Shorting is legal. DJShas had a goodrun of it lately. It did...

Shorting is legal.

DJShas had a goodrun of it lately. It did seem like something was afoot- who knew it could be this! It was lucky to get off "lightly" today. The pretendy bid was when the SP was around $2.25, so shorters might still have a go tomorrow.

Deutsche Bank fell for it. A broker review in today's AFR has DB upgrading DJS from a sell to a hold- on the back of this "bid". However, the Broker estimates a fall in EPS of 36% to 21c, for the year to July 12.

EPS is currently 29c, and the dividend is 22.5c. If EPS is soon to be 21c, would the dividend be about 18c? If so, and if the SP was $2.25, the dividend would be about 8%, which is more usual for these department stores. Then, imo, the market will drag the SP down to make the dividend more like 10% -> $1.80?

DJS will be a buy at some point- because it has beautiful real estate. This one may play out for a long time, though.