“In the short term the market is a popularity contest; in the long term it is a weighing machine”
Myer shares have a fairly bad sentiment. It’s understandable with yearly sales declines and UK/US department stores failing. But heavy debt loads and inabilities (large store counts etc.) to restructure for the online and speciality store disruptions were major factors.
Myer is a different story.
Myer has been successfully resetting the business in recent years.
It makes sense for the recent low share price with the risk and uncertainty factors. But it’ll become apparent Myer have managed this period successfully and will bounce back to a steady and strong cash flow. And as I’ve said before, this crises has actually lead to many positives for Myer. Once the proof is out, the share price will have a correction. I suspect many short sellers will be squeezed in the relief rally
I am very optimistic for Myers long term success. I am excited to see the market realisation that Myers strong cash flow is resilient and their cash position means only one thing. They are unstoppable. Lease liabilities will not be a risk. Regardless, landlords have lost their position across the board. They’ve got no choice but to write-off value and accept lower rents and then stop building shopping centres to allow their current properties to get busier with population growth.
People will look back at pre $1 share prices in the future and think why they didn’t buy low
MYR Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
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