Long time viewer first time poster What I find interesting is...

Long time viewer first time poster

What I find interesting is the value of each Telstra Store, VTG acquired another 6 stores in December for total cash consideration of $9.41m/6 = $1.568m per store.

VTG management must have confidence in the long term value of these stores to continue to generate profit and value.

Why else would they be paying up so much for each opportunity?

This also alludes to the fact that the Telstra VTG contract implies some intrinsic value in the stores and if Telstra were to try and take any back they would need to compensate VTG.

Personally I remain confident in the long term value of these stores. In regard to online distribution there is also a trend for retail stores to take on online orders to get them to the customers quicker.

Market cap currently around the $184m mark @ $1.5m x 115 stores = 172m + SQD + CC + Sprout etc