Australian (ASX) Stock Market Forum

TRS - The Reject Shop

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McLovin said:
I don't think these guys are ex-growth. Maybe they've opened a few too many stores too fast, but that'll get digested over time. They know how to sell cheap cr@p and it's unlikely that has changed. Wouldn't buy at this price and don't hold.
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Well today it's being sold that way. Took every retail stock down with it as well. Supercheap first, TRS second... the next will be? (JBH is my guess)

They say history doesn't repeat but it often rhymes.

Capture.JPG

Wouldn't surprise me if the price action follow a similar path. Although SUL got 3 broker upgrades the day after the plunge. It's all underwater now but it did offer a better R:R for the short trade.
 
skc said:
Well today it's being sold that way. Took every retail stock down with it as well. Supercheap first, TRS second... the next will be? (JBH is my guess)
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JBH trading update today. Everything is sweet and share price up 7%.

I am a bloody genius! :bad:

Lol.
 
I'm kinda surprised that JBs strong results today did not have a positive effect on TRS.
If JB is OK this is OK.
However, being down on a Monday after huge sell off on a Friday is not good, though it did start the day off more positively after a negative lead in general.
It aint dead yet and a hard reversal will be on, if the new shops click up a gear or two.
Looking for volume coming in and it has been on the short lived reversals today.
 
notting said:
I'm kinda surprised that JBs strong results today did not have a positive effect on TRS.
If JB is OK this is OK.
However, being down on a Monday after huge sell off on a Friday is not good, though it did start the day off more positively after a negative lead in general.
It aint dead yet and a hard reversal will be on, if the new shops click up a gear or two.
Looking for volume coming in and it has been on the short lived reversals today.
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I'll wait to see the detail of JBH's result, because I'm wondering how much of the margin uplift is just from them selling higher margin white goods through JBH Home.:2twocents
 
McLovin said:
I'll wait to see the detail of JBH's result, because I'm wondering how much of the margin uplift is just from them selling higher margin white goods through JBH Home.:2twocents
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May be... but that's not really a problem though, is it?

I think JBH got sold down today on the back of some analysts (from Credit Swiss I think) relating the poor performance of a US electronic retailer to the future demise of JBH.
 
skc said:
May be... but that's not really a problem though, is it?
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If its browngoods margins are still falling (which is my suspicion), then yes it is. Because flogging TV's and Playstations is their business, not the latest wall oven. IIRC, there's a few suppliers who are not allowing their products to be sold in JBH Home stores because the store fitouts are too "cheap"(no doubt they'll come around if the venture becomes wildly successful). I don't think they'll enjoy the returns from whitegoods that they've managed to rinse out of their electronics biz. Just my theory of course and I could be completely wrong when the report comes out.
 
skc said:
May be... but that's not really a problem though, is it?

I think JBH got sold down today on the back of some analysts (from Credit Swiss I think) relating the poor performance of a US electronic retailer to the future demise of JBH.
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If it did go down due to that report, I would guess professional interests knew about it before retail traders did. It looked like they were selling out before today.

I haven't gone to a JB Home store yet. Are they trying to be Harvey Norman but instead of rip off prices and hand holding, they have cheaper prices but poor customer service?
 
notting said:
I'm kinda surprised that JBs strong results today did not have a positive effect on TRS.
If JB is OK this is OK.
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I am not 100% sure that's how it works. Just because JBH is ok does not make TRS ok and vice versa. They don't even sell the same sort of stuff.

I have always thought it odd people talk about things like "consumer confidence". When was the last time a consumer said "I am not confident enough in the economy to buy that TV". People will buy a TV since they need one. It all sounds like rubbish to me. If people spent a tonne of money on white goods/TVs/Xbox/Playstation the last few years, well they probably still have the ones they bought. They probably won't buy a new one for a while. Example: say 75% of the adults in Australia go buy a TV at JBH. Next year the other 25% do. This is not a lack of consumer confidence. The people who bought the tv the year before still have theirs and it works perfectly.

Consumer confidence would actually apply more to TRS than JBH in my opinion. People who would have bought home entertainment will continue to do so. People might not be so inclined to buy what ever random stuff TRS happens to be selling. They sell some food items that are cheap but I doubt they account for a high percentage of their turnover since most people will just go to a supermarket.
 
Results out today.

http://www.asx.com.au/asxpdf/20140219/pdf/42mt83xq5r76jw.pdf

Read somewhere they hit guidance, I should think so as latest update was only a month ago. If you read between the lines it looks like management took their eye off the ball while busy opening new stores. Concentration on product mix and general good retail skills may right the ship in the medium term. Difficult to see any positive news in the next few months.
 
ROE said:
Something that came out of the left side field which TRS havent account for is K-mart
they are killing TRS in major shopping centre...Kmart sell stuff way cheaper than TRS ...

and kmart now stocks similar stuff to the TRS ... I doubt TRS has the ability to counter kmart price without sacrificed margin and profit hence the need to focus on major shopping centre ...
in all major mall where there is a TRS shop there is Kmart.

Kmart is my destination of choice for cheap and cheerful stuff, they under cut anyone what sell anything similar to them even the ever popular lego.

Guy Russo is Managing Director of Kmart, read up on him, not many people goes head to head with him and win, he is the KING of discount and volume...Since he took over Kmart it has a remarkable turn around...
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People now picking up on the Kmart story...
http://www.theage.com.au/business/r...is-bryce-in-surprise-exit-20140313-34nng.html
 
Another profit downgrade, still blaming customer not spending and sentiment
nothing about competition eating into their market :)

a judge of good management is not in good time but when you have issues and you are being frank and honest and acknowledge you have issues.
 
ROE said:
Another profit downgrade, still blaming customer not spending and sentiment
nothing about competition eating into their market :)

a judge of good management is not in good time but when you have issues and you are being frank and honest and acknowledge you have issues.
Click to expand...

Looks like the announcements for both PBG and TRS were written by the same person this morning.......


pinkboy
 
AGM announcement has said that since the release of results they have been fairing much better, comparable store sales for the last 2 weeks have been "flat". You know business is tough when your stoked about getting back to even.

I don't really have much to add, I just wanted to voice my opinion on their latest tv ads: awful.
Even my partner (who watches advertisements without the lenses of a business analyst) said "that is just wrong...what's with the song!!!".
I hope, for investors sake, the new leadership has something better up there sleeves than this 'revamped' marketing campaign.
 
VSntchr said:
AGM announcement has said that since the release of results they have been fairing much better, comparable store sales for the last 2 weeks have been "flat". You know business is tough when your stoked about getting back to even.
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I have no idea what the market was cheering for upon this update. I totally expecte them to be canned on open. They are somewhat lucky to be doing a trading update today, as opposed to say last Monday.

VSntchr said:
I don't really have much to add, I just wanted to voice my opinion on their latest tv ads: awful.
Even my partner (who watches advertisements without the lenses of a business analyst) said "that is just wrong...what's with the song!!!".
I hope, for investors sake, the new leadership has something better up there sleeves than this 'revamped' marketing campaign.
Click to expand...

+100. Complete piece of crap... just like the things that they sell.
 
VSntchr said:
I don't really have much to add, I just wanted to voice my opinion on their latest tv ads: awful.
Even my partner (who watches advertisements without the lenses of a business analyst) said "that is just wrong...what's with the song!!!".
I hope, for investors sake, the new leadership has something better up there sleeves than this 'revamped' marketing campaign.
Click to expand...

This ad i assume?
`
[video=youtube_share;kigOkiXIe3E]http://youtu.be/kigOkiXIe3E[/video]
 
Hi,

Does anyone know what is going on with this one?
The slide seems to be accelerating. There have been no new announcements so far.

Regards,
 

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