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clock Created with Sketch. 24/02/24
13:23
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Originally posted by timbowls:
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I've had a read through the presentation as well as listened into the management Q and A yesterday and wanted to note down some further thoughts.Thoughts on the result: There's been some better than expected results from Myer, Lovisa and Universal in recent months that had me hoping things might also improve a little quicker at DSK. Unfortunately homewares seems to be mentioned in every article I read recently as being a sub sector that hasn't bounced back as much as clothing and electronics etc. Thai Investor: I just thought I would mention that the Thai investors were kind enough to give me some of their time via zoom in early January and at that point (contrary to popular belief) they hadn't sold out and were still sitting on a substantial chunk of the company (they did mention they knew Dusk well and had traded the position since IPO). Keeping in mind this is my account on our discussion and certainly not word for word but they were overall positive on the company and it's niche market position but critical of the board and the capital management in particular. There was disappointment at the lack of ambition around overseas expansion (this seems to be a common view amongst fund managers) and also the lack of interest in a buy back which these guys (who had done amazingly thorough research far in advance of myself) were adamant was financially justifiable.
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Thanks @timbowls for your post. I agree with your thoughts on the results and on the management Q & A. I'm a long term holder but I have similar concerns to @reggierabbit and his reasons for selling his position in DSK. There is just no obvious catalyst for a short term (12 month) earnings upgrade or a SP re-rate. For me, the telling comment in the Q & A was management's flat refusal to contemplate a share buy-back. If they truly thought the business was worth more than $1.00 per share (a 50% discount to the IPO price) then it should be a no -brainer decision. What it does tell me is that they are not confident / do not have the visibility of the business improving for at least 12 months. The SP is going no where. For me personally, this is an opportunity cost.
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