Thursday, October 7, 2010

Share Investor Portfolio: Spring Stock Picks

I have been saving up my dividends from the Share Investor Portfolio over 2010 as I haven't yet found anything I am interested in buying. There is currently close to $16000 to spend and with Fisher & Paykel Healthcare Ltd [FPH.NZX] and Mainfreight Ltd [MFT.NZX] still to announce their 2011 half year results in late November this figure should reach well over 16K .

But what to spend it on or to spend it at all, that is the question.

Most stocks in the portfolio have now retraced back up to market value or past my buy levels but I have a few I am currently looking at to add to.

First on my list is Michael Hill International [MHI.NZX], it has been operating reasonably well as a business over the great recession but its share price has been marking time and hasn't taken off like other shares in my portfolio have.

Closing at 68 cents yesterday, it is trading at levels it was back in 2005 when its profit and growth prospects were much lower. I have a lower end 60c price to add to the current 10000 shares in the portfolio. I am tempted to use the whole dividend pool on this stock alone.

Second in the firing line is Pumpkin Patch Ltd [PPL.NZX] It has had some hiccups due to the expansion of the company in North America and the UK but profit has remained over the last 2 years and its latest result shows an improvement and a promising long term.

Its share price though is trading well below where it was in 2005 and even though its share price has recovered over the last year or so it is now a yield stock at current price levels with a gross dividend of over 7%. It has the added benefit of good growth prospects as the economy recovers. I have a buy level between $1.70 and $1.80.

Third and last from the existing Share Investor Portfolio is Sky City Entertainment Group Ltd. [SKC.NZX] The company has been performing better than it ever has, with record profits and a much better balance sheet due to far lower debt.

While it is off its lows share price wise, it isn't by much and I cant fathom as to why this stock seems to be out of fashion. It is paying a dividend of well over 8% gross on these share price levels so it is a good buy for those sick of meager returns from term deposits.

I am greedy here considering its current share price, I am looking at a buy between $2.70 - $2.80.

My final pick is a stock from outside the Share Investor Portfolio but one I follow closely for a number of reasons. Contact Energy Ltd [CEN.NZX].

CEN is a solid company that does business amongst a handful of electricity companies that operate like monopolies and I love monopolies as investments.

I think it is one of the better long-term buys at current share price levels of around $5.70. A price it was trading at in 2005.

It has the added benefit of a majority owner poised to make a takeover offer at any time.

I am looking at a buy in the $5.50 - $5.60 range.


I don't have a time horizon for my buys and things could change if the market takes a dive - other stocks might become more attractive than the ones above.

I could in the end just leave the $16000 in the CMA account and wait for further opportunities as the market reacts to the poor global economy latter on down the line.

I think my picks though show how my portfolio will develop as I add stocks through dividends and this has been my intention from its inception in 2002.

*Note all charts are 5 year indicators chosen for uniform comparison.

Michael Hill International @ Share Investor

Michael Hill International: Tall Tales & Rumours
Hill Family makes Claytons Takeover bid for Michael Hill International
Michael Hill International Ltd: 2010 Full Year Profit Analysis
Long Term View: Michael Hill International Ltd
Michael Hill International: 2010 half year profit commentary
Michael Hill Makeover kicks off
Michael Hill International: 2009 full year profit commentary
Toughen Up: What I have learned from the hard times
Stock of the Week: Michael Hill International
Michael Hill TV3 60 Minutes Interview
Long VS Short: Michael Hill International
Marketwatch: Michael Hill International
Michael Hill's profit shines
Michael Hill takes on the windy city
Why did you buy that stock? [Michael Hill International]
MHI has defined growth strategy
MHI profit sparkles

Discuss MHI @ Share Investor Forum

Download MHI Company Reports

Pumpkin Patch @ Share Investor

VIDEO INTERVIEW: Pumpkin Patch CFO Matthew Washington
Pumpkin Patch Ltd: 2010 Full Year Profit Analysis
Pumpkin Patch Ltd move downmarket
Long Term View: Pumpkin Patch Ltd
Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
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

Discuss PPL @ Share Investor Forum

Download PPL Company Reports

Buy Pumpkin Patch Clothing

Sky City Entertainment Group @ Share Investor

Sky City set to lose National Convention Centre bid
Sky City Entertainment Group: Australian Acquisition on the Cards?
Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis
Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
Sky City Entertainment Group Ltd: Download full Company analysis
Sky City 2010 full year profit looking good
Long Term View: Sky City Entertainment Group Ltd
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year
Sky City Entertainment Group 2010 Interim Profit Review
Sky City to focus on Gaming
Sky City debts levels now more manageable
Insider Trading on Sky City shares
Sky City Profit Upgrade: Always on the Cards
Sky City's Current Cinema "Boom" a Horror Story in Disguise
Stock of the Week: Sky City Entertainment Group
Are Insiders selling Sky City Stock?
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City share offer confusing and unfair for smaller shareholders
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Sky City Convention Centre @ Share Investor

Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
SKC Convention Centre power-point slide illustrations & SKC submission to Auckland City Council

Discuss SKC @ Share Investor Forum

Download SKC Company Reports

Contact Energy @ Share Investor

Stock of the Week - Reprise 4: Contact Energy Ltd
Stock of the Week - Reprise 3: Contact Energy Ltd
Long Term View: Contact Energy Ltd
Stock of the Week: Reprise 2 - Contact Energy
Stock of the Week: Reprise - Contact Energy
Not so fast Davy Boy
Still Watching Contact Energy
Beam me up Davy
Stock of the Week: Contact Energy
MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
Follow the Monopoly Board

Discuss this stock at Share Investor Forum - Register free

Download CEN Company Reports

Recommended Fishpond Reading

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Buy The Intelligent Investor & more @


c Share Investor 2010


  1. Hi Darren,

    So the Share Investor Portfolio growth is now self funding? You are not investing any new capital of your own, you are relying on dividend interest to realise compound growth?

    That is a great position to be in.

    As you are also a great fan of Warren.B. are you planning to offer shares in your portfolio when it reaches a suitable size. Similar kind of set up to W.B's Berkshire Hathaway or is this just for your own amusement?

  2. Hey Steady,

    with $16,000 to $20,000 net per year in dividends, it is a good little earner for me based on an investment of around NZ $280,000.

    I have added about an estimated $60,000 over the 2007 - 2009 period because stocks were sufficiently cheap. I have also been grabbing dividends from the portfolio over its 8 years to use in areas other than the portfolio, so I think we are about even on cash in and out.

    The portfolio currently has a value of around $320,000.00 and given the right circumstances I hope in 10 - 20 years time it will be worth 10 times that.

    I run my portfolio just like a business but who knows if my 14 month old daughter plays her cards right and has the same interest in the stockmarket and investing she might be able to do things with it that I cant even dream about.

    She already has $1000 invested in her name.


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