With the new directors in place, looks like JJB might recover?

Date Broker name New Price Old price target New price target Broker change

28-Sep-10 Panmure Gordon Buy 9.40p 25.00p 18.00p


18p SP target for broker Panmure Gordon.

Post by pro TAer Zak Mir this morning.........

Zak Mir



Reged: 28/06/07
Posts: 1430
Re: JJB Sports PLC (JJB.L) [
#471263 - 12/10/10 09:20 AM Edit Reply Quote



At 10p JJB is a call option, and as long as it is not going bust, something which requires a lot of effort even these days, while above June's 8.45p low the upside for the shares should be well into the teens by the end of the year.

Post Extras:

From the "UPS" short term

JJB 9.57p ( 9.50 / 9.64p )

Reason : Moving higher since yesterday from a very large retracement. Some large trade are appearing on the ticker as the volume is good. Slow stochastic is bouncing from the oversold position, is allways the first Indicator to give the signal

a strong finish bodes well for tomorrow as the momentum is building

a higher volume is positive on the way up

JJB Sports plc
29th October 2010
Conclusion of FSA investigation

JJB Sports plc (the "Company") announces the conclusion of an investigation by the Financial Services Authority ("FSA") into the Company's historic compliance with the Disclosure and Transparency Rules in the lead up to the release of the Group's interim results on 26 September 2008, more than two years ago and prior to the Company's restructuring.
‪ ‪The matter will be concluded with the imposition of a financial penalty of 455,000 which will be payable in 2011 on a date or dates to be determined. Full details will be published by the FSA following the completion of relevant regulatory processes, at which point the Company will comment further on the matter and its views as to the level of penalty imposed. No further information can be provided at this time. No further investigations into the Company by the FSA are ongoing, and the Company welcomes the finality brought by the conclusion of this investigation.

Very poor performing share... JJB.
BUY forecast by Numis and Panmure Gordon last month were all rubbish.

Zak Mir is also taking through his a**e.

The days when David Whelan ran the show are long gone.

4-5p next week.

Closed my short here for a profit.

Second day of bouncing back and finishing at best of the day.

The MACD is negative and below its signal line but is now turning up and looking for a bullish divergence to come soon. Well oversold

JJB Sports will be forced to seek fresh funding after admitting yesterday that it was on course to breach the rules attached to its bank loan after trading worsened. The struggling sportswear retailer, which has been in distress since a disastrous trading update two years ago, said yesterday that it was talking to Bank of Scotland, the Lloyds Banking Group subsidiary, after it became clear it would break its banking covenants when they are next tested in January, the Times reports.

It certainly is a stock where an appetite for risk is required.

t/o talk around 15p minimum to 40p max - gla!!!

lol & kerchinnnnnnnnnnnnnngggggggggggggggg soon!! today just a taster so far!!
Looking through the prospectus, Crystal Amber have been granted a waiver on rule 9 of the takeover code following a 30% shareholding. Harris associates on the other hand have not applied for such permission. As such there could be an offer coming from Harris following the placing if they exceed 30%.... which they probably will if they exercise the warrants from 21st Feb onwards. Exciting stuff.... keep it rolling.

prospectus is vast. I trust that everyone has read it now but these are some of the main points. The offer becomes ex rights tonight and then you can apply for 0.483 shares for every one held. The company is to move over to AIM from the main market in April. Trading has been disappointing but the revamped stores continue to perform well. A revised business plan needs to be prepared for BoS by 24th February. Then a further fundraising will be required sometime in April.

t/o chatter from the twilight zone:-


'The most interesting situation presented in RNS is the situation of share holding after refinancing as that effectively means handing over the company to 5ii (if others do not take up their share allocations): The 5iis are:

Harris Associates

Crystal Amber

IAML

B & M Gates

GP cap

After refinancing, their share holdings would be (in percentage)

Present holdings: 44.3

After refinancing: 58

After refinancing (exclusively): 71.9

After exercising warrants: 76.4

After exercising warrants (exclusively): 86.3

I do not think that these 5iis (actually 5iis IAML = 4iis), who have already invested around 100 million on JJB (that is 44.3 percent of company for their share buying before last refinancing, their buying shares in previous refinancing, and later) would be willing to let JD sports take over the company cheaply (below their own cost), especially when these 5iis are expecting that JJB could turn around and would start making profit, and thus are willing to put more money in to see that.

That means, at least 100 million for 44.3 percent of company or over 220 million for whole company, means around 35 pence per share (NAV of JJB is of that order too). Thus I believe (IMO), if any figure JJB management must be talking about with prospective takeovers would be in order of around 35 pence per share or door.

In such situation, I do not know if takeover would happen from outside. Though I can see takeover from inside (that is by 5iis), if not immediately than in near future.'

guardian summary:

'JJB Sports raising 31m as takeover talks continueThe takeover talks could lead to the creation of a 750-shop sports and leisurewear powerhouse, and end speculation over JJB's future

JJB Sports is raising funds as takeover talks with rival JD continue.

JJB Sports is pushing on with an 31.5m fundraising as its shares surged this morning on the prospect of a merger with rival JD Sports.Both retailers admitted last night that they were in "initial discussions" after JD approached JJB last month, but stressed the "highly preliminary nature of these discussions". The takeover talks could lead to the creation of a 750-shop sports and leisurewear powerhouse, and end speculation over JJB's future.

JJB shares jumped over 30% to 6p in early trading while JD shares dropped 12.5p, or 1.5%, to 835p. Analysts believe a deal could be hammered out, although buying JJB is seen as "risky".

"With JJB's activist investors already underwater and having agreed to a further 31.5m equity injection, any deal is likely to hinge on whether JD Sports can justify a price that would satisfy the lead JJB investors," said John Stevenson, retail analyst at Peel Hunt.

Lossmaking JJB this morning set out the details of the emergency fundraising, first announced on Christmas Eve, after a slump in sales forced it to warn that results would miss forecasts and that it might breach the terms of a 25m loan.

The troubled retailer is raising 31.5m (30m after costs) by issuing 630m new shares at 5p each. Its two largest shareholders, Harris Associates and Crystal Amber the activist investor headed by Richard Bernstein have pledged their support, alongside Invesco Perpetual, the Bill & Melinda Gates Foundation and GoldenPeaks Capital.

Harris and Crystal Amber will be able to nominate a non-executive director to the board following the fundraising. Shareholders will vote on 18 February. JJB also announced today that it wants to transfer its shares from the London Stock Exchange's main market to Aim by the end of April.

JJB had also indicated that it would need a second injection of cash. However, a takeover by JD Sports, in which Mike Ashley's Sports Direct owns a 12% stake, would make any extra cash call unnecessary.

JJB has been fighting for survival since 2008, when chief executive Chris Ronnie was ousted after it emerged that his stake in the business had been seized by the administrators to the Icelandic bank Kaupthing.

The two companies have had contrasting fortunes. Last month, fashion-led JD Sports said Christmas sales were up by 2.5% and that it would beat profits forecasts for the current financial year. JJB's Christmas sales were down 16%.

Analysts believe that JD can afford to buy JJB, which has a market value of around 30m while JD is worth over 400m. JD is forecast to have had 70m in cash at the end of January. There is little overlap in store formats specialist, noted Freddie George at Seymour Pierce.

"Suppliers, in particular Nike and Adidas, are likely to be supportive of any deal," he added.

Mark Photiades at Singer said: "This deal is clearly not without its risks given JJB's current position." JJB has net debt of 25m and the funding shortfall could be of a similar magnitude. JD would need additional cash set aside to launch a refit programme in stores and would also have to fund short-term losses.

"These, together with rationalisation and exceptional costs, perhaps of the order 10-20m, could mean that the entire exercise could cost between 50-100m prior to any equity value, albeit trading losses and integration costs could be funded from ongoing cashflow. JD's current cash surplus looks capable of funding the upfront deal costs," Photiades said.

JD is focused on sports fashion while JJB wants to be known as a sportswear

http://menmedia.co.uk/manchestereveningnews/news/business/s/1407065_jd_bosses_can_turn_around_jjbs_fortunes

February 02, 2011

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Retail experts say JD Sports Fashion has the power to turn around the fortunes of embattled JJB Sports as the north west firms talk over a possible takeover deal.

JD was among a number of potential buyers which approached Wigan-based JJB about a possible sale in December, but the talks came to nothing.

Discussions with JD restarted in January and yesterday JJB said it believed Bury-based JD was 'contemplating a bona fide offer'.

Bury-based JD's chairman Peter Cowgill said the talks were in their infancy, but added: We have got a very good management team and we have got ideas about what we could do with JJB.

We would run them independently.

Analyst Mark Photiades, of Singer Capital Markets, said: We suspect that JD will have been weighing up such a deal for some time and that, given JJB's well-documented issues, believes now is the right time.

JD's top team of Peter Cowgill and chief operations officer Barry Bown have proven strength in operational management and if anyone stands a good chance of turning round JJB's fortunes, they do.

JD's current cash surplus looks capable of funding the upfront deal costs.

David Stoddart, an analyst at FinnCap, called the potential acquisition 'a game changer'.

He said: If the deal goes through then you don't need two head offices any more, which means you can eliminate most of the 20m that JJB spends there.

You can probably fold the distribution operation into one too, which could potentially save another 20m.

But JJB is losing 50m a year, which outweighs all of the benefits unless you can restructure it. A lot of costs have got to come out at branch level.

Clearly a chunk of the stores overlap or are badly located.

The only other party who could achieve synergies like that would be Sports Direct, and who knows with Mike Ashley? One week ago, Andy Carroll wasn't for sale!

There is potential for Sports Direct to face competition concerns if it were to buy JJB, as it already has an 11.9 per cent stake in JD.

Sarah Peters, a senior analyst at retail experts Verdict, said a JD takeover deal would pose a 'big threat' to Sports Direct, which has benefited from JJB's recent struggles.

She said: "JD has proven to have a very successful business model and, while it is more fashion-focused than JJB, has the knowledge and expertise of the sports market to help the business succeed.

"Any purchase by JD would undoubtedly be a massive task for it, particularly given JJB's struggles over recent years.

"However, in the long term, both businesses would benefit through extra efficiencies and gains in scale. It would also provide JD with the opportunity to further expand its own label business."

Strategy expert Professor Gary Davies, of Manchester Business School, said: It makes sense for them to come together.

There is nothing inherently wrong with two competing brands in the same family if they can tidy up the market segmentation.

Wigan-based JJB, which has 6,300 staff and 250 stores, has proposed a 31.5m share offer to see it through in the short-term while it finalises long-term restructuring and refinancing plans.

It is also planning a move from London's main stock market to junior market AIM.

JJB's share surged 17.4 per cent yesterday, rising 0.8p to 5.35p, while JD's slipped 0.41 per cent or 3.5p to 846p.

intersting - jd same price as jjb will be;

3 February 2011



JD Sports Fashion Plc ("JD Sports Fashion" or the "Company")



Rule 2.10 announcement - relevant securities in issue





In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, JD Sports Fashion confirms that, as at the close of business on 2 February 2011, the Company had 48,661,658 ordinary shares of 5 pence each in issue on the main market of the London Stock Exchange, under the UK International Securities Identification Number ('ISIN code') GB0004771548.



For further information please contact:

Investec Investment Banking Tel: +44 (20) 7597 5970

David Currie

Martin Smith



MHP Communications Tel: +44 (0)203 128 8100