Tuesday, November 16, 2010

Chart of the Week: Briscoe Group Ltd

Briscoe Group Ltd [BGR.NZX] has had a pretty good year in terms of sales figures and 2010 profit results.

In the middle of one of the worst recessions in 80 years the company has managed to grow sales quite substantially and profit is well up on a poor 2009.

This stands in contrast to other retailers that BGR competes with.

It is a well run company, with no debt and an excellent management team, especially the CEO and majority shareholder, Rod Duke.

This has of course had a major impact on the BGR share price.

In 3 months the stock has added 25% to close at $1.42 yesterday - see 3 month chart above.

By comparison the NZX 50 rose by 10% (see 3 month comparison chart below), so the 15% gulf is quite a substantial movement away from the market as a whole.

This means the company is going to have to deliver on the expectation that the market has for the company and bring home a very good Christmas result.

If you think they cant it looks like the chart is saying to short termers that they should be calling their brokers, while long term holders like me could see a good opportunity to grab more should father Christmas not bring home the bacon or in BGR's case the moola.

Disc I own BGR shares in the Share Investor Portfolio

Chart of the Week Series

Zealand Stock Exchange Ltd
The Warehouse Group Ltd
New Zealand Refining Ltd
Mainfreight Ltd
NZ Refining Ltd
Restaurant Brands Ltd

Briscoe Group @ Share Investor

Share Investor Q & A: Briscoe Group CEO Rod Duke
Share Investor Q & A: Put Questions to Briscoe Group CEO Rod Duke
Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Whats on Rod Duke's shopping list?
Why did you buy that stock? [Briscoe Group]
Rod Duke's Pumpkin Patch gets bigger

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free

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c Share Investor 2010

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