Long Term View: Tourism Holdings 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.

Tourism Holdings Ltd [THL.NZ] has been an good investment for those who have been shareholders since its listing in June 1986. We will start at an adjusted 50c share price and will use financial data from 2000 to make our comparison. (Figures for 1986-1999 are not easily obtainable so annual and overall returns are likely to be higher)

With 88c in net dividends (excluding the NZX listed period 1986-1999. No data can be easily found for dividends) and 30% more in tax credits (see chart above) plus a 91:90 share split issue in 1993 and a 16:15 in 1999 gives THL a slightly more than 184% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends and tax credits in its calculation) over the nearly 11 year listing of THL (again, the period between 1986 and 1999 is excluded because no share price or dividend details are available so the return will be higher than stated here for this period), gives an approximate annual net return of just under 17 %.

This is approximately a 1% less return when compared to the average of all NZX indexes.



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
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Michael Hill International 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
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Tourism Holdings @ Share Investor

Share Price Alert: Tourism Holdings Ltd
Tourism Holdings worth more broken up
Long Term View: Tourism Holdings Ltd
2011 World Cup Fever

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Value Play: Steel & Tube Ltd

The 6 month chart (see above) of Steel & Tube Ltd [STU.NZ] is one ugly looking sheila but beneath the veneer of the surface turmoil beats a company with a solid long-term background dating back to the mid 1950s and in combination with the low share price this girl starts to look attractive (see picture below for comparison)



I have a very small holding of 400 shares that I have longed to add to and at a closing price yesterday of $2.15 it is definitely on my radar. I bought 400 at around $4.75 (a mistake yes) when I had some left over cash from another share purchase 3 or 4 years ago so you can see why I am getting excited now.

The company is highly cyclical and at the moment is close to or at the bottom of that cycle and its share price reflects that.

Restaurant Brands Ltd [RBD.NZ] for example is another highly cyclical company at or near its peak in terms of profits and sales and its share price is currently mirroring it fortunes.

STUs half year profit to 31 December 2009 was a shocker, down around 85% on revenue down by 30% but management say the company shows signs of improving. Of course I am very negative that things will improve anytime soon but this stock is looking cheap even during the current deep recession we are experiencing.

Things of course could get worse economy-wise and the share price will probably reflect that so be patient and you could get this stock for under 2 bucks.

It is on my watchlist to add around 1600 to take my holding to 2000.

Steel & Tube @ Share Investor

Long Term View: Steel & Tube Ltd
OneSteel makes cheeky bid for minority shareholders
NZX's Top 10 Dividend Returns

Discuss STU @ Share Investor Forum

Download STU Company Reports

From Fishpond.co.nz



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