Value.able: JB Hi-Fi
Whilst the latest iPhone won’t ignite JB HI-Fi’s share price, the stock is back in Roger Montgomery’s buy zone. Read Roger’s article at www.eurekareport.com.au.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Andrew
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I am still a bit shocked at the surprise that people have that Apple brought out a revamped Iphone 4 in stead of a new iphone 5 as they did the exact same thing with the Iphone 3 and then bringin out the 3Gs before the 4.
The success of their music sharing venture will be interesting to see but everyday i read more and more people annoyed that it costs so much more for music downloads in Australia than it is in the US and if they can take advantage of that then it could be a good little strategy.
I like JBH, always have although i have downgraded it from my top tier of companys to my second (this would be the bottom tier as i only have two, anything more seems a bit excessive).
I think it would be great for Sony to bring out a new Playstation, Microsoft to bring out a new Xbox and Nintendo to release their new Wii in the same year as the release of a new Ipad and Iphone.
I think it is an opportune time to buy JBH shares (my thoughts and not a recomendation). I think they are currently in a cycle where the suppliers have no new products, this will lag on the sales as everyone pretty much has what they want and now eagerly await the newest shiny thing. Add this to what i calculate as a reasonable margin of safety, the australian dollar coming down below parity (which will make online less attractive) means that i think it is a good time to buy as when the new products start coming through this will have a very decent lift up in performance.
the products will come through as the type of products they sell are built to eventually be obselete and require people to buy the new version.
They have the lowest price strategy firmly entrenched in their business and a management that does a good job at implementing this strategy.
There are some headwinds but i feel more pro’s than con’s. At least in the medium term.
Andrew
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I have just read the news and can see that the AU$1 is back above US$1, but i think my point is true that if the dollar come down below parity than buying from US and possibly online might be less attractive.