Really....... Here's what a professional thinks:0302 GMT [Dow...

Really....... Here's what a professional thinks:

0302 GMT [Dow Jones] Sirius Funds investor Kieran Kelly says the A$2.34 billion Myer IPO is "outrageously overpriced" and its owners were being opportunistic. Kelly notes buyout firms bought Myer in 2006 for A$1.4 billion and that the company hasn't changed much in the past 3 years. Adds stock should be offered at "a more realistic price" of A$3.50/share, instead of within the IPO's indicative range A$3.90-A$4.90. "The timing of the float leaves us a bit cold," he says, adding that it follows a 50% surge in the S&P/ASX 200 index since March and almost trebling of rival retailer David Jones (DJS.AU) stock. "It smells of opportunism to us," Kelly says. On projections, Myer stock will start trade at 17.3x FY10 earnings, a similar multiple to DJS, but to give investors a 10% return on listing, it would have to trade at about 19x FY10 earnings, Kelly says. "It's overpriced at 17x; it's outrageous at 19x," he says.(ABH)


And on that, do you have any idea what a ridiculous statement your 'double top' is. For a double top to be confirmed, price has to move below the intervening trough, which is about $2.00 in the case of DJS. Then the target is the difference between the peaks and the trough (around $4) subtracted from the trough, which would give a target of minus $2.

Common sense really does elude some people...