DJS is not "structurally trapped". I would argue its problems are more cylical then structural...
An average David Jones customer is not the kind of person who trolls the internet looking for a cheap bargain...they are the ones who are wiling to pay more for service / prestige....the financial fallout we all experienced on the stock market over the last few months has a dissprotionately higher effect on high income / older australians ( DJS customers) then other kinds of customers..
There were up to 5 PE funds circling BBG.....DJS actually made more in profit first half then BBG did....and its debt is one sixth.....its got an equally good brand name plus it has "lazy" property assets on its books ( which could release up to $400m in a sale / lease back...
DJS is a textbook PE play...
DJS Price at posting:
$2.37 Sentiment: LT Buy Disclosure: Held
