Good Luck if you think the Reject Shop will be immune to the...

First 4 Last

Share
Profile

Follow
Mr.Dollar

1,602 Posts.

105

06/08/20

13:25

Post #: 46347748
Share

Originally posted by Hallster101: ↑

i wasnt able to link to the fool article so I added this excellent piece of analysis below.

Reject Shop Ltd (ASX: TRS)The Reject Shop share price has bounced from a low of $2.40 on 27 March to its current price of $6.10, after soaring as high as $8.28 per share in early July. Sales during the height of coronavirus pandemic (nationally), between 24 February and 15 March were up 15.1% compared to the same period in 2019. Cleaning, groceries, toiletries and pet care proved to be the strongest categories.The $64,000 question is whether the discount variety retailer can continue to sustain this growth over the longer-term. All eyes will be on the 2021 guidance that accompanies its full year result.While Reject’s 351 stores across Australia have combined annual sales of $900 million, a slide in earnings over the last 3 years can be attributed to the overstocking of too many low-margin items that simply haven’t been moving off the shelves fast enough. New CEO Andre Reich plans to staunch this slide in earnings by shrinking the product range by as much as 75%, and cutting inventories by a third.The share’s recent upgrade by Morgan Stanley to overweight is encouraging, and based on Morningstar’s analysis the Reject Shop share price is undervalued, with fair value set at $8.28.

Expand

Good Luck if you think the Reject Shop will be immune to the Retail downturn we are witnessing !! ... worst quarter in 20 years and more to come

TRS Price at posting: $6.33 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

FTL

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Most investors will get this earnings season wrong. Will you?

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

RNU

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

ASE

Astute delivers high-grade lithium hits at Red Mountain

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

SGQ

St George banks $5M from placement to ramp up Araxá Rare Earths Project

First 4 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Good Luck if you think the Reject Shop will be immune to the...

Top Stories

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Most investors will get this earnings season wrong. Will you?

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

Astute delivers high-grade lithium hits at Red Mountain

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Featured News