mitch1 Apr 2009 16:24
You are mistaken if you think you have a handle on this correctly. But first let me say that I agree that DSGI will make a profit of around 50 mill because htey are forcing the issue from the top down with massive pressure in various reasons discussed to death already. Yes they do have 400 mill in untapped credit, but they are not touching it to preserve profit, and that is why stock levels are so poor.
GBHC appears to be well informed, and I feel is mostly correct, its just the assumptions you have both made that appear wrong.
The parts you seem to be wrong on mitch is the assumption that your store is a good snapshot of the whole company; each store varies enormously. Insurance withdrawl has caused them huge problems in getting stock particularly in this month, where stock can be bought in on credit. Without that credit DSGi are reduced to buying the stock they can shift immediately only. I was dissapointed yesterday while in conversation with my GM to find out this situation will continue into the summer period (our seasonal slowest time). This is entirely due to buying with cash in hand and preserving profits, while attemting to sell off their rubbish overstocks. Your assumption of stock not getting into stores because they are expecting refit is just plain wrong.
However you have much valid research, so don't think I am rubbishingyou, its just your own assumptions thet are misled. Try not to talk down to everyone else as well.