It seems that my nerve is being tested at the moment, I invested in GXL at 9.98 and have continued to do so until this morning when I pushed another $3k in. I honestly don't see how the price is where it is given the fundamentals and expert analysis, I guess time will tell. See below, it's a $9 share...
Analyst Note
Greencross Cuts 2015 Earnings Forecast; No Change to Fair Value Estimate
Greencross executives have cut their fiscal 2015 earnings per share, or EPS, projections by 3% to 7%, to between AUD 0.335 and AUD 0.35. This is down from their earlier call for AUD 36 cents. Year to date, like-for-like sales remain within the target range of 5% to 7%. However, one-off warehouse management system issues (impacted wholesale food supply) and adverse weather conditions in Queensland and New South Wales will cut AUD 10 million from current-half revenue. In fiscal 2015 year to date, the company has added 64 retail stores (including 42 City Farmers stores) and 19 clinics to the network, and remains on track to open further 25 new stores in its retail network in fiscal 2015. We've lowered our own fiscal 2015 EPS forecast by 3.7%. Our longer term forecasts are largely unchanged, while our fair value estimate remains at AUD 9.00 per share. Greencross shares continue to lag our fair value estimate, as the market appears to be taking a dimmer view of the company's growth prospects. We believe industry fundamentals remain favorable, with humanisation of pets and a gradual increase in household disposable income continuing to act as long-term tailwinds. We maintain Greencross's no-moat rating, reflecting our belief that Greencross's size isn't sufficient for an economic moat.
It seems that my nerve is being tested at the moment, I invested...
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