RE: re MA spotted12 Dec 2016 13:45
Thanks rusty always a good reasoned view much appreciated. Oh the pic was just me having fun I know it was from the factory open day for media and of course any journo worth his salt was going to get the 'loadsamoney' editorial and fatcat slant.
I have been looking at the accounts and must admit the premium range doesn't seem to be doing very well and I do then to think MA needs to decide which market SPD is primarily in. If it is an offshoot then perhaps market it differently. I remember Tesco failing in the US with their 'Fresh and Easy' attempt and also JJB Sports not really identifying who they were in the end which arguably brought about their demise (amongst cashflow and supplier credit issues).
Sports Direct is very strong on the high street for cheap sports equipment and apparel no doubt and the market is growing IMO.
The real money is in the margins from footwear and this is becoming saturated IMO and investment in updating the SPD in-store look is a good thing to draw in more upmarket brands.
The price action is strange yes but I feel we will see a flattening out once the average-down and general speculation has come to pass.
In my view, this will prove to be a very crucial 6-12 months ahead to see whether changes implemented bring about greater success and reflective share price. Trading versus JD Sports when arguably they are close market comparatives is polar opposite and so based on that alone, I would be fairly secure in thinking it is oversold but the media especially in the past year have savaged the company and the we should now see whether they can turn that around.
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