DCF comes in about 50 cents ....... extremely bullish case about 70 cents (hence my comment about heaps of hope built into share price)
Yes these are turbulent times and MHJ could go anywhere.
I think H1 sales are really disappointing. There's been no catch up on the so called $80m of lost sales in H220 - other retailers have all had a decent amount of catch up)
But essentially I just can't see enough in the outlook to justify the current share price when its book value is about 40 cents
I'm seeing potentially 40 million a year profit, 10c/share and 8c dividend. Agree?
Only done a quick study.
I might need to re look at my model, when looking at previous years results it does depend on what you add back. All the past store closures and resulting impairments.. i added back $8m last year for example. No store closures this year, maybe..
Anyways, I'm potentially seeing a FY21; $31m NPAT, 8c eps, 7 cent dividend (9% gross yield). P/E 9.9. DCF comes out at $1.03 for me.
Management are hitting their cost saving targets with another $5m to be realized They are pivoting to a more modern retailer with an omni-channel customer offering- way ahead of the other jewelry chains. If we see continued margin improvement and continued same store sales growth shareholders are going to be receiving some impressive dividends in the years to come. And don't forget the super strong balance sheet.
I'm a happy holder. Average buy in is low 40cents so easier for me I guess.
Good bounce off the weekly 12ema which has been acting as support. Looks like the larger money is back buying on market. Expecting potential for 10% dividends at current price.
Good bounce off the weekly 12ema which has been acting as support. Looks like the larger money is back buying on market. Expecting potential for 10% dividends at current price.
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