Super Retail Group Ltd (SUL)
Thoughts on SUL - SUL is making lower lows - Is it time to exit? It's down more than 10% since your purchase, albeit ex div. Is it still a hold in your opinion? I would appreciate your thoughts.
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Answer
Hi Michael,
The whole retail sector has fallen away on recession fears courtesy of US tariffs. Fortunately we bought the initial sharp sell-off in SUL so the damage on paper is manageable. Following on from our commentary this week we have no plans to exit our position, or add for that matter. If we increase our retail exposure its likely to be through JB Hi-Fi (JBH).
- We believe that the ASX200 is offering value ~7750 with strong technical support looming a few percent below.
- We discussed fellow ASX retailer earlier in the week believing after its 20% fall it was offering good risk/reward value.
Obviously this view is fluid and if we believe a recession is becoming more likely we may cut the position.
