Good update

[kels]

Shoprite came out with a good update in a tough market. Maybe Whitey Basson worth every cent of his pay packet!

[Rams]

Been accumulating since my last valuation of R135......

[#3]

If it breaks out of that down trend it could get very rewarding.. it should test it though... What are your guys targets?

[kels]

I am in it as an investment for the long run.Just wish I had topped up more when it dipped.

[#5]

I find it tricky to make a call on Shoprite from an investment point of view. The trading update is kind of in line with every trading update for the last 3 years, so good steady solid performances. It means we can expect a 12-15% growth on EPS as per normal. The thing is - if SHP is going to post a 15% return, at a 20 times earnings - then the current share price is fully valued. Now, how much is the market willing to pay for a 15% per annum steady performer? In the past, the market has been prepared to pay 23-25 times earnings, so who knows?

[Siener]

Problem is that Shoprite has added so many new stores to achieve that revenue growth. That's why, in latest results, 10% turnover gain was only translated to 3% profit gain. In 2014 H1 & H2 they've added so many new stores, you'd expect turnover growth to be much higher. In fact, they've probably begun to cannibalise existing stores (with added overheads & other costs). I'd be very surprised if HEPS growth was bigger than 5%.