Simon’s stock tips

TRUWORTHS

Retailers are for the brave

ruworths’ results for the first six months to 26 December 2019 were basically flat, with sales up 1.3%, headline earnings per share (HEPS) 0.6% higher and the dividend unchanged. However, considering the consumer environment, these are decent enough numbers from a solid operation and with a historic price-to-earnings ratio (P/E) of 8.5, a dividend yield of 7.5% and the share price almost 50% lower over the last three years, it may pose an opportunity. Make no mistake that buying SA retail shares right now is for the brave. As always, however, if it works, the brave do very well. Yes, we’ve seen local retail stocks being slaughtered, but I would remind readers that Massmart, while down over 40% in the last year, is almost 20% higher