Skip to Content
scroll

MM thoughts on JB HI FI

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

MM thoughts on JB HI FI

Why has the share price dropped from $53 to 45? Is it still worth holding or take this opportunity to add at current price. Thanks. Shernavaz.

Answer

Hi Sernavaz,

2 reasons, the first being Kogan’s inventory problems (too much stock) implies that they’ll start discounting heavily, things like electronics and that will have a negative impact on JBH sales.  The second is their hugely successful CEO Ricard Murray announced he’s leaving and going to Premier Investments (PMV). We also saw a couple of broker downgrades just to add fuel to the fire.

More broadly, the whole Retail Sector has endured a fairly tough week with 4 major players falling over 5%. We’re not considering JBH at present as we feel significant good news around an economic recovery is already built into prices. Nearer ~$40 would have us interested.

chart
image description
JB Hi-Fi (JBH)
Back to top