Have considered carefully whether buying a stake in MYR is too much of a risk!
My conclusion is that at these SP levels there can be turnaround story waiting to unfold. With falling sales the company is finally recognising the need for revised strategies going forward. Removal of the CEO was a starting point, and the Board now has a chance to renew the place that MYER will have in the Australian retail space.
Myer will need to further reduce costs, improve its online presence and deal with lower margins going forward. I don’t see bricks and mortar stores going by the wayside but they have to reinvent themselves.
MYR currently still pays a dividend and will continue to do so, albeit further reduced. Solomon Lew is likely continue to press for Board reform, including a seat at the table, and he will get it.
I intend therefore to accumulate at these levels, don’t see any need yet for capital raising by MYR, and whilst a speculative investment it is worth buying at these levels. DYOR
MYR
Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
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