MYR closed at $2.08 last Friday 16 Sep 2011.
During its results on Thursday (15 Sep), management announced they expect sales to be flat in FY2012 with a net Profit of not more than 10% below that of FY11 (it's expecting for a better Christmas this year!).
Based on the share price which has fallen since then, it looks like the market has not fully embraced management's view.
Trading in puts have increased last Thursday and Friday as well. The series attracted large quantities were the Oct $1.95 put and Nov $2.00 put. With $2, being the lowest level for the stock so far, which will be a support level, investors are getting some protection at the $2 level, just in case. Moreover, with MYR expecting to go ex-dividend with 11.5c fully franked dividend on 26 Sep, stock is expected to slide down slightly after as well.
Other retailers - HVN and DJS did not have similar negative sentiment last week.
What's interesting though, was end of August and early September when the XJO was trying to break above the 4300; where it closed at 4396 and 4307 respectively. On those 2 days, trading in call options on those three names, MYR, HVN and DJS, increased.
This action is suggesting to me that these retailers are some of the names that the market is using as leverage to a recovery in the market.
Some trades to bare in mind, when we next get a break above 4300 on the XJO!
