worth selling , page-66

I did some shopping over the weekend with my missus (i.e got dragged around as a personal baggage handler for a day). We visited a few electrical shops (and far to many shoe shops), including JB and Dick Smith and Harvey Norman....bored out of my brains I compared prices of identical items.

JB the last store visited by far had the cheapest prices. I even haggled salesmen in the other stores and they wouldn't go as low as the JB ticketed price.

JB was also by far the busiest store that I visited to.

It pretty obvious that there business plan involve higher turnover and lower operating margins than their competition.
This is a good thing. If rates go up and consumer confidence drops people will be more price conscious and search more for the better deal.

None the less a drop in demand will cause a drop in consumption. So turnover will have to fall to some degree to. Still consumer confidence still seems reasonably strong atm...but is hard to predict for the long-term. As we know the government what to reduce consumer confidence in order to combat inflation. If consumer confidence drops suddenly consumption of non-staple items like CDs and DVDs will fall sharply. So long-term I wouldn't be jumping in right now.

Short-term....well IMO long-term uncertainty would be of no benefit to the short-term share price.

IMO this is a good stock to watch from the side-lines. It's interesting to follow but I am much happier putting my money into the resource and agricultural stocks. Stick to the high growth sectors IMO. Less risk there at the moment IMO.