Discount retailer The Reject Shop (ASX:TRS) has encountered a 54% drop in its share price, from $5.26. They have now downgraded their profit forecast for the first half of 2019 to $11 million down from $18 million.
So should investors take up the $2.70 unconditional offer
made by Billionaire Raphael Geminder?
The question is can the business improve its sales? With the
introduction of online discount retailer Amazon and slow wage growth, we think
they have a very difficult task ahead of them.
The on market takeover offer, has come just at the right time, as the business appears to be struggling. If the business does not experience strong sales over the Christmas trading period, then the takeover offer would represent good value.
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