The Motley Fool

Myer Holdings Ltd’s shares soar

Despite a 3.1% drop in 3Q sales and warnings about the warm start to winter impacting 4Q sales, Myer Holdings Ltd (ASX: MYR) has jumped 13% to 0.43 cents. One positive what that Myer saw 49% growth in online sales, which is 6% of total sales, reflecting the changing behaviour of consumers, which is likely to continue. The share price, despite the boost yesterday, remains at low levels down 54% in a year and is trading on a forward price-earnings-ratio (PER) of 7.5x.

As reported in The Australian newspaper, Myer’s largest shareholder, Soloman Lew, who has long fought the Myer board and management, believes that another profit downgrade is imminent, the fourth in 12 months.

A spokesman for Mr Lew’s Premier Investment said “On today’s evidence … Myer’s extreme discounting program has failed to arrest its sales decline, Myer shareholders should brace themselves for yet another profit downgrade during the fourth quarter.’’

“Myer has been selling dollar notes for 50 cents and it’s still not working to improve sales, but shareholders will yet again be left to pick up the tab when Myer announces its disastrous full year loss. Premier will have more to say in coming days.”

The share price has bounced on the results being not as weak as analysts forecast. According to Citi analyst, the latest numbers are a “credible result in a very challenging environment. Like for like sales momentum has not meaningfully improved, but is not getting worse, despite a headwind from weather.

Noni B Limited (ASX: NBL) , a small cap stock with a market cap of $200 million at the time of writing, successfully completed an institutional placement of $37 million shares to fund proposed acquisitions. Noni B plans to acquire Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion Group Limited for $31 million. The share price has rallied strongly on the news of the acquisitions with the company trading on forward PER of 18.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor Rosemary Steinfort has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.