Spar must be overvalued???

[mullet_fish]

Spar has had very average results considering its growth - there must be a pullback ??

[SimonPB]

what # is that rule ?? coz I haven't seen it before ..

[topgun]

Maybe, maybe not. But on a forward PE of 17x and a PEG ratio exceeding 1.0 (like the majority of retailers) it is too rich for my constitution and besides there is way better value available elsewhere in the market.

[Ninja]

hey mullet, who told you the market was a rational obedient animal?? No No, it is a completely irrational beast the likes of which you cannot comprehend. Results are irrelevant.....look at your charts and trade the price......everything else is a complete waste of your time.

[mullet_fish]

Thanks guys ....this feels almost more irrational than most - thats how it goes I suppose! Store openings in 2011 will be tough, low inflation, PnP has to rebound (hopefully). high wage demands - still a great co though!

[mullet_fish]

...look at Tigers results....struggling....then the Food retailers story looks odd...R20bn of Tiger sales (flat) has to flow through to the likes of Spar , PnP and Shoprite

[Blik]

Since being spun off from Tiger Brands in 2004, SPAR has had a PE mostly above 15, with a mean of around 16. To me this information in itself is not particularly useful - either the market values SPAR highly hence driving the PE up, or its earnings are down, but the market still likes the share. as we know the market is not always rational. Using the PE range alone, if I could pick up SPAR below 15 I would. But thats my method, and I wouldnt use PE alone.

[grommet]

still cant compare tiger and spar

[sponono]

mullet - how is your short coming along. I see there is a pull back here after the one day reversal on 30 November 2010.

[mullet_fish]

still a while to go till R80-R85....!!