Another reason why people believe that it was not smart for him to float shares into the Stock Market was because sports Direct unveiled a 70% crash within its first half year profits which plunged from £70 million to £20 million, this then caused the shares to fall again reducing it to a 67% difference from when they first started trading on the Stock Market.
There was also romours reccuring that Mike Ashley was to try and make Sports Direct a LTD again after more worrying figures were released/
Although there has been significant reasons to why floating shares onto the stock market was the wrong choice to make, there is also reasons why it was good from a businessmans point of view.
firstly, Mike Ashley made £929 million on his first day on the stock market which allowed him to buy shares in worldwide companies such as Adidas, Lonsdale, Blacks and Newcastle United football club, this would mean that he would be making more money each year.
another reason why it was smart that he floated the shares onto the stock market when he did is that he may have predicted that the company was not going to be able to expand after he did this, so by doing so meant that he was able to make much more money through the company this way.
Mike ashley then went on to sell off his current shares in Adidas which made him a £29 million profit in just 8 weeks, this proves that he is a smart businessman and knows when to trade shares. 4 months later shares in adidas fell.
The last reason why i beleive that it was a smart decision floating the shares onto the Stock Market when he did is because we are now living in a recession which means share prices will only be shrinking and every day and people are going to be less inclined to buy into a business.
Mike Ashley is now the 54th richest person in the UK worth £1398 million, Down from 25th place last year when he was worth £1900 million
