THE GHOST TRAIN
THE FINANCE GHOST: Finally, a Purple patch?
After pandemic highs, Purple Group shows strong earnings growth and signs of long-term potential
In a quieter week on the local market after a flurry of activity in the first quarter earnings season, Purple Group came out with an important trading statement. It expects headline earnings to be up by between 194% and 213% for the six months to February 2025. You might be familiar with the concept of a J-curve or hockey stick growth pattern, something that gets used — and abused — in many investment committee packs and pitch documents. At Purple, they are showing you what that shape looks like.
In fact, things are now at the point where I’m considering a long position for the first time in this company’s journey. We seem to have reached the point where the excitement around the business during the pandemic is starting to play out in the earnings profile. Of course, many of those pandemic-period punters have long since sold their shares at a loss, as is typical of hype trades. This is why I avoid them, and it’s why you should too, unless you are specifically after a momentu...
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