Did the worm turn?, page-8

I am unaware that not discounting is illegal, and if TGA flouts a law, it is up to the authorities to prosecute.

TGA is not concerned about the 99% of Australian adults who find ways to get sufficient cash in hand to buy discounted goods. TGA defines its customer demographic as the cash-and-credit constrained 1% who do not go down that 99% path. TGA has been active in this subprime market for nearly 80 years, so it knows its game.

It is a mistake to internalise how you would acquire a fridge, or whatever, and then to project this on to TGA's customer demographic. Think of TGA along the lines that you would think of tattoo parlours. As much as you may be amazed that folk pay good money to get tattoos, you know that a certain customer demographic exists that will keep these parlours in business for generations to come. Also, just as many people getting a tattoo today have had one or more in the past, TGA finds that about half its customers sign up another deal on expiry of the current one.

My original point was that there is nothing in the offing that I know of that is a new threat to TGA. The outbursts of bleeding-heart sentiment have been around since TGA listed in 2006, and the SP has zigged and zagged in see-saw pattern over that time independently of TGA's reported business metrics. TGA seems to have switched from zag to zig this past Friday, so let's see where it ends up at the end of November.