In this Stock of the Week we are going to be looking at New Zealand's dominant general retailer The Warehouse Group [WHS.NZ].
Its a stock that hasn't been in the news recently although it probably should be, for a number of reasons, the least not being a sale process that appears to be in some sort of credit crises limbo.
It has been trading at a pretty steady share price for the last 6 months (marking time until news about its sale is forthcoming) at a range between NZ$3.00 - $3.75 and represents value whether you want it for a quick buck for its probable sale or if a sale falls through and you want a good solid company for the long term portfolio.
On its long-term merits the company has a dominant position in its sector of the retail market and a great cash flow that helps contribute to a gross dividend north of 8%. Spectacular in these days of 3-4% returns for term deposits or 5-6% for rental property.
Retail is struggling these days but that isn't going to last forever and The Warehouse is coping well with the current recession. It historically does well in recessions because of its low price perception.
The company has recently met its own forecast for profit in its March release of its 2009 interim profit and its forecast for FY 2009 is on track to meet last years profit of $90.76 million.
Good luck!
Disclosure - I own WHS shares
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Related Links
2009 Interim Profit Webcast
Go shopping at The Warehouse
Related Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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