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JD Sports - +227% gain since original tip

May 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:
  • 780p
In the light of superb full-year results, brokers have upgraded this year's numbers. Seymour Pierce has now upgraded this year's forecast from £68m to £75m, for eps of 109p.For 2010, underlying profit before tax came in 26% higher at £67.4m on sales up 15% to £770m, boosted by the acquisitions of Chausport and Canterbury. Eps were up 29% to 93.6p. Period end cash was £60.5m, helped by the money from the sale of the JJB stake and also copious cash generation.JD presented these results in three operating segments: sports retail, fashion retail and wholesale. Within these results there was like-for-like growth of 2.5% (sports fascias 2.3% and fashion fascias 3.6%), well ahead of the interim stage, whilst gross margins and ...

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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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