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Sorry to be a pain but I just don't understand this. Can you do a "explanation for dummies" guide?

 

Do you mean every million he makes - say from Newcastle or anywhere else tied to SD is also worth "11.7m?

 

 

PS And how can I get my monthly income to multiply 11.7 times too, please?

 

here's how I understand it. PE Ratio is a reflection of the profitability of the company to the value of the shares. every million of profit reported increases the value of shares, which increases the value of the company. it's not actual 11million in his pocket, but would only turn into cash if he was to sell off a wedge of SD shares.

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for a start we are buying stock off him whether it sells or not and for more than it's worth.

 

onerous indeed.

we stop buying then surely the club has to reduce it's estimated sales target then eventually he will get less, but you are right he will still get a minimum. Just hope that it is a variable based on predicted sales and not a fixed amount of sales that the club have to guarantee regardless of the previous year actuals... mind you wouldn't be surprised if we are locked into something like that..

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we stop buying then surely the club has to reduce it's estimated sales target then eventually he will get less, but you are right he will still get a minimum. Just hope that it is a variable based on predicted sales and not a fixed amount of sales that the club have to guarantee regardless of the previous year actuals... mind you wouldn't be surprised if we are locked into something like that..

 

 

looks to me like the amount we buy doesn't really matter to him he makes regardless.

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looks to me like the amount we buy doesn't really matter to him he makes regardless.

 

does that mean if the Cockney, Universally Unloved, Tool keeps pumping in the loan money to allow the club to pay for the shirts that the club buys from SD that he is actually directly inflating SD shares. It's like Tesco buying it's own products off the shelves to inflate it's profits, thereby increasing it's share price> Deary fuck is that legal !!!!

Edited by pmu
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