Share Investor: Michael Hill International Ltd

Showing posts with label Michael Hill International Ltd. Show all posts

Tuesday, May 17, 2011

Share Investor's Total Returns: Michael Hill International 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 fifth stock in this particular series is a big long term punt in the portfolio and one that I have held for nearly 3.5 years, Michael Hill International Ltd [MHI.NZX]

The current holding of 10000 shares was kicked off by an initial purchase of 1000 (adjusted for a 1:10 share split in November 2007) in November 2007 plus 2000 in June 2008 and in July 2009.

The stock cost a total of $7165.84. It has returned net dividends of $569.72 and total tax credits of $279.32, with $92.00 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 3.5 years is $757.04

The current capital value of the company in the Share Investor Portfolio as at 13 May 2011 is $9200.00. The capital gain therefore is $1942.16. This gives a total return on this share of $2699.20. This is a 37.5% return over 3.5 years or 10.71% net per annum.

I hold MHI therefore at a total cost of $4558.64 or 45.5c per share.

Disc: I own MHI shares in the Share Investor Portfolio

Share Investor's Total Returns Series

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Michael Hill International @ Share Investor

Buy Toughen Up: What I've Learned About Surviving Tough Times

Toughen Up - Fishpond.co.nz

c Share Investor 2011

Monday, December 20, 2010

Michael Hill International: "Takeover" Undervalues the Company

The "takeover offer" being made to all shareholders in Micheal Hill International Ltd [MHI.NZX]by the Michael Hill Family Holding Company Durante Holdings Pty Limited (Durante), the holding company for the 47.63 per cent of the total shares in MHI owned by interests associated with Mr Michael Hill, is one that has appeared to get around the takeovers code by offering to buy 5% of current MHI shareholders in the company an offer to buy their shares at 90c each.

Typically any shareholding above 50% automatically kicks off what should be a full takeover for the target company but MHI seems to have found a loophole after abandoning an initial plan back in September after floating the idea initially in August.

Of course any shareholding above 50% gives the owner complete control of the company.

I labelled this a Claytons takeover in August and still consider this a blatant disregard for shareholder rights.

I will not be selling any of my shares for the above reasons and because the offer of 90c per share for effectively full control of the company is not enough premium for full control and undervalues the company and its long term potential.

I possibily risk a potential interview with Michael that I have been trying to organize for 2011 (I have his cell phone number but he doesn't always return his calls) by speaking out like this but I care about shareholders before the business owners.

If you are thinking of selling, please don't. Apart from the shenanigans associated with this power play the company is very well managed and has a great long term future and you would be undervaluing your investment in the company if you sold so cheaply.

Disc I own MHI shares in the Share Investor Portfolio

MHI Takeover

Full list of Related Documents

Michael Hill International @ Share Investor

Buy Toughen Up: What I've Learned About Surviving Tough Times

Toughen Up - Fishpond.co.nz

c Share Investor 2010

Monday, November 1, 2010

October 2010 Top Stock: Michael Hill International Ltd

Michael Hill International Ltd [MHI.NZX] has been a standout performer over October.

It put on 20% over the month on news that Kim Kardashian is going to be spokesperson for a competition being held to promote MHI in the USA and news that the company had a good sales quarter to 30 September 2010.

The 81c per share MHI is trading at is a 2 year high so takes us back to pre-2008 global crash prices. It is well short of the $1.20 (post a 1:10 share split at approx $12 per share) it was trading at in December 2007 however. This share price was inflated due to the anticipation of that share split and pre problems in Canada and the USA and the overall market exuberance at the time.

The last quarter sales figures are extremely good but that must be tempered with the fact that the most important trading period for the company is the quarter that ends December 31 2010.

Like most retailers MHI make the bulk of their profit at Christmas and we all know that people are just not buying - apart from the last quarter at MHI - and the company needs to exceed 2009 half sales by some margin to justify the large increase in share price.

If it doesn't there will be another opportunity to buy this stock at post Christmas sales in January 2011.

Disc I own MHI shares in the Share Investor Portfolio

Michael Hill International @ Share Investor

Thursday, October 7, 2010

Michael Hill International: Is Kim Kardashian the right fit?

Kim Kardashian

At first glance the choice of Kim Kardashian, reality queen and porn star, might look a good person to get publicity for a contest to find "the world's best couple" and further your brand in the United States and if you are Michael Hill from Michael Hill International Ltd [MHI.NZX] you would do just about anything to make your business there prosper but is Kardashian really the right fit for a business that sees itself as an upmarket jewelery brand?

Kardashian & Hill pair are teaming up to find the world's best couple. Dating, engaged or married couples can all be in to win a 22 carat diamond ring valued at more than $250,000 and the resultant publicity will get millions of dollars of free advertising for the jewelry chain, that is currently struggling in the Chicago area that it has operated in since late 2008.

Hill had many gimmicks that got himself and his company noticed in Australasia in the 1980s - 1990s and that subsequently led to a good long-term business but have things changed so much in 20 years that now somebody famous for ***king in front of millions is going to do the business for you?

I think it is a mistake but I could be wrong, I am only a small shareholder in MHI and not the man himself, so what do I know.

I think it is short term publicity that could backfire.

Nevertheless you can follow the madness at the official competition site or Facebook page.

* Kim Kardashian Photo supplied for research purposes and google rankings.

Disc I own MHI shares in the Share Investor Portfolio

	Toughen Up by Michael Hill Buy used from: $4.46

Toughen Up by Michael Hill
Buy used from: $4.46

c Share Investor 2010

Share Investor

Tuesday, May 17, 2011

Share Investor's Total Returns: Michael Hill International Ltd

Monday, December 20, 2010

Michael Hill International: "Takeover" Undervalues the Company

Monday, November 1, 2010

October 2010 Top Stock: Michael Hill International Ltd

Thursday, October 7, 2010

Michael Hill International: Is Kim Kardashian the right fit?

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