Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
To the MM team, Please can you provide me your latest thinking on PMV. Most of the financial metrics look solid. But, I am aware that PMV is a very different business now to what it was 6 months ago. Then, if possible I would also like to hear your thoughts on 360. It seems a great business with the major concern being a lack of a sustainable moat (i.e. the big IT platforms could provide the same service as a free add-on). Regards, Charles
Hi Charles,
Over recent weeks PMV has dominated our Q&A report which is understandable following its recent sale of its Australian and New Zealand Apparel Brands—Just Jeans, Jay Jays, Portman’s, Dotti, and Jacqui E—to Myers. In exchange, Premier received 890.5 million new Myer shares, which it distributed to shareholders. We think PMV is actually now a better business having jettisoned some of their weaker brands to Myer. Around current levels ~$22 PMV looks appealing to us.
360 would have to be the most ‘consensus long’ trade in the market which makes it susceptible to bigger corrections. The $$ from the platform will be earnt through advertising over time, with the amount of data they collect on users the main source of value over and above subscription revenue. The end game here is all about data, and very targeted advertising that attracts a big premium. In terms of the bigger players, that is a risk, however, it is already a fairly competitive market dominated by more niche operators like 360, FamiSafe, Tracki, Zenly and others.
While we like 360 as a business we aren’t keen on chasing the stock ~$23 with other high valuation, crowded momentum trades currently under pressure – pullback in 2025 below $20 wouldn’t surprise.
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