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Clearwater last won the day on August 22 2017
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Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
You don't make the money he's made by accident. Of those businesses, I'd argue there's a commonality of either price sensitive nature, brand name recognition and the need for an efficient and effective distribution model. -
Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
The ranges of cars purchased are greater than those manufactured in the UK. It simply isnt economic to manufacture all types of car in any single market hence cheaper to build at scale in one country and export to another. Cheaper to have the toolings etc for car type A in one factory and build that car to the plant capacity and pay the distribution costs of cars rather than carry 10 types of toolings in 10 different countries and have lower distribution costs. -
Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
That's not how it works. If a company listed in the UK is taken over by a foreign firm, the UK shareholders receive cash. They then reinvest that cash in other companies / investments. From the UK shareholders' perspective, they will only agree to sell to the investor if the price the foreign investor offers is greater than that the shareholder values the company at itself and the selling shareholder feels they have other reinvestment options that offer them greater value. Its just like thinking about savings accounts or mortgages. If you have a fixed rate mortgage with a penalty fee, there will be a point when mortgage rates have fallen sufficiently that you can save money even after accounting for the extra cost. -
Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
At the heart of the Sports Direct model is efficient and rapid distribution of their product. They can and do move goods to and from their large distribution hub in Derbyshire. I can see how they must look at businesses like Hornby and think we can cut the distribution overhead. I suspect that's why they brought GAME and other businesses. If they can add marginal load to lorries already doing a trip from the type of small towns that still have a model shop and a branch of Sports Direct, then they increase their overall profits. As a large single shareholder, whether Phoenix wants to invite them into join the board is a good question - I'm sure they're talking. For Fraser Group, this is not just a financial play - it's an operational play. -
Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
On paper but selling 10% is not the same as selling 0.0000001% so he'd likely not achieve the current quoted market price. -
Frasers Group (nee Sports Direct) raises stake in Hornby to 9%
Clearwater replied to 1andrew1's topic in Hornby
It's also a micro cap and thinly traded hence the price jumps massively particularly when a serious player like Ashley rocks-up. There's a mix of FOMO and "me too" going on. If you have a large amount of capital to deploy, then even 2.5% of Hornby at the new price is £1.5m. For some managers, a bet to double that £1.5m alongside someone who they think they know what they doing is one worth taking. -
Worth noting that DJH did have an online ordering and payment system. Quite efficient from what I recall when I used it!!
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Different less efficient methods of purchase. Do you want to turn the clock back on other inventions too? Progress is good otherwise we’d all still be in caves….
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can they buy Hatton’s system?