Baby Bunting (BBN) is Australia’s largest specialty retailer of baby goods and has more than twice the number of stores as its nearest competitor. The company has only been listed for a year but it has impressed the market by achieving sales figures and earnings numbers which have been ahead of expectations. The balance sheet is sound, like for like sales growth is strong and new store rollouts can see Baby Bunting achieve double digit earnings growth for the next few years. On the back of their impressive full year results in August, the shares shot up towards $3.20. The share price looked very toppy back then so we have been advising clients to expect some weakness before buying any shares. Despite the shares having fallen more than 15 per cent since then, we can still see some further weakness on the way. However we are getting close to the buy zone. (VIEW LINK)
Michael Gable is managing director of Fairmont Equities. We are a small boutique advisory that uniquely combines both fundamental and technical analysis. As a result, our analysis is featured regularly in the finance media such as the Australian...
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