A director at Myer Holdings Limited bought 100,000 shares at 0.507AUD and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
The independent financial analyst theScreener just awarded an improved star rating to MYER HOLDINGS (AU), active in the Broadline Retailers industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 2 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as moderately risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date February 1, 20...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
A much-mooted concern of investors in the Australian retail sector is the potential of a more pronounced decline in consumer spending on account of the weak housing market or perhaps even a wider-spread slowdown in economic activity--such as a recession. Australians have been dodging the bullet for a record-breaking 106 quarters but at some point, this lucky streak must come to an end. We avoid the futile exercise of predicting the timing of the next Australian recession and we aren't forecastin...
A much-mooted concern of investors in the Australian retail sector is the potential of a more pronounced decline in consumer spending on account of the weak housing market or perhaps even a wider-spread slowdown in economic activity--such as a recession. Australians have been dodging the bullet for a record-breaking 106 quarters but at some point, this lucky streak must come to an end. We avoid the futile exercise of predicting the timing of the next Australian recession and we aren't forecastin...
No moat-rated Myer surprised the market with a solid first-half result for fiscal 2019, loaded with a raft of clear operational and financial improvements. The market reacted accordingly, with the share price jumping 11%. Nevertheless, shares are still trading at a meaningful discount to our fair value estimate and screen as undervalued. We increase our fair value estimate by 5% to AUD 0.66 due to the time value of money. The result mitigated two key risks that had been overhanging the Myer sha...
No moat-rated Myer surprised the market with a solid first-half result for fiscal 2019, loaded with a raft of clear operational and financial improvements. The market reacted accordingly, with the share price jumping 11%. Nevertheless, shares are still trading at a meaningful discount to our fair value estimate and screen as undervalued. We increase our fair value estimate by 5% to AUD 0.66 due to the time value of money. The result mitigated two key risks that had been overhanging the Myer sha...
No moat-rated Myer surprised the market with a solid first-half result for fiscal 2019, loaded with a raft of clear operational and financial improvements. The market reacted accordingly, with the share price jumping 11%. Nevertheless, shares are still trading at a meaningful discount to our fair value estimate and screen as undervalued. We increase our fair value estimate by 5% to AUD 0.66 due to the time value of money. The result mitigated two key risks that had been overhanging the Myer shar...
We maintain our AUD 0.63 fair value estimate on no-moat-rated Myer, after management provided a quarterly trading update contrary to its original intentions not to. Allegations in the financial press, aimed at Myer’s financial performance, triggered the response from management. Our investment thesis stands: Myer’s sales remain flat long term, as the chain continues to lose market share to online players and specialty fashion stores. The department store sector, including Myer, gradually red...
We maintain our AUD 0.63 fair value estimate on no-moat-rated Myer, after management provided a quarterly trading update contrary to its original intentions not to. Allegations in the financial press, aimed at Myer’s financial performance, triggered the response from management. Our investment thesis stands: Myer’s sales remain flat long term, as the chain continues to lose market share to online players and specialty fashion stores. The department store sector, including Myer, gradually red...
We visited no-moat Myer’s Southland, Victoria, department store and met with CEO John King and other senior management. Following the site tour and our discussions, we retain our AUD 0.63 fair value and earnings estimates. At current prices, shares trade at a discount of around 17% to our intrinsic assessment. The focal points of the company’s longer-term strategy were reiterated and are akin to those of other retailers domestically and abroad. This includes a high-quality product range that...
Australian retailers saw very little from Amazon Australia, or Amazon AU, in fiscal 2018, but we think this is bound to gradually change. We expect Amazon AU's revenue will grow from next to nothing to AUD 24 billion in fiscal 2028, representing 5% of total retail spending. Amazon AU's strategy is striving to be the online retailer of choice. We expect it to win the hearts and minds of Australians, but not by recklessly dropping prices. Instead, we see the online giant offering industry-leading ...
Australian retailers saw very little from Amazon Australia, or Amazon AU, in fiscal 2018, but we think this is bound to gradually change. We expect Amazon AU's revenue will grow from next to nothing to AUD 24 billion in fiscal 2028, representing 5% of total retail spending. Amazon AU's strategy is striving to be the online retailer of choice. We expect it to win the hearts and minds of Australians, but not by recklessly dropping prices. Instead, we see the online giant offering industry-leading ...
No-moat Myer’s costs of doing business surprised, materially increasing despite decreasing sales, causing underlying net profit after tax of AUD 32.5 million to miss our estimate of AUD 40.2 million. The refinancing of the company’s debt and associated debt covenants has been addressed, diminishing the likelihood of a dilutive equity raising for now. We were disappointed in the absence of tangible medium targets from John King, Myer’s new CEO. However, the strategic direction matches that ...
For investors seeking exposure to the Australian department store sector, no-moat-rated Myer provides the greatest leverage: All of its operating earnings are generated by department stores. However, times are tough for Australian department stores, and this pressure is unlikely to let up soon. We expect Amazon to prove similarly disruptive to incumbent retailers in Australia as in the U.S., compounded by a continued decline in the sector's relevance to consumers as they shift their spending to ...
No-moat Myer’s costs of doing business surprised, materially increasing despite decreasing sales, causing underlying net profit after tax of AUD 32.5 million to miss our estimate of AUD 40.2 million. The refinancing of the company’s debt and associated debt covenants has been addressed, diminishing the likelihood of a dilutive equity raising for now. We were disappointed in the absence of tangible medium targets from John King, Myer’s new CEO. However, the strategic direction matches that ...
No-moat Myer’s sales continued to slide in the third quarter of fiscal 2018, but less than we had expected. The surge in online sales persisted but failed to plug the gap left by the challenged physical store network. The Australian working visa for incoming CEO John King has been approved, removing uncertainty around his start date. We reiterate our fair value estimate of AUD 0.66, and despite today’s 16% rise, the shares remain undervalued. Third-quarter sales slipped 2.7% on the prior cor...
No-moat Myer’s sales continued to slide in the third quarter of fiscal 2018, but less than we had expected. The surge in online sales persisted but failed to plug the gap left by the challenged physical store network. The Australian working visa for incoming CEO John King has been approved, removing uncertainty around his start date. We reiterate our fair value estimate of AUD 0.66, and despite today’s 16% rise, the shares remain undervalued. Third-quarter sales slipped 2.7% on the prior cor...
Stay Underweight Discretionary Retail. In our note dated 2 February 2018, “Going into Survival Mode: The Rush to Innovate”, we described the structural forces suppressing wages growth and how they are likely to persist for some time and remain a macro headwind for Discretionary Retail. Remain Patient and Wages will lift. The last two Labour Force Reports have shown a marked slowdown in employment growth from that seen during the previous 12-months. Furthermore, this has raised concerns that ...
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