Share Investor: Freightways

Showing posts with label Freightways. Show all posts

Monday, May 16, 2011

Share Investor's Total Returns: Freightways Ltd

I have written about returns for stocks on a general basis in the Long Term View series of posts and the Long VS Short series but in this series, Share Investor's Total Returns, I will be giving my actual returns for stocks in the Share Investor Portfolio for as long as I have held them.

The return calculation will include dividends earned along with qualifying tax credits and of course any capital increase in the share price. It will be a total return over the length of holding of the share expressed in overall dollar figures with an individual value per share of what the stock currently is held at.

The forth stock in this particular series is a staple of the portfolio and one that I have held for nearly 4.9 years, Freightways Ltd [FRE.NZX]

The current holding of 8631 shares was kicked off by an initial purchase of 8200 in June 2006 plus 431 bought as part of a 2009 capital raising.

The stock cost a total of $30817.64. It has returned net dividends of $6871.00 and total tax credits of $3300.50, with $89.45 in brokerage.

I am eligible for the full tax credit so if the gross dividend (net dividend plus tax credits)is added and brokerage taken off my full return over the total holding period of 4.9 years is $10082.05

The current capital value of the company in the Share Investor Portfolio as at 13 May 2011 is $30381.12. The capital loss therefore is $436.52. This gives a total return on this share of $9645.53. This is a 31.3% return over 4.9 years or 6.38% net per annum.

I hold FRE therefore at a total cost of $20735.59 or $2.40 per share.

Disc: I own FRE shares in the Share Investor Portfolio

Share Investor's Total Returns Series

Mainfreight Ltd
Sky City Entertainment Group Ltd
The Warehouse Group Ltd

Freightways @ Share Investor

Share Price Alert: Freightways Ltd 3
Share Price Alert: Freightways Ltd 2
Freightways Ltd: 2011 Half Year Profit Commentary
Share Price Alert: Freightways Ltd
Freightways Ltd: 2010 Full Year Profit Analysis
Long Term View: Freightways Ltd
Freightways Ltd: 2010 Half Year profit commentary
Freightways Ltd: 2009 Full Year profit commentary
Freightway's Capital Raising more of the same crap for small shareholders
Long VS Short: Freightways Ltd
Freightway's keeps delivering
Why did you but that stock: Freightways Ltd
Freightway's delivers
Freightway's packages up a good result

Discuss FRE @ Share Investor Forum
Download FRE company Reports

c Share Investor 2011

Tuesday, January 18, 2011

Share Price Alert: Freightways Ltd

I don't pay much attention to this company share price wise. Freightways Ltd [FRE.NZX] has been the 3rd largest stock in terms of purchase price in the Share Investor Portfolio and I have simply held for the last 6 -7 years and collected the healthy dividends.

The share price reached lows of just above $2.60 mid 2010 (see 3 year chart below) and plumbed those depths once at the end of 2008 and then again midish 2009.

The share reached an all time high of just over $4.75 at the beginning of 2007 (see 5 year chart below) and since then has been up and down more regularly than Charlie Sheen in a Hollywood whorehouse.

Over the last 2 months though (see 3 month chart at top of post) the stock has added 39 cents to close at $3.29 today. This is an increase of about 14% and the share price has broken through a barrier of around $3.25 last attained in May 2010.

Either there is good news coming up in the coming 2011 Half Year profit announcement to be made in mid February or the market thinks the company is onto a better thing as people are perceiving the economy is going to do better in 2011.

If you have been looking at buying it might be wise to wait until after the result because I don't see that the company would have done well enough to justify such an improvement in share price.

Look for weakness post Feb.

Share Price Alert

Xero Ltd

Freightways @ Share Investor

Freightways Ltd: 2010 Full Year Profit Analysis
Long Term View: Freightways Ltd
Freightways Ltd: 2010 Half Year profit commentary
Freightways Ltd: 2009 Full Year profit commentary
Freightway's Capital Raising more of the same crap for small shareholders
Long VS Short: Freightways Ltd
Freightway's keeps delivering
Why did you but that stock: Freightways Ltd
Freightway's delivers
Freightway's packages up a good result

Discuss FRE @ Share Investor Forum
Download FRE company Reports

c Share Investor 2011

Monday, August 16, 2010

Freightways Ltd: 2010 Full Year Profit Analysis

The Full Year 2010 Freightways Ltd [FRE.NZX] Profit out this morning is a case of steady as she goes, with a few points to elaborate on along the way.

The 2010 full year net profit of $23,164 million is down by 33% (after a one-off $5.7 million balance sheet tax charge due to recent Government tax changes) on the 2009 result and is 2% down on last year if the tax change is excluded.

Revenue was down by 3% to NZ $328,469 million, indicating a flat economy.

A dividend of 7c is to be paid compared with last years 8c, so little attention has been made to keeping cash within the business. Very important at this time in my not so humble opinion.

Financing costs for a sizable company debt have also been considerable but a capital raising from earlier last year has been used to pay down some bank debt so this cost was lessened for the period.

In comments about capital management, nothing was said about the sizable dividend being paid when profit is down. The company should focus on paying down debt instead of a generous dividend and it should have been cut by more than it has. Other companies have done this during 2009 and will again in 2011 and for Freightway's management not to address this is poor considering economic constraints surrounding listed company spending.

The courier businesses have again been hit the hardest, while the company's purchase of document management businesses over the last several years continues to pay off as these are achieving growth and management indicate this will continue through 2011.

Freightway's management are cautious about company prospects for the coming year but indicate another tough year ahead and a focus on costs savings as things remain flat. Given economic uncertainty I would have to say that business operations and therefore revenue will probably remain subdued over the 2011 period. This is without taking into account another possible dip in the economy. Profit levels will depend strongly on cost savings until the New Zealand economy bounces back and real growth for the company can return.

Overall, the full year 2010 result has been a good indicator of a patchy 2009 and an indicator that there is more uncertainty to come for Freightways. The same can also be said about the New Zealand economy as a whole.

8 out of 10.

Disc I own FRE shares in the Share Investor Portfolio

Freightways @ Share Investor

Long Term View: Freightways Ltd
Freightways Ltd: 2010 Half Year profit commentary
Freightways Ltd: 2009 Full Year profit commentary
Freightway's Capital Raising more of the same crap for small shareholders
Long VS Short: Freightways Ltd
Freightway's keeps delivering
Why did you but that stock: Freightways Ltd
Freightway's delivers
Freightway's packages up a good result

Discuss FRE @ Share Investor Forum

Download FRE company Reports

From Fishpond.co.nz

Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz

c Share Investor 2010