dividends can be reduced or even scrapped hence not always a sound reasoning for investing....
Overall not a bad result considering the operating environment. LFL was a downgrade to last update however not a bad result considering the liquidations and results of competitors. Needs to show return on investments to negate costs. Operating environment remains tough however with a solid balance sheet, diverse portfolio, international sales and tail winds in reduction in import duty and staff penalty rates and stronger dollar impact can be softened. Wholesale 2H to be better. Guidance was vague stating the continuation of the tough conditions.
The company is definitely cheap ... market cap is below its net asset value ... one will argue that items can be written down however there is a 40m dollar buffer...
Takeover is definitely on the cards....
PGR Price at posting:
66.5¢ Sentiment: Buy Disclosure: Held
