Ann: Broadway acquisition and update, page-36

I'd been holding on to this share for a fair while,rode it up, then have been riding it down... 60% down to be exact. Then on a recent visit to Sydney had a peek around the Sydney stores, went to three of them in fact. Very very underwhelming. Visitor numbers were down, Ugg's were heavily discounted (70-80%) staff were twiddling their thumbs. Though another store, (North side) a couple of staff were parcelling up packages. But point being the stores were tiny, many of the items on offer tourist could simply pick them up at the chemist next door. I just can't see the moat around this business. I can't see why Daigo would feel compelled to use this particular store format.

I've also seen the daigo in action up in Japan, that is something to behold as the Japanese shop staff cant stand them, as they clean stores out which frustrates the local buyers, plus the Japanese consider them to be extremely rude. I'd not witnessed these volumes at the Oz stores.

So I've pulled the in the past few weeks, bought into NEA & EOS after watching a buying opportunity on pull back and already up 13%. I'll keep an eye on this stock, as the original thermatic appealed to me. But from a ground view, it just doesn't add up. So if you can, or able to. Try and visit a couple of their stores. None of them are more than 2.5- 3m wide, nor any more than 10-12 deep from the curb side. Plus they are scrappy very haphazardly thrown together premises. I hope they succeed, But in the meantime I've re-deployed my monies elsewhere.

Best of luck folk!