Huge turnaround from a year ago...
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is this a BUY? has this outperformed expectations? even with with store closures and pick pockets or two... it got to be worth over the one coin market.
being careful on the DIV.
its crossed the line winner...
best value buy of the day..
EPS is 0.1168
Price today $0.89
Current P/E = 0.89/0.1168 = 7.62. GIVE it a no growth 10 p/e and we have a price of $1.17 (i.e. 31% above todays price).
Put it in a simple DCF model with 2.5% growth and 10 terminal value and you get $1.35 share price (i.e. 51% above todays price).
What happens if MHJ start getting more runs on the board and market rerates this stock to 12, 14 p/e...
What is MHJ going to do with all this cash they are generating??? They can't pay us 6cents a year and hoard the rest. They are generating 15 cents free cash and paying 6 (they say 3cents per half the new norm). They could increase the dividend 20% yoy for next 5 years no worries.
I bought more this morning. I have strong conviction in this turnaround story. Covid clearly helping this retailer. Lot of the consumer dollars that should be going on holidays to fiji is landing in the tills at MHJ stores. Board of directors is led by Rob Fyfe with 2.7m shares. All directors own a reasonable stake and CEO has reasonable stake with lots of performance rights.
Outlook: First 17 weeks of FY22- 17% same store sales growth, wow is that a typo?!?!.
Better buy than WHS?
Well the numbers are stunning and strong cash position compared to 2016-2017 when the SP handle was a lot higher.
Its the buy of the day ?
Yes very conservative on the DIV as it almost deserved a small special or at least some discounted gift options for xmas.
Im sure MR F is waiting for see what the future holds before recommending a special div.
Cant have enough if they increase the DIV and they continue.
Restructuring as delivered EPS.
Not NZX 50... price might not go anywhere for a while.
The thing I like about MHJ is that I don't believe many sales are 'lost' during lockdown, rather are just delayed (or bought online). Purchase of jewelry tends to be very intentional, so if someone cannot buy it when they want it they will just defer until they can.
looks like plenty of shares on offer at a discount to earnings.
Discounted on lock downs here and across the tasman.