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I warned you all on September 6th that JJB Sports (LSE:JJB) was worth 0p a share as when its assets are sold it is unlikely that the proceeds will cover its debts let alone the hefty fees of KPMG etc. I said that anyone who bought was a loon. Predictably the loons berated me. But how much clearer can this get. At 0.28p you should still sell for whatever you can get. This stock is utterly worthless.
The response of the BB loons was a hoot:
Pulauemas88 wrote on TomWinnifrith.com
It will be higher than 0p because:
1. dick wants it
2. China sports companies want it
3. Private equity turnaround firms want it
4. Invesco wants it to make back their money
And they cant get it any other way except by making an offer.
Coz Lloyds bank wants to keep the debt.
Any company who wants market share of sports retailing in UK will have to buy it.
Lloyds bank keeping the debt
Various loons bought the shares and by the 13th, Bob here on my ADVFN column where I aired the sell advice, noted:
“Most prize loons should be 100% up by now! Sell all, half or wait for more? What a position to be in”
Since Bob is a loon of the highest order, let’s hope that no-one followed his lead. Within two hours of Bob’s pearls of wisdom the company announced:
As announced on 30 August 2012, JJB has invited offers to support further investment in the Company, which is most likely to involve a sale of the Company or its assets. Following that announcement, a number of parties have submitted offers to acquire the whole or substantially all of the business and assets of the Group. JJB continues to hold discussions with a number of parties but it is unlikely that any value will be attributable to the ordinary shares.
This is the company itself saying that its shares are worth as much as a hot share tip from Bob, viz nothing.
Today the Newcastle Chronicle reports that Mike Ashley will buy the assets of JJB but that:
It is now understood JJB will not be able to stave off administration, but is working towards a “pre-pack” arrangement, that will allow it to be placed into administration and immediately sold.
The bottom line. If you have shares and can sell them for anything more than dealing costs do so asap. When this goes into administration your shares will be worth 0p. Your proceeds may not be great but might just allow you a night out at London’s best value restaurant, The Real Man Pizza Company.
If you hang on you really are a loon. And Bob that includes you.
Would appear TW aka ‘Mr Unfaithful’ has failed to realise the profits that many have taken over the last few days since his ‘sell’ at 0.32p article. Anything up to 100% was possible. Well done all.
Did you lock in your profits on the upward spike then Bob?
No share ever goes up or down in a straight line; we won’t know who made the right call for a little while yet.
Mark
Most people buying/selling JJB at these levels are probably traders not investors. Yes, I locked in my profits on the way up though not quite at 100% unfortunately, as I reported on advfn at the time. But I was well pleased with my short term reward. Ultimately they may well go under but meanwhile there are profits/losses to be made along the way.