I think we will see $14.00 today. Why? I often see when a great...

I think we will see $14.00 today. Why? I often see when a great result comes out it takes 24hrs for the so called experts to revise the spreadsheet models and come out with a new recommendation.

What will excite will be the following:

“The momentum of the first half has continued into the first six weeks of the second half with comparable store sales growth continuing at a rate consistent with that recorded in the second quarter.”

If that continues for the next 20 weeks it equates to a 3.2% increase which makes the second half sales number $369.2M or $794.0m for the full year.Not bad in anyone’s language – especially as its driven by same store sales not expensive new ones.

However the most impressive element of the 1st half result was the margin growth. NPAT margin of 4.3% is very good. Compared with the 2nd half of 2015 of 0.4% its magnificent. So lets assume they can only do 2.0% in this years 2nd half. That’s a NPAT of $7.4m or a full year NPAT of $25.7m. This will get the desk jockeys excited (81% above 2015) and get the big buy recommendation. Also throw in;

“During the second half, the business will continue with progress on a range of strategic projects which are designed to improve the processes and procedures within the business, reduce CODB and further develop the platform for longer term profit growth for the Company”. So all very good IMO - onward and upward and lets see $14 bucks today.