Ann: Preliminary 1H FY24 results update, page-3

Given the market environment with interest rates, I called this out many months ago that BBN would be struggling when I was very negative on the share. Of course share price movement and fundamentals can become disjointed so how applicable these announcements are to the direction of share price movements is a different ball game to predict. The fact that gross profit has remained the same is a good thing, however let's not forget it was already cut substantially since last years failed sales events (~50% from memory?) so they probably didn't have much leeway to give even if they wanted to.

It is positive that the rate of sales growth continues to improve, albeit still negative when comparing YOY. Maybe we will see the double bottom play out after all before the interest rates finally start getting cut, which could potentially be around when the company final reporting will be due. I don't think their change of marketing tactics was the underlying driver to the improvement, more than the overall dynamic economic situation.

I think the Camperdown store closure due to rent makes sense and is probably an honest call knowing Sydney's expenses especially around the city region.

Overall as a long term buy, as I said before, I think BBN is a good company to hold (even though I was short prior). If they can sustain their sales and pick them up over the coming year, then price should improve accordingly. Seems around the $1.8-2 range is currently fair price territory. Will see how the announcement impact plays out.