IMO The problem with Myer is their business model does not work in a world where customers are increasingly purchasing online. Myer is just not competitive enough with other retailers that offer similar products online. While their sales results were encouraging there has to be a fundamental change in the way they sell things. IMO the 4% drop shows a lack of confidence in Myer to deliver on future earnings forecasts especially with the predicted interest rate rises throughout 2010. In any case many people who bought into this float are probably very disappointed with the downward spiral of the share price and are selling to salvage something or just holding long term waiting in hope that things will turn around. I wonder if many people are shorting this at the moment? If this is the case this could plunge lower in the year to come. All IMO DYOR.
MYR Price at posting:
$3.25 Sentiment: None Disclosure: Not Held
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