re: News: API opens new stores despite profit... In Investor...

re: News: API opens new stores despite profit... In Investor presentation 28 March 2012 Api based its future growth on its Priceline model, building up to between 550-650 stores
In Sept 2012 Api announced it's 350th Store for Priceline
18 April 2013 announced flat like for like growth in Priceline and increase of 10 stores in half year.

If Api is dependent on Priceline strategy it is a slow process wIth In my opinion a diminishing rate of growth. Anyone can make a prediction of growth, but delivering is different.

Priceline competes in a market dominated by Coles, Woolworths, chemist warehouse, good luck I would say.

Turnover for 6months to Feb 2013 1.6 billion, profit before tax, depn and interest 40 million, profit before tax 18.5 million. The level of profit is so skinny there must be risk to holding given the levels of fixed costs again in my opinion.

Also in my opinion, Api is too important to fail so there must be some form of market adjustment between the big 3 wholesales which provides a better return for all three. At this point there will be good value in the stock. Until then I find it hard to see, but I am sure others will disagree.