Good morning!

There's not a whole lot to report on today.

  • Filta Group (LON:FLTA) is in line with expectations for H1.
  • Volution (LON:FAN) is in line with expectations for FY 2018.
  • Leeds (LON:LDSG) results are out for FY 2018 and the outlook for FY 2019 is in line with expectations.

House of Fraser is entering administration, after no solvent conclusion to negotiations could be reached.

While reading around the story, I ended up reading the Wiki biography of Philip Day, one of the businessmen who has been mentioned as a potential buyer.

It's fascinating to see how he has built an empire by buying up a long list of companies out of administration.

It goes to show how well someone can do by being opportunistic and waiting for the right time to pounce.

Mike Ashley of Sports Direct International (LON:SPD) is another astute businessman rumoured to be in the fray for House of Fraser.

He also has a track record of buying stakes in troubled businesses. Rather than buying them out of administration, he has been buying shares in fellow high street names at depressed prices, in the open market.

The names in his portfolio include Debenhams (LON:DEB) (where he is the top shareholder), Findel (LON:FDL) (again, top shareholder), GAME Digital (LON:GMD) and French Connection (LON:FCCN).

While the ultimate success of his stake-building in these enterprises is yet to be seen, it's been very interesting to see him build the portfolio.

What we can learn from these two men? Few people will have their business insights, but I suppose we should also try to be opportunistic, to be patient, and to stick to the sectors we understand best. That's what they've done, and it seems to be working out pretty well for them so far!

I would say that their specific investment styles would best be classified as value investing - they are buying up companies where the existing equity is worthless or at a much lower value than it was before. We don't have to mimic them precisely, but it's worth noting that…

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