Last post re DSH on DT as I believe under 80c is a gift.
Is Dick Smith Holdings Ltd too cheap to ignore after shock downgrade? By Tom Richardson - October 28, 2015
The market appears to think not given it’s now valuing the business at around $300 million, on just 7 to 8x Dick Smith’s forecast profit of at least $40 million for the year ahead.
Assuming Dick Smith meets the bottom end of its new guidance then profit will only be marginally lower than FY15’s profit of $43.1 million, which suggests small improvements would lead to a return to a growth.
The business also now offers a huge trailing yield around 13%, which is likely to decline marginally, but still be attractive in the year ahead at whatever the adjusted level.
