Is it time to Buy or Sell JB Hi-Fi at over $30?

What happened to the JB Hi-Fi’s share price?

Shares of JB Hi-Fi [ASX:JBH] burst out the blocks this morning punching through $30, and recording an early 6.78% rise in the first half an hour of trading.

What’s going on with the JB Hi-Fi’s share price?

JB Hi-Fi had a poor start to 2017, seeing its price creep up near $30 but then fall back to close out January around $27. Today, however, the stock exploded out of the blocks. It was the best initial performer out of all ASX 200 companies.

The major catalyst for this was their net profit spiking 16%, which the market has taken to happily. While year to date the company is only 7.8% higher, over the last 12 months it’s up more than 36% — a return most investors would be thrilled with.

What now for JB Hi-Fi Ltd?

An uptick in profits for the consumer electronics giant is a great sign for existing investors, and the company. The market loves to see financials where profits are up. But will it last? Now that JB Hi-Fi is over $30 does that signal a buy, or is it time to offload this old-school bricks and mortar retailer?

Well there’s one word that needs saying here: Amazon.

In fact we’ll repeat it to make sure you read it right. Amazon. We should really repeat it again and again, until you’re perfectly clear the US ecommerce giant is about to kick down the doors on the Aussie market.

You will likely hear from companies like JB Hi-Fi or Kogan that Amazon does not threaten them. But it does, and they should be preparing. They should be pumping every available resource into their companies, to be ready and competitive with Amazon. This is the single biggest threat to Australian retail, ever.

JB Hi-Fi’s results are great for your standard, average blue-chip investor. But be warned, they might not last when Amazon rolls into town full force. But fear not. Not all hope is lost. Even Amazon will struggle to compete with another kind of stock listed on the ASX — the kind of stock that mainstream investors will simply never see, or even consider adding to their portfolio. If you want to find out how to hunt down these kinds of stocks, find out more here.

Sam Volkering,
Editor, Money Morning


Sam Volkering is an Editor for Money Morning and is small-cap, cryptocurrency and technology expert.

He’s not interested in boring blue chip stocks. He’s after explosive investments; companies whose shares trade for cents on the dollar, cryptocurrencies that can deliver life-changing returns. He looks for the ‘edge of the bell curve’ opportunities that are often shunned by those in the financial services industry.

If you’d like to learn about the specific investments Sam is recommending in either small-cap stocks or cryptocurrencies, take a 30-day trial of his small-cap investment advisory Australian Small-Cap Investigator here, or a 30-day trial of his industry leading cryptocurrency service, Sam Volkering’s Secret Crypto Network here.

But that’s not where Sam’s talents end. Sam specialises in finding new, cutting edge tech and translating that research into how the future will look — and where the opportunities lie. It’s his job to trawl the world to find, analyse, research and recommend investments in the world’s most revolutionary companies.

He recommends the best ones he finds in his premium investment service, Revolutionary Tech Investor. Sam goes to the lengths of the globe and works 24/7 to get these opportunities to you before the mainstream catches on. Click here to take a 30-day no-obligation trial of Revolutionary Tech Investor today.

Websites and financial e-letters Sam writes for:

Money Morning Australia