Ann: Myer Half Year Results (1H2018), page-127

Agree with geepers on buy sentiment.

On a separate note, if you breakdown online and traditional sales, you will see that traditional sales are going down at more than 3.6% and online sales are going up by 50%. If the same trend continues, the loss in traditional sales will be easily overcome by increase in online sales in next 3 halfs, and there will be a dip of another $30m in sales but the lost OGP can be covered through cost savings measures (i read somewhere $7m). Hence, the operating cash flows will still be healthy. If no dividend is paid for next 2 halfs, the free cash flows will be around $210m. So, that alone is 26c per share (understand there is no tax and discounting considered here) but $210m is very healthy free cash flows.

The value of intangibles also represent the future discounted cash flows, which alone indicate today’s value of future free cash flow is 52c.

I think it’s a good entry point for those who couldn’t afford $2 for this stock. Nevertheless, there are many unhappy buyers at heavy prices here. So, do your own research before buying.

Until we see the full year results and confirm the health of free cash flows, the price around 50c is reasonable, which represents intrinsic value plus a 50% discount on already discounted future free cash flows.

We also need to question if Friday’s sell off was to do with the results or a result of trade war fears. If it was to do with results announcement, why the sell off didn’t happen on Wednesday or Thursday.