Debenhams Good deal?


#1

Should i stay or should i go…? at 4p a share its got to be low risk… can they really go belly up after 200 years of trading? :thinking:


(Emma) #2

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My retirement fund :grin:

I have 40 shares in them in total. No idea how they’ll do or what will happen long term but at that price I thought i’d risk £1.60 but not sure I’d risk more


(Andrew Clark) #3

Saw this post earlier in the week and went in for some action. Looking really good today!


(Stu) #4

Same here - on Monday, at 4p a share I bought £5 worth. Now sitting on a pretty cool 27% profit in 3 days. Now what am I gonna spend the £1.34 on… :sunglasses:


(ashik) #5

got 58 shares making 7% profit lol


(Emma) #6

I didn’t time the bottom correctly :disappointed:
Paid over the odds at 4p each instead of 3p so my profit is well down

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Getting 10 more today tho with some dividend money :grin:


(Stu) #7

They are still paying dividends? :see_no_evil:


#8

Debenhams could do with more decimals, the price is something like 0.0360, but it is rounded up to 0.04.

I jumped in for some penny shares, up 20 something percent, which is like fiver :moneybag:


#9

I was tempted by Debenhams, but generally I feel like the high street is a no go and worry that Debenhams might go the way of other large department stores. Hmmm.


#10

Non-premium department stores (i.e., anything except Selfridges/Harrods) are progressively fading away. Moreover, given Debenhams’ eroding financial performance and high leveraged capital structure (including very long-dated leases), a financial restructuring which could see the equity completely wiped out seems like a very probable outcome. The real question is about timing of this all happening.

Personally, I wouldn’t touch this with a 1,000 mile pole.

Disclaimer: I work at a distressed debt hedge fund.


(Jim) #11

After popping into one of their stores today I’d be happier going red / black at the casino than buying their shares. No idea at all what the business model is.


(Alex Sherwood) split this topic #12

A post was split to a new message: Investment advice


(Chris) #13

I’m completely unqualified to say this but I will anyway. Anybody who is in Debenhams should only be so if they’re prepared to lose all of their money. The state the company is in and the uphill battle they face to survive is looking increasingly insurmountable. A CVA is looking like the only the way out for them as costs have simple gotten out of control when revenues are declining.

The ‘professionals’ are shorting this company so much right now. As of this morning its the 5th most shorted stock on the FTSE 100 https://shorttracker.co.uk/ with 10% on loan. When you consider that an additional 55% is in the hands of the 3 largest shareholders this will be a very volatile stock for a long time - until it is either bought or collapses.

As much as I hate the man, Mike Ashley is doing his best to try and save the company. And with that idiotic fossil of a chairman they had combined with a deluded CEO it doesn’t look like a company that is going to turn around anytime soon.

If you want to invest in British retail, stick with the supermarkets. They’re good investments with less cyclicality than the consumer goods retailers.


(Stu) #14

I think I’ll risk it for the £5 I have invested :rofl:


(Ben Sheppard) #15

Congrats guys! 36% up so far after the debt news


#16

This bump is temporary. The odds are still heavily stacked against the equity. Make no mistake.


(Stu) #17

My £5 is now £6.36 - do I cash out, or hold my nerve :sweat:

edit - this is a rhetorical question - please refrain from answering otherwise the poor admins have to keep deleting posts giving investment advice. My bad :pensive:


(Alex Sherwood) split this topic #18

A post was split to a new message: Investment advice


(Alex Sherwood) #19

I’ve just removed a post from this thread, just a quick reminder - please don’t

in the community.

But by all means share your opinion about Debenhams’ future prospects in the longer term, in other words can they turn their business around or not? :sweat_smile:


(Stu) #20

Thanks Alex, but I don’t think Mike was giving serious investment advice - it was just banter about my £1.36 windfall