KMD - Kathmandu

[zac]

Private Equity bailing. The numbers will look good for the float and a year out then profit will mysteriously evaporate and share holders will be left holding a heavily indebted, average performer. Did I hear someone mention Feltex?

[Placebo]

I am not sure what existing listed retailer I would compare them to. They are quite different to Pumpkin Patch/Hallensteins which are fashion season driven. Kathmandu has seasonal stock but they also carry a large range of high-end items like $500 raincoats, tents and sleeping bags etc. You don't buy one of those every year (well, I don't )

A lot of these retailers depend on new store openings to drive sales growth. Kathmandu is relatively mature in NZ and also has a sizeable presence in Australia. So will there be growth in store numbers?

You really have to see the figures on same store sales to make a judgement. Will be an interesting prospectus...

If I was in the market for a retail stock it would be PPL or MHL. Just not now

[whatsup]

Yeh as long as they price the float on a P E of 5-6 for 2010/11 it should be a success and not 14 + that they think they deserve