What Happened to the Myer Share Price?
Myer Holdings Limited [ASX:MYR] is an Australian department store retailer currently with 66 stores across Australia. Two more are rumoured to be opening next year. The department store offers fashion and apparel for men, women and children. They also sell cosmetics, accessories, homewares, furniture and electrical goods.
The share price closed 1.88% higher on Wednesday.
Why Did This Happen to MYR Shares?
Since hitting a 2014 low of $1.765 last Friday, Myer’s share price has recovered a little over 4%. It could be because it is racing season in Melbourne. Myer has prominent displays all over the Caulfield and Flemington races tracks, so the stock may be in investors’ minds.
However, its’ more likely that investors are looking for a bargain and think Myer is a trading at a cheap price.
What Now for Myer Holdings Limited?
It’s been a miserable year for the department store shareholders. Year to date the stock is down 30%. But it’s worse for those who were caught up the in the initial public offering hype. Since listing, Myer shares are 49% lower.
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The department store has changed their tagline this week from ‘My Store’ to ‘find wonderful’. It’s the first rebrand for the store in almost a decade. The top levels of management will be hoping this new slogan is enough to drive consumers back into stores…and the share prices higher.
Myer has continued to disappoint the market.
By the CEO’s own admission, they’re still playing catch up. Myer may seem cheap. And there’s also a chance that all the bad news is fully priced into the stock for now.
But don’t be fooled into thinking it’s a bargain. Christmas sales are a key period for the retailer, so watch out for the results in January next year. In additional, there’s still a very strong chance the company will report a net loss for the 2015 financial year.
Shae Smith+
Editor, Money Weekend
The post Why The Myer Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
