DOUGLAS

All,

We must pedal back somewhat with respect to our confident foray into Douglas. 

While we believe the company has operationally found a bottom, those lower figures will translate into increased  LTM leverage over the next quarters. 

So while we see the company as stabilising and still NCF generative  around here, we do not think the current price reflects the absolute leverage on the company, nor the fact that it will be rising further. I.e. what has changed our opinion over the weekend is not the company, but the market. 

We are thus selling the SUNs again at presumably a 1%age point loss, given they’ve risen a little more on Friday. And yess, we/I goofed…

We will be looking to re-enter the name as leverage rises. Q2 should be laying bare much of the rise - even if the timing of Easter has been well flagged.

Wolfgang