Which signs have we seen exactly of the damage being repaired?
Completely understand I stuffed up by investing at much higher prices, that's not in question at this point, my mistake and I have to own it, what's at question is where to put my capital to achieve good returns from here over the next few years?
After a more than 50% rise from just the announcement of a new CEO how much of this rise is based on fundamentals?
At this point I see some reasonable value in the Aussie market still with some solid dividend paying companies, whilst this one could well end up returning to be a dividend paying company it's the journey there that I'm not sure I have either the patience for or the trust in management to pull it off.
Haven't completely made up my mind yet as I'm still holding onto the fact I think the discount retail market is still likely the best opportunity to thrive in the new retail landscape as has been demonstrated overseas in many countries, Australia is really a virgin market for this that TRS previously held the undoubted advantage.
We likely still have the advantage if good decisions are made right now, the store footprint is unmatched, the distribution centre (whilst not a great capital spend at the time) seems to be going ok, balance sheet is still in good repair (excepting the new accounting rules with the leases, that may get ugly), not to mention a name that every person in the Country has heard of and has been into a store at some point.
Goddammit!
Now I've gone and talked myself into being more patient!
This is why it is good to put thoughts out there, whilst this has been gutted by poor management it does still have all the advantages of my original investment thesis that are there waiting to be capitalized on
I'll await the next set of results and at least see what the new guy has to say in his vision of the future for TRS, got to at least give him that chance if I gave it to the other clowns
(20min delay)