Member Info for zccax77

Since the SP is drifting down, what price do we reckon the rights issue will be at? 10p?

Insurance is a steady business, the surprises will be on the travel side.

They should have waited until Thursday when we will find out how much a loss we have for H1.

Ted only have 77 stores compare that to SDRY who have 250+. TED have a lot of concessions with turnover based rent and their model is not so highly operationally leveraged. Their average lease length is also 7 years.

Well Theo our resident P2P expert thinks this is a bad deal!

This should be 200p. The shorters took it down too far.

Doubt we will hear from that clown again.

Easy 200p

When De Haan sold it in 2003 for 1.3bn the revenues were half what they are now.

De Haan was CEO and chain for 20 years and sold to pe for 1.3bn

sorry meant to say 5-10 years instead of 5 years.

The landlords I bet can't believe their luck when Hill and his missus showed up. The usual retail lease is only 5 years, and these clowns signed up for 25 years and the cherry on the cake is they developed the landlord's property to the tune of £5m. On the earnings call one of the analysts were deriding them for capitalising costs at £2,700 psf and were asking questions about writing them down. Though Dan did refute them well in relation to the branches being opened in locations post the demographic changes of recent years.

When you sign a 25 a year lease (with no breaks) and spend £5m of capital on the lessor's property you have very little negotiating power. Doubt the landlords will budge.

Jinny122. The first floor lease costs are a fraction of what the ground floors cost (about 20%).

I don't agree they should write it all off. Since those stores bring in deposit fee income which is £15m pa which over a 25 year period is worth £375m. Secondly they act a marketing for the business and save them £20-25m pa in marketing costs.

Then you need to consider the value of their customer book which is worth 2.1m*£100= £210m

Jinny122 their actual total lease commitments are £700m over the next 20 years. But those leases have a future value so writing off 50% is prudent. Since if they tried to sub-lease those premises they could easily be able to do so at 50% discount.

Jinny122 I agree with all your points apart from item 3 which I would replace with £250m for the future "fix the bank" costs. This is mainly because they already have a general ECL provision of £97m for Covid-19.

Remember Ratesetter is likely another £40m of profits pa, and is highly scalable. I don't buy the negativity spouted by Theosus.

BS - Yes SAGA doing well. But rest of the portfolio not so well.

I just hope MTRO stays low until payday on the 23rd.

He will be chairman so will run the show. This is the main take away from this. And why this will rocket up.

I have 750,000 Saga shares which I acquired over the last 2-3 weeks, if that double-triple bags then I am putting all my profits back into metro if it plumbs to the 80's.