This massive drop obviously hurts, but I am confident that this...

This massive drop obviously hurts, but I am confident that this business is one worth holding longer term. Also it is worth noting that the SP moved down 8% on the day it announced its fy results - it can trade with a lot of volatility at times, especially when it’s slightly unexpected.

I look forward to reading their trading update nov 20, because their store roll outs and new competition to rebel sport with its new brand PIVOT will really determine their ability to deliver average return on equity 10% (as promised) imo, but also importantly indicate the success of sales since the efy. I would say that at prices of approx $1.80 it’s more of a growth play than value play. But I also expect it to be going up again to 1.70/80s within the next week or so, especially since the uptrend is still very visible (and melboune opening is more relevant news than infections in Europe or whatever reason it’s being sold off like this).

another side note: whilst some retailers are very vulnerable to ecommerce (the iconic or Amazon), I think ax1 has a good grasp of their online presence, and is unlikely to be taken over. Also, I think that fundamentally, shoes are an in-person item for most people, and opening more stores will continue to do well for sales. They do their stores very well, and their brand deals secure the loyalty of youngsters.

DYOR, happy to be holding (although it hurts to see it bashed down so aggressively over the past two days)