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JD Sports

December 2010

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:
  • 828p
Against rival JJB Sports (JJB; 4.5p), which looks on the brink of administration, JD Sports has issued a Q3 update showing that it has seen an improving trend in its performance with “cumulative year-to-date sales marginally up and gross margins maintained.†Performance is, of course, dependent on the peak months of December and January and beating the 10% like-for-like growth seen last Christmas will be a big ask. Broker Investec has therefore left its forecast unchanged at 107.9p for the current year to 31 January and a gargantuan 111.1p next year. On a soon-to-be-prospective PE of 7.5, the shares are not expensive and the cash pile continues to build. Gain to date: 248%. Strong 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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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