Good Morning, my name is Adam McNamara and I am a senior adviser for Imperial Financial Advisors. As Oliver has already said I will be analysing Dick Smith. Today I will share with you a brief history of the company, the main Deviations from the market in the last six months, the key financial data of Dick Smith, the Buy/Sell Decision, Dick Smith compared with Quickflix and research and observation.⇒
Dick Smith started as a very small business in 1968 and started with only having a capital of six hundred and ten dollars and only one store. When the store initially opened it focused on installing and fixing car radios, then soon widened to catering the needs of electronic hobbyists, In 1982 Woolworths bought the business and ran it for 30 years before selling 98 per cent of …show more content…
Since its ASX listing the company has improved its profit position achieving its profit forecast for FY2014 of $40million. Based on a dividend ratio based on 60% to 70% of profit, the company estimated a dividend yield of 4.6 to 5.4%. This still positions the company with reserve funds for future capital investment.⇒
Dick Smith and Quickflix are both in the retail sector, as you can see on the graph here Quickflix and Dick Smith track pretty closely to each other up until March. As you can see Dick Smith’s profitability is much greater than quickflix’s, with Quickflix making a net loss for two years in a row, whereas dick smith are yet to increase. In the EPS perspective Dick Smith are at 17.8 cents, whereas Quickflix is a negative number. The price, earnings ratio is an effective way to compare shares as it takes into account the price as a comparator, although this can not be used for Quickflix as it has a negative EPS. Dick Smith’s price, earnings ratio is 12.1 cents, and the retail sector’s is at 16.2
Dick Smith started as a very small business in 1968 and started with only having a capital of six hundred and ten dollars and only one store. When the store initially opened it focused on installing and fixing car radios, then soon widened to catering the needs of electronic hobbyists, In 1982 Woolworths bought the business and ran it for 30 years before selling 98 per cent of …show more content…
Since its ASX listing the company has improved its profit position achieving its profit forecast for FY2014 of $40million. Based on a dividend ratio based on 60% to 70% of profit, the company estimated a dividend yield of 4.6 to 5.4%. This still positions the company with reserve funds for future capital investment.⇒
Dick Smith and Quickflix are both in the retail sector, as you can see on the graph here Quickflix and Dick Smith track pretty closely to each other up until March. As you can see Dick Smith’s profitability is much greater than quickflix’s, with Quickflix making a net loss for two years in a row, whereas dick smith are yet to increase. In the EPS perspective Dick Smith are at 17.8 cents, whereas Quickflix is a negative number. The price, earnings ratio is an effective way to compare shares as it takes into account the price as a comparator, although this can not be used for Quickflix as it has a negative EPS. Dick Smith’s price, earnings ratio is 12.1 cents, and the retail sector’s is at 16.2