I'm actually wondering if the recent gains are related to the news earlier this year that AP Eagers is taking some floor space off Myer to put a car dealership in a shopping centre.
It's often said that MYR has more floor space than it needs, on which it pays rent unnecessarily. If they can reduce their floor space without paying lease big breaking fees, perhaps by passing that space to car dealerships, then they should be able to cut a huge chunk of their annual $240m rent expense without incurring heavy costs - which would be a huge win for them.
So not only would they be in a good position to grow sales, by pursuing a back to retail basics strategy, but expenses have the potential to come down quite a bit. Profits could potentially go back up as fast as they came down - and the share price should reflect that.
I sold into the rally as a bit of a trade, thinking it'd pull back so I can buy back cheaply but now I'm kinda regretting that.
MYR Price at posting:
56.0¢ Sentiment: Hold Disclosure: Not Held
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