mrt - merchant retail

mrt recently came upon my radar screen and I've been watching it closely.

Looking at the chart there is a nice rounded bottom with an increasing volume trend. Final Results were released yesterday and there are plans for expansion in Europe making the stock break through its support level at 77p gapping up and making an all time high.

I picked some up yesterday and morning and there seems to be a lot of interest again this morning.

There is an old research report from nov 99 on redsky's website and the results give an update.

I have a near term target of 92p.

Comments?
 

martymcc

Member
70 2
Darth, I had a look at these on Thursday morning and liked them so bought a few. Ticking up nicely and hopefully the below will help tomorrow. Keep me updated on any developments as I'm still doing my exams and so can't watch them closely. Cheers,

Marty

Shares in Merchant Retail (MRT - news), owner of The Perfume Shop, are smelling particularly sweet following the company's better-than-expected full year results, announced last week. Pre-tax profits rose by 34 per cent to £8.1m, helped in part by the successful integration of A de Gruchy, its Jersey department store, and the opening of 12 new Perfume Shops. Philip Newton, chief executive, plans to open another 11 UK shops this year and has up to £100m to spend on an acquisition of a fragrance business in continental Europe. Newton is also planning to diversify the fragrance business by launching new skincare and cosmetics ranges. At 85.25p the shares are trading on an undemanding forward p/e multiple of 12. Buy.
 

Riz

Experienced member
1,266 5
Just had a look at them and it looks like you two will be doing ok on them...well done.

Marty, be careful with the retracement, though not too soon...

Riz
 

martymcc

Member
70 2
Still moving along nicely. Almost at your target price of 92p Darth. How do you read the situation now? Should we expect a pull back soon? Cheers,

Marty
 
marty,

it's been going strong and deserves a little rest. However I think that there is more to come - especially as the whole sector seems to be moving.

I plan to hold.
 

martymcc

Member
70 2
Tipped in Shares Mag. Currently taking a breather around the 90p mark. I'm still hanging in there. You still on board Darth? The "well above 100p" target would be nice!

Merchant Retail Group runs a chain of perfume shops as well as department stores, and is, Shares reckons, "on a roll" and a buy at 90p. The magazine says expected consolidation among European perfume retailers presents a big opportunity for the perfume arm, while Merchant's Joplings and De Gruchy department stores achieved profit growth of 84% and 6% respectively in the last full financial year. Shares tips the price to rise "well above" 100p.

Marty
 
latest observations:

mrt has made a 32.8% retracement on the last move up and formed a downward pointing flag. The 4 day trix is about the cross the signal line and the mac histogram is about to cross the zero line. We are resting on the 20d ma.

I expect the next move to be up with a target of 104p.

Any comments or views appreciated.
 

payneg01

Member
83 1
Hi Darth and followers of MRT
I'm not sure if it is politically correct to repeat info from sharescope. There is a small news item about M&A if Darth can have a quick look and if it's worth mentioning post his thoughts.
Good luck
Greg
I don't hold MRT (shame)
 
MRT has been consolidating for a while now and a couple of very large "T" trades (Single protected transaction) with a volume of 1750000 went through today. Total volume in excess of 2000000 was much greater than normal.

This might be the rocket fuel we've been waiting for so watch for a breakout on Monday.
 
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