The 2 TRS stores I visited last week were busy. The stores merchandise range and store layout has improved dramatically from only 4 months ago. I spoke to staff to get a feel for the business and they spoke well about Sudano and store changes. Staff said that the last quarter was tough, however October sales were very good to date and they were visibly flat out. Staff I spoke to did not own shares, however one said her manager recommended them as her manager had recently bought some.
With a market cap of only $120mill, nominal debt and a MD who is putting it out there forecasting 1st half NPAT of $16 - $17mill, this is not a high risk investment. If he fails to meet this target the share price should improve when he gets booted and if they meet this forecast, then the share price will also improve. My base is merchandising and I have spent years in China sourcing. When TRS gets the cost reductions from efficient China sourcing, packaged with logistics economies of scale, they should clean up. One thing I want them to change is the name, however they won't go down that route. Nobody wants to be seen walking through shopping centres with a bag that has REJECT printed in bright red on it. It implies dodgy, low quality or rejected goods leaving little room for a positive brand association. I have just bought in again so my opinion is biased.
The 2 TRS stores I visited last week were busy. The stores...
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