Posted by vaentec > 2014-11-30 16:25 | Report Abuse

This is a beautiful scenario. Imagine GST effect & Competition eating into the profits of Padini. The eps will look so bad, it disgusts investors. Compounded by weak market sentimen due to fear and worries,, the share price will drop. Hopefully to a PE of lower than 8. That's the opportunity to buy. This business has healthy cashflow and a good bramd established around it. Problem is, the valuation is just fair. A "crisis" like this will create real bargain. Consumer don't have a choice, you may tighten your belt for few months initially but old habits die hard, you're just resistance is futile, spending habits will continue regardless . It only takes time for people to get used to it In times like these, it's actually better for the company as it's competition's products are not so affordable for medium to low class. Plus, the effect from growth in retail space is hidden by the weak consumer sentiment. When things turn around, I believe the result will be beautiful. That's why, I think somewhere next year, Padini will be a real bargain.

Posted by kakashit > 2014-11-30 20:22 | Report Abuse

a good overall view of the macro situation, many ppl when seeing thing only will tilt to one side, either over optimis or over pessimitic.

I can u r able to find a balance in btw, good job Feli!