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Member
Not sure about Millers. I have not heard of anyone else buying their discount variety - maybe talks are ongoing (hence the reference to balance sheet strength which is available to fund acqusitions).
The market certainly likes the result - up 17c or 5.6% on modest turnover and well bid.
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GOOD NEWS!Yeah ]
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http://www.theage.com.au/news/Busine...958115617.html
Reject Shop eyes Miller's stores
August 17, 2005 - 4:29PM
The Reject Shop on Wednesday put up its hand to take over a number of premises if rival Miller's Retail Ltd goes ahead with its plan to close up to 80 underperforming stores.
The discount chain has brushed off the gloom that's descended on its peers to pass the $200 million sales milestone for the first time during 2004/05.
Its net profit jumped 26.5 per cent to $7.1 million for the year, with sales up 12.5 per cent to $203.1 million.
Investors liked the result, pushing Reject Shop shares up 17 cents to an eight month high of $3.22.
Managing director Barry Saunders said the group, which now has 108 stores around Australia with another 14 to be opened in the current year, has focused on building up repeat business.
"We've been working very hard to get a consistent repeat business every week of the year rather than have a bonanza nine weeks of the year (at Christmas and Easter)," Mr Saunders said.
Mr Saunders sees opportunities to increase the number of stores if Miller's Retail goes ahead with its plan to shut down 80 of its underperforming Go-Lo and Crazy Clark's stores.
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"We have been successful in other retailers' premises when we have moved into them opportunely in the past," Mr Saunders said.
"We wouldn't imagine that 80 would be available to us but I can't see that there would be anything but a benefit if there was that rationalisation."
The Reject Shop will close its six remaining Everything for $2 stores this year replacing them with Reject Shops.
"We're quietly exiting the E2 stores," Mr Saunders said.
"We don't want to pass on the goodwill we have built up in those sites so, for the most part, we are putting up, or have already put up, Reject Shops at the appropriate sites."
Mr Saunders said there was no evidence to say sales had been impacted by the sustained high petrol prices which Coles Myer on Tuesday said had knocked $20-$30 off the average consumer's weekly spending.
He said that in the lower end space where Reject Shop operates, it can go against the trend with people looking to save on bargains.
"With the first six weeks of trading in the new year we are right on target."
The Reject Shop's final dividend was seven cents taking its payout for the year to 17 cents to mark its first year as publicly listed company.
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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Member
Robbo, good to see you're still a Rejector - did you manage to take part in the conference call yesterday?
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Hi fellow rejectors,
Wow look at the thinness of the sell side of TRS today!
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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More news articles about TRS here:
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http://www.heraldsun.news.com.au/com...55E664,00.html
Retailers reject spending fears
Fleur Leyden
18aug05
DISCOUNT variety chain The Reject Shop and clotheshorse Noni B have bucked a weak retail trading environment to post record results.
Shares in The Reject Shop surged 17 to an eight-month high of $3.22, after the company posted a 26.5 per cent lift in net profit to $7.1 million. Sales rose 12.5 per cent to $203.1 million.
Managing director Barry Saunders signalled the company could snap up some of the 80 Crazy Clark's or Go-Lo outlets that Miller's Retail may close.
Mr Saunders, whose contract has been extended to June 2007, said trading in the first six weeks of the year was on target.
The Reject Shop has 108 stores around Australia and plans to open a further 11 this financial year.
The company announced a 7 dividend, bringing dividends for the year to 17.
And Noni B said it had not noticed a drop in demand for the 12 months to June 30, 2005, unveiling a 41.3 per cent increase in net profit to $6.3 million.
Sales revenue surged 10.6 per cent to $107.3 million.
Managing director Alan Kindl said the company had continued to build market share in a challenging market, without participating in massive discounting that had characterised the sector.
He said trading in the new year was in line with expectations and the company planned to open a further eight Noni B stores during the first half, giving it a total of 185.
The company declared a fully franked final dividend of 7, taking total dividends for the year to 13, compared with 9.5.
Noni B shares added 5 per cent, or 16, to $3.36.
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http://www.theaustralian.news.com.au...E28737,00.html
Pump and circumstance
Glenda Korporaal and Katherine Jimenez
August 18, 2005
RISING world fuel prices may not have sent inflation soaring in Australia as they did in the days of the OPEC oil shocks. But there are growing signs that record fuel prices are eating into companies in sensitive areas of the economy such as transport and consumer spending.
"In terms of worrying factors for retail, petrol prices would have to be the number one," says CommSec economist Craig James.
While retail sales this year have recovered from last year's slowdown, James says the record high fuel prices are starting to prompt Australian consumers to cut back on their spending on non-essential and discretionary items such as clothing, electrical goods and eating out.
Coles Myer chief executive John Fletcher rang a warning bell from the retail sector this week when he estimated that the average Australian household budget could be cut by as much as $20 to $30 a week by the fuel price rise over the year.
While other analysts put this at closer to $5 to $10 a week, they agree that the persistent rise in fuel prices is starting to have an effect on consumer spending.
With petrol prices approaching $1.30 a litre, consumers are now starting to take a tougher look at their household budgets.
Australian Retailers Association spokesman Duncan Shaw says higher petrol prices have been damaging retail sales for some time.
"When petrol prices go from 89c a litre to $1.26 a litre it means that a substantial chunk of disposable income has been eroded," Shaw says.
"Something has to suffer. Food tends to keep going but higher petrol prices mean people will put off non-essential spending.
"If your kid's growing and needs a new school shirt, you'll go out and buy it - but you'll wait until it's absolutely necessary."
Shaw also warns that the latest retail figures have been artificially held up by the burst of earlier than usual sales in June.
He argues that this has helped to bring forward consumer spending, with the true effect of record petrol prices yet to feed through into the reported statistics.
"It's going to be fairly tight over the next few months," Shaw says.
[b]He says the figure
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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TRS
The Reject Shop
Heh Tommy,.. and all Rejectors....
Great posts by you here Tommy,
My $3.50 Target (3 posts ago....) is looking closer Every second !
Suspect The Fundies Insto & Superannuation Fund Mgers.... money -- the percentage of their portfolios, that is earmarked for the Retail Sector.....(which their are some that have to have; .... in their Spread and variously " weighted portfolios" ....);
--may be starting to be Selling and now moving OUT of other Retailer stocks .....like Colarado CDO, Flight Centre (FLT) and maybe Just Group (JST), to name a few...... and NOW into,.... and thus supporting --- The Reject (TRS)--- ...... which, I am sure, wer hre at TRS Land, ......... do NOT at all mind !! []
Regards,
Robbo 
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quote: Originally posted by davidrob
TRS
My $3.50 Target (3 posts ago....) is looking closer Every second !
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Hi robbo!
I believe it won't take long to fulfill your target , and when TRS's market capitalization reaches the $100 million mark, the dynamics should change again in favor of TRS[] More instos should/will REJECT other retailers' stocks and ACCEPT The Reject Shop!
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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Member
quote: Originally posted by OneUp
The argument goes that, even if the economy is hurting, people put off going overseas or buying a new plasma TV screen, rather than soap and the other "daily essentials" that TRS stocks (or at least we all hope they don't stop buying soap!). It's essentially an elasticity of demand argument.
If anything, tighter economic conditions may well mean people go the extra mile to scout out bargains and stretch their dollars further. (So instead of paying an extra couple of bucks to get these items at the supermarket, they go down the other part of the mall to TRS).
Good to see this scenario being played out.
TRS is currently trading on a PE of about 12. IMHO a fairer PE would be 15-20 ($4.30-$5.80) as TRS can be depended upon to grow year in year out regardless of economic conditions at a very healthy clip. The safest and surest bet I have come across for a long time.
quote: Originally posted by davidrob
No, I completely forgot all about it -- [} ] [:I][:I]
One Up ; do Feel like.... and really was an Idiot for forgetting; and not pluggin myself in to the TRS Phone In....
That makes two of us [:I]. Anyone else manage to plug in?
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