Reject Shop (TRS)

Hi,

I’m new to the Switzer Report and have been running my SMSF for around 3 years.

I recently purchased a parcel of shares in the Reject Shop (TRS) at $10.16.

Its now very apparent that I may have jumped in a little early. I’m 53 and am not looking at accessing my Super until age 60+. SMSF value approx. $350k.

My question: Should I purchase more TRS shares to average down my buy in price or should I sit on the side lines for a while longer?

A: The market has been pretty tough on The Reject Shop (TRS), and following the profit downgrades, it will take some time to regain market confidence..


While It wouldn’t be my pick of the retailers, I probably wouldn’t be in any hurry to throw it out. Time is on your side. It is also a tiny company – market cap of only $235m – Commonwealth Bank is 560 times larger - so it wouldn’t be a key holding in my SMSF and probably not on my agenda to consider buying any more.



Read Answer