TRS chart, page-150

The net profit margin for the last 4 years has been 1.9%

I just did a quick 10 year forecast. Assuming 5% growth in sales from the 2017 annual statement and a constant 1.9% profit margin. Discounted the future sums by 3%, and divided the total by the no shares outstanding getting a $5.82 price.

This was just a quick analysis and doesn't take into account the effect of compounded returns a shareholder would enjoy if he held the stock for 10 years.

But 10 years is  a long time for your investment to be paid back, especially for a stock like the reject shop which isnt exactly blue chip.

However, if TRS can maintain a 3% profit margin, then the present value of the stock based on 10 years earning is $9.19, which would make TRS about 40% undervalued. Plus with the compounded effect of dividends, it would be worth a lot more. The half yearly net profit margin was 4%, which would give it a present value of $12.25. S0 I can understand why one would buy at this price, but at the same time I can understand why many people are hitting the sell button.

I might set a buy order at 5.50

	Column 1	Column 2	Column 3	Column 4
0	Growth	794,036,000		Years
1	5%	833,737,800	$15,841,018.20	1
2	5%	875,424,690	$16,633,069.11	2
3	5%	919,195,925	$17,464,722.57	3
4	5%	965,155,721	$18,337,958.69	4
5	5%	1,013,413,507	$19,254,856.63	5
6	5%	1,064,084,182	$20,217,599.46	6
7	5%	1,117,288,391	$21,228,479.43	7
8	5%	1,173,152,811	$22,289,903.40	8
9	5%	1,231,810,451	$23,404,398.57	9
10	5%	1,293,400,974	$24,574,618.50	10
11
12			NPV	$167,954,854.69
13				$5.82