comsec buy on myr price target $3.05, page-2

This much despised dog is turning out to be a beauty!

Clearly not going broke in the worst retail environment for many years (from published results DJS would go before Myer, which would only help Myer) and continually confounding the downrampers by paying a close to double digit fully franked dividend.

Thank goodness I never sold throughout the tirade of dire predictions when their share price fell sub $2, when every second post was that their business model is stuffed and they would cease to exist. In the time since then I have reaped a huge tax free dividend windfall with franking credits to boot.

Myer have been smacked from pillar to post, smashed by bad trading conditions, CEO shafting us with share sales at sensitive moments, internet sales gate-crashing the retail party, store expansion plan at exactly the wrong time, poor customer service reputation, the list goes on.

But despite all this they are still making tens of millions of dollars profit, and with that kind of financial muscle do people really believe they cannot harness any of the online sales boom for themselves? Of course they will, via their own online initiatives, and when bricks and mortar customers return in the next up cycle Myer will be at the front of the re-rating wave.

'Shrinkage', or 'theft' to you and I, from Myer stores, is massive. Technology will surely impact on this in coming years and add millions more to the bottom line.

Yes, shorters have murdered the share price and the CEO has helped them out, they have been a stinker for those involved in the float and they are bouncing along not far from the bottom, but the simple fact that they now appear highly likely to survive is a game changer IMO.

Many will question why they continued to pay a strong dividend rather than paying down debt, but to me that decision in itself speaks volumes. Others can read into it what they will.

For me, this analysts report is no great surprise and more of a surprise is the extreme lack of support Myer has had for an iconic business yielding close to 10% tax free.