Last week was certainly a good reminder of the margin of safety concept.
I don't see anything terribly bad in the result more the reaction of a market that thought the business was shaping up to be something it now appears not to be. Share price is still up over 30% last 12 months but flatter the last 6 months when the exuberance ran away.
Its not a rare gem of a business but certainly not a dog either.
GP margin was in the general range it has been in preceding periods though lower than DH24. The main issue is the higher inventory that reduced OCF and the cost increases in wages (admin), dist & storage. Business probably needs to grow to get these back inline with historical averages.
I will collect the dividend and be patient. I see nothing that concerns me overly long term.
RDX Price at posting:
$3.28 Sentiment: None Disclosure: Held
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