Just a question about Myer's extensive holdings of prime real estate.
Has anyone got any information about what portion of their $1.3b market cap is in bricks, mortar and inventory?
The market cap is getting so low that I can't help but start wondering what all those huge buildings in the centre of Australia's major cities are actually worth. Must be many hundreds of millions, surely?
It would be helpful to know what the market is valuing the brand name, goodwill and 'going concern' nature of the business at. It's certainly a massive amount less than a year ago.
I find it hard to believe Myer can't successfully leverage their iconic branding and locations around Australia to support a market cap of a heck of a lot more than $1.3b. It just seems ridiculous. I know the private equity boys ripped us off, but by this much?? I doubt it.
In my opinion Myer has become way oversold, hit by a perfect storm just like ERA a couple of months ago when the Fukushima disaster occurred. I bought ERA at 4.11 and they hit 4.84 today. Myer is suffering on every front, especially the very high AUD and low consumer confidence. Not all these factors will remain present... perfect storms are unsustainable by nature. I now consider Myer a buy.
MYR Price at posting:
$2.35 Sentiment: Buy Disclosure: Held
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