I think this stock is a bargain and should easily double from here.but don't just take my word for it Conrad Windam from lemming investor wrote this:


21st July 2004

The Eagle has left the nest, and plenty of feathers have been ruffled as a result. I am of course talking about the adverse departure last week of Simon Eagle, former Chairman and Director of SP Holdings. Eagle departed his position with the company through mutual consent, due to his misdemeanours elsewhere in the city. The knee-jerk reaction that the city always affords such situations has unduly affected SP Holdings, thus creating an opportunity that investors might wish to look closer at.

SP Holdings is a below the line marketing services group providing a range of services to the sports, entertainment, leisure and retail sectors across Europe, Asia, and South America. The companys client list boasts such names as the BBC, Tesco, JVC, Leeds Utd FC, Nationwide, and BAR F1, not bad for a company the size of SP Holdings.

On 5th July the company announced a major licensing agreement with Manchester United Merchandising Ltd, the clothing and fashion subsidiary of the worlds most valuable football club brand, Manchester United FC. The master licence will initially run for four years and is expected to generate a profit of 3 million over the period to the company. The profit of 750k per annum from this deal alone more than supports the current market capitalisation of 6.34 million.

Interim Results for the period ended 30th April are due for release on Friday, 23rd July. Having spoken with a director at SP Holdings I can confirm that the company remains perfectly happy at reaching the forecasts from house broker Seymour Pierce.

The forecasts from Seymour Pierce in their note dated 5th March anticipate EPS of 0.97p for the current year, rising to 2.89p in 2005. The figures suggest that the company trades on a current PE of 18.5 falling to 6.22 in 2005. I believe therefore that the price is far too low, especially considering that these forecasts were compiled before the major licensing deal with Manchester Utd Merchandising Ltd. I understand that Seymour Pierce will be updating these figures next week.

Simon Eagles holding in the company has been placed with institutions at a disappointingly low price of 12p. Whilst investors have been dissatisfied with the price that institutions have been able to pick up stock at, it does strengthen the shareholder base with further commitment to the company from institutions. Furthermore the serial investor David C. Newton has taken the opportunity to increase his stake in the company to 6.25%.

I should declare that I brought stock in the company this week at 17.5p. I believe that there are no concerns with how the company is trading, and that the recent complications surrounding the departure of Simon Eagle have created an interesting opportunity for shareholders. The directors themselves purchased shares at 19.5p in March.

The companys website is www.spholdings.co.uk

Buyers comming back in this morning

Nice to see a tick up today. Sure that we will see the offer up shortly.

Up again on the bid. Nice close spread for SPD. Also a delayed buy of 27K from this morning.

Nice contract win today.

What's the story here? halved since thread started yet got a feeling there might be better to come.

Hawick, your a BDI man, heard contracts from new customers on the way. Thought you might be interested. cheers GF.

Anyone know any more than announced on the suspension and resignations ?

Broker BUY reco

Just out this morning......

10-Dec-09 Sports Direct International SPD Seymour Pierce Buy 103.30p - - Reiteration

Must admit it was very volatile in the last 30 mins today.

Obviously we have been hit by foreign exchange loses but this is the most important part of any report and accounts....

Outlook


We made strong progress in reducing our net debt level in the half year and expect net debt to be at a broadly similar level at the year end.


We delivered strong results in the first half of FY 2010 against a difficult operating environment. With the best product range and our highly motivated staff, our trading performance since the end of October has continued to be robust. As such, and subject to stable exchange rates, we are targeting full year underlying EBITDA after the cost of the bonus share scheme of at least 155m.........ends

now lets not forget at the 22nd of october pre close trading statement, the company were saying EBITDA was ahead of forecast and they were going for 150 million then so within just a few weeks the target as been upped by 5 million and trading as been robust since october.

I personally think if we get a good day on the market tomorrow we will see a SP recovery to highs of today, lets not forget the buy volume was far higher than sales volume and I can see analysts tweeking up forecasts.

Staff benefit as Sports Direct profits rise

This is Money
10 December 2009, 10:33am

Sports Direct International
, owner of the Sports World chain of shops, is set to make payouts to thousands of UK staff today after raising profit forecasts for the second time this year.

The group, controlled by Newcastle United owner Mike Ashley, has upgraded underlying earnings predictions for the year to April to 'at least' 155m after strong first-half trading, up from previous guidance of 'at least' 150m.
This is the level at which the share bonus scheme it introduced in July to motivate staff will begin to kick in.

The scheme - which applies to all permanent UK staff with more than one year's service - will pay out 25% of base pay in shares which vest two years later.


Sports Direct, which owns Sports World and Lillywhites stores as well as brands such as Slazenger, Lonsdale and Dunlop, made an underlying profit before tax of 72m in the 26 weeks to October, a rise of 39% on the same period in 2008.

Revenue increased 10.1% to 757m but gross margin fell 270 basis points to 40.7%.

Sports Direct has traded relatively well through the
recession
, thanks to its value-led offering and the weakness of its main UK rival
JJB Sports
which came close to
administration
earlier in the year.

The firm also cut its net debt to 362m from 431m at then end of April this year. It said debt was now targeted to be at a similar level to this at its end-April 2010 year end. That compares to a previous target of 'below' 400m. No interim
dividend
is being paid.

'Although the operating environment is likely to remain difficult, we have motivated colleagues, a fantastic unrivalled range of products for our customers, and the World Cup to look forward to,' said chief executive Dave Forsey.

Shares in Sports Direct, which floated at 300p in 2007, have more than trebled over the past year

Sports Direct one to watch for a breakout of the triangle formation which would be a bullish signal.



Long term chart shows we are aiming to conquer resistance at two levels.....

Sports Direct sees value in licensing
Date: Thursday 10 Dec 2009

To achieve its new earnings targets for the full year, Sports Direct will be pinning its hopes on the World Cup effect to drum up custom at its 371 sports shops in the UK ahead of next summer.

Delivering half-year results today, the company raised its earnings before interest, depreciation and amortisation (EBITDA) estimates for the full-year to at least 155m from 150m previously.

The bulk of this will come from the companys retail operations both in the UK and abroad, but sports shops arent the only part of the business.

The firm, which is controlled by the Newcastle United owner Mike Ashley, also owns brands such as the quintessential British classics Dunlop and Slazenger.

Products bearing these august names are sold in Sports Direct outlets, but also through other retailers and this part of the business is crucial to the companys long-term success, particularly with supermarkets moving into the territory of specialised stores.

Wholesale operations are the biggest part of the brands business, but the firm is looking to increase its emphasis towards higher margin licensing.

Brands revenues in the half year to 25 October fell by 19.3% to 95.1m from the previous year, not insignificant in comparison with overall revenues, which were up to 756.9m from 687.7m. Sports Direct sells sportswear and equipment to non-sports stores such as Tesco and Asda.

Lower wholesale revenues accounted for most of the decline in brand revenues, with sales falling to 83.6m from 105.6m.

While it is important for Sports Direct to keep such channels open, it hopes to do so through licensing, which provides better margins as it secures fees without the costs associated with wholesaling. Sports Direct charges licensees to manufacture, market and sell products bearing its brand names, usually within specified geographical areas.

Licensing revenues in the half-year slipped to 11.5m from 12.3m, but the shift towards this part of the brands division from wholesales helped nudge gross margins up to 37.3% from 37.1%, which is important for the bottom line.

EBITDA from the whole brands division was flat at 9.2m so clearly it will have a minor role in contributing to Sports Directs target of 155m EBITDA for the whole year.

But reaching the widest possible customer base is crucial to the companys long-term success so the firm will be pleased that it has in the past six months signed 32 new licensing contracts with minimum royalties of $65m.

Out late yesterday......

Sports Direct International PLC

FORECASTS
2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Oriel Securities
15-12-09 BUY 110.00 12.70 140.00 16.20 3.00

trades on a forward miserly P/E of just 7/8 for 2011, derd cheap.

"Given this resilient performance, the Board is now certain of reaching both the full year underlying EBITDA target of £215m (before the charge for the bonus share scheme) and the "super stretch" scheme target of £225m announced at our Interim Results in December 2011."

Broker update this morning......

21 Jun Sports Direct... SPD Citigroup Buy 307.10 370.00 370.00 Retains

370p SP target.

Gone long SPD. Recent 52 week high football and olympics should boost revenues. Forward P/E 12.1 plenty of room for growth. Staff targets and bonus incentives galore. Ashley not a great admirer of him but he does know how to flog stuff.

Olympic Winners

http://www.iii.co.uk/articles/40003/stocks-could-win-gold-olympics

SPD Sports Direct

Putting some SP targets to
the brokers buy recommendations..

Sports Direct International Broker Views
Date Broker Recommendation Price Old target price New target price Notes

21 Jun Citigroup Buy 305.35 370.00 370.00 Retains
20 Jun Oriel Securities Buy 305.35 350.00 350.00 Reiterates
06 Jun Oriel Securities Buy 305.35 350.00 350.00 Reiterates
29 May Oriel Securities Buy 305.35 350.00 350.00 Reiterates
21 May Seymour Pierce Hold 305.35 285.00 285.00 Reiterates

370p to target will do for me
at moment. I expect this tobe
substantiallu upgraded after
olympics.

Broker upgrades on the way I reckon....

got them on the very cheap.

http://www.investegate.co.uk/Article.aspx?id=201210011556346376N

Sports Direct will report its pre-close trading update on Wednesday 24 October and its Interim Results on Thursday 13 December 2012.