JD Sports, climbing to more success?

#FTSE #WallSt Due to issue a trading update to the markets on Wednesday 11th Jan, we’ve received just a few email requests asking if we’d cover this share. Surprisingly, it had also popped up on our radar, suddenly being shown as a “Strong Buy” amongst a few analysts too. In some ways it stood out as a sore thumb, the most common “Strong Buy” allocations across Europe being designated toward oil companies. Even BP are starting to look interesting, if their share price exceeds 386p!

However, JD Sports also fascinate us for quite a different reason.

Since 2014, the share price has been diluted three times! We despise the converse movement by the market place, a familiar strategy, mostly on the AIM market, intended to make a struggling share price suddenly look a bit more respectable. Importantly, it’s not just the AIM enacting such reprehensible behaviour. Natwest (aka RBS) boosted their share price ten-fold a few years ago, taking back ten old shares and issuing one new share in an ill-fated attempt to conceal the harsh reality of the bank value. But when we see companies doing the opposite, essentially attempting to conceal their strength, those companies tend grow from strength to strength. From Apple, Tesla, Google, this behaviour has become the mark of something we tend feel worth sitting back and watching.

JD Sports first played this game in 2014, issuing 4 shares for every existing share. This quartered the share price. Two years later in 2016, they issued 5 shares for every existing share, diluting the price by 80%. Once again, as 2021 drew to a close, the share price was again returned to sensible levels, a further 5 shares issued for each existing share. Unless our calculations are horribly wrong, the “true” value of JD Sports would work out around 60 quid per share, if measured in pre-2014 money. As the chart below highlights, on each occasion JD Sports diluted the number of shares in issue, the share price has gone from strength to strength and this perhaps allows considerable optimism.

However, with the company issuing a trading update, doubtless boasting of how well their Xmas season went, it certainly appears their share price may be worth watching.

 

Presently trading around 219p, the share price needs exceed 224p to hopefully trigger movement upward to an initial 249p. With the price adjusted chart below, this will paint a new all time high, justifying us calculating a longer term secondary at an eventual 275p. Our conventional logic would normally indicate the risk of hesitation at this secondary level but, thanks to the repeat changes in the numbers of shares in issue, we shall simple promise to take a further look, if 275p ever makes an appearance.

For things to go wrong, the share price needs below 200p to bring the potential of trouble, allowing reversal to an initial 173 with secondary, if broken, at a hopeful trampoline level of 167p.

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FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
9:47:15PM BRENT 83.32 Success
9:49:29PM GOLD 1823.39 Success
9:51:46PM FTSE 7517.75 7457 7429 7397 7500 7521 7529 7565 7491
9:53:56PM FRANCE 7214.2
9:57:52PM GERMANY 16004 ‘cess
10:00:02PM US500 4713.85 ‘cess
10:25:34PM DOW 36251.4 36002 35935 35823 36096 36286 36358 36596 36006
10:27:57PM NASDAQ 15834 ‘cess
10:30:36PM JAPAN 28458
11/01/2022 FTSE Closed at 7489 points. Change of 0.59%. Total value traded through LSE was: £ 6,252,372,247 a change of -8.66%
10/01/2022 FTSE Closed at 7445 points. Change of -0.53%. Total value traded through LSE was: £ 6,844,878,564 a change of 25.04%
7/01/2022 FTSE Closed at 7485 points. Change of 0.47%. Total value traded through LSE was: £ 5,474,069,038 a change of -10.83%
6/01/2022 FTSE Closed at 7450 points. Change of -0.88%. Total value traded through LSE was: £ 6,138,809,460 a change of 26.57%
5/01/2022 FTSE Closed at 7516 points. Change of 0.15%. Total value traded through LSE was: £ 4,850,064,854 a change of -31.07%
4/01/2022 FTSE Closed at 7505 points. Change of 1.64%. Total value traded through LSE was: £ 7,036,052,579 a change of 378.45%
31/12/2021 FTSE Closed at 7384 points. Change of -100%. Total value traded through LSE was: £ 1,470,600,972 a change of 0%

SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.

Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION

Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.

UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.

We can be contacted at info@trendsandtargets.com. Spam filters set to maximum so only legit emails get through…

Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares

Click Epic to jump to share: LSE:AV. Aviva** **LSE:AVCT Avacta** **LSE:DARK Darktrace Plc** **LSE:DDDD 4D Pharma** **LSE:DGE Diageo** **LSE:ECO ECO (Atlantic) O & G** **LSE:GKP Gulf Keystone** **LSE:ODX Omega Diags** **LSE:POG Petrop etc** **LSE:PPC President Energy** **

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Updated charts published on : Aviva, Avacta, Darktrace Plc, 4D Pharma, Diageo, ECO (Atlantic) O & G, Gulf Keystone, Omega Diags, Petrop etc, President Energy,

LSE:AV. Aviva. Close Mid-Price: 435.9 Percentage Change: + 0.46% Day High: 437.1 Day Low: 433

Further movement against Aviva ABOVE 437.1 should improve acceleration to ……..

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View Previous Aviva & Big Picture ***

LSE:AVCT Avacta Close Mid-Price: 75 Percentage Change: -2.60% Day High: 77.75 Day Low: 67.25

Target met. Weakness on Avacta below 67.25 will invariably lead to 57 wit ……..

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View Previous Avacta & Big Picture ***

LSE:DARK Darktrace Plc. Close Mid-Price: 422 Percentage Change: + 6.89% Day High: 495.2 Day Low: 420

Target met. Continued trades against DARK with a mid-price ABOVE 495.2 sh ……..

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View Previous Darktrace Plc & Big Picture ***

LSE:DDDD 4D Pharma Close Mid-Price: 43.5 Percentage Change: -4.08% Day High: 45.75 Day Low: 43

If 4D Pharma experiences continued weakness below 43, it will invariably ……..

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View Previous 4D Pharma & Big Picture ***

LSE:DGE Diageo Close Mid-Price: 3805 Percentage Change: -1.13% Day High: 3868.5 Day Low: 3790.5

Target met. Weakness on Diageo below 3790.5 will invariably lead to 3700 ……..

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View Previous Diageo & Big Picture ***

LSE:ECO ECO (Atlantic) O & G. Close Mid-Price: 24 Percentage Change: + 6.67% Day High: 25.5 Day Low: 22.5

Target met. All ECO (Atlantic) O & G needs are mid-price trades ABOVE 25. ……..

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LSE:GKP Gulf Keystone. Close Mid-Price: 209 Percentage Change: + 4.50% Day High: 209 Day Low: 200

Continued trades against GKP with a mid-price ABOVE 209 should improve th ……..

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View Previous Gulf Keystone & Big Picture ***

LSE:ODX Omega Diags Close Mid-Price: 18.5 Percentage Change: -10.84% Day High: 20.75 Day Low: 18.25

Weakness on Omega Diags below 18.25 will invariably lead to 15 with secon ……..

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View Previous Omega Diags & Big Picture ***

LSE:POG Petrop etc Close Mid-Price: 18.12 Percentage Change: -0.49% Day High: 18.37 Day Low: 17.18

Continued weakness against POG taking the price below 17.18 calculates as ……..

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View Previous Petrop etc & Big Picture ***

LSE:PPC President Energy Close Mid-Price: 1.75 Percentage Change: -2.78% Day High: 1.85 Day Low: 1.75

Target met. Weakness on President Energy below 1.75 will invariably lead ……..

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View Previous President Energy & Big Picture ***

*** End of “Updated Today” comments on shares.

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