Calling all deep value investors :-)
UK stock Currys (CURY.L) appears to have very healthy value accounting ratios AND good intrinsic/fair values …
What are your thoughts? Would you buy? If not, why not? :-)
Just had a very quick look and I would avoid due to liquidity ratios. Revenue is predicted to reduce by around £500M in 2022 (estimate). Public Short notifications have increased from December to 3.36% (0.79% - 15/12/21, 0.5% - 20/12/21 & 2.07% - 4/1/22). On top of this they're likely experiencing international supply chain issues, the threat of COVID-19 and the Omicron variant and the tighter squeeze on UK consumer pockets with rising prices of (inflation & energy prices) etc - Technology also being the highest depreciating asset out there, which is what Currys business model is based on selling and they are heavily dependent on consumer electronic sales, to produce revenue. One could argue that the chip supply shortage has been created due to high demand in electronic goods, but if those electronic goods remain on the shelf then this creates a blow.
On the 15/12/21 Currys stated themselves that "consumer demand had softened in the run up to christmas". - Therefore, I would speculate that their immediate outlook becomes more uncertain.
Unfortunately, my view is that of increased pessimism and I would welcome any other views - However, I would personally avoid at this time.
