Plenty of Companies have Items on their Books they claim has X Value but in real terms has no value.
Myer is writing down a few of these things as non-cash writedowns, so it can write 40 milion off the net profit in one tick.
I assume when they write a brand off on the balance sheet where it takes 40 million off the net profit, Im assuming it means they down pay tax on that 40 million.
They didnt lose that revenue, they just wrote a brand off to zero at 40m and it took 40m off the net profit in one tick of the pen.
IMO its kind of like a strategy to reduce tax paid on the total profit, But Im not saying this from an accountants view because Im not sure.
But the Books right now are shuffled and cooked to look Bad and make things look bad in a Report.
The Nutshell Facts are that MYR closed 3 Stores that were deemed to be unlikely to grow or improve so they were Cut, and that made a dent in the total sales and total profits.
But the Facts are the the Myer Mine isnt running out of Iron ore, and the Iron ore Price wont hit Myers revenue by 50% if the Iron ore price dips.
Myer is pretty predictable within 2-3% of turnover and revenue. Things arnt going to dip or Improve in any great leap beyond 2 or 3 %
The Facts are that Myer sells over a Billion at the till on 37% Margin. The revenue per square meter of space is rising by over 3%pa
400 Million profit at the till per year on a Stock with a Market Cap of 520 Million.
The entire MYR Chart is a falling wedge, that will at some point snap out and up.
MYR Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
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