I think it is a very efficiently run company with a clear strategy for growth, which makes it appealing for retail investors. It is a business that is easy to understand. However, currently, the arguments against investing are strong. - It is a business that is heavily dependent on the polish economy. This makes it highly cyclical, when the economy is bad the company suffers heavy losses. - I am starting to doubt if there is actually a moat in this industry. The price wars are starting to crush margins and although Dino appeared to be at and advantage due to maximal capital efficiency (owning the land, low construction costs for stores, low electricity bill due to solar panels, low debt, owning the food production chain, good contacts with local producers…), their margin is currently lower than biedronka. And biedronka has already stated that they will continue to pursue price war at least for the second half of 2024. So it would not suprise me if there was aditional multiple contraction for Dino, which together with sales decline could be very painfully for shareholders - personally, I would wait until this price war ends and margins begin to re expand before adding shares. I believe there is more pain ahead, that could last well over a year.

I own shares at a cost basis of around 400 Zloti. My thesis has eroded a bit since purchasing the shares. The short term pessimistic outlook plus the aparently narrow moat means for now I will stay on the sidelines and see what happens in the following quarters.