Tuesday, February 10, 2009

Long vs Short: Pumpkin Patch Ltd

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=PPL&size=1&type=64&time=4yr&freq=1dy&comp=&compidx=NZ50G~1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937


In this fifth installment of the Long vs Short series I am once again going to take look at the chart comparisons for a stock from the Share Investor Portfolio and compare the 4 year return (above chart) (PPL listed June 15 2004, so I cant give you a 10 year period like other stocks in this series) to the turmoil of the last year with a 1 year return chart (large chart at bottom of post).

In this series I want to show the merits of investing, using charts, for the long-term vs short term gains or losses. I will use the longest available data to me for the long-term view (10 years )and will make a comparison against the NZX50.

In the fifth of this segment of Long vs Short I will take a look at Pumpkin Patch Ltd [PPL.NZ]

I currently hold 5000 Pumpkin Patch shares after buying 1000 in August 2006 and have added more since then to take the total to 5000 (see small chart below for detail)

Now this is one of the worst performing shares in the portfolio so I expected a poor result for my shareholding which spans about 2.5 years.

I was right!


My Portfolio

Symbol
Price
Value
Earned
$0.900
$4500
$-8200
You own 5000 [PPL.NZ] shares
purchased at $2.54 [$12700]

If I had held this stock for a full 4.5 years of company listing (see large chart at top) my return would have been 60%-including dividends, tax credits and minus brokerage, the NZX is a gross index of stocks.

By comparison if I had held the stock for just one year (see large chart below) my return would have been a loss of just under 30%.

My total return after 2.5 years or so is a loss of 64% (see small chart on left) That is after dividends and tax credits are added and brokerage applied.

When I initially started this edition of the Long vs Short Series I was expecting to see the long-term return to be negative because the stock has really been hammered. If you were lucky enough to participate in the June 2004 IPO at NZ$1.25 you would still have had a 60% return after collecting the dividends and tax credits, even though the share price ended at 90c today.

Long is still winning after five editions of Long vs Short.


http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=PPL&size=1&type=64&time=1yr&freq=1dy&comp=&compidx=NZ50G%7E1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937



Pumpkin Patch @ Share Investor


Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?

I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills


Long vs Short series


Fisher & Paykel Healthcare

Mainfreight Ltd
The Warehouse Group
Sky City Entertainment

Related Reading

Pumpkin Patch financial data


Related Amazon Reading

Using Technical Analysis: A Step-by-Step Guide to Understanding and Applying Stock Market Charting Techniques, Revised Edition

Using Technical Analysis: A Step-by-Step Guide to Understanding and Applying Stock Market Charting Techniques, Revised Edition by Clifford Pistolese
Buy new: $26.97 / Used from: $1.99
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c Share Investor 2009