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Sports Direct share price crashes with Mike Ashley behind the wheel

4 weeks ago
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The bad news keeps on rolling for Mike Ashley as he watched the Sports Direct share price crash when the stock market opened on Monday morning.

Friday had seen one of the most ridiculous and embarrassing days for Sports Direct, even by Ashley’s standards, with annual results first delayed in mid-July and then due to be released at 7am on Friday morning they didn’t appear and were repeatedly pushed back throughout the day.

When they were eventually made public, we all found out that Belgian authorities had imposed a £605m tax bill.

The fact that the figures didn’t emerge until AFTER the London stock market closed on Friday, was a bit of a coincidence…

The Sports Direct share price closed at 229p on Friday and plunged straight down to 166p when the London stock market opened its doors this Monday morning.

It did predictably bounce back after to an extent but is still only around 200p at 8.30am.

Newcastle fans taking great delight in the problems facing the malevolent owner of NUFC.

Mike Ashley had cynically tried to deflect attention away by putting out a pathetic PR statement through The Mail on Friday night, attacking both Rafa Benitez and the deluded Newcastle fans. However, that only delayed the inevitable this Monday morning.

Just imagine if on 4 April 2014 you thought Sports Direct was a brilliant investment with that clever charismatic Mike Ashley in charge…

The Sports Direct share price as Mike Ashley weaves his magic:

922p 4 April 2014

805p 7 August 2015

430p 13 July 2018

301p 18 April 2019

244p 26 July 2019 (1pm)

229p 26 July 2019 (After the London stock exchange closed for the weekend)

166p 29 July 2019 (When stock exchange opened)

200p 29 July 2019 (8.30am)

How long before we see Sports Direct investors, rather than Newcastle fans, holding up banners telling Mike Ashley to go?

The Guardian report;

Shares in Mike Ashley’s Sports Direct crashed by more than a quarter after the retailer’s disastrous annual results announcement on Friday, a chaotic day that saw several delays and shock financial revelations.

The shares plummeted by 27% to 166.6p when trading opened on Monday, in the stock market’s first response to the shambolic annual statement that included a warning that the firm’s House of Fraser chain has “terminal” problems and a €674m (£605m) tax bill from the Belgian authorities.

The results were published after the stock market closed on Friday and revealed that Sports Direct was struggling amid tough trading conditions on the high street.

David Cumming, the chief investment officer for equities and head of UK equities at Aviva Investors:

“Sports Direct is almost a case study in failed corporate governance.”

Justin Urquhart Stewart, a fund manager at Seven Investment Managemen:

(The delayed publication of the results was) “Frankly, a pathetic way to run a business.”

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