In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.
Allied Farmers Ltd [ALF.NZX] has been on a roller-coaster in terms of stock prices and results since its May 2002 listing at $1.50c per share*. With $1.21c in net dividends and 30% more in tax credits, plus a 3:2 share split in 2003 (see chart above) and a new share issue in December 2009 with a dilutionary effect of approx 5500% gives ALF a minus 10820% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the 7 year listing of ALF an annual net return of minus 1352 %.
This is the worst performer by far in the Long Term View series.
This compares to an approx 7% return from the average of all NZX indexes.
* Adjusted price
Long Term View Series
Abano Healthcare Group Ltd
ASB Capital Preference Shares (A)
ASB Capital Preference Shares (B)
Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Infratil Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
Mowbray Collectables Ltd
NZ Oil & Gas Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sealegs Corp Ltd
Scott Technology Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Smiths City Group Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Trustpower Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Vector Ltd
Wakefield Health Ltd
Westpac Banking Group Ltd
Allied Farmers @ Share Investor
Allied Farmers: Rights Issue Decision
Allied Farmers: Prosecutions should be on the cards
Allied Farmers Fraud passes with little fanfare
Allied Farmers: What's it Worth?
Hanover, Allied Farmers deal more of the same
c Share Investor 2010
A return of -100% would mean a total loss of everything invested.
ReplyDeleteHow are you getting losses of more than 100%?
Perhaps you could put up your calculations, or post the spreadsheet or whatever it is you used?
Hi Anon,
ReplyDeletemy calculations show the cumulative returns, minus or plus over the years, hence what your return has been, not what you might have left as capital.
In the case of ALF the Dec share issue was so large and the drop in share price ditto it gave such a poor overall and annual return.
Okay, so if I invested $100, you are saying that I would now have the following using various returns:
ReplyDelete-10% $90
-50% $50
-90% $10
-100% $0
-150% -$50
-200% -$100
-1352% -$1252
Unless I have had to actually put more funds in, your calculations are just non-sensical.
Let's consider it another way:
If I had invested $100 in May 2002, what would I have today, including dividends and tax credits, and assuming I had re-invested everything received at the time of receipt back into ALF.
That would, at least, give us a view on what they have achieved with the funds invested with them?
Alan.
Surely it is just a measure of how well the company is treating it's shareholders not how much money you have in your pocket. All the companies Darren reviews in this series are treated equally so it is a very good tool for comparison.
ReplyDeleteThank You Darren for taking the time and effort to actually get some information out to the public on the comparative performance of many of the companies listed on the NZX
Alan,
ReplyDeletelet me put it simply for you...
A loss of more than 100% means the company is a dog.
Chew on that for a while.
Okay, so if I invested $100, you are saying that I would now have the following using various returns:
ReplyDelete-10% $90
-50% $50
-90% $10
-100% $0
-150% -$50
-200% -$100
-1352% -$1252
Unless I have had to actually put more funds in, your calculations are just non-sensical.
Let's consider it another way:
If I had invested $100 in May 2002, what would I have today, including dividends and tax credits, and assuming I had re-invested everything received at the time of receipt back into ALF.
That would, at least, give us a view on what they have achieved with the funds invested with them?
Alan.
Hi Alan, as I said the losses or gains are cumulative and are calculated using dividends, tax credits, any capital raisings or bonus shares etc.
This overall cumulative figure is divided by the number of years the stock has been listed or has available data for.
EG: a $100 with a 50% loss one year (from either a combo or on its own of share price loss, capital raising etc) is then worth $50 at the end of that year and then losses another 50% the following year and say 50% subsequently for another 3 years. After 5 years your cumulative losses are 250%.
You are actually left with $3.12 in real terms after those 5 years taking your loss in real percentage terms to 96.88% of your capital.
I do see your point but want to show cumulative losses or gains over the length of the investment.