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MELBOURNE - Youth retailer Just Group could not explain a steep rise in its share price yesterday but analysts believed that a cashed-up Solomon Lew on the register might be a reason.
In responding to a query from the Australian Securities Exchange, Just said it did not foresee a change in its earnings expectations for the full year.
The exchange had asked if there was any reason Just's net operating result for fiscal 2007 might vary from the previous year by more than 15 per cent.
Just could not explain a rise in its share price to a high of A$4.85 on Tuesday, from A$4.06 at the close of trading on Monday April 2.
But it said a decision by the Reserve Bank of Australia last week to hold interest rates in check might have been perceived as positive news for the company.
It also cited February retail trade figures showing an 8.4 per cent lift in the clothing category from the same month in 2006.
The market, however, is wondering what Lew, who has committed his 5.9 per cent stake in Coles Group to bidder Wesfarmers, will do with the A$1 billion ($1.14 billion) he reaped from the deal.
Lew holds a 19 per cent stake in Just - whose brands include Jacquie E, Peter Alexander and Just Jeans.
FW Holst retail analyst David Spry said there would be speculation as long as Lew had a billion dollars in the bank.
"Solomon Lew has never been known to stay in cash too long," Spry said.
"I would think he is looking to do something with it and the market is speculating what he is going to do next.
- AAP
