The Reject Shop (TRS) - almost hit $15

[steve fleming]

hi Tommy and others,

i visited the Reject Shop for the first time ever yesterday (trying to find some cheap Xmas presents!!) and was actually very impressed with both the quality and range of product...however what was more impressive were the number of people shopping there, you could hardly move through the aisles due to the number of people and it took me about 10 mins queing up to be served....looks like they might do quite nicely over the xmas period...

[tommy]

Hi all REJECTORS!

Hehehe, time to make easy money again with TRS (so easy it's a joke, eh?) Anyone still holding?

____

http://stocknessmonster.com/news-ite...E=ASX&N=249831

13 February 2006

Re: Shareholder and Analyst Teleconference Presentation

An investor briefing on The Reject Shop’s half year trading result to 25 December 2005 will be presented by Barry Saunders, Managing Director and Chris Bryce, Chief Financial Officer via teleconference on Wednesday 15 February at 11.30am.


For shareholder and analyst enquiries please contact Graham Lever, Company Secretary before 5pm Tuesday 14 February 2006 on (03) 9371 5555 or alternatively via email at glever@rejectshop.com.au. if you wish to participate.

For media enquiries please contact Geoff Fowlstone, Fowlstone Communications on 0413 746 949.

Graham Lever Company Secretary The Reject Shop Limited ABN 33 006 122 676
245 Racecourse Rd, Kensington, Victoria, Australia 3031
Tel: (03) 9371 5555 Fax: (03) 9372 1211

[Phaedrus]

Holders of this stock will certainly be laughing - all the way to the bank.

[tommy]

Thanks for the chart Phaedrus, TRS has performed wonderfully since its float and IMHO is one of the best stocks in the retail industry due to its strictly-enforced business model similar to that of Walmart.

This is one of my defensive bullet-proof organic growth stocks in my portfolio, so I'm looking forward to hearing the half-year results due out very shortly

Agree with cujodog that TRS is a joke in that it is a no-brainer for long-term holders. Great management, excellent past performance and performed well even amid harsh retail conditions. Love this stock and laughing all the way to the bank[]

[OneUp]

Cujo you crack me up

Tommy, will you partipate in the conference call? I can't make it unfortunately. By the price action recently the market seems to be expecting good things. TRS hasn't let us down yet!!

[tommy]

quote:Originally posted by OneUp


Tommy, will you partipate in the conference call? I can't make it unfortunately. By the price action recently the market seems to be expecting good things. TRS hasn't let us down yet!!

Can't participate either tomorrow... robbo where are you, are you still holding TRS?

[patsy]

I have been slowly accumulating this stcok since One Up started this thread in 2004 (thanks One Up for your initial analysis). It's quite tightly held so it's worth keeping an eye on it for a few weeks and then buy into the slight dips it has over time.

There is very little commentary on TRS in Australian's discussion boards so it's good it has remained undiscovered... Very few brokers follow it (which is another big plus) but the likes of Aspect Huntley have an "accumulate" rating. I saw some of their shops in Oz and they were absolutely packed with people during xmas time.

It's my single biggest holding in Oz.

cujodog - your comment has explained clearly to me why has happened what has happened to you in the NZX.

[tommy]

Good on ya patsy for accumulating on price dips, TRS is relatively illiquid as you said and there are many instos holding it which is unusual for such a small cap company.

It's not a stock for traders but a good stock to hold and accumulate on any weakness when the retail sector as a whole goes out of favor (in the past TRS bounced back to sustain its upward trajectory).

I am a bit disappointed that TRS didn't grab a few of Millers' branches last year to accelerate the pace of expansion but at the end of the day the management obviously didn't go for it for a reason.

I too have checked out a couple of TRS stores to see how they are run, and every time I go they seem to have updated their product offerings. Run by minimal staff (low labor costs), squillions of different types of products offered at a discount and always busy with bargain hunters.

Keeping my fingers crossed for the latest report[:I]

[patsy]

Thanks Tommy.

The latest annual report reads about organic growth (as opposed to taking over teh likes of Miller's) with quite a few branches planned for opening over the next couple of years.

Incidentally, while researching TRS, I've also come across other listed retilers/distributors and have decided also to put some $ in Metcash Limite, which has done quite well too.

[OneUp]

And it's a beaut!

$8.7m NPAT for the half year - up 20.4%. So reliable. Year in year out, it seems we can expect 20% profit growth from TRS. This kind of solid, predictable growth justifies a P/E as high as 30 (many less deserving companies enjoy that now). Depending on the 2H performance, then TRS is trading at a P/E of 13.2-14.0 (assuming anywhere between breakeven and losing $500k in 2H06). That's just too low for such an oustanding company. Could very easily double in price again this year, although more likely we will see a good 50%.

Just 26% per year share price growth over 10 years will make TRS a 10 bagger. Maybe not a hare, but not a tortoise either.