Ann: FY22 Half Year Results Presentation, page-70

I'm prepared for a slow grind down in the price of AX1- how much further it fall is the unknown but I'm working on having a good slab of capital ready to take advantage.

Bull Case for AX1:

1. Daniel is a superb CEO and excellent retailer with interests that are aligned as he has plenty of skin in the game.
2. Store roll outs continue with multiple brand expansions.
3. Lock downs won't be coming back.
4. Omni channel is working well.
5. Supply chain inflation has peaked IMO. Shipping rates ex China have fallen for four consecutive weeks - shipping costs have been the biggest cost increase bar none.
6. At the current share price there's way more upside than downside ahead. Getting set in
AX1 at these levels should reap rewards in years to come.
7. Brand building and the acquisition of Glue should put up some decent growth.

Bear Case for AX1:
1. Interest rates are destined for higher levels leading to less discretionary spending.
2. Inflation persists for longer erroding margins.
3. AX1 debt costs more due to point 1 eroding profits.
4. Market is heavy into banks and materials for a long super commodity cycle leaving consumer discretionary unloved.

People will always buy shoes and with youth such a big demographic for AX1 who knows maybe the bear case pointers won't have such an impact as they will with other consumer discretionary retailers.