Long Term View: Cavalier Corporation 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.

Cavalier Corporation Ltd [CAV.NZ] has been a good performing stock listed on the NZX. Since its July 1984 listing CAV has done well. We start at an adjusted $1.25* to make our comparison. $3.085c in net dividends** and 30% more in tax credits (see chart above) a 2:1 share split in 2002 gives CAV a 620% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 20 year listing*** of CAV an approximate annual net return of over 31%.

This is approximately a 100% better return when compared to the average of all NZX indexes.

Earliest available data *
Dividend data range: 1994 - 2010**
Available share price data***

Long Term View Series

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Cavalier Corp @ Share Investor

Cavalier Corp: Profit Upgrade off low 2009 Result

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Discuss CAV @ Share Investor Forum


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c Share Investor 2010

Allan Hubbard: Full TV3 Interview - July 16 2010

Allan Hubbard's response to the the release to the public of the Grant Thornton report into Aorangi Securities where they have found what hey have called "irregularities" was to give a 20 plus minute interview to TV3 on 16 July 2010.

Hubbard has engaged lawyers to challenge the Serious Fraud Office investigation into his financial affairs and is putting up a big fight.

Have a look and make your own mind up. It is kind of one sided - the interviewer is clearly on Hubbard's side - but it does reveal the personal side of the man.

Related Share Investor Reading

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Thornton Report: Allan Hubbard's Aorangi Securities
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Cavalier Corp: Profit Upgrade off low 2009 Result

The profit upgrade put out by Cavalier Corporation Ltd [CAV.NZ]today while great shouldn't be seen as de riguer for the beginning of the August - September reporting period but a highlight for investors in that company. The company is forecasting a 2010 full year profit of between $16.3 million and $16.7 million tax paid.

It is surprise to me that a company like Cavalier would increase their profit, given the slowdown in the building sector, but perhaps refurbishments instead of new installations have been the reason for the increase.

The increase of 22% on 2009 must also be put into context of a $17.9 million net profit for 2008 and a low result of $13.7 million in 2009.

With the notable exception of a few one-offs like Cavalier don't expect much excitement for the 2010 full year season.

I am expecting more of the flat to slightly down results we have seen earlier this year and one year ago on cost cutting measures.

Look for good results from the likes of Sky City Entertainment Group Ltd [SKC.NZ] Hallenstein Glasson Holdings [HLG.NZ] and Restaurant Brands Ltd [RBD.NZ]with a big focus on where the Telecom New Zealand [TEL.NZ]result is heading to see whether investors have been right to mark the stock down to well below 2 bucks over the last few months.


Disc I own HLG and SKC shares from the Share Investor Portfolio


Cavalier Corp @ Share Investor

Long Term View: Cavalier Corporation Ltd
Download CAV Company Reports
Discuss CAV @ Share Investor Forum





c Share Investor 2010