This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

TRS - The Reject Shop

Jump to new
Holy hammering. That's ugly. I wonder if it's across the board retail or just non-essential cheap stuff.
Holders would be crying at the return on the divvies if I they had bought within the last 12 months.
 

Attachments

  • TRShammered.axd.gif
    23.2 KB · Views: 65
They're not the cheapest shop. But I've seen them take over spots from other bargain stores and bring in more customers, like the one in broadway. You can fit two people through an isle there, you won't make it through an isle at hot dollar if you're obese, and they're better staffed usually.

But if the cause is high interest then this doesn't look good, no ones betting on interest rates coming down, only stable or up.
 
Average in-store spend is something like $13, they are a low cost provider...providing somewhat essential type items...
The statement that interest rate rises have caused the profit downgrade seem a bit dodgy to me.

I could of course be completely wrong, but in a recent Eureka Report article I noticed that a column writer pointed this out also. He seemed to think it may be an ordering problem or something similar...

Something to consider!
 
Commonsense tells me that if interest rates are rising and consumers are struggling financially then that ought to be good, not bad, news for a discount retailer?

A discount store blaming tough economic conditions for their troubles seems comparable to an unbrella salesman blaming the rain for people not buying umbrellas. Doesn't really make a lot of sense to me.
 
The following is Huntley's explanation. Also, the SP has run pretty hard in a sideways market. I wouldn't be regarding the present situation as a permanent dislike of the stock overall.
 

Attachments

  • sshot-13.jpg
    79 KB · Views: 13
I bought some at 13.41. Let's see what happens next...
 


According to their last annual report, the Ipswich distribution center services about 80 out of 200 stores.
They had $50mill in inventory.
Their stockturn is 5.8, approx 8 weeks.

Fortunately the Ipswich distribution center is only a year or two old and they had survived without it before then.
 
One thing I've learnt about share trading -

Good news does't always lift the share price, but bad news always has a negative effect.

Regards to all
Noddy
 
Noddy said:
One thing I've learnt about share trading -

Good news does't always lift the share price, but bad news always has a negative effect.

Regards to all
Noddy
Click to expand...
Do you feel like offering why you think this is so?
 
Lets hope the stock doesn't get hammered to much as its already down 30% after its profit down grade.
 
fanger said:
Lets hope the stock doesn't get hammered to much as its already down 30% after its profit down grade.
Click to expand...

Chart is showing a good double bottom and stock spiked down today on bad news but now trading up. Coupled with much better sentiment towards retail stocks this week...There's probably a trade on the offer with TRS. Swing high target ~$15 to $15.5 to partially close the gap.

 
Noddy said:
One thing I've learnt about share trading -

Good news does't always lift the share price, but bad news always has a negative effect.

Regards to all
Noddy
Click to expand...

Did not get cheap enough for me. Sooner or later opportunity will come with TRS or another company will show itself.
 

Is'nt there too much volume on the second bottom?
I mostly look at fundamentals so this kind of thing is new to me.
 
skcots said:
Is'nt there too much volume on the second bottom?
I mostly look at fundamentals so this kind of thing is new to me.
Click to expand...

Volume at second bottom relative to first is pretty light.

Resistance at $15.1 offers a reward of ~$2 compared to a risk of 40c (assuming stop at today's low), or R:R ~5.
 
Im new to learning about stocks etc,
I was only tonight looking at the Reject Shop as its been quite the success story but December 8 where the share price dropped rapidly, is there any reason/event that caused it?

It was around that date some people calculated the Intrinsic Value of the shares to be $15-16, yet recovery hasnt seemed to have occured.

Its just made me lose a little confidence in the whole value investing theory etc
 

Learn to search company annoucement on the ASX website would be a good start for your learning.
 
Anybody got any thoughts on the new low reached this week? $11.35. Starting to look attractive again IMHO and get a Valu.able valuation of 10.99 for 2011. A drop into low to mid 10's could present a good buying op here. Last i heard Roger's own valuation was about $10.20.
 
oxygen said:
......... Starting to look attractive again
Click to expand...

Could get even more attractive over the short term.

"Whilst the Company’s insurance policies are robust, the recoupment of all losses associated with the flooding is uncertain and any estimate is premature at this stage, particularly with respect to the ongoing impact on sales, gross margin and increased costs of working throughout the half.

As a result the Company is unable to provide updated profit guidance as the overall impact of the Queensland floods can not be fully evaluated at this stage."
 
You must log in or register to reply here.

Similar threads

R
6 Ways to Make Smarter Investment Decisions
Replies
0
Views
2K
RickyY
R
R
Illusions of The Stock Market
2
Replies
26
Views
6K
RickyY
R
R
The Problem of Reading Someone’s Stock Recommendation
Replies
1
Views
3K
tech/a
Ryan's Trading Journal (F/A+T/A Strategy)
6 7 8
Replies
141
Views
33K
aus_trader
R
5 Years of Reflection
Replies
9
Views
6K
Dona Ferentes
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...