Are The Reject Shop Shares a Buy?

What’s Happening to the TRS Share Price?

Today discount retailer The Reject Shop released its first half year results, announcing a 24% drop in net profit. However, chief executive Ross Sudano also revealed that same-store sales had turned positive in the last seven weeks, suggesting that the next results will fare much better. Perhaps that’s why, TRS shares responded with a huge day out, rising as much as 23% over the previous day’s close.

Who Saw that Coming?

When trying to interpret the news, I find it helpful to bring up a chart. Here’s the monthly chart of TRS:

Reject Shop Share Price

Source: STEX

Perhaps competition from the big discount department stores like Kmart, Target, and BIG W, as well as the various $2 shops, may be impacting margins. Or perhaps, with the improving economic conditions, shoppers want to be seen in the expensive boutique stores, rather than the thrift shop.

Whatever the reason, the negative half year result should not have surprised. If the penny hasn’t dropped, then you simply must go here to find out more about how to read a chart. You will find it of immense financial value.

Are Reject Shop shares a buy?

One doesn’t have a crystal ball, but one has something almost as good, a chart. One could wait to get confirmation from the chart before considering buying TRS shares. The chart will tell you if The Reject Shop is a turn-around story. We wait and see.
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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