You also have to remember that a plan is just a plan, it wont necessarily work. But at least a plan is better than nothing, or should I say more of the same.
The private equity firm that took the property out of Myer is what really killed it. Now paying high lease rates on property is another cost burden. Those leases probably have some fancy expensive get out clauses as well.
A look at the q3 announcement taking out the like for like stores increase of 1.7% actually left just a 0.7% increase in sales for 4 refurbished stores and 2 new ones, that does not look good as expenses for those 6 stores will be more than 0.7% of sales.
I've made money out of going long Myer in the last couple of bounces, but both times trimmed my gain largely by selling some shares 1 day too late.
With the current price only 3.5c off the all time low for the new Myer and the $1.30 level now convincingly broken again, with dividends/profits falling and long term debt not, I can't see a reason why $1 wont be reached and or breached.
MYR Price at posting:
$1.27 Sentiment: Sell Disclosure: Not Held
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