Sigh - tough space to be in - bricks & mortar retailing of a semi-luxury discretionary product in today's retailing environment.
Very painful indeed.
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They said the margin drop was due to getting rid of old stock.
They also previously said that they were targeting up to $10m in overhead savings.
This $10-25 million back pay issue better not affect our dividends or well see below 40c
The Hill family must have most of their wealth invested in this business.
They won't want to see that destroyed.
No doubt MHJ operate in a tough industry, and they haven't done well in the past a few years. But the Company have no going concern issues. For half year ended 31/12/2018, the company have $7.7m cash on hand and over $220m inventory, with only $28m bank loans. Assets very easily cover liabilities. With net tangible asset backing of 0.49 AUD per share. The Company is extremely safe and largely undervalued. Shareholders only need patience to wait share price rise from current level.
Consider their huge ongoing lease commitments.They are liabilities.
Mall rentals are savage.Only way out is at renewal, or at the end of the lease.
So huge liabilties to be funded from a broken business model.?
Stock valuations .Take extreme care. Depends on a lot of variables.
When a business is under pressure, stock loses value very quickly.
Fixtures and fiitings become near worthless.
Well, you view everything on MHJ is negative. That's fine. I agree MHJ is not good. But we buy/sell shares for the purpose of making money. At current level of SP, I think the majority of negative matters, if not all, have already been reflected. I don't think there are huge room for SP drop. Buy now and most likely can make profit.
Very negative.
Was very negative on Postie Plus years before they fell over and were brought out of admistration.Shareholders lost everything.
Been very negative on Smiths City for years.
Been negative on MHJ for awhile now.
Sitting on the fence with Briscoes and Hallensteins.
Never liked KMD's business model.
Still like Lovisa,but currently am avoiding retail ,building, and retirement sectors.
Live in hope my Turners will turn around.
Buy MHJ now ?...No.
ps If you search Sharetrader threads you will see my posts on retail stocks.Every year or so a guy used to post a new thread."The King buys Postie."No sure which one you will find,but they all ended in sadness.