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)


2 topics

The Livewire Equities feed brings you a range of insights that relate to Australian equities

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.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter