Interesting that directors are buying shares quite heavily (see today's sens)even after SHP has run so hard.Add this to Wiese's R30 million or so SSF's a couple of months ago and it makes you wonder what's cooking here.
Well, its trading at a pe of 19 or 20, vs massmart's pe of 22+. it has shown the best growth out of the retailers, has the strongest expansion strategy, and has grown its market share. Definitely my pick out of the retail sector, but for trading only - I think SHP carries too much risk for me at the moment from a long term perspective(recovery fully priced, with a massive expansion strategy = big capex and more borrowing).
SHP was, according to the analysts, a sell from at least February to the results presentation. Going with the analysts forecasts (and not buying) means that you would have missed out on share price increase from R72 odd to wherever it is now, plus the interim and possibly some of the final dividend. My philosophy - You have to have your own view of the share. My view - Shoprite is nicely priced just below the R80 level (but thats just my view). Sometimes your views are wrong - I thought Gijima was good value at the R0.81 level - but the market doesn't seem to agree with me.