Contango adds Reject Shop on weakness

Contango adds Reject Shop on weakness. Reject Shop was added to the portfolio after a number of downgrades were announced within the retail sector. With the stock pulling back to below $10.00/share we used the opportunity to add it to the portfolio. The Company has good store diversification with c.320 stores in operation as at 31 December 2013. The business is currently growing aggressively through an accelerated store roll-out programme where the company opened 41 stores in FY13 and are on schedule to open another 46 stores in FY14. This is more than double the average rate of 20 store openings per annum and is a key driver of earnings growth for the business going forward. Reject Shop is well positioned to take advantage of any pick-up in consumer spending given it's a well-recognised brand, strong reach and successful store format. The Contango quarterly can be accessed here: (VIEW LINK)