Sellers near that price will become fewer. There's plenty on offer for buyers upside based on real earnings.
Validation of the half yearly will be the tail wind we need for any fence sitters.
After that its about getting more exposure.
If a broker who hadnt heard about it, at say 15c, and looks at the earnings growth, he would still recommend it to his clients who want exposure to the massive equation that China is.
If you think in real terms, 88m in revenue from selling clothes, in 400+ locations, while it seems like a lot from our tiny perspective in Australia of 23million population , you have to factor 1.4 billion Chinese.
1000 store expansion and keep on going.
This is also a story about wealth.
A broadening wealthier Chinese middle class our target demographic, means the number of chinese with cash to spend, and keep up with the Jones is increasing.
Its also a story about currency.
Post WW2, 1945 the US Dollar became the world currency as the US was the strongest wealthiest nation. Thats because the US made everything, and sold it around the world. It was a net producer, and therefore importer of cash flow from o/s sales.
We all know that has changed. Now china is the world manufacturer, hence money flows into china. The rising YUAN will mean that we have our tickets on also a rising currency. No wonder that SBB reason for listing was to increase its brand awareness in overseas markets.
This is just the beginning, of not just SBB, but SBB on a tide of China rising as the world super power, and growing currency domination. The ratio of YUA/AUD, will strengthen, and the effect will mean that what ever earnings are made in china are multiplied by the currency ratio increase.
Trace some of the earlier dominance of apparel Stores in the USA post WW2, into the 50's 60's to 90's, and you have a road map for SBB in china.
