Strathfield Group Limited

By Intelligent Investor · 16 Jul 1999

By Intelligent Investor ·
16 Jul 1999

Recommendation

Strathfield Group Limited - SRA

Current price

at 07:02 (02 September 2013)

Price at review

$2.71 at (16 July 1999)

All Prices are in AUD ($)

Since our issue 28 brief (Long Term Buy closer to $2.40), the Strathfield share price has moved in a fairly narrow range around $2.70. This prices the company at a prospective PER similar to that of Brazin of around 16, which is still below the PER for the Retail Index of over 18. The company has been slowly moving in the direction of being an Internet retailer in recent months. Ken Aitken, formerly General Manager, was appointed MD on June 4 to take care of existing business, with founder Andrew Kelly staying as CEO, with a view to developing 'new opportunities', including e-commerce. A March 1999 press release detailed a number of upgrades to the company's web sites, describing the integration of product-buying systems into the Web. With sales continuing to grow at 15% plus and 1998/99 profits likely to come in above prospectus forecasts, we're sticking with our LONG TERM BUY recommendation.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

Strathfield Group Limited

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Strathfield Group Limited

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