Pumpkin Patch Ltd move downmarket

The announcement yesterday that Pumpkin Patch Ltd [PPL.NZ] are introducing another brand with stand alone stores in Australasia has the market excited but as PPL shareholders we shouldn't count the dollars before the product goes out the door, or before the cash is received, the cheques are cashed and credit cards debited.

The stores are going to operate in what PPL call the "playwear" market, that makes up around 70% of the $NZ 3 billion Australasian childwear industry.

"The introduction of a dual brand aimed at a different segment of the market is a model that has been successfully followed by numerous international clothing companies. This move will allow us to leverage our existing infrastructure and retail expertise for the benefit of both brands". PPL NZX release.

I suspect that the "different segment of the market" will be at the lower end of the childrenswear market where the BabyCity brand from the Postie Plus Group [PPG.NZ] T& T, The Warehouse Group Ltd [WHS.NZ] and others operate in.

The company currently sells a trendy range of children's clothing at the mid to high end of the market and does it well in all the markets it operates in except for the USA and the UK where the brand is currently a money loser for PPL shareholders.

Clearly PPL have been feeling the pinch from their lower priced rivals in this depressed retail market and moving to the lower end of the market will take away custom from those aforementioned retailers if the store roll out, buying and marketing is done well.

Separating the Pumpkin Patch Brand from a lower priced stablemate brand into a totally different operation is the wise way to go. A lower priced brand sold in Pumpkin Patch stores would have ruined the image and eventually sales of that brand. It is funny how consumers are but that is the way some of us shop - not my good self I hasten to add.

Margins will probably be lower but I would imagine volume will be higher. As a couple we buy from both the Pumpkin and those other stores and the sheer volume of stuff at the lower end is probably more than twice (I haven't taken a good look I just pay for it) that of the Pumpkin Patch clothing our girl has. Our infant spends alot of time indoors as she is 8 months old and the "Playwear" she has (who knew it was called that) is abundant.

If the roll out is done badly shareholders stand to lose millions. When PPL Chairman Greg Muir was CEO of the Warehouse he was in charge of a low cost roll out of that company in Australia and it all ended in tears and hundreds of millions in lost shareholder moola so PPL shareholders have reason to be cautious of this new venture - lets hope he isn't anywhere near it.

Pumpkin Patch was established in 1990 and was expanded in similar economic circumstances to the current day during the early 1990s but that provided good opportunities for company expansion and the same opportunities exist for expansion of PPLs new brand today.

The biggest costs, leasing and store fit-outs, will be considerably cheaper than a few years back due to economic circumstances. Empty retail outlets and gaps in malls could be easily and cheaply filled with eager landlords providing incentives for PPLs new offering to use their space.

I will reserve my judgement on the new venture until I see some concrete figures on paper and I want to see profit quite quickly (excluding the one-off establishment costs) and a year of trading should give shareholders a good idea of any future success or god forbid failure.




Pumpkin Patch shares closed up nearly 1% on the news.


Disclosure I own PPL, WHS and PPG shares in the Share Investor Portfolio.


Pumpkin Patch @ Share Investor

Long Term View: Pumpkin Patch Ltd
Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Discuss PPL @ Share Investor Forum

Download PPL Company Reports

Buy Pumpkin Patch Clothing

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c Share Investor 2010

Long Term View: Pumpkin Patch Ltd

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Pumpkin Patch Ltd [PPL.NZ] has been good to its shareholders in terms of returns since its IPO in 2004 (see 2004 IPO prospectus) at $1.25 and its subsequent listing in June of that year and even better for its owners when founded in 1990. 47c in net dividends (see chart above) paid and tax credits at an average of 30% , gives PPL a slightly more than 125% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 6 year listing, an approximate annual net return just over 20%.

This is approximately a 600% better return when compared to the average of all NZX indexes.



Disc I own PPL shares in the Share Investor Portfolio.


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Pumpkin Patch @ Share Investor

Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Discuss PPL @ Share Investor Forum

Download PPL Company Reports




c Share Investor 2010

Pumpkin Patch's North American Downsizing a Prudent, Overdue Move

News out today that Pumpkin Patch [PPL.NZ] are going to ditch 20 of their 35 United States stores is good news for the company and investors.

It means investors will have less pain in the short term and that there is also still a base in North America from which it can expand again when economic conditions are far more rosy. The uncertainty of retailing conditions in the US and just how long things are going to be dire cannot be ignored.

As a shareholder am pleased about management's move but given that the retail sector in the US has been behaving like a WW2 Zero pilot on a suicide mission for an extended period, one could be a little critical that this move wasn't made 6 months ago. Having said that the exit seems to have been well planned.

Of course the US and New Zealand is littered with collapsing retailers, so Pumpkin has done well to survive, let alone make a profit.

Trading in New Zealand and Australia has been surprisingly resilient and my hunch and anecdotal evidence is that very high birth rates in both countries stimulated by welfare targeted at families having kids (a story for another day on another blog) means that demand in this region has been artificially raised - Thank's Aunty Helen!

There will be costs to exit the 20 stores and this will clearly make the bottom line look awful next reporting period in October but in amongst that bad news is one key piece of good news, 11 of the remaining 15 stores in the US have had their leases re-negotiated in a southerly direction. This is one of any retailers biggest sustained costs.

On a personal note, much of my reason to buy this company was its expansion plans in America and I am pleased the company is still going to pursue that market some time in the future. Without that avenue for growth I would have exited the company when the share price recovered.

The share price moved strongly upward on this news mainly because losses in the US will be far lower than previously pegged by analysts.

Look for an opportunity to buy on lower share prices when the forthcoming book entry loss is announced in October.


Pumpkin Patch @ Share Investor

Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Discuss this stock @ Share Investor Forum


Related Links

PPL Financial Data


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c Share Investor 2009

Digging at Pumpkin Patch's lower profit

Given the dire state of retailing in New Zealand (it is much worse in overseas markets, as you will find as you read on) yesterday's result for Pumpkin Patch Ltd [PPL.NZ] for the 6 months ended 31 January 2009 is a comparatively good one.

To be sure the next six months are going to be far tougher for retail in general and at the big Pumpkin but a $NZ 9.5 million profit compared to last years $10.2 million is well done considering the pressure the company has faced in New Zealand the USA, Britain and Australia.

A focus on costs is clearly important and Pumpkin Patch has managed to deliver a 60% reduction in debt to just over NZ $32 million and a $15 million reduction in inventory without it affecting margins too much.

Good management of capital during these uncertain economic times is crucial to company survival and the Pumpkin are doing the business.

The Australian and New Zealand stores are doing well considering the downturn but the worst has yet to hit this part of the world, so expect a bigger downturn over the following six to eighteen months.

America and The United Kingdom are a different story.

Sales were up strongly in America, mostly because of extra stores and the UK had sales slightly down but losses for these two markets almost tripled over the period bringing down overall net profit for the group by perhaps as much as $3 million.

Pumpkin Patch has fared better than most Northern Hemisphere retailers, especially in the USA, where retailers are going to the wall quicker than you can say sale but unfortunately these markets are going to continue to deteriorate and worst case scenario could take Pumpkin's stores in those markets under.

Management have clearly done the right thing by halting expansion though.

Pumpkin Patch management can pat themselves on the back for a good 6 months but as I have already pointed out it is going to face what is probably the hardest period in its 15 odd years in business.

The company has a good brand, good management and loyal customers and that will help ameliorate the tough economic conditions somewhat but as the failure to indicate any forward forecasting for profit or sales shows uncertainty rules in retailing at present.

Pumpkin Patch shares have risen more than 20% in the last 2 days since the result on higher than average volume traded.

Pumpkin Patch @ Share Investor

Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Related Reading
Half year to Jan 31 2009 profit result data

1H09 Cover note to NZX.pdf ( 21.26 KB )

PPL HY09 Appendix 1.pdf ( 20.28 KB )

PPL 1H09 Appendix 1 Segment Note.pdf ( 11.31 KB )

PPL 1H09 Chief Executive Officer's statement.pdf ( 56.67 KB )

PPL 1H09 Appendix 7.pdf ( 31.51 KB )

PPL 1H09 Press Release.pdf ( 32.58 KB )

Pumpkin Patch financial data

• Summary
• Charts
• Dividends
• News
• Announcements
• Price History
• Related Securities

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c Share Investor 2009

Share Investor's 2009 Stock Picks

It is that time of the year to pick stocks for 2009.

In the face of a global recession, an uncertain economic future and dwindling values, even for good assets, it is going to be hard to pick winners.

Please keep in mind dear readers that the picks are my own and they reflect my investment philosophy and not necessarily anyone else's.

My picks are based on a long-term view, regardless of the current short to medium term market turmoil and economic uncertainty.



Fisher & Paykel Healthcare
[FPH:NZ]



With that in mind I will kick off my picks with a company that I consider will be one of the big successes of the next 5-10 years, Fisher and Paykel Healthcare, the health care products provider.

I had it as a pick for 2008 and it has been one of the better performers this year, even though it is still well off its highs share price wise.

Company profit forecasts to March 31 2009 have been estimated at NZ$84 million and revenue is also set to grow as it has done for the past.

Fisher profits are largely immune from the current market turmoil as buyers simply have to have the products that the health care company makes regardless of a global recession.

This invincibility from outside economic influences makes the pick for my next stock a relative no-brainer.

Fisher & Paykel Healthcare @ Share Investor

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Discuss Fisher & Paykel Healthcare @ Share Investor Forum - Register free 



Ryman Healthcare 
[RYM:NZ]



Ryman Healthcare, the retirement home operator, carer and developer, has been increasing revenue and profit for many years and the most current profit result shows that there has been no let up in this trend with a rise of 10% to NZ$25.9 million.

Development of new villages has increased apace over the last year and there are at least half a dozen new ones ready to go at beginning 2009, including two massive villages at Orewa and Whangerei.

The long-term prospects for this company are excellent as New Zealands elderly are set to grow markedly in the future.

Metlifecare [MET:NZ], Rymans major listed competitor is also worth a look at for the same reasons as Ryman.

I have Metlifecare on my watchlist.


Ryman Healthcare @ Share Investor

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Stock of the Week: Ryman Healthcare Ltd
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Long VS Short: Ryman Healthcare Ltd
Time for retirement?


Discuss Ryman Healthcare @ Share Investor Forum - Register free 


Mainfreight Ltd
[MFT:NZ]



Mainfreight Ltd, the New Zealand global logistics operator, have a goal of NZ$1 billion in revenue before 2010 and are only a gnats whisker short of that figure.

It is on my pick list again for 2009 as it is New Zealands best managed company and if management is good then results generally follow-this has been the history of the company thus far.

Currently business is experiencing a slow down, although profit was up nearly 10% in the last reporting period.

Management are going to approach the global market downturn with a "prudent, cautious approach to costs"-the status quo for the business since its inception.


Mainfreight @ Share Investor

Long vs Short: Mainfreight Ltd
Mainfreight drives excellent results through prudent management
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
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A rare breed



Pumpkin Patch Ltd 
[PPL.NZ]

N/A

One of the worst performing stocks of 2008 if you consider a 60% odd drop in share price this year and a drop of nearly 30% in full-year after tax profit to July 31 2008.

All is not lost though!

The company has great long-term potential, with excellent product a strong brand and very loyal customers and with the share price at just over a buck it is a relative bargain when one considers it was trading at nearly 5 dollars just over a year ago.

One to stock up on during price dips and it probably will when pre-Christmas sales figures come through during the beginning of 2009.




Pumpkin Patch @ Share Investor

Pumpkin Patch buyback shows confidence in the future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why Did you but that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch VS Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills



Other quotable notables.

Telecom NZ [TEL:NZ] for its dividend. Buy around $2.

Contact Energy [CEN:NZ], Trustpower [TPW:NZ] and Vector[VCT:NZ] Any infrastructure company, especially these electricity companies are a good buy at any time but battered share prices are a good opportunity to stock up on more or make a first buy.

Auckland International Airport[AIA:NZ] A near monopoly with a beaten down stock price, buy on further weakness.

Westpac [WBC:NZ] and ANZ Bank [ANZ:NZ]. Good opportunities exist to buy at low stock prices.

If you have the nerve, any good company is going cheap in 2009 so there are plenty of companies worth buying.

Pick wisely!


Disclosure: I own RYM, FPH, PPL, AIA, and MFT shares


Share Investor's Annual Stock Picks


Share Investor's 2017 Stock Picks

Share Investor's 2016 Stock Picks
Share Investor's 2015 Stock Picks 

Share Investor's 2014 Stock Picks
Share Investor's 2013 Stock Picks
Share Investor's 2012 Stock Picks 
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Share Investor's 2010 Stock Picks
Share Investor's 2009 Stock Picks
Share Investor's 2008 Stock picks

Broker Picks

Brokers 2014 Stock Picks
Brokers 2013 Stock Picks
Brokers 2012 Stock Picks
Brokers 2011 Stock Picks




c Share Investor 2008

Pumpkin Patch buy-back shows confidence in future

I was in the process of writing something about the obvious merits of buying Pumpkin Patch Ltd [PPL.NZ] shares at prices of around 85c when I heard the news that management have decided that their shares are a bargain too.

Pumpkin Patch are planning a share buyback of up to 8.5 million shares beginning 28 November ending on 23 November 2009.

This is good management of shareholders capital at a time when the share price has slid more than 80% to the pre-IPO level of NZ$1.25.

It also shows managements long term faith in the company's future and from the amount I have written about the subject I clearly agree.

It makes me wonder whether Jan Cameron and and Rod Duke are going to add anymore shares now that their large stakes 1.Cameron 2. Duke in the Pumpkin have nearly halved in value since July and March this year.

Pumpkin Patch shares have been marked down recently because of the slow down in the global economy, especially affecting the retail sector, and their big hit in full year profit announced in September.

The news of the share buyback today sent shares rocketing more than 10c or 13.5% on low volume.



Pumpkin Patch @ Share Investor

Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why Did you but that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch VS Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills


Related links

2008 Full Year Profit

Pumpkin Patch- Investor relations
Pumpkin Patch- The clothing


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c Share Investor 2008

Ruminations, meanderings and recriminations

So many bargains!!

Come one, come all, its a giant pre-Christmas sale of listed NZX and foreign stocks.

Ah, Mainfreight's shares might be traveling south, Michael Hill's may have lost their sparkle and Pumpkin Patch's share price looks like it could reach the same figures as some of its clothing sizes but if you think stocks are cheap now just wait until the New Year sales.

To be fair markets have now overreacted-they always do whether up or down- to the credit crunch and its associated impacts and we now seem to be running on negative emotion caused by over zealous finance media ready to make a name for themselves and their media owners whose headlines grab at sensationalism in order to sell advertising.

This media inspired negativity is set to continue well into 2009 and the New Zealand stockmarket is unlikely to see any stability until next spring with an upturn looking promising for the 2010 year.

I thought I would be a smart arse sort of guy and buy beaten down stocks a few months back but my Pumpkin Patch purchase back in June at NZ$1.53 has nearly halved on Fridays closing price, my Michael Hill purchase of the same month went from 82c to below 60c and my Briscoes "bargain" is back in the high 70 cent range.

The only upside buy was my clear expertise led delve back into Fisher and Paykel Healthcare[FPH.NZ] Bought at $2.33 this stock is currently above 3 bucks and has at times been above $3.20, just going to prove that timing the market isn't the easiest thing to do-for me anyway.

To be fair the upside for Fishers was clear to the market because sales were going to be up and the US dollar strength meant that repatriated funds back to head office in New Zealand would be well up, so the only mistake I made there was not to buy more.

This will be one stock whose sales and profit will hold up during this economic downturn and any substantial stock slump below $2.35 will see me back in.

Having spilt my guts about some of my stock meanderings over the last few months I am nevertheless in it for the long haul and my purchases fit my investment profile and ability to eat should everything become worthless in 12 months time.

Having said that I am still very tempted to get the checkbook out again for some more "bargains" but human nature being what it is I am going to wait until prices drop further latter on in 2009.

I am looking at buying more Mainfreight Ltd [MFT.NZ] which is still doing well, Pumpkin Patch[PPL.NZ], which is struggling in North America, Britain and New Zealand, Michael Hill International[MHI.NZ], which is holding up so far, Fletcher Building [FBU.NZ] which is in the middle of a residential building slump and Briscoe[BGR.NZ]which is having the Christmas sale to end all sales at present.

So I am still optomistic for the economy and the stockmarket long-term. Short term?

Its a fools game.


Related Share Investor reading

Share Investor Portfolio: Taking a beating
Why did you buy that stock? [Briscoe Group]
Why did you buy that stock? [Fisher & Paykel Healthcare]
Why did you buy that stock? [Pumpkin Patch Ltd]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight]
Why did you buy that stock? [Fletcher Building]

Shareinvestorforum.com-Discuss this Share Investor Post


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c Share Investor 2008

Pumpkin Patch ripe for the picking

Recent purchases of beaten down Pumpkin Patch Ltd [PPL.NZ] stock by Jan Cameron, the former owner of the Kathmandu Ltd [KMD.NZ] outdoor chain and Rod Duke, the majority owner of retailer Briscoe Group have got me to the point of more than idle speculation.

At the risk of getting the borax poked at myself, here goes.

If an individual is going to make a takeover play for an asset of any class, when is the best time to buy?

When nobody else is interested and when the asset is selling below its usual market price or true value.

I would argue that the little Pumpkin is well undervalued, to the extent that I bought some more recently at NZ$1.53.

Its potential is huge and its value lies in its so far proven record and its very strong brand and the ability to exploit that brand for growth and customer loyalty.

In the good times last year the schizo "Mr Market" valued the company at almost 5 bucks per share but as of today the share price is below $1.50.

Cameron and Duke both recently bought the bulk of their holdings at around the $1.50 mark. Duke holds almost 10% and Cameron just over 6%.

At today's share price the approx 166 million shares in PPL could be purchased for around $250 million dollars. A very high premium would be needed for a full bid because many investors have bought shares at well above $1.50 and Maurice Prendergast, the CEO and Sally Synnott, the founder together own 20 million shares and they have a long term view of their company.

But everyone has their price.

Both Duke and Jan Cameron certainly have the means to be able to afford such a purchase.Duke, supposedly worth a minimum of NZ$254 million and Cameron thought to be worth around $300 million.

Given this recent flurry of buying activity by both these high profile retail identities and the current low share price of Pumpkin Patch, if the company was going to be a target for a takeover, now is the most likely time for that to happen.





Disclosure I own PPL shares in the Share Investor Portfolio.


Pumpkin Patch @ Share Investor

Pumpkin Patch Ltd move downmarket
Long Term View: Pumpkin Patch Ltd
Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Discuss PPL @ Share Investor Forum

Download PPL Company Reports

Buy Pumpkin Patch Clothing

From Fishpond.co.nz



Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz




c Share Investor 2008

What is Jan Cameron up to? (UPDATE 4)

What is Jan Cameron up to?

(PPG share purchase update) On Monday 5 July 2010 she bought 600,000 shares to take her holding in PPG to 19.26% or 7,702,537 shares. She previously held 17.76%.

Cameron, who sold a 51 % stake in her Kathmandu outdoor clothing company for NZ$275 million in 2006, would now own over 7 million shares in PPG for a sum of less than $5 million.

The 19.26% of PPG Cameron now owns is not far short of the 20% takeover threshold where if she wanted more of the company she would have to make an offer to all shareholders for their holdings.

Like her competitor in retailing, Rod Duke, who has recently built up a stake in Pumpkin Patch Ltd [PPL.NZ] she could be just taking advantage of beaten down stock prices, with a small non controlling stake in Postie Plus or building up a holding for a possible takeover. This doesn't seem likely though.

Jan likes control in her business life so it would be natural to assume that she could see herself as an outright owner of Postie Plus.

At current share prices, in theory at least, she wouldn't have to pay more than $14 million for the remaining 32 million shares in the company. Of course a premium would have to be paid for full control but either way she could probably grab the entire company for less than $20 million.

There is no doubt that Cameron is a canny business woman. She built Kathmandu from a small one store retailer in Melbourne in 1987 to a medium sized outdoor "lifestyle" chain with 46 stores, in Australia, New Zealand and Great Britain.

Given her successful past there must be something that she sees in Posties Plus that makes its future better than it is currently.

Postie Plus has three different brands in its store stable. Postie Plus, Arbuckles and Baby City.

Out of these, Postie Plus is doing satisfactorily, Baby City are doing very well and Arbuckles, the manchester business was sold to Cameron in its entirety on June 10.

I could see how Cameron might be interested in Baby City as a brand to grow. This brand, specializing in baby clothing and accessories, is operating in a sector ripe for more branded chain store competition. Baby City really has only one serious branded competitor in New Zealand in Pumpkin Patch. With a little of Cameron's retailing magic Baby City could be a good place for her to start a much larger brand, although recent revelations that Cameron has bought a 6.3% stake in the Pumpkin might give that sort of speculation a lively twist.

The Postie Plus brand is a chain that has recently undergone a bit of a revamp. From selling conservative clothing to older people, especially women, it has now gone slightly more upmarket with a broader range of goods for a larger customer base. It is still struggling in the current economic downturn but with Cameron's retailing expertise and well known focus on minimising cost it could well do better under her guidance.

It is great to see one of New Zealand's more successful business women take an interest in a company with a beaten down capital value.

She likes to take control of her business interests (who doesn't) and is a very aggressive player.

She currently has a number of different retailing interests. A new one, Nood, a home wares store, is going head to head with Briscoe Group [BGR.NZ] Urban Loft stores. Like most New Zealand retailers, Briscoes is struggling at present.

With Cameron's track record and stake in Postie Plus it will be curious to see what her next move might be.

In October 2009 that question has been answered in that Jan has made a move against her former company Kathmandu, who is currently perusing and IPO, by making public her plans to go into competition with them in the outdoor clothing market.





Jan Cameron @ Share Investor

Jan Cameron ready to move on Postie Plus Group?
Kathmandu's 2011 Results Under Pressure from Jan Cameron
Kathmandu IPO: Jan Cameron lands a blow to IPO
What is Jan Cameron up to?


Kathmandu @ Share Investor

Kathmandu IPO: Prospectus Analysis
Kathmandu IPO: Jan Cameron lands a blow to IPO
Kathmandu IPO: What is it worth?
Kathmandu IPO: Retail Interest HighKathmandu IPO: A tough mountain to climb
Kathmandu No.1 but IPO should get the Bullet
Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
Download Kathmandu IPO Prospectus

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