Retail offering great value for those with a timeframe longer...

Retail offering great value for those with a timeframe longer than 6-12 months.

The market being forward looking will price the change in - e.g. NCK bottomed within a couple of weeks of Lehman collapse despite what happened (and length) thereafter.

DSK hit by negative operating leverage in a negative part of the cycle - i.e. <10% drop in sales yet >50% drop in profit. Throw in HoH seasonality to confuse the punters into claiming loss-making or a fad.

Bears will point to the SP and call value-trap as they comp to FY21 which they called abnormal at the time (but not pre-covid FY20,19,18,etc).

For example FY20 did $9m profit from 110 stores in a normal rate environment - with steady growth in the right areas.

Now DSK have grown store count to 145 stores (+35% on pre-covid) with more to come - do the maths on what normalised earnings could look like - then compare to the price of $62m MC or ~$40m EV (adjusted for HY divi + tax + $2m loss).

Sentiment always turns. The bears have the glory for now but the SP follows the EPS LT.

Lots of other retail gems to be had too IMO - maybe one last flush of negativity to come in the next couple of months (JBH,HVN,LOV with their own warnings?) - then it's pin your ears back (I am hoping so to DCA more).

Each to their own strategy - I have seen some people try FA but are really TA guys (they're easy to spot) - make sure you know who you are.

GLTA.