Loading…
Loading contentPIK at 19.01 is still priced for perfection given the margin squeeze in SA retail. Discounters like Boxer are burning cash while the big format stores are getting hammered by load-shedding costs, and I don't see how that story improves in the next two years. Better value in the sector elsewhere, ja no.
Could read as Bear's actually got a point on the load-shedding drag, but the last MD&A showed they've cut working capital by 240m in the half, which means inventory's finally moving. Boxer's still a margin pit, ja, but if they can get same-store sales positive again without matching Shoprite's promotional intensity, the leverage works. 19.01 isn't cheap until you see what earnings look like when the supply chain actually stops being a cost centre.