Coles - High Yield, why sell?, page-8

How do you reach the conclusion that the above share prices that you mention are cheap? My rough analysis points to a $12 per share based on earnings and a modest growth. There is not much room for growth unless they start doing the silly things that Woolworths did in the past (buying hotels etc).
I think the reason for the drop of SP is not what you mention above. It is probably related with the increase in bond yields. This indirectly means that companies who count on borrowing such as Coles with 369% debt to equity ratio and 0.66 current ratio will have less flexibility for borrowing in the future, they will be more risky and they will have to leave with lower profit margins (which are already too low). I could be wrong. It is Coles after all and so the brand is strong.