Look at the financials and you'll see this is in for a serious re-rating. If they can sustain this then Spheria's expectation of $1.50-2.00 isn't unrealistic. I see this easily in the $0.90-1.00 range in the short term (unless ACC keeps trimming).
This is an amazing trading update and includes periods of store closures (28 Melbourne stores reopened late Oct, 9 other Aussie stores closed for a short period and 21 Canadian stores closed since Nov).
The online sales growth is huge and margins will only get better with this growth. They possibly don't have anymore non performing stores as no stores were permanently closed. Inflection point???
“Amazing”, “great”, “excellent”, “absolutely MASSIVE” and another ‘amazing’ so update must have been pretty good.
Not good stuff all sales growth in NZ ...and strange that Q2 appears to have been weaker than Q1 in NZ
Never mind it’s the HEADLINES that matter ....no need to look at the detail as knowledge is superfluous in acrosring bull market.
NZ same store grew 2.8% FY21H1. Not "amazing" but when margin increases 150-250bp it is AMAZING . I'm sure some heavy discounting promo's would have seen higher same store sales but eroded margins..
The details in the devil they say and I've updated a model I had i couple of years ago before I gave up on them.
Today's announcement - narrative is good but the numbers aren't that good. OK, there's extenuating circumstances like covid stuff and they say they are still in turn around mode but its hardly an inspiring story
I reckon that even at current share price there's still a lot of hope of things coming right
In nztx camp ..... put it this way even if MHJ share price doubles others will have more than doubled.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Originally Posted by winner69
Reply With Quote
. I'm sure some heavy discounting promo's would have seen higher same store sales but eroded margins.. 
Bookmarks