Carrefour is the second largest supermarket chain in the world. Not long ago trading around 45p a share its now down to 18 having bottomed at 15. The chain is a bit messy, lots of errors by the CEO and lost a lot of money. But hang on, there is a new CEO hired who is impressive and starts work in April. They are the largest western chain in China and show growth of over 9% in emerging markets.
What the Market is Missing
Carrefour have got a lot right, I have been in their stores and I wish we had them in the UK. Yes they have huge hypermarkets but they are usually the basis for a small mall and are well liked by customers. Its logistics management and store management are first class. These shares are depressed because the old CEO had a dream and it failed, but the core business is sound.
My View
I think Carrefour will take a while to turn around and may go below 15 if so buy and you may see 30, i.e. double within 12 months
What the Market is Missing
Carrefour have got a lot right, I have been in their stores and I wish we had them in the UK. Yes they have huge hypermarkets but they are usually the basis for a small mall and are well liked by customers. Its logistics management and store management are first class. These shares are depressed because the old CEO had a dream and it failed, but the core business is sound.
My View
I think Carrefour will take a while to turn around and may go below 15 if so buy and you may see 30, i.e. double within 12 months
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