So DSGI )PC World, Dixons etc etc) took a dive last week on the 'poor results'. However it now appears to be rising quite fast and some Investment company in the US has bought 2.4% of the company since December. Anyone know who Spruce Investment are? Have they got a history of picking good recovery stock?

DSG International reveals loss of 140m
Business Financial Newswire

Electrical retailer DSG international said its total annual loss before tax after deducting net non-underlying charges of 190.9m was 140.4m. The basic loss per share for continuing operations was 9.2p. Like for like sales were down 9%.

Total underlying sales were down 1% to 8.227bn in the year ended 2nd May. Underlying gross margins were up 0.2% in the second half, but down 0.1% in the full year.

Group sales, including those from businesses to be closed, were down 1% to 8.364.6bn. Like for like sales were down 9%.

Underlying Retail profit of 95.5 million slumped from 219.9m the previous year.

Underlying pre-tax profit was 50.5m (2007/08 225.6 million).

Underlying diluted earnings per share was 0.7p (2007/08 7.2p).

Total loss before tax after deducting net non-underlying charges of 190.9m was 140.4m. Basic loss per share for continuing operations was 9.2p.

As at 2nd May 2009 the Group had net debt of 477.5m (excluding net proceeds of 293.6m from equity issue).

Successful refinancing was completed through the equity issue and amendments to the 400m revolving credit facility and 75m letter of credit facilities.

Portfolio review has resulted in the closing of loss making standalone PC City stores in Sweden and Markantalo in Finland as well as the sale of Electro World in Hungary.

Good progress was made on the step change programme, with costs reduced by 95m in the 2008/09 financial year and 200 million of further cost reductions identified over the next 4 years. Initiatives are underway to reduce working capital by 80m to 130m.

John Browett, CEO, commented: 'This has been a year of significant change for the Group. We have taken wide ranging actions to re-organise and restructure the business as well as implementing our Renewal and Transformation plan. Following our successful rights issue and placing, which received very strong support from our shareholders, and was well received by our suppliers, we now have the resources and flexibility to deliver on our Renewal and Transformation plan at a faster pace.

We are improving the business for our customers. We are providing better service in store, selling complete solutions, delivering at more convenient times and improving our technical and after sales service. We are well positioned to emerge from the recession with a compelling offer for customers. We remain confident of our medium term target of achieving a 3%-4% return on sales.'

Currently looking at DSG as a recovery stock. At 29.19p, it seems to have lagged behind on the general upturn in the market.

Any views ?

DSG international confirms profit projections.

rated as the top buy in the retail sector by S G for 2010.

This has lost 1/3 of it's value over the last month. I admit I am tempted to buy in, may have to ride out any further weakness, but at this price a tremendous amount of bad news is in the price I reckon. Aimo of course.
2517

Took the plunge around 25p with a certain degree of caution.
2517

bought a few last week as the 20 days moving average was crossed

today into a BREAKOUT after rising from a double bottom