{"id":52508,"date":"2014-06-10T02:27:26","date_gmt":"2014-06-10T06:27:26","guid":{"rendered":"http:\/\/countingpips.com\/?p=52508"},"modified":"2014-06-10T02:27:26","modified_gmt":"2014-06-10T06:27:26","slug":"why-the-reject-shop-share-price-went-cheap-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-the-reject-shop-share-price-went-cheap-today\/","title":{"rendered":"Why The Reject Shop Share Price Went Cheap Today"},"content":{"rendered":"
June 10, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to the Reject Shop Share Price?<\/h2>\n

Shares of The Reject Shop Ltd [ASX:QBE]<\/strong> fell more than 12% on Tuesday, closing at the lowest level since 2006.<\/p>\n

Why Did This Happen to the Reject Shop Share Price?<\/h2>\n

The company today announced that its year-end profit guidance will be between $14.5 million and $15.5 million. This is less than the previous estimate of $17\u201318 million.<\/p>\n

What Now For The Reject Shop Ltd?<\/h2>\n

It has been a rough time for the retail sector. Lower consumer confidence figures have revealed that even record low interest rates haven\u2019t been enough to get consumers to open their wallets.<\/p>\n

Following today\u2019s price fall and assuming The Reject Shop hits the low end of its profit forecast, the company is still trading on a PE ratio of nearly 16-times earnings. That\u2019s roughly at the mid-point of the company\u2019s long term average PE ratio.<\/p>\n

Is that enough to encourage investors to buy the stock? It\u2019s an interesting choice for investors. For instance Myer Holdings Ltd [ASX:MYR]<\/strong> currently trades on a PE ratio of 11.4-times earnings.<\/p>

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Good contrarian investors could do well to begin \u2018circling\u2019 the Aussie retailers. At some point this sector will recover and today\u2019s prices will look cheap.<\/p>\n

Cheers,
\n Kris+<\/a><\/strong><\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to the Reject Shop Share Price? Shares of The Reject Shop Ltd [ASX:QBE] fell more than 12% on Tuesday, closing at the lowest level since 2006. Why Did This Happen to the Reject Shop Share Price? The company today announced that its year-end profit guidance will be between $14.5 million and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-52508","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=52508"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52508\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=52508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=52508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=52508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}