"Coles Myer (CML) announced that FY2002 NPAT would be in the range of $350m to $365m. This amounted to a downgrade of between 9% and 15%. The stock had previously run hard on expectation, so the downside will be significant, and lengthy. We see the stock drifting back towards $6.20 in the lead up to June. Furthermore, CML will have lost market support and will rely on the FY2002 result to restore confidence."
My thoughts are that they will bounce back a bit in July. Revenue from purchased Franklins stores will assist the supermarket sales growth and the are currently increasing margins on all grocery lines.
cheers
CML Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
