Updated Views on DSK, page-15

Seth, why don't you provide us with a forecast EPS for 2024 and 2025. You always dispute those providing actual analysis with throwaway comments. It seems that you are simply pumping the stock for your own benefit.

• Labour costs will not reduce in line with sales % for % - that is absurd unless it's a result of store closures. The financial reports will confirm who is correct on this point.
• AUD/USD exchange rate averaged 66.39 cents in 2023 financial year. Thus at current 67.5 cents it's no different. I hope you have made a sizeable bet on AUD going to 80cents if you are so certain.

I maintain that DSK is probably undervalued on a medium-term view. However, there are also many other companies that are under-valued. The risk is that DSK's worst financial performance is still to come. Although U agree that it will likely rebound substantially over a 3 year timeframe.

Keep in mind that Australia has experienced the largest decline in real living standards over the past 12 months throughout the developed world - this is before the full impact of interest rate increases flow through (fixed rates still expiring) and extremely low unemployment. There is a significant risk that discretionary spending reduces further over the coming year - let alone if we actually see a substantial increase in unemployment. That would lead to DSk's profitability remaining depressed in 2025 - which is why I believe the share price is where it is.