Thursday, August 21, 2014

JB Hi Fi - Feeling unloved

Jb Hi Fi came up on my ROC tracker last night. Yep, the share price had lost over 10% of its value over a 12 day period, which I thought was a little over the top.

So what if Dick Smith had a good year. Jb Hi-Fi is still kicking a lot of goals...Return on Equity over 40% and meeting its cost of Capital of 20%.

I calculated a price target based on its free cash flow and i have a target of $19.55, which is above the current price of $16.75. (by 17% no less)

The technical indicators look sound as well; the Bollinger Bands, Scholastic O and RSI look compelling.

Could be a buy in my book (though as always, please seek your own financial advice before making such a decision)

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