Sports Direct International (SPD) - basket case or buying opportunity, we take a closer look

The UK’s biggest sports retailer hasn’t been far from headlines over the past year. Several profit warnings, demotion from the FTSE100 index, departure of a Chief Executive of 30 years, currency woes, parliamentary committees, etc. Last week came news of a £15m hit to next year’s earnings following the ‘flash crash’ in Sterling, with the likelihood that the impact could be worse. This week came the announcement that the company’s acting Chief Financial Officer would resign at the end of the year. For a business that has hitherto generally kept quiet and focused on operations it’s been highly communicative lately! So, is Mike Ashley’s sporting juggernaut really in terminal decline, or does the current share price sell-off present a buying opportunity? Our latest note goes over the numbers.