Perpetual: In December we took an allocation in the IPO of Dick Smith Electronics (DSH), which was floated by PE firm Anchorage late last year

Perpetual: In December we took an allocation in the IPO of Dick Smith Electronics (DSH), which was floated by PE firm Anchorage late last year. While the reasons for Dick Smith's underperformance when owned by Woolworths are not clear, we now believe that there are some clearly identifiable opportunities for growth. Some of the key areas identified include a recently-refurbished store network, an expanded product range, the rollout of new retail ventures and an in-store agreement with David Jones. We believe an earnings multiple discount of around 25%, relative to the wider market, is certainly appealing, as is the fact that all the management team's pre-IPO shareholdings continue to remain invested. So while its performance since the float has been relatively flat, we believe Dick Smith Electronics is really well-positioned to generate good returns for our investors over the medium-to-long term. Read the article here (VIEW LINK)


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