Friday, November 10, 2006

According to the sydneymorning herald

"Harvey Norman's acceptance of an offer for Rebel Sport has left it with enough cash to make another acquisition. The Australian furniture and electronic goods retail franchise operator has agreed to sell Rebel to private equity group, Archer Capital, for $A4.60 a share. The profit on the transaction will be $A195 million. Harvey Norman chairman, Gerry Harvey, said on 9 November 2006 that one possible target was the failed Retravision business in New South Wales."

Gerry Harvey is a very insightful manager that has made his money by making the right investments at the right time. He he thinks he can get retravision at a cheap price I believe he can turn it around and make it into a good business alongside Harvey Norman. Gerry Harvey is definitly one of the top managers in Australia well worth his salary package (unlike some others).

Harvey Norman still loooks overpriced at this stage on a PE of 17 and PEG of 2.

Good Luck investing.

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