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!


Mainfreight @ Share Investor

Mainfreight Ltd: Fully Year 2010 Profit Analysis
Long Term View: Mainfreight Ltd
Share Investor Interview: Mainfreight's MD Don Braid
Stock of the Week: Mainfreight Ltd
Questions to Mainfreight's MD Don Braid
I'm Buying: Mainfreight Management delivers the goods
Mainfreight Annual Report Packs a Punch
Analysis - Mainfreight Ltd: FY Profit to 31/03/09
Mainfreight VS KiwiRail: The Sequel
Long VS Short: Mainfreight Ltd
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks

Discuss MFT @ Share Investor Forum



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c Share Investor 2009

Commonsense VS Politics

The dumping of the introduction of folate into our daily bread by National just shows us how politically motivated our politicians are rather than acting on facts (well duh Darren).

The Nazi style move by Labour and its continued support to introduce folate into our bread shows us that the left still want to control us, but the fact that this wasn't rejected quickly by National is a worry.

The use of folate of any kind is a personal choice, to say otherwise is to go down a track that would ultimately have citizens eating what politicians want from State owned markets (with long lines and shortages no doubt) and we rejected that at the 2008 election.

To have National making the move based on political motivation rather than a question of personal choice or the fact that there are questions about synthetic folate and the danger of it, is just more of the same crap that we put up with over the last 9 years of the heavy handed socialist/nazi style regime that Labour presided over.

This political rather than fact based governance is really just a lie, all it does is keep the ignorant and stupid happy and keeps the incumbent Government's poll ratings up.

The same can be said of the global warming nonsense that National are continuing with.

It is a a clear myth acknowledged by most yet the bullshit rolls on simply because it buys votes from the rabid left vocal sector of our country, never mind that the facts are that the whole GW frenzy is a lie.

This way of governing is the rule of the vocal moronity and it is a sign of weakness from the Government.

For god sake, have your own ideas, act on commonsense and fact and forget about the politics.

If John Key doesn't stand firm on something for the right reasons, his Government is going to fall due to the line adhered to and moved by the dropkicks and looney lefties in Government departments and interest groups that he is currently listening to.

Lets see the commonsense that we were promised before the election.

c P0litical Animal 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.


The Warehouse Group @ Share Investor

Warehouse 2009 interim profit a key economic indicator
Stock of the Week: The Warehouse Group
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Discuss this stock @ Share Investor Forum

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c Share Investor 2009

Share Investor Portfolio: 22 July 2009

The Share Investor Portfolio now contains 17 stocks listed on the NZSX. The bulk of the portfolio started back in 2002 and I have added to the bulk of it by using dividends and cash.

Since the 10 July 22 update approx NZ $35000 was added due to two stock purchases made today, 1875 shares in Mainfreight Ltd [MFT.NZ] and 7000 shares in The Warehouse Group [WHS.NZ].


The Share Investor Portfolio as at 22 July 2009

• Auckland International Airport [AIA] 5000
  
• ASB Capital NO. 2 Ltd [ASBPB] 10000
• Briscoe Group Ltd [BGR] 3000
• Fletcher Building Ltd [FBU] 1114
• Fisher & Paykel Healthcare Corp Ltd [FPH] 5000
• Freightways Ltd [FRE] 8631
• Goodman Fielder Ltd [GFF] 2000
  
• Halleinstein Glasson Ltd [HLG] 1000
• Kiwi Income Property Trust [KIP] 1000
• Mainfreight Ltd [MFT] 5000
  
• Michael Hill International Ltd [MHI] 10000
• Postie Plus Ltd [PPG] 2535
  
• Pumpkin Patch Ltd [PPL] 5000
• Ryman Healthcare Ltd [RYM] 5000
• Sky City Entertainment [SKC] 36915
• Steel & Tube Holdings Ltd [STU] 400
• The Warehouse Group Ltd [WHS] 15000

Previous Portfolio Updates

Share Investor Portfolio: July 10 2009
Share Investor Portfolio: June 15 2009
Share Investor Portfolio: May 22 2009

Related Share Investor Reading: Why did you buy that stock?

Why did you buy that stock? [Fletcher Building Ltd]
Why did you buy that stock? [Freightways Ltd]
Why did you buy that stock? [Kiwi Income Property Trust]
Why did you buy that stock? [Hallenstein Glasson]
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? [Ryman Healthcare]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight Ltd]
Why did you buy that stock? [The Warehouse Group]
Why did you buy that stock? [Goodman Fielder]
Why did you buy that stock? [Auckland Airport]
Why did you buy that stock? [Sky City Entertainment]


Discuss this topic @ Share Investor Forum

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c Share Investor 2002-2009