Dischem (DCP:JSE) has pulled back considerably in the past two weeks to its May 2018 low. This isn’t on any company specific news but a broader sell off in the related retail stocks following lacklustre results. Clicks trading update for the 20 weeks to 13 Jan 2019 weren’t fireworks but highlights consistency and a demanding valuation. 

Dischem’s results for FY 2019 due in May should show significant improvement based on management’s guidance last year for achieving almost a full rand in earnings. That will put DCP on a PE of around 26 versus Clicks at 32.15.  

Buy DCP below R25.50 for a move to R29.50 with a longer-term target around R37.50 

The week ahead: 

Other Economic data releases of interest… 

Short Term Ideas 

Long Term Ideas 

Investors looking to take advantage of the stronger Rand and gain offshore exposure with limited downside should contact us as new product launches close soon. Email invest@protrade.co.za