Myer gains momentum under new CEO

Myer Holdings has been a perennial underperformer for most of the last seven years since their float in 2009. The department store shares were sold at $4.10 in their 2009 float; closed at $3.75 on their first day of trading and has never traded at or above the float price since. The journey for Myer has been a long catalogue of disappointments with falling profitability, excessive dividend payouts followed by dividend cuts, failed recovery strategies, and then a dilutive equity raising at 94c in September last year to recapitalise the group. That is until recently… Under new CEO Richard Umbers, followed by the launch of the ‘‘New Myer’’ strategy in September, Myer’s sales performance is starting to gain momentum and the stock is now on our watchlist for the first time since listing and deserves further consideration by any serious investor. (VIEW LINK)