Value investors filling their boots with MYR

Simon Conn, Portfolio Manager at Investors Mutual, says change is in the wind at Myer under the new leadership of Richard Umbers. So much so, that the discerning value investor has started adding Myer shares to portfolios managed by Investors Mutual. Conn says under new management there are ‘significant changes’ underway with Myer reducing store numbers and store footprints to concentrate only on products that perform well, such as fashion and cosmetics. “We think the stock looks very cheap on a PE of about 12x and a yield of close to 4% fully franked. And the balance sheet is vastly improved following the capital raising earlier this year.” Interestingly (but perhaps not surprisingly), the stock has also fallen onto the screens at Perpetual who have been steadily creeping up the register and now own over 13% of shares on issue.