Topped up (my already large position) today at 5.80. Long-term holder and a big fan of their business model. I believe share price will continue to rise leading up to another (gasp) year of positive results.
There are still plenty of opportunities out there, as (according to their last presentation) they only have ~9% share of the current AUNZ pet care market (including food, other retail and services). This presents significant opportunity for growth through acquisition and opening new stores/clinics.
Regarding the 'Amazon fear' I believe this has been over-reacted across retail ASX companies. GXL especially will have relatively low exposure to Amazon threat due to it's diversified earnings channels (Amazon doesn't offer vet/pet care) and it's cross-selling/one-stop-shop.
Their recent update (May 1) also shows significant growth including:
+19 retail stores opened
+Expected to add 22 in-store clinics FY17 (way ahead of FY16 and ahead of FY17 forecasts)
Also consider only a few months ago we were at $7 share price with no significant negative news/facts.
I predict price to recover to above 6 before results announcement and another jump on announcement.
DYOR
GXL Price at posting:
$5.83 Sentiment: Buy Disclosure: Held
