The Reject Shop (TRS) - almost hit $15

[OneUp]

TRS has now burst through the $8.00 per share barrier and the $200 milion market cap milestone.

Close reading of the annual report suggests this half will be a cracker. After that, though (come March), could be time to take profits around $10/share?

[robbo]

The Reject Shop. (TRS)

Continues to be a Long Term Hold for myself too One Up !! []

(TRS) Has been a beautiful example of "Set and Forget" type share with magnificent --- "year on year"-- compounding ....value plus.... "out performance".

Kindest Regards,

Robbo

[OneUp]

TRS being sold off rather heavily at the moment...to $7.40.

Any ideas why? I'm guessing some profit taking.

Retail sales look to be up 0.6% in September. Looking good for the half year.

[Bobbyvee]

I agree Oneup, it is probably profit taking. A good opportunity to buy a few more.

[robbo]

TRS..


Yep. Also do Agree guys...

Regards,

Robbo

[OneUp]

Sold as low as $7.05 two days ago. $7.75 now. Which fund manager will be shot for that balls up?

[contrarianinvestor]

Sold 1/3 today. I still believe this business will have superior growth for many years to come. The high valuation however tells me that the wider market also think so. Saying that: Lynch, Fisher and Buffet probably would have held on.

[OneUp]

quote:Originally posted by contrarianinvestor
The high valuation

Is a PE of 22 a high valuation for a company growing 20-30% per year? (and 38% last year)

[robbo]

TRS. (The Reject Shop)-- TRS

Yes, I do also Agree with your proposition CI.... about:-- P. Lynch and W. Buffett, re your last TRS post ... Contrarian-Investor.(CI).

A TRS's investor's Decision may.... Probably/possibly--??-- may also depend on:

(1) What Price you entered:-- as an investor, The Reject Shop (TRS)

(2) Your Tax situation---- at the Australian Company Rate you have to pay out 30% of your capital gains-- so on $100K invested-- you would have to pay now $90K in ....Company Tax.... by selling now, assuming no offset deductions, if you entered TRS at $2.00.

(2) If you entered TRS at $2.00 like myself and One Up-- . then obvously every increment of 40 cents rise, represents a capital gain of yet....another ....compounding 20% on the initial invested Capital, in TRS ordinary stock.

Also agree with you Contraian-Investor..... in that....

...-- .... Say the TRS share is approx, is still .....'only' ....... $8.00 when TRS's next fully franked Dividends are declared -- The TRS Investors from 2 years ago are now currently receiving, a very commendable-- 14.8% Dividend; which is also-- Fully Franked ---- on their initial TRS invested capital--.....

This is, imo only, excellent compounding -- ie: period on period --- genuine relaaaxed == [8D] Wealth Creation, imo.

All in all, $100K invested in TRS originally 2 short years ago, is now worth $400,000K ---(in what I would argue, is a reasonably 'recession proof' -- Easy to "sleep at night" Investment-- and with overall good 'defensive properties-- and is a safe 'low relative risk' -- imo -- intrinsically rational investment.... in a truly proven .....Quality Business Model.

Also that $100K invested in TRS originally-- is giving the current original TRS Investor now : $284.00 Tax Free Weekly Dollars -[] (fully franked)-- for 52 weeks a year....and increasing ...... week on week, and year on year.

One could now, imo, lay a strong case, (RE. TRS) ---- that this (TRS) will continue in the future; to outperform the Bond Rate/CPI inflation risk by at least nine(9) fold...... (ie: approx 4.5% x times 9 = 40.5 %...which is still too conmservative imo !!)....[]-- Oh the joys of compounding !! -- [^]

... >> So Yes C.I.: -- I do definitely agree with you Contrarian--Investor.

Re: TRS, I agree with you, and also feel that Peter Lynch and Warren Buffett would still continue to hold TRS.

Kindest Regards,

Robbo

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Kindest Regards

Robbo






[quote]<font size="1" fa

[contrarianinvestor]

quote:Originally posted by OneUp
Is a PE of 22 a high valuation for a company growing 20-30% per year? (and 38% last year)

20-30% growth - No.
15-18% growth - Yes.

I'm not going to bet a large proportion of my share portfolio on TRS to grow 20-30% for the next 5-15 years. I think 15-18% may be more realistic. Since I still have 2/3 left I certainly hope for 20-30%!