I'm Buying: Mainfreight Management delivers the goods

I must have had some kind of brain explosion yesterday, something in my personal life made me drop my risk/reward guard and I ended up spending just over $35,000.00.

I have wanted to have a medium sized splurge on a few stocks for the last year or so and the life changing event yesterday allowed me to finally release the financial and mental rubber band and take that risk.

I have been chugging along buying small parcels of shares over the last year April 2009 | July 2009 | July 2008 | June 2008 | June 2008 | but yesterday ended up buying 7000 more The Warehouse Group [WHS.NZ] shares and 1875 Mainfreight Ltd [MFT.NZ] shares at $4.20 per share, to take my holding to a nice round 5000 in the old Share Investor Portfolio.

I was tossing up between Mainfreight and Ryman Healthcare [RYM.NZ] and superior Mainfreight management, which I often obsess about, won me over.

I bought my original Mainfreight holding just over 2 years ago for just under 8 bucks, yes you read it right, 8 bucks. Over that holding period the stock has now cost me around $6.85 per share after dividends and tax credits are added, so that makes yesterday's purchase a bargain.

I am happy to hold at both prices.

** Photo & share purchase dedicated to my dear old Dad, who must be still driving a truck, wherever he is now, for the last 15 years!


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c Share Investor 2009

I'm buying: Time to re-visit an old Red Friend

I love good stocks when the market is ignoring them. One stock that has been put in the bottom draw by many investors, including myself, is The Warehouse Group [WHS.NZ].

But just because a stock is out of favour by the market or not in the news doesn't mean you should forget about it. In fact if you are canny you should probably be more than a little contrary as others are looking at other more "newsworthy" companies.

I have kinda forgotten the red shed myself, I have had WHS shares in the Share Investor Portfolio for a number of years and have done a little bit of reading lately on the company and I like what I have to read.

Profit has been steady during the this recession (so far) and the cash continues to roll in as shoppers look for bargains.

Add to this a couple of stories, one from a month or so back from Bloomberg and one out today covering the Woolworth's Australia profit and things start to look a little more interesting for The Warehouse.

The Bloomberg piece covers off Woolworth's capital management and alludes to either a stock buyback for its own scrip or a "major" purchase in the offing, suggesting The Warehouse as a target.

Another article by Reuters confirms a bumper profit for Woolies, so they are free flowing with lovely green stuff.

The purchase/buyback scenario will probably be confirmed by the company when it reports its profit in August.

I bought 7000 shares today at a combined value of approx NZ$26,000.00 @ an average share price of $3.72.

My incumbent shareholding in this company, 8000 shares, was bought originally at $6.05 but I hold at a cost of $5.05 after dividends and tax credits are added after holding for 1.75 years.

I am happy to buy Warehouse shares and forget about them again but there is a distinct likelihood that either Woolworths or Foodstuffs, Woollies competing bidder, will make a play for the company in the medium term.

The bid for The Warehouse has been held up in litigation between the 3 parties involved and as I wrote back in January in When will the Warehouse bidders make their move? the process has now ground to a halt after the Commerce Commission won their case in the Appeal Court almost a year ago and Woolworth's sought leave in the Supreme Court to have that decision quashed a few weeks later.

Many things have changed since then, the major stumbling block to the takeover, the Extra format stores, has been dropped and economic conditions have made the retail environment even more competitive.

Watch this space.


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c Share Investor 2009

I'm Buying: I can't resist a Bargain

I couldn't help myself and took the plunge again today. I bought some additional shares, Auckland International Airport [AIA.NZ] and Michael Hill International [MHI.NZ].

I resolved some time back that I would put a ceiling on my share buying but decided that share prices for these two stocks were getting very attractive and know I will regret not buying when they are cheap.

I bought an additional 2000 AIA in April for $1.70 to add to my original long term holding of 1000 and was getting very excited about the stock again in May, so today's low share price was a no brainer

I picked up two small parcels and may get some more if they get cheaper. I added 2000 AIA shares @ NZ$1.51 to my current 3000 holding and picked up 7000 more MHI shares @ 63c to take my total holding of that stock to a nice round 10000.

Here are my reasons for buying MHI and AIA.

I am still in the mood to get additional Sky City Entertainment Group [SKC.NZ] but think they could get cheaper still, finishing up 5c to $2.63 today and looking at Freightways Ltd [FRE.NZ] to dip below the $2.44 mark before taking the plunge there.

I am as pleased as punch at my shiny new purchases.


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c Share Investor 2009

Like a Kid in a Candy Store

I still have Auckland International Airport [AIA.NZ] on my mind from a month or so ago when I bought a few thousand more to add to my original 1000.

This has certainly been the case for me today with my new purchase but lets not get carried away. I have bought at a good price for me, my original foray into AIA being at $2.15 in November 2006. With dividends and tax credits included in that initial AIA purchase my cost price comes in at $1.88 per share. Today's purchase then is 18c per share lower than it was more than 2 years ago.

The main reason the stock is on my mind is that the share price on market closing today is below the $1.70 share price I paid back in April and I'm kinda getting excited again - as Warren Buffett famously likes to puts it, like a kind in a candy store - because it looks like the share price might fall even further!

At $1.66 closing and a $1.65 low today on $1.5 million of turnover it looks like the share price could go lower on a negative day on the DOW overnight.

The 52 week low for this stock is $1.56 and I will be paying close attention to the share price if market sentiment if negative this week for an opportunity to buy more.

How many?

Well, I'm looking for another 7000 shares to add to the Share Investor Portfolio to take it up to an even 10000.

I will stop there, because I do have a self imposed limit when it comes to buying anything.

Now I must add that I am average to useless at picking the market but I was happy to buy my initial 1000 shares at $2.15 and more than happy to buy at any price below that.

You can see why I am so exited huh?

Bring on those Mars Bars and M & Ms.



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c Share Investor 2009

Im Buying: 2009

Close watchers of mine would have noted a renewed interest in Auckland International Airport [AIA.NZ] over the last few days. I have written a couple of articles (1 2 )on Auckland's near monopoly air services provider.

My interest has culminated today by buying a small additional shareholding of 2000 shares to add to my existing 1000. Cost NZ$1.70 per share.

I have taken my eye off the ball over the last few months with other commitments and it is not until you can sit down and look at the figures that you can start to make a case to spend more money in this turbulent investing environment.

Only yesterday did I write that I felt that collectively investors had seemed to reach some kind of investing "Tipping Point" where they have got thoroughly brassed off with all the gloom and focused on the more positive aspects of business and investing.

This has certainly been the case for me today with my new purchase but lets not get carried away. I have bought at a good price for me, my original foray into AIA being at $2.15 in November 2006. With dividends and tax credits included in that initial AIA purchase my cost price comes in at $1.88 per share. Today's purchase then is 18c per share lower than it was more than 2 years ago.

That is like a sale at Bricoes!

Readers may like to be reminded that Canadian and Arab investors were last year willing to pay more than twice today's closing price for a half share in the Airport before being stopped by Government legislation.

My wandering into the market today was the first time since July 2008 when I bought Hallenstein Glasson [HLG.NZ] and Postie Plus [PPG.NZ] shares.

No extra money went into the Share Investor Portfolio today, the $3400.00 plus $30 brokerage was funded from a part of this reporting seasons dividends.

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c Share Investor 2009