If you invest in this sort of business it helps to troll through their shop while going out shopping or
something like that if you are observant it will tell you the story before the bad news hit the market.
TRS model has change some what over the year, they start stocking bulky high value item which isn't cheap
and there aren't sell them and they taking up lot of spaces, I notice this a while ago
combine with massive competition from kmarts and everyone else in the game I decided it is a no go zone.
as price fall from teens to high single digit every one call it cheap
, it getting hell of a lot cheaper because their business model is under threat and competition is hitting them left and right plus the make up of their stores no longer what used to drive their sales.
The only way out for them is re-structure their stores and get rid of those bulky items and go back to the old day
and do it cheaper than every else and hopefully customers will come back...to do this, they need to drop margins and profit so they are between a rock and a hard place
I don't think it is a bad business but there are too much uncertainty around them and it is hard to see where the light at the end of the tunnel is and that what the market doesn't like.
If they can work out how to re invent the stores format and drive sale then I think there is some value in them but can they do it and deliver high margin and profit? is their model still working with dozen of competitors around?
and that is million dollar questions and if they can pull it off the stock will recovered until then I cant see light at the end of the tunnel short term.