DJS - David Jones

[Lucstar]

Stock price up 3.41% today to close at $5.15

Nice healthy profits rolling in now!

 

[Tyler Durden]

MYER and David Jones will continue to suffer from lacklustre sales in 2012, as nervous consumers limit their spending during the critical trading period after Christmas, say analysts.
Capping a horror stretch for the retail industry, analysts at Goldman Sachs yesterday cut their earnings forecasts for the nation's two biggest department stores, and predicted weak confidence would limit consumer spending.
Despite retailers' attempts to convince consumers to spend, analysts Phillip Kimber and Gabriel Wilson-Otto downgraded their 2012 profit forecasts for Myer by 14 per cent and David Jones by 9 per cent.
Spending on non-essential goods would remain weak in the crucial months of December and January because people lacked confidence and falling house and share prices would weigh on consumers, the analysts said.
The big department stores earn up to half their annual profits during December and January, and Myer yesterday brought forward the start date of its ''Boxing Day'' sale from December 26 to Christmas Eve.
However, Goldman's retail analysts said a bounce in consumer spending was unlikely until later next year, and they cut their forecast for Myer's 2012 after-tax profits by $20.8 million, to $129.8 million. The bank's forecast for David Jones' profits was cut by $12.2 million, to $126.5 million.
Goldman's view on Myer shares - which yesterday touched a record low of $1.95.5 - was cut to ''hold'' from ''buy''. The rating on David Jones was cut to ''sell'' from ''hold''.

http://m.smh.com.au/business/downgrades-for-myer-djs-20111223-1p8mf.html

Even Christmas won't help

 

[danbradster]

Myer yesterday brought forward the start date of its ''Boxing Day'' sale from December 26 to Christmas Eve.

Lol at their Boxing Day sale. Changing consumers' expectations...what will consumers expect from them next year? Discounts before Christmas, I think...

 

[notting]

I was invited to go have lunch with some friends at Chadstone, Australia’s premier shopping hub which has em all.
As I got into the car I put on my grumpy old man hat and started cursing the stupidity of going to Chadi on the anticipated biggest shopping day of the year.
As I drove I noticed that I had left at a miraculous moment for the traffic was much better than it usually is on a Saturday.
Then When I got to Chadi I was amazed at how many car parks there were. It's usually a bit of a battle.
Then when I got a great table at the most popular and trendy eatery I figured that everyone has already done their Christmas shopping and used the first Saturday to start there holidays!!
Retail figures are going to be shocking unless they had double the normal amount the few days before!!

 

[McLovin]

Well that's been an interesting day for DJS. I saw the headline this morning and thought damn, I missed the boat. Then I read the announcement and thought it all seemed a little bit strange. How many entities are unincorporated and have a few billion to splash around have no public record? Not many I imagine!

It looks as though someone is playing with DJS.

 

[skyQuake]

Apparently a hoax!

 

[burglar]

Apparently a hoax!

EBPE’s proposal is said by EBPE to be A$1,650 million for a 100 percent acquisition of David Jones
and is described in the letter received by the Company as being based upon “…$850m of equity
provided by the EBPE led consortium, $450m of lending provided by a syndicate of banks and
investment institutions and $450m in residual equity for the existing David Jones Limited
shareholders, a portion of this residual equity shall be underwritten”.

It doesn't add up! Can I have the $100m difference?

 

[notting]

Apparently a hoax!

Apparently a short.

 

[skc]

Lol. Bid withdrawn. It's probably a joke on the merger arbitrage traders as much as anything else.

The release says something like "Upon further due diligence of our own bank account, we didn't have a spare $1.65B."

Now let's go back to shoting JBH and MYR.

 

[Gringotts Bank]

What's to stop someone taking a huge long position on BHP one day, making a "takeover bid", selling into the crowd then retracting the bid? You'd just have to get your second cousin's best friend from Siberia to place the trades for you.

 

[skc]

What's to stop someone taking a huge long position on BHP one day, making a "takeover bid", selling into the crowd then retracting the bid? You'd just have to get your second cousin's best friend from Siberia to place the trades for you.

My second cousin from Siberia won't be returning the winnings, unfortunately.

 

[Sergio]

any thought about DJS?
is it gonna run up to $3 like MYR?

DJS is running good so far, even with very few buyer like today, price still go up a bit.
seems seller not willing to lower down the price.. try to fish before but no one take my bait..

 

[Tyler Durden]

Media reports today that Myer and DJS could merge.

DJS released an announcement saying it is not in any current such discussions, although on 28/10/13 Myer did approach them with an offer.

Guesses on effect of SP?

 

[skc]

Media reports today that Myer and DJS could merge.

DJS released an announcement saying it is not in any current such discussions, although on 28/10/13 Myer did approach them with an offer.

Guesses on effect of SP?

I am so glad that I didn't put on that long MYR short DJS trade. That will get blown out of the water tomorrow.

 

[VSntchr]

I am so glad that I didn't put on that long MYR short DJS trade. That will get blown out of the water tomorrow.

Got out of my DJS short on tuesday (for a profit too )

 

[Porper]

Got out of my DJS short on tuesday (for a profit too )

Excellent timing. Do you use a timing method V.S or was it the patterns that made you take profit?

When and why did you short...same question as to why you closed the position.

 

[VSntchr]

Excellent timing. Do you use a timing method V.S or was it the patterns that made you take profit?

When and why did you short...same question as to why you closed the position.

Sorry, should have been more clear. I was commenting in reply to SKC's post about avoiding the pair trade involving long MYR and short DJS.
I was in a pair involving long PMV short DJS.
Entry and exit was as per normal pairs trading (fundamental correlation and statistical divergence).

 

[VSntchr]

That was unexpected!

Myer has been blindsighted by a South African "Woolworths" putting in a bid (which has been recommended by DJS) for $4 cash per share.

 

[pinkboy]

I just got the flu when it whooshed past my very eyes!


pinkboy

 

[skc]

That was unexpected!

Myer has been blindsighted by a South African "Woolworths" putting in a bid (which has been recommended by DJS) for $4 cash per share.

DJS has been a takeover target since Miranda Kerr was 16 years old... I just can't really believe that Woolworths SA is willing to pay $4 for it.

Myer's pitch was mergers of equal. Now DJS is valued at $2B while Myer @ $1.3B... Definitely not equal anymore.

With all those talkes about MYR taking over DJS, I was actually thinking, may be DJS should turn the table and acquire MYR instead. Thankfully I didn't take that trade.