It does seems like a case of "buy the rumour, sell the news". Everything seems quite okay to me. I'm surmising that the key piece of new information, on which the stock has been sold off, is profitability. Previously there's been a heap of chat from FND about EBIT etc but never anything of substance on profit. Perhaps a lot of people equated projections of high EBIT with high profit also. The HY accounts have shown that those two things don't always go hand in hand. That said, the business should have a lot of operating leverage, so incremental increases in scale should produce greater increases in profit. And that's what we can look forward to in the coming year, in my view.
FND Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
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