This ugly looking Warehouse Group Ltd [WHS.NZX] chart over the last year doesn't make for good reading and I don't think things are going to get much better for the company over the coming year. The whole retail sector is patchy and retailers like the Warehouse, who traditionally have done well during recessions are, well, not doing so well.
The share price is going to reflect this and as markets are forward looking they clearly don't see much recovery for the "red sheds " anytime soon either.
If 2008-2010 were tough years, 2011 doesn't look much better for this company either.
Few have discretionary funds and most are using those to retire corrosive debt levels.
The share is good buying now with a decent dividend level but investors wanting shares in the company may want to see a January 2011 sales release from the company to see how well the all important Christmas trading goes for the company.
I am guessing decorations might go up in one of their stores earlier than normal this year to make the most of the silly season.
Disc I own WHS shares in the Share Investor Portfolio
I am going to end the reader questions to the WHS CEO Ian Morrice in a couple of days. If you want to ask him a question for a "Share Investor Q & A" please do so here.
The Warehouse Group @ Share Investor
Share Investor Q & A: Questions to The Warehouse' CEO Ian Morrice
Long Term View: The Warehouse Group Ltd
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The Warehouse Group: 2010 Interim Profit Review
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Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
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Long vs Short: The Warehouse Group
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The case for The Warehouse without a buyer
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MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
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History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
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Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon
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c Share Investor 2010
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