After a lacklustre start to Dick Smith’s float, CEO Nick Abouud is keeping the bright side upDick Smith (DSH) shares rose briefly after the retailer listing went live on the ASX at 12pm yesterday, but failed to deliver the big bang owners Anchorage Capital were hoping for, rising briefly before falling back to the $2.25 mark – marginally above its $2.20 opening price.  

“We remain focused on delivering for our shareholders and customers,” CEO Nick Abouud said yesterday afternoon after the markets closed.  
Dick Smith’s share price remains flat today at $2.20 on the ASX. 
“We won’t be giving a running commentary on the daily share price,” Abouud said.  
“That is a judgment for the market to make and there are many more days’ trading ahead.  
“As managers of the business, our job is to deliver the business results that will be reflected in the share price and that is going to take sustained commitment.
“We have a clear roadmap and strategy for Dick Smith today and into the future and our focus remains on this.”

The lacklustre performance of Dick Smith share price come as CIMB analyst Daniel Broeren warn of its ability to grow like-for-like sales beyond FY14, which will be the real test for the newly revamped retailer. 
“Despite a sales density opportunity, poor price perception, minimal refurbishment opportunity, in-store labour cuts and a problematic NZ operation are likely to limit growth prospects”. The retailer forecasts a 2.5% LFL sales decline in FY14F.    
Given market scepticism around private equity exits, the short-term nature of Dick Smith’s turnaround, the IPO pricing appears to have been set at a discount, he says.  
We value DSH equity at A$2.60 per share, above the fixed issue price of A$2.20,” he said. 
DSH opening share price was set at $2.20, compared to JB Hi-Fi shares which sits at over $20 a-piece. 
Broeren also flagged DSH lower sales performance compared to its arch rival. “Dick Smith has the same approximate selling area as JBH, at 160,00 square metres, yet generates approximately 34% of JBH’s sales.”

“If a broad recovery in retail sales continues in the near term, the retailer has operational initiatives to hit ‘stretch pro-forma EBITDA’ at A$80.3m. We see this as a likely scenario” . 
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