Friday, February 3, 2012

Share Price Alert: Briscoe Group Ltd

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.8797433473953465&style=2242&symb=BGR&size=1&type=64&time=10yr&freq=1dy&comp=&compidx=&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=968818
BGR 10 Year Chart
Briscoe Group Ltd [BGR.NZX] had an excellent 4th quarter sales result out on Thursday and sales for that quarter were up by almost double digit levels and profit for the 2012 full year, which is out in March, is set to be up by around 25%.

Clearly this is significant news and had an immediate impact on the share price taking it from $1.42 pre announcement to $1.50. The share price gave back 5c today to close at $1.45.

While the current share price is at 4 year highs not seen since late 2007, the stock is still at an attractive yield of over 9% gross, the company has no debt and $60-70 million cash in the bank and having a profit upgrade while other retailers, like The Warehouse Group Ltd [WHS.NZX], are suffering downgrades surely makes this retailer an exceptional one and the best operated listed retailer in New Zealand.

You can see in the 10 year chart above that this has not been a stock to buy for capital appreciation, reaching a high of over $2.75 nearly 10 years ago and never reaching even close to that ever since but it is well off its 2009 lows of just under 60c, so you would be buying at close to 3 year highs.

There could be pressure in the coming year on BGR's margins from its desperate competition but as I said above it is in good shape and I would buy at these levels as a yield play.

Buy on weakness if possible.

Further Share Price Alerts 

Disc: I own BGR shares in the Share Investor Portfolio


Briscoe Group @ Share Investor

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