Long vs Short: Sky City Entertainment

In this second of the Long vs Short series I am once again going to take look at the chart comparisons for a stock from the Share Investor Portfolio and compare the 10 year return (above) to the turmoil of the last year with a 1 year return chart (bottom of post).

In this series I want to show the merits of investing, using charts, for the long-term vs short term gains or losses. I will use the longest available data to me for the long-term view and will compare against the NZX50.

The second stock in the series will be Sky City Entertainment [SKC.NZ] which I have held for 6 years, the longest of any stock of the 17 that I currently own.

My Portfolio
Symbol	Price	Value	Earned
SKC.NZ	$2.94	$102900	$30800
You own 35000 [SKC.NZ] shares purchased at $2.06 [$72100] *

As I said above I have held Sky City for 6 years and my current return (see small chart above)* is around 42%. Not good considering it is 6 years but when you look at the current market situation not bad.

If however you had held Sky City for the full ten years(see large chart at top) your return would have been a staggering 350%.

Taking a look at the short term outlook for the last year your loss would have been almost 35%.

As in the first Long vs Short installment the long-term portfolio wins again.







Long vs Short series

Mainfreight Ltd
The Warehouse Group


Sky City @ Share Investor

2008 Sky City profit analysis
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Share Investor Forum-Discuss this topic


Related Links

Sky City Financial Data

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

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c Share Investor 2008

Burger Fuel: Running on empty

Listed Franchisor Burger Fuel Worldwide [BFW.NZ] results out yesterday were disappointing for shareholders.

Back in September 2007 directors anticipated NZ$50,000.00 in losses per month but losses of NZ$669,000 in the six months to 30 September 2008 were more than double that figure.

Even more worrying, losses have mounted as 2008 continued. If you strip out 2007 IPO costs the losses for the 9.5 months to 31 March 2008 were $83,578.00 per month. This compares to $111,500.00 per month for this latest reporting period.

Hardly a positive trend.

Lets look at revenue for the company to see if that changes the picture.

Surely if losses are more than double company estimates then revenue should be sharply up when we compare the 30 September 2008 revenue with the previous 3.5 month period in 2007?

Yes it is but sadly not more than double.





Burger Fuel @ Share Investor


Burger Fuel leaves investors hungry
Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary


With revenue of $3,518,000 in the six months to 30 September 2008 and $ 2,336,000 for the 6 months to 30 September 2007, it is quite a good lift but hardly the stellar stuff that was shouted from Burger Fuel's advertising pre IPO, because it shows costs have far outstripped income and as I pointed out above these costs appear to be increasing rather than abating.

These revenue figures are based on 4 more stores since listing so this makes income figures look even worse.

Burger Fuel management say the next six months will be about cost containment and they will not anticipate opening any new outlets until well into 2009.

This will clearly be important to stem the franchisors already increasing operating expenses as their franchisees come under pressure from increasing business costs such as labour, ingredients and energy.

Like its bigger listed cousin Restaurant Brands Ltd [RBD.NZ] who had a recent poor last quarter sales, Burger Fuel will continue to struggle in the face of increasing competition, fickle consumer tastes and demands for better service and quality fast food.

Its short company history as a listed vehicle have been wildly disappointing and it looks even further away from any tangible success than it was when it listed mid 2007.

As least there is still their bastard Burger.

Burger Fuel shares were at 38c at close of the NZX at 5.00pm Tuesday 9 December 2008.




c Share Investor 2008

Mr Conservative

Alan Bollard is inherently conservative and has only ever acted re-actively in his position as Reserve Bank Governor.

The current economic climate, unlike the weather, is melting down and this should lay heavy on his mind.

One might say that he saw all this turmoil coming and left himself alot of room to move interest rate downwards when really needed but I do not credit him with that much foresight-hey he works in a government department how talented can he be?

Like tax cuts, lower interest rates stimulate economic activity, simply because they leave more money in consumers pockets and even though inflation is supposed to be his only target wee Alan should have been cognisant of a failing economy for some time.

Economic pundits have dangled cuts of anything between 1-2% and I myself would contend that 2% would be the more appropriate figure, in fact I have argued for a year that he needed to move downwards.

Given Bollards track record of blind conservatism though it would be a surprise to the market if he picked a rate close to 2%.

I dont buy lotto tickets (I only in markets!) but I am going to stick my neck out and pick a 1.25% cut at 9.00am this morning (NZ Time)

Realated Share Investor reading

OCR puts pressure on investors seeking a better return
Time for OCR intervention by Dr Cullen
Alan Bollard's indecision over OCR a worry to NZ INC
Bollard sits on his hands


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c Share Investor 2008

Its only a Billion after all

News earlier this week that Labour kept secret the billion dollar hole that ACC has dug for itself should be no shock to the voting population.

The outgoing Labour government left behind a $1 billion hole in the ACC budget which will have to be filled, Prime Minister John Key said today.

Briefings from ACC officials said the corporation was seeking $297 million more for the current 2007/2008 year and similar figures for coming years  NZ Herald

They lied, cheated and manipulated their way through this election year hoping nobody would see through it so why would a measly 1 billion bucks down the toilet be any different?

A billion dollar hole wrought by a wasteful government department who hounds business without care or due diligence and has an attitude to taxpayer money that allows them to spend it on beauty care for employees pets is a department way out of control. The billion dollar hole proves that.

For Labour to try to avert attention away from their failure by saying National are crying wolf merely to put ACC up for sale is more of the same failed policy,misdirection and conspiracy theory finger pointing that left them losing big time on November the 8.

This sort of banal nonsense may have some traction when you are in Government but when you are in opposition it just looks like the ramblings of a bitter disorganised bunch of lefties ready for the knackers yard.

Just to show the party has learnt nothing from their election day loss David Parker, spokes weasel for ACC said this today:

"we left this incoming Government with a fantastic set of books... the billion dollars is only 5% of ACCs operating budget..."  Radiolive 6-9.00am

What planet is Parker living on and does he know he is opposition now?

Arrogant and ignorant to the end.

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Labour backs ACC rorts

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c Political Animal 2008