINIMUM receive 16 pence per your share.

Graham wrote that these kind of opportunities tend to have high probability of huge profits but rarely you will see these opportunities. With QUIZ the case is even more strong and positive as IT MAKES PROFIT. It is a profitable company.

I don't care about the story sold in the IPO, as IPOs are just a story-seller, what I like is when the market overreact and give you a short-term opportunity like this.

Same case was build with FOOT at 30's. But unfortunately... JD just steal us the company.

True, thats why I finally sold all my position today.

Wow!! I am not the only one thinking that Board has made a very bad deal. The Independent newspaper has published the following article saying that this price is a steal if you look forward earnings:
https://www.independent.co.uk/news/business/comment/jd-sports-fashion-footasylum-takeover-deal-retailers-high-street-sports-direct-mike-ashley-a8827981.html

Being honest... I was expeting this to be a 6-Bagger from the 30's level. I was very confident to recover the IPO level in 1-2 years.

But... we can't do anything. Board + Pentland + JD Sports have an accumulated of 85% of the stake meaning that WE, particular investors, have no say in this deal. Only accept what board and JD have already agreed and released this morning. So I am out but this could have been a greater story.

BTW my avg. price was 0,39 so of course I'm happy with the profits made but... could have been more for the longer term.

I have just read the whole communication. Although it seems like the sale is secured as they ONLY REQUIRE a further 3,07% of shareholders to adhere officially and formally to the offer made (as Makins + current JD and Penton accounts for almost the minimum of 90% needed to close the deal), I have prefered to sell my holding in of my brokerage accounts which usually is hell to operate these kind of stocks (AIM...)

I will keep my remaining position to not loose a 3% as I just did, meaning that I wanto the full 82,50 pence in my pocket and not the 80 pence that market is offering now.

...and divide it by the Outstanding shares, and you will see 21 pence per share as a result. This means that excluding Non-Current Assets and Trade & Receivables, which is twice the amount that company is liable to its suppliers and employees, in case of liquidation of the company (worst-case scenario) and if you were invested at the current share price you would still gain +20% of revaluation.

And this company is profitable, not making losses. This company has a double digit growth rate.

I think I will increase my position during this week.

Thank you for the update... I didn't realize it. And now that I see that QUIZ is trading below its Current NET assets... I've jumped in to buy some shares.

UK Retail stores are going through hard conditions... but QUIZ like FOOT are strategically looking to move more on Online sales rather than traditional physicall stores. Being a company which already has an international presence, the risk at this price is the lowest I can ask for.

Quiz is not a significant position in my portfolio as FOOT is. In addition there are a lot of alternatives to QUIZ clothing, but there is no alternative to the ADIDAS & NIKES fashion (well there is, but here the BRANDING is KEY, you cannot compare any other sport fashion company with these ones) which are reselled in FOOT and JD, and nowadays with a range of products which has some exclusivity and limited editions. So, FOOT has a huge potential and not very high competition in that sense, as soon as this little company starts expanding internationally... the growth will be huge, although I think company's priority nowadays isn't the international market.

Sorry for the offtopic.

I suppose it is legal?

I have also just seen that transaction. And I wanted to ask in the forum how does this work.

How is that a trade made at 15:03 hours is posted once the market is closed? Is it because it takes time to cross the order until it is fulfilled?

Ok, now we see a good volume. @16:15h 617,000 shares traded!

Something is happening. Either these are automated trading system that are trigering out purchases as per technical signals or an interested party is buying today! for an upcoming event.

Thank you dan! You are always posting relevant information, that is very helpful.

Do you know when the TR1 are to be filed? What are the conditions or requirement as per LSE?

Hi Everyone, I have just realised that in the official investor site of FOOT there is an special section dedicated to Stratford Store (which apparently I was going to visit yesterday taking the opportunity that I was in London but... very cold day and I had my flight back at evening so I couldn't)

I do not recall the existence of this menu previously, is this new?
https://investors.footasylum.com/stratford-store

You are absolutely right dan.

By the way, to see the current shareholding structure, is the info. that appears in the official FOOT side valid?
https://investors.footasylum.com/investor-relations/aim-rule-26

I am missing those holdings which are below 6% - is there any way to look on all institutionals with holdings lower than 5%?

Strange. The volume is normal (as during last days & weeks) so there has not been a huge buy, instead the price has gone up to 52p...

...in London and bought something. I like the way they register you as a FOOT user through an iPad while you are paying at the counter. It was just a 3 second process and you only need to give 4 basics datas. As online channel is the key driver for growth of this company - as it would be foolish to think that FOOT can keep its competitiveness having the giant JD Sports with better stores (inmho) just in front of every store - this process of registration and all the online campaigns they launch, i.e. UNLCKD program, is very important for all of us.

I also follow its Youtube channel and see whether the number of views of each video they post keep growing.

FOOT, like other retailers, cannot depend on high street stores as these are in crisis. And JD has done a very good job, and expanded very well internationally, consequence of which they can report 4bn of sales per year.

FOOT need to invest as much as it can in the online channel. No matters if we don't see bottom line profit during another 1 or 2 years, as far as the top line keep increasing at double digit rate.

The only thing I can't see is WHY JD entered into FOOT... There is no synergy now that I think as the products are the same and they can targe 16-24 age customers as well. If JD T/O the company nobody can think that they will keep the current structure, which would double the operating cost... so the only thing that they could do is to wind-up FOOT and kill the competitor in the UK.

But not sure it legally this movement is possible. At the end of the day... paying 50 to 100 millions pound to get rid of your competitor in the UK and therefore increase your market share which would add 200 millions of sales per year.... sounds very reasonable and good for JD's shareholders.

Gareth, please stop being ridicoulus. Nothing is going to happen no matter how many times you repeat saying that MA is taking over FOOT. The stock market doesn't care on your hourly comments on each trade neither. You have converted this forum in a joke.

Please. Post relevant information and stop with your mantras of MA T/O and trades reporting.