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Online Share Trading

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trading below NAV

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Not applicable
Brait has historically been very conservative in the way they value their underlying investments. They use percentage of EBITDA as the valuation method and currently evaluate NewLook on a 13 times multiple. Some retailers out their on 20 times or more even. The hammering here comes from a currency devaluation (thanks Brexit). So Brait's woe's are thanks to the GBP. Now if we think this will stay weak - so be it, but New Look has rolled out more than 80 stores in China now, with rollouts in Europe progressing too. This must surely start looking like a value play.
5 REPLIES 5
THRESHOLD
Super Contributor
Honestly though SKAAP, do you like their assets?
THRESHOLD
Super Contributor
That came out sounding ironic. It was not intended to be. Nice retail assets... just looking for some input. Bought this at R9 in 2009 - sold for all of R5 profit thinking I would buy it back lower. Avoided looking back due to the pain. Kick, kick,kick
Not applicable
Well, as a South African investor, you don't get a lot of pure international retail exposure, Brait's New Look is the only one I know. Brait is well capitalised, a good balance sheet - decent enough assets and will have the ability to raise decent finance (like the $500m recently) for acquisitions. So yes, I like them. At these price levels, it is really the pound that is pushing the price down. So if you are betting on a complete collapse of the British economy, then sure, I would say stay out of this. I have held onto brait for a couple of years (I have gotten over my disappointment at the Pepkor offload) - and have seen half my value get eroded - but it is a very small part of my portfolio - so might be looking to bulk up right now.
Russ
Super Contributor
The way I see the charts the pound and BAT are both oversold and due for a rally, but after that I think there's much more pain for both.
THRESHOLD
Super Contributor
They also have ICELAND supermarkets (/ettes) with going on 900 stores and VIRGIN ACTIVE all over the world - so plenty of retail presence internationally. Support is around R70 - I would probably take some around there... if it gets there!