I am not so sure about that. As previously posted I think the directors will take a very cautious approach towards expanding their retail footprint in Australia now. Aussie journalist on breakfast T.V. this morning talking about the despondency of people in NSW, staring down the barrel of being locked down for quite some time, possibly even till Christmas and some small business's in NSW already gone broke. He talked a lot about the mental health pressure of being locked down week after week after week, with no end in sight. Wage subsidies will help HLG, for sure but I have rolled back my expectations of when and to what degree Glassons expansion in Australia will happen as if I was a director I'd want this pandemic well and truly in the rear view mirror before committing to store expansion... Does affect their growth rate going forward in the short term, in my opinion and winds back any DCF valuation a little bit.
Share price reflecting the reality of the situation in my opinion and probably fair value at ~ $7.
https://www.nzherald.co.nz/world/cov...JT3G5WPS2QWNQ/