MHJ - Michael Hill International.

[hardt]

Bling sells.
A few comparisons for you,between MHJ and LOV [asx].Both target different sectors of the market.
..........................MHJ..................... ........LOV.
Market cap. NZ $445.5mil...................AU $403.2 mil
PE ratio................21.5......................... ......17.4
Yield................NZ 4.52%........................AU 3.13%.
Market........medium price......................low price.
To get a better understanding of both, you need to find out the pay back period for new stores.LOV is about a year.I would expect MHJ is about 3 years.
The market.Maybe MHJ may face competition from on line sellers,while Lovisa's is teen spending,who want it now,and can afford to buy it now .
The set up cost of each LOV store is not a great deal,and they can operate from very small stores.The value of their stock holding per store would be a fraction of MHJ's.
MHJ have been very clever retailers,however I think LOV are smarter.

MHJ is likely to have underlying NPAT around $30m-36m in FY17 - at $1.15 = PE 12-14

With continued growth "EXPECTED" moving forward, It is not the worst idea to look this way.

It is creeping into buy territory for me personally, but not quite yet.

Brick and mortar is still the most effective way to sell mid-high ticket jewelry...