the time to buy jbh, page-13

"How is this. JBH during the recent 'poor'half year produced:

Return on Equity of 76% (that is not a typo)
P:E of 6.7 and Earnings Yeild on current share price of 14%
Op Cashflow growth over three years (averaged) of 75.9%pa
NTA growth of 42%pa (last two growth figures based on years to 30/6/11)"

Return on equity - inflated by debt which they took onboard to buy shares, now at much higher levels. the book value of equity isnt the best measure anyways, return on invested capital is a better measure. still high for jb because the volume is their and suppliers fund the terms of trade, like many other retailers.

Operating cashflow - grown because they have more stores, not because each store is turning over or selling more

Net profit - also driven by opening up new stores. New stores come with new obligations, but not all these obligations are on balance sheet. the largest obligation is leases, once you sign you are locked in. lease obligations are not classified on balance sheet, if they were, the numbers would look a lot different.

Just a view. My first post btw, I have no positions in JBH or any other retailer.