re: News: API opens new stores despite profit... Good points...

re: News: API opens new stores despite profit... Good points fdken. Its good to have a different angle. I myself am a holder but at this point in time am not looking to increase my stake.

A pointed out price is below NTA and Book value. Wholesale pharma is low margin but stable. The "growth" part is Priceline. Agree about competitors WOW and Coles. However,I think Priceline is a much more specific target market. What intrigued me most is the improvement that independent pharmaceuticals achieve if they convert to Priceline francise and its scalability.

Also at PE of 10 now, stable cash flow and asset backing not expensive. If you compare Sigma which is similiar but PE of 15. Also, retail is weak now but I believe will recover in time. Also I dont think they are as susceptible to the online trend.

So there are some bad sides, but hopefully the good part will give a decent margin to at least preserve capital.