JD Sports (LSE:JD.)

I’ve held JD Sports for quite a while, and a few days ago its latest interim results were released. The core business is doing extremely well. JD Sports stores are currently the leaders in sports fashion wear, with pretty much no competition.

But while the JD business is thriving I am not at all pleased with how the overall group is doing. The group is made up of not just JD Sports but Fashion stores like Bank, and now Blacks which is a higher end outdoor retailer. The fashion and outdoor segments have no unique selling point, are in fierce competition with all sorts of competitors and unlike JD Sports shops, they do not offer something unique to the customer.

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Emeco Holdings (ASX:EHL)

Emeco leases heavy earth movement vehicles to the mining sector. It is currently selling for less than what I calculate as a conservative liquidation value. Although the industry is in a cyclical downturn, Emeco continues to generate free cash flow and is well within its debt covenants. I think it is worth around book value of A$0.72, compared to its current share price of A$0.22. Under a worst case scenario and the company liquidates I think there is a good chance of investors not losing money.

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