Best of the Brokers for 02 October 2014 October 1, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com ROYAL MAIL UBS has upgraded to “neutral” from “sell”, but cut the target price to 400p from 450p. The broker believes Royal Mail is no longer significantly overvalued now, with near-term earnings estimates more realistic, but cautioned on modernising challenges and tough trading [...]
Tesco, Sainsbury’s and Morrisons: Have investors given up on supermarkets? October 1, 2014 Tesco's share price has fallen 3.4 per cent today. Wm Morrison's has declined by 5 per cent. Sainsbury's share price tumbled 6.6 per cent. Although they operate in the same sector, each of these three supermarkets is suffering its own problem. So what is happening? Tesco's well documented £250m black hole in its [...]
HMV returns to profit as Hilco rescue pays off September 28, 2014 HMV IS set to announce nearly £17m in operating profits during the 11 months after it fell into administration last year. Between 29 January and 28 December 2013 the music and DVD retailer saw sales of £311.2m, with its owner Hilco reporting every one of HMV’s stores is now profitable due to its restructuring programme. [...]
Tesco’s week from hell: £250m black hole, 16 per cent fall in share price since Friday September 26, 2014 Was this the week Tesco hit rock bottom? Having discovered a huge black hole in its finances, shares have fallen from Friday's closing price of 229.6p, to a low of 191.23p in early morning trading today. That's a fall of almost 17 per cent. Here's a handy, cut-out-and-keep guide to Tesco's week from hell Monday [...]
Sports Direct’s share price tumbles after Tesco investment September 26, 2014 Shares in Sports Direct were down again this morning, following founder Mike Ashley's decision to take out a put option on Tesco yesterday. The retailer's share price has reached a low of 610p, having opened at 636.5p. It continued a tumble that started yesterday, when shares reached a high of 670p. Is it [...]
Sports Direct makes bet with stake in Tesco September 25, 2014 MIKE ASHLEY has made a £43m bet that shares in ailing supermarket Tesco will bounce back after the discovery of a £250m black hole in its accounts sent shares tumbling 16 per cent this week. The billionaire’s retail empire Sports Direct has entered into a put option agreement with Goldman Sachs over 23m shares in [...]
What is a put option and how is Mike Ashley using it to bet on Tesco? September 25, 2014 Mike Ashley's Sports Direct has taken a punt on Tesco by entering into a put option agreement with Goldman Sachs. But what exactly is a put option and how is he using it to make money? In short, Sports Direct is selling the option to Goldman, meaning that if the share price goes up, [...]
Mike Ashley’s Sports Direct takes a punt on Tesco’s share price September 25, 2014 Mike Ashley isn't averse to taking a flutter. This time, the Newcastle United owner has taken a bet on Tesco – his company, Sports Direct, has entered into a put option agreement with Goldman Sachs on 23 million of its shares, which could leave it with a 0.28 per cent stake in the retailer, worth [...]
Online House of Fraser lift September 24, 2014 HOUSE of Fraser, the department store chain recently sold for £48m, yesterday announced adjusted earnings of £8.6m for the first half, boosted by a 29 per cent rise in online sales. Like-for-like sales rose 4.2 per cent to £542m for the six months to 26 July and the earnings figure was well up on the [...]
MySale founders Carl and Jamie Jackson are no flash in pan September 15, 2014 Carl and Jamie Jackson: The winning team behind the website that started with the 2001 British Lions rugby tour down under Retail has always been a family affair for Carl and Jamie Jackson, the co-founders of MySale – a “flash” website where shoppers can buy countless brands at a discount for short periods of time. [...]