I read that article last night. If it's accurate then it explains a lot. If profit returns to its natural levels (pre Woolworths sale) from the artificial high fudged by private equity then this is probably worth somewhere in the mid to high 40c region.
Higher inventory levels (somewhat explainable by more stores), higher net debt and lower margins is very worrying. Management are obviously aware of this which is why they were so quick to revise their forecast for an entire year lower off the back of just 1 trading month (October).
Buyer beware.
DSH Price at posting:
74.0¢ Sentiment: None Disclosure: Not Held
