Pub and bottle shop business EDV is obviously not a supermarket but its in the same sector hence we included this morning. EDV is well positioned in the liquor market with Dan Murphy’s and BWS winning market share after Coles Liquor reduced bulk sales & unprofitable promotions. Hotel sales were resilient in the 3Q24 with accommodation assisted by key events. Gaming revenue turned positive overall, but was mixed state by state.
EDV isn’t a popular stock at present as it slips towards its all-time low, its trading “cheaply” compared historical numbers, though importantly, as investors focus more heavily on ESG considerations, companies that don’t screen well on these metrics, we think will trade on lower multiples in the future than they have in the past , which is likely to be the case with EDV.
- We might consider EDV as a contrarian play in the $4.50 area, or ~10% lower.
MM is neutral EDV ~$5
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