RE: Fed holds key rate for fifth consecutive time20 Mar 2024 21:42
The sp here may or may not go back to previous levels, if it does it will take a number of years.
What we are starting to see are a whole number of things which should help Boo to perform better over the next couple of years.
Interest rates are one factor, improving real incomes are far more important as that is what will drive a consumer recovery.
Boo is now a far leaner and more focussed business than it was a couple of years ago. Yet it still has the infrastructure to support significantly more than twice the current sales volumes.
Capex, extraordinary costs and amortization should all start to fall in the next few years and at the operational level Boo remains profitable.
There are obviously significant challenge from competition, potentially regulation and maybe some unknowns.
However, it seems to me the balance of opportunity is now swinging favourably.
Doesnt mean Boo will be successful, there are no guarantees in this game, but there is certainly the probability of profitable growth that isn't reflected in a share price just above net balance sheet assets