Bargain hunting at the Reject Shop

Intelligent Investor

Independent Financial Research

Bargain hunting at the Reject Shop. The Reject Shop's share price tumbled last week after a profit warning, blamed on warm weather. It's a familiar story. Pacific Brands is the latest retailer to downgrade its profit forecast and the Australian Bureau of Statistics cited below average retail spending over the past few months. Such dramatic swings are part and parcel of investing in this sector but The Reject Shop faces more challenges than a bit of warm weather. Same-store-sales growth has stalled, competition has intensified, a falling Aussie dollar has crunched margins and in the latest result an accelerated store roll-out program caused net profit to fall by 15%. Then the CEO quit and the stock price halved in the space of a few months. So why did Intelligent Investor Share Advisor recently add this stock to our Buy list, at a time when everyone else is downgrading it? (VIEW LINK)


MORE ON



2 topics

Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.