Personally, I would consider pet products a highly discretionary purchase. I am sure some people would see it differently.
For this stock, which has seemingly grown via expensive acquisitions (plus some moderate organic growth) to be priced as high or higher than Australia's best retail businesses in staples just seems quite ludicrous IMO.
Super retail, Reject shop, Kathmandu..... The list of retailers trading with high pe's which have subsequently seen their share prices decimated on disappointment is long and well known. But if people believe that pet products are the new internet then good luck
If I were to offer my local pet shop owner 3x earnings for his business I reckon he would jump at the chance to offload it yet the Stockmarket will pay multiples of that.
Looking for a good short entry point on this as stock looks overvalued and in a clear downtrend which will likely accelerate on poor (relative to expectations) numbers
GXL Price at posting:
$7.96 Sentiment: Sell Disclosure: Not Held
