Quick!! Jessops 90% off Sale!!

JCD_Capulet

It's no wonder they're struggling to compete with the online digital printing market, they keep giving away their own digital printing service for free! :doh:

Says she who has had, up untill now, three sets of 30 digital prints for free from jessops.

ED

kgpuk - indeed the BBC report is interesting, thanks. As a Jessops customer, as well as small-time shareholder, I hope Jessops strategic plan does save them around £15 million.
JCD_Capulet (and all others) - In your experience of non-Jessops digital printing, is the quality of paper and colouring likely to last as many years as those used by Jessops? Or do some cheap facilities use inferior materials which will fade, or colours 'bleed' in 10, 20 or 50 years?

rbulph

withabix wrote: »

2/1/07: WAS £1.50

27/3/07: REDUCED TO £1.11
28/3/07: NOW ONLY 76P
29/3/07: FINAL CLEARANCE NOW 15p

21/10/09 NOW ONLY 1.14p.

What I don't understand is that the board intends to put the company into insolvency by the end of the year and pay shareholders £100,000 in total. http://www.jessops.com/corporate/doc/Jessops_Press_Release_280909.pdf. They've got 102 million shares outstanding http://uk.reuters.com/business/quotes/ratios?symbol=JSP.L so by my calculations that works out as 0.097p per share. But the shares are still over a penny. Can anyone explain this? Is it that shareholders are still holding out for something positive to happen?

jimmyss1

rbulph wrote: »

21/10/09 NOW ONLY 1.14p.

What I don't understand is that the board intends to put the company into insolvency by the end of the year and pay shareholders £100,000 in total. http://www.jessops.com/corporate/doc/Jessops_Press_Release_280909.pdf. They've got 102 million shares outstanding http://uk.reuters.com/business/quotes/ratios?symbol=JSP.L so by my calculations that works out as 0.097p per share. But the shares are still over a penny. Can anyone explain this? Is it that shareholders are still holding out for something positive to happen?

I guess it's because there were a very large number of people who shorted the share, and these people have not yet bought the shares back. So, I guess there is some value still left in them until all short positions have been closed, hence the price still being over 1p.

Chomeur

It's an interesting idea. Logically the terms of the short contract ought to say that if the shares are substituted for cash by the issuer then the short seller only has to stump up the relevant amount of cash once that has happened. But maybe they don't? Could there be a big squeeze on short sellers before the shares are all liquidated?

jimmyss1

This article suggests that one element of why the price is so high is because there are still many naive private investors buying Jessops shares just because they have heard of the company before. But many are completely unaware of the current situation and that the shares they bought are going to be worth next to nothing fairly soon.

Chomeur

jimmyss1 wrote: »

This article suggests that one element of why the price is so high is because there are still many naive private investors buying Jessops shares just because they have heard of the company before. But many are completely unaware of the current situation and that the shares they bought are going to be worth next to nothing fairly soon.

Maybe. I certainly can't think of a better explanation.

atypical

This article suggests that investors are hoping "that a white knight is going to appear and make a better offer" than HSBC.

He also suggests it may be because a lot of people are shorting Jessops. I don't understand why this would increase the price I always thought short selling would depress a share price, if anyone knows please do explain.

jimmyss1

atypical wrote: »

He also suggests it may be because a lot of people are shorting Jessops. I don't understand why this would increase the price I always thought short selling would depress a share price, if anyone knows please do explain.

Most people would have shorted Jessops a long time ago when the price was much higher. These people will have to buy the shares back at some point. If there are a large number of shorters yet to buy the shares back, then there would still be some demand left for the shares. Hence, the share price is not as low right now as most people would expect.

However, this is just one theory as to why the price is quite high. In reality, it's probably just a combination of all the factors discussed above ie. 1) shorters yet to close, 2) naive private investors, 3) gamblers hoping maybe for a better offer

poppy10_2

Their business plan has been fatally flawed for years - selling overpriced cameras, often double the internet price, and yet staff the shops with 18 yr old spotty monkeys with no knowledge of photography that might make up for the higher prices. Not surprised the share price has fallen to practically zilch. The sooner they go out of business the better.