Ok. Lets see if it's $1 or more by Christmas. I reckon they have...

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14/05/18

18:18

Post #: 33085957
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Originally posted by Nano_Land ↑

Can't see the stock trading down materially from here - because today's announcement revealed new material information.

First and foremost, the trading metrics of City Chic - there is no way analysts and outside investors would have seen that. This is material with metrics soooo impressive (GP 56%, 37% of sales on-line (industry high, lower cost, offshore presence etc), recent EBITDA growth and the likely level of EBITDA in FY18 - $20m - a real business.

Second the growth potential in terms of new categories, larger store openings and further penetration into offshore markets.

Look at "growth" retailers like LOV - >30 times earnings! I am not saying SFH will instantly get to that level but 15x would be a good start and that would imply ~$1.20 on my estimates.

Third, the sale of all the dog stores for a positive sum (16cps) provides cash, but more importantly removes huge potential lease liabilities and provides more than enough capital to deliver growth well above market averages.

It will take the market a little while to work it out, but City Chic (I am sure SFH will be renamed) is headed well above $1, and will be there by Christmas this year - mark my words.

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Ok. Lets see if it's $1 or more by Christmas.

I reckon they have done some fancy accounting and shifted a lot of costs over to the other brands and now they can't do it as only city chic left.

SFH Price at posting: 60.0¢ Sentiment: None Disclosure: Not Held
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Ok. Lets see if it's $1 or more by Christmas. I reckon they have...

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