Chart of the Day: Charlies Group Ltd

One has got to say that if you were a shareholder in Charlies Group Ltd [CHA.NZX] today and sold you would have been practically dancing in the aisles. Its share price lept over 45% on news (see 10 day chart above) that its products were to be positioned on 750 Coles stores across Australia.

The share price hasn't done much for years (see 5 year chart below) but this little bit of positive news has given impetus to the share price and it will be interesting to see what happens tomorrow if the trend continues on higher volume. I suspect others will get carried away tomorrow and bid up the price.

Well done to those who made a quick buck. I am a little jealous.

I should have Stefan Lepionka on the mat answering questions on Charlies OZ expansion tomorrow.


Charlies Group @ Share Investor

Share Investor Q & A: Charlies Group CEO Stefan Lepionka on Australian Expansion
Charlies Group: A Triumph of Style over Substance
Charlies juicing through Shareholder cash

Discuss CHA @ Share Investor Forum
Download CHA Company Reports


Chart of the Day @ Share Investor

Rakon Ltd
Kathmandu Holdings Ltd


New From Fishpond



A Perfect Gentleman: The Sir Wilson Whineray Story





c Share Investor 2010

Allan Hubbard Saga: South Canterbury Finance to be investigated for Fraud

Well, finally the inevitable has come to pass. Allan Hubbard and his collapsed South Canterbury Finance company are to be investigated over possible fraud related to dubious inter related party lending and false statements made on financial documents.

"The Serious Fraud Office has launched an investigation into South Canterbury Finance. (see full SFO statement)

Chief Executive Adam Feeley said after inquiries by the SFO's new fraud detection unit, the SFO had grounds to suspect that a number of related party transactions involving SCF may have involved false statements or other fraudulent conduct." Stuff.co.nz

Those of you who read this blog will know that this has been coming for months but supporters still see that Hubbard has done nothing wrong.

Three Grant Thornton Reports 1 2 3 on related collapsed businesses and documents released last week have revealed so much inter-party stuff it makes Mr Hubbards empire look like a rather large Utah based extended family, with all the back biting, chest rubbing and back slapping that goes along with such a closed group.

We will see a closer investigation, more evidence and hopefully a jail conviction for Hubbard and his fellow travellers.

It has so far cost the New Zealand taxpayer the thick end of 2 billion (if you include interest, administration and lost opportunity cost) and will cost more as the Serious Fraud Office begins their investigation.

We ca only hope that this time the SFO has got their Is dotted and their ts crossed because this big smelly fish cannot be let go like all the other toe rags have.

See more @ NZ Herald

Related Share Investor Reading

Full SFO Statement on SCF Fraud Investigation

Download Grant Thornton Report 1
Download Grant Thornton Report 2
Download Grant Thornton Report 3

Allan Hubbard Saga: Third Grant Thornton Report
Allan Hubbard Saga: Will He Walk?
Allan Hubbard Saga: No Longer Bothered by Botherway
Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010
Allan Hubbard Saga: Supporters head to the exit door
Allan Hubbard Saga: Threats & the Mysterious PWC Report
Allan Hubbard Supporters: Conflict of Interest
VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report: Allan Hubbard's Aorangi Securities
Whatever happened to? Muriel Dunn
Bothered by Simon Botherway
Allied Farmers: Prosecutions should be on the cards
Allied Farmers Fraud passes with little fanfare
Allied Farmers: What's it Worth?
Hanover, Allied Farmers deal more of the same
Jane Diplock Q & A Interview
Hanover's "White Knights" are really daylight robbers
Hanover collapse: It was just a matter of time
Money Managers Saga: 3 Story wrap
Money Managers gives First Step investors the middle finger
Greed is bad: Geneva Finance Folds
Financial 101: Learn before you leap
Kevin's Blog


New From Fishpond



A Perfect Gentleman: The Sir Wilson Whineray Story





c Share Investor 2010

Stock of the Week - Reprise: NZ Refining Ltd

New Zealand Refining Ltd [NZR.NZX] has continued to have a lacklustre financial performance since we last visited back in June of this year. Its half year profit for 2010 was down 26% on the 2009 result.

Since June though the stock has rallied in price from $3.10 - reaching a 52 week low of $2.90 in July - to close yesterday at $3.66 after reaching a high of $3.75 in early October.

NZR management have said themselves that the company remains under pressure from uncertain refining margins and a stagnant oil price, so the only possible reasons for the share price rise are the reinstatement of a dividend and a general improvement of NZX share prices.

The current dividend of 2c is historically low for the company and generally they have been paying a good 10% plus gross yield for most of the last decade.

If you can calculate that the global oil price is set to soar (it will but just when is another question) soon then the current share price is a good place to buy.

Clearly if you see the stagnant financial position continue because of a constant oil price at present levels then the NZR share price will come under pressure if profit does not improve.

Since the share price has increased by more than 15% since June it might be worthwhile selling if you are a short term holder.

Long term investors might seize the opportunity to buy on further weakness.


Stock of the Week Series

Sky City Entertainment Group Ltd
Reprise 4: Contact Energy Ltd
Reprise 3: Contact Energy Ltd
Delegats Group Ltd
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
Restaurant Brands
NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances


NZR @ Share Investor

Chart of the Week: New Zealand Refining Ltd
Stock of the Week: NZ Refining Ltd

Discuss NZR @ Share Investor Forum
Download NZR Company Reports

Warren Buffett: Investing & Life Lessons On How To Get Rich, Become Successful & Dominate Your Personal Finance From The Greatest Value Investor Of All ... Men, Success Principles, Business Advice) by Ashton Marshall

c Share Investor 2010

The Warehouse Group Ltd: Takeover Prospect looking good on paper

The spectre of The Warehouse Group Ltd [WHS.NZX] being taken over by either Foodstuffs or Woolworths Ltd [WOW.ASX] has been hanging over the company since the two companies each took a 10% stake in 2007.

Since I last discussed this topic back in September 2009, The Warehouse has consolidated their businesses by cutting their Extra Stores with their offering of a wide range of grocery items and managed themselves into a position where cashflow has risen to a stage where they are able to pay substantially higher dividends.

Profit and sales have remained more or less stagnant but the company is poised to increase sales should the bleak economy show signs of life.

The company is in good health.

Where are we now though in terms of a possible takeover?

Woolworths applied for leave to appeal to the Supreme Court in August 2008 after a Court of Appeal decision went against them and Foodstuffs but Woolworths withdrew its application following the announcement by The Warehouse that it was withdrawing from Extra.

Since then investors have been left in limbo and even I don't understand the reason for the Court of Appeal and subsequently the Commerce Commission making a decision that prevented either party from making a takeover bid - the existence of The Warehouse extra format stores - now being removed allows either party to make a bid.

Either way nothing has been forthcoming but with a low share-price, a better looking balance sheet, low borrowing costs for any potential bid the sentiment is looking better for either party to cast the first stone.


Disclosure: I own WHS shares in the Share Investor Portfolio

The Warehouse Group @ Share Investor

VIDEO: Extended Ian Morrice Interview
Share Investor Q & A: Warehouse Group CEO Ian Morrice

Warehouse Group Ltd: 2010 Full Year Profit Analysis
Share Investor Q & A: Questions to The Warehouse' Ian Morrice
Long Term View: The Warehouse Group Ltd
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
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 WHS @ Share Investor Forum - Register free

Download WHS company reports

Shop online at The Warehouse


New From Fishpond



A Perfect Gentleman: The Sir Wilson Whineray Story



c Share Investor 2010