Long Term View: Sky City Entertainment Group 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.

Sky City Entertainment Group Ltd [SKC.NZ] has been very good to its shareholders in terms of returns since its IPO in February 1996 at $NZ 2.00. With $NZ 2.73 cents in net dividends (see chart above) paid and another 30% average of that figure gained for those eligible for associated tax credits, and 2:1 share bonuses in 2001 and 2003 and an approx 12% share dilution (based on a calculation of my own shareholder dilution which might be different to others) in a 2009 capital raising, SKC gives a slightly less than 540% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 14 year listing, an approximate annual net return of just over 38%.

This is approximately a 350% better return when compared to the average of all NZX indexes.




Disclosure: I own SKC shares in the Share Investor Portfolio


Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Share Investor Interviews

Share Investor discusses Convention Centre proposal with Sky City CEO Nigel Morrison - June 2010
Share Investor Interview: Sky City CEO, Nigel Morrison - November 2009
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year - Feb 2010

Sky City Profit Attachments



Result Briefing Webcast
2010 Interim Result Presentation
NZX Announcement
SKC Company Report Archive

Sky City @ Share Investor

Sky City Entertainment Group 2010 Interim Profit Review
Are Insiders selling Sky City Stock?
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City share offer confusing and unfair for smaller shareholders
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


Discuss SKC @ Share Investor Forum

Download SKC Company Reports

Recommended Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
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Buy The Intelligent Investor & more @ Fishpond.co.nz




c Share Investor 2010

"Bum" hides small Fortune

If you haven't heard or read this over the last couple of days it is a classic.

The not so typical " rich bum" scenario which we sometimes hear of :

He was a common sight on the streets of the Swedish coastal town where he was dismissed as little more than a bad-smelling eccentric.

But unbeknown to them, Curt Degerman was a financial genius who used the money he earned from collecting scrap metal from rubbish bins to trade on the international markets.

Now 18 months after his death, his relatives are fighting a legal battle over a secret £1 million estate he amassed by investing in stocks and shares.

For forty years he spent his days touring the bins on an old bicycle stuffing the containers he collected into bags tied between the handlebars.

But after he died of a heart attack aged 60, it emerged that through shrewd investment he had turned the modest deposits earned from returning the empty cans into a fortune estimated at more than £1.1 million. Read more here.

The particular fascination in this story for me was of course the parlaying of comparatively insignificant sums of money made from selling scrap metal and bottles into a small fortune on the stockmarket.

It goes to show that anyone can make money if one is determined enough to and also shows, I might add, the merits of working hard, investing for the long-term and compounding investments, even though Curt didn't spend his money or get to use it in the long term.

The other very sad part that caught my eye was the long lost Uncle that turned up to challenge Curt's last will - a sad socialist law in Sweden and fast becoming acceptable in New Zealand depending on the judge one gets.

Lets just say most people would have contempt for him that he got something for nothing while Curt didn't have his last wishes respected or spend some of what he earned while he was still above the ground.

Hey, never judge a "bum" by his covering, you will be wrong more often than right.

RIP Curt and happy Easter to my lovely readers!


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Discuss this Topic @ Share Investor Forum

Recommended Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz




c Share Investor 2010

Xero Set for surprise to the Market?

A little birdy told me at 11.21am yesterday:

"If you were going to invest in Xero, today is the day. Xero are going to announce their customer numbers soon and it is going to be quite a shock to the market."

Apparently, according to another close Xero watcher, Xero Ltd [XRO.NZ] is going to release their customer numbers to the NZX tomorrow morning at 9.00am and his own analysis (and a bit of educated guesswork I'm thinking) tells him the figure will be around 20000 customers signed up, give or take a few thousand.

Now of course if the anonymous tipster is aware of inside information he/she shouldn't be telling me or anyone else because this sort of stuff is share price sensitive. I am only telling you now as the market is going to know anyway before it opens trading at 10.00am.

The stock was up by 6c or 3.77% yesterday to NZ$1.65 on 7000 shares and 5 trades. Hardly the stuff of billionaire making but nonetheless the principle should be constant - the market as a whole should know such information at the same time.

Xero shares have traded in a steady fashion for the last 4 days (see 5 day chart below) and the spike yesterday was the biggest one since a 4c drop last Thursday. Please keep in mind that this stock can swing wildly for no particular reason because of its thin trading volumes. Its big rise yesterday before the apparent big news out this morning could be a coincidence or...make up your own mind.

Xero was a Stock of the Week back in July, and I picked it again for the 2010 Share Investor Stock Picks back in December as one of the riskier outside picks on the grounds of overwhelming support from users of Xero's products and the inside buzz surrounding those invested in the company.

I continue to remain interested in the market hype surrounding Xero but don't understand the business so will not be investing.

It is either going to be one of New Zealand's overwhelming success stories or vanish into the ether as quickly as it arrived.

I wish current and prospective investors in Xero all the best of luck for that announcement latter this morning and hope the "insider" was on the money.


Related Share Investor Reading

Love Xero?
Share Investor's 2010 Stock Picks
Stock of the Week: Xero Ltd

Discuss Xero @ Share Investor Forum


Related Links

Xero - Corporate Website




c Share Investor 2010