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JD Sports

November 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • JD.
  • Price:
  • 502p
JJB (JJB;29p), in which JD Sports holds a 10% stake, has announced that it intends to raise £100m of new equity via a Placing and Open Offer.The money is being raised at 25p and avoids a breach of bank covenant. It will leave JJB with net cash on completion of £66m. This will be used to bolster stock levels ahead of the World Cup. Singer expects JJB to lose £60m this year but it could make anything from £nil-20m profit next year (eps between 0p and 3p). We presume JD took up its entitlement. Hold. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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