This company , with Myer and David Jones never excited me.
I actually didn't like the stores and I know you shouldn't invest based on that but they just seemed a very maybe 5th place to go after JBH, Harvey Norman , The good Guys and an independent.
I have also avoided the WOW and Metcash companies.
Having looked at 2013 the entire profit seems to come from the discount on purchase and the 2014 afs dont show enough for you to come to any conclusion - given that I just took a cursory glance. If you have been given such a huge discount it would lie in cost of stock and assets. Those are subjective values ... a $20 million profit could easily come from being very conservative the year before. No foul just as the stock moves through the actual realisation value is received.
Because net margin is low in retailers its hard to find the real numbers unless you are auditing it and that rarely occurs in an after the fact - hindsight is far too easy to apportion blame.
Maybe the number of years needed before you can list would help if its say over $300 million but then what about the really good stuff - Its just a nightmare but really seems like a good move for the private equity firm. I would still think its a great time to find out exactly what happened to learn from this.
I was lucky with all the rest that didnt get involved I suppose. Was it luck - yes if you look at some of those I have lost on.
DSH Price at posting:
35.5¢ Sentiment: None Disclosure: Not Held
