RE: More shorts closing by the look of it14 Jul 2020 22:00
Yes, this is a bit of a slow burn, but I think a little patience will be well rewarded in time.
I had hoped it would move faster as I'm still not much above break even, but continue to accumulate.
I suspect the headline debt figure of £500M vs market cap of £100M puts may off buying, but headline debt is reducing very fast and is already well below £450M, and could be well under £400M by year end, as it is presently reducing at £13M per month.
In the medium term profits of around £100M+ pa should be quite easily achievable, and thus reducing net debt and increasing market cap should lead to a very virtuous circle.
Add to that the prospect of dividends and the shares should be rocking and rolling.
As there are only 236M shares in issue, payouts in the region of those in the recent past should achievable - circa 12p to 15p.
Even a 15p payout would only cost them £35M - which should be no problem at all if profits go back to the £100M level.
Add to that the Alliance family own around 40% of the shares, there is no chance of a hostile takeover, and they appear to have always been keen on a big dividend.
As for when progress share price wise will be made I'm not sure.
Alexa shows most of the brands to be fairly flat (not taking account of increased internet usage) but Jacamo appears to remain the stand out brand at present - doing much better than pre covid levels.
https://www.alexa.com/siteinfo/jacamo.co.uk#section_traffic
Usual caveats apply to Alexa figures.
Patience very much the name of the game here.
I'm sure anyone in at this price of below will do very, very well long term in terms of both capital and income.
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