Thursday, August 12, 2010

Warehouse Group: Shares set to follow company fortunes



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
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
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