Any change in fundamentals that you're aware of?
I think there are three factors affecting the TRS SP:
a. the market extends the trend to infinity and then conclude they don't like the result and sell some more, and perpetuate the trend. Value investors eventually end this trend if the underlying business fundamentals are good, and they get handsomely rewarded for their bravery.
b. the market is worried about housing prices and disposable income. Given that TRS is a discount seller, I would think it is somewhat protected from this, as when money is tight I would think people would shift to TRS to drive their dollar further.
c. uncertainty regarding the TRS results i.e. they haven't been released yet. The market generally doesn't like uncertainty. Traditionally there is a sell down of TRS at this time of year.
There are a couple of economic factors that give tailwinds to TRS performance:
a. increasing australian dollar, as a parallel importer, this makes TRS inventory cheaper, adding to profit margins.
b. retail sales data appears to be improving.
Interested in all opinions
(20min delay)