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The current market cap excludes the 9m out of the 45m for buying Max's shares so the real number is £34m cash proceeds on disposal against market cap of today at £48m, so market values remaining business around. £14mil, still a bargain eh! I reckon proceeds will be used to fund aggressive marketing, acquisitions and what's not required paid as special dividends.
There is certainly more upside here long term as opposed to downside. Sale realises cash equiv of 49p per share. At today's close the market is valuing what is left at around £13m. The bod confirmed that the EBITDA in 2012 of what's left was 6.8m, if that continues the sp won't stay at these lows for long. Given the programme last night didnt damage the SP today I would have thought the shorters would now want to close their positions and buy back the shares on loan. This could have started today given the chunky buys. Unless they think the allegations have still got legs I can't see strategically why they would continue to hold. Surely we won't go back to the 50's again now!
Surely this drop gives the shorters a great opportunity to close out, take the profits and clear off. Given they have sold part of the business for £35m the share price can't have much further to fall. The disposal itself accounts for a share price of 49.3 pence taking round numbers (71 million shares, 35m cash) and that doesn't take into account current strength of balance sheet and future earnings potential. Perhaps they will wait to see if it fall further but surely they will close out their 3 million shares soon. They must know this is close to the bottom and future downside is limited. If I was a shareholder in the shorting fund I would be telling them to take profit and move on if it falls to 60p. If the board announces a special divi they may have to stump up for this. They have already had to pay the 3p from June too.
Reckon this lloyds contract will be overhyped. Making little margin I suspect. Earnings don't support current share price, also pension deficit a big number. Good price to sell up IMO.
Results were solid enough to warrant further gains. Not quite the 70m predicted by KWB, but we all knew that was fantasy land. Only concern re this share is the increasing distribution and overhead costs. Need to keep this under control to prevent the net margin suffering. Any close above £8 will be a good result based on previous updates.
First close above £8 for a long time, will it hold out tomorrow?
Disagree, 30 buyers 30 sellers. No imminent sign if a big movement from what I'm seeing...?
There is no way whatsoever that 70 million profit will be posted this financial year. You need to be looking 50-53 million otherwise you are dreaming. The last update basically stated all was on track to meet market expectations, what we hope to find out on Thursday is how current trading is going, growth in Internet sales, expansion etc. sp is doing very nicely and most brokers feel this has got much further to go. Lets not get carried away folks.....
Your profit figure is way off, consensus was 51m before tax! If it was significantly higher they would have said so by now.
Is that theo again? Needs a new motor for his yacht perhaps.
I think we already know what the revenue and profit numbers will be based on last announcement. What we may get next week is a better feel for current trading, new stores, online sales etc. I see this brand everywhere right now so hoping the LFL numbers since April 30 have been strong too. My price target is £9.75 by end of year.
on a good run here folks, this brand is very strong right now. if we get a positive current trading outlook next week 850p is easily in sight.
AT these prices this is still great value when compared to peers in the sector. Should be trading around 8.75-9.50 if the PE was middle of the road. Look at TED Baker PE........
Would still rather be holding SGP though, crazy valuation on Ted, results may be good but look at the forward PE!
news of a dividend would push this up massivly, must be on the cards for later this year early 2014 surely.
Agree that ASOS is way overvalued, if you also compare ted baker to SGP that is a complete mystery. Ted market cap 613m SGP 544m. SGP makes nearly twice the profit of ted....crazy I know.
any observations re the fall? Any large sells or is it just down due to wider market sentiment. If the fall continues this becomes very cheap again compared with the likes of ted. No adverse news as far as I can see.
At these prices this is a great yielding stock for he aim market. The market has plenty of opportunities for future growth too and is less volatile that most stocks traded on aim. 6.5% is excellent in times of low savings rates and its tax free!
Was theo reducing holding see RNS
Check out the buy at 8.44 am. !