The Reject Shop (TRS) - almost hit $15

[OneUp]

Winner

Perhaps best not to rationalize the selling.

Result came in above consensus forecasts (and above guidance).

Forecast for 08 in line with analyst expectations. However they will assuredly beat it by 20-30%.

[hods]

This market is really strange ... IMD Results great yet got smacked as well.
Since I am new to the stock markets, I was thinking this would be a could learning experience ....... I just don't know what I am learning tho !!!

[OneUp]

Hods. You're learning that when people get scared they do stupid things.

[tommy]

mmm, TRS getting beaten too, hope it goes below 10 bucks so I can get back in! I cannot believe this sector is getting smashed too, is the market full of pea heads or what?

[OneUp]

Mate, we both know the answer to that!

[steve fleming]

Just about every bit of commentary i read and analyst I talk to rates TRS an exceptional buy.

I see Huntleys agree.
--------------------------------------------------------------
Yield, Growth and Value – An investment bargain. 1H08 NPAT of $14m is up 38% on sales of $190m. A strong indicator to the popularity of the stores is strong comparable store sales growth up 9.2%. The company has upgraded its FY08 NPAT forecast from $14.8m-$15m to $16.3m-$16.5m, a 35% increase on FY07. The board is confident in the sustainability of its performance and lifts its dividend payout from 65% to 75% of NPAT. On our forecasts it’s yielding a fully franked dividend of plus 5%. This is a respectable level for a growth company with profits up an average 35% pa for the last three years. The fall in market prices now provides the opportunity to pick up this phenomenal growth stock at a cheap price paying out a healthy yield, it’s a bargain.......


......Margins for the half increased from 11.7% to 12.7%. A strong A$ a key contributor to this because product manufactured in China becomes cheaper. Another component is the build up in sales volume which means greater utilisation of distribution infrastructure and scale efficiencies......

[winner69]

About time we had another look at TRS. Sharepriced didn't get smashed as much as say JBH did late last year and the long term chart looks a lot more respectable .... insofar as it didn't fall as much as some others and has improved steadily from the bottom

Still increasing footprint and if they report a good full year result in the next day or two the shareprice could take off again and reach a new high

[winner69]

TRS beat expectations .... still increasing footprint ... some bullish comments about increased profit in 2010

Shareprice will take the next step up over the next month or so

[winner69]

Jeez when The Reject Shop has a profit downgrade and says things are tough it is starting to get serious in Australia ... always said NZ leads the world and maybe NZ of 2 years ago is what Australia is starting to look like in 2010 / 2011

And funny how the chart started heading down a month ago .... jeez those charts tell some stories eh

Wonder how far TRS will go down ... after another profit downgrade how much?

[winner69]

Hadn't noticed the thread heading earlier

6 years ago TRS almost hits $15 ....... and today $13.50

Secular bear markets are cruel things eh