Share Price Alert: Telecom New Zealand Ltd 2

Lets face it, shares for Telecom NZ Ltd [TEL.NZX] have been a pig for years but especially for the last year where they have traded around the 2 dollar mark and touched $1.78 last June.

For the last 6 weeks shares have been trading below 2 bucks but over the last 5 trading days shares have shot from $1.95 to finish up 10c yesterday at $2.15 - a 10% rise. This is on 4 pieces of news out over the last week ( 1, 2, 3, 4 ) mostly related to taxpayer funded broadband.

The market seems excited by the prospects for Telecom that subsidised broadband might bring but the payback for investment by the taxpayer and by the company itself is uncertain especially given the low speeds the company indicate their new fibre might bring and the restrictions and frustrations that will bring for customers as they realise they will not be able to do even a fraction of the things their mates overseas have been able to do for a decade or more already and that future speeds for global internet speeds (sans NZ) will be hundreds of times faster than ours.

Market watchers are ignoring the bungles the company has mismanaged with the introduction of new services and technology in the past so I remain skeptical of share price increases based on the possibility that the fibre roll-out will bear some positive fruit.

With a 52 week high of $2.33 reached in February the share price looks like getting overcooked to me and investors wishing to take a punt on anything that may come out of the fibre network rollout may want to temper their excitement because any additional revenue coming from it is many years away.

Until then performance for the company is likely to be more along the lines of weakening revenue, smaller profits and cost cutting.

Buy below 2 bucks on the inevitable pullback.


Share Price Alert Series

Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd


Telecom NZ @ Share Investor

Telecom New Zealand 2011 first half profit review
Telecom New Zealand 2011 first quarter profit review
Telecom Chart: Lazarus Recovery on lower volume
Telecom maybe oversold
Telecom NZ Share Price has "Jumped the Shark"
I was Wrong... sort of
Telecom NZ: TV3 60 Minutes Segment more like Corporate PR
Telecom Share Price Limbos but has it jumped the Shark?
Telecom NZ: Saint Gattung gets her Ya Ya's out
Telecom NZ: Bye Bye Paul Reynolds
Long Term View: Telecom NZ Ltd
Stock of the Week: Telecom Ltd
Revisiting Telecom
Getting cute and fluffy with Teresa Gattung
Telecom NZ Hangs up
Business Gobbledygook puts up barriers to communication
A Rare Breed
Telecom NZ facing a watershed period
Biology a major key in "glass ceiling" for women
Telecom rewards Gattung for mediocrity

Download TEL Company Reports
Discuss TEL at Share Investor Forum - Register free


From Fishpond.co.nz



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c Share Investor 2011

Share Price Alert: Sky Network Television Ltd

Sky Network Television Ltd [SKT.NZX] has been a major beneficiary of the strong NZ dollar over the last year or so and recently the dollar has been very strong vs the US dollar, the currency SKT buys its programming in, and the share price has responded in kind.

The share price has risen 13% since December 2010, around half of that over the last month or so, and its current share price as at 19 April 2011 of $5.75 looks fully valued based on recent results.

The current share price must be put in context of a 52 week high of $5.90c and a 52 week low of $4.51.

In order for the share price to break out of the 6 buck range the NZ dollar would have to sustainably push above the 80c mark against the US dollar and it is anyones guess whether that will happen.

If we focus on financial performance for the medium term things are looking good for the company, with new technology offerings giving Sky more reasons to extract additional revenue from current subscribers and also pull in new punters.

I couldn't have been more wrong back in April 2008 when I thought the company would come under pressure from new technology from competitors biting at the company's monopoly. SKT managed to grab the technology for themselves while potential competition has been left well and truly in the dust.

The combination of medium term revenue and profit increase looks good for the company but the impact of currency movements against SKT will clearly have a big impact on the bottomline.

Wait for a pullback from current prices if you are looking to buy.


Share Price Alert

Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd


Sky Network Television @ Share Investor

Long Term View: Sky Network Television Ltd
Watching Sky Television
Market Quickie: Sky TV Worth Watching

Discuss SKT @ Share Investor Forum
Download SKT Company Reports




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Toughen Up - Fishpond.co.nz


c Share Investor 2011

Share Investor Q & A: Reader Questions to Tamaki Group Holding's Mike Tamaki

The latest Share Investor Q & A is a special one - it is the first one that has directly come out of the social media arena and the subject is from a private business and not a publicly listed one so there is likely to be more of a focus on the man behind the business and the back-story to that business rather than how well the company is doing financially. We will of course get his take on how the sector in which he is operating in is doing.

I found the subject via "Facebook friending" him and had some wild and whacky conversations on everything but business and investing and decided to give him some attention after a conversation we had about Tourism Holdings Ltd [THL.NZX] and its possible sale to Ballylinch LP, which left me wanting more.

Most would be familiar with his brother Brian Tamaki but Mike Tamaki really has let his love for Maori Culture, tourism, business and the combination of these three things to make a very successful tourism venture do the talking for him.

Mike is the founder and currently now joint owner/director of Tamaki Group Holdings with his brother Doug and their wives Karene and Kate and now employs over 120 staff across its two major attractions in Rotorua and Christchurch, with a third base to be built in Auckland's Manukau late 2011.

With the above in mind I thought I would like my readers to put some questions to Mike for a Share Investor Q & A and see what makes this guy and his business tick.

Please leave your questions here at the bottom of this post or email me here.


Share Investor Q & As

Auckland Airport's Simon Moutter
Warehouse Group CEO Ian Morrice
Briscoe Group CEO Rod Duke
Ryman Healthcare's CFO Gordon Macleod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison



Buy Toughen Up: What I've Learned About Surviving Tough Times



Toughen Up - Fishpond.co.nz


c Share Investor 2011

Share Investor Portfolio: Value @ 15 April 2011

The Share Investor Portfolio was up well in the second week of April. The portfolio was up by 1.33% or $3604.38 on the April 8 update . For the first 15 weeks of 2011 the portfolio has increased by 9.54% or $24113.37 . This weeks rise was due, primarily, to a 3c rise in SKC, 7c rise in WHS and smaller rises across the board. Most of the remaining stocks were down marginally.

The total of unspent dividends and interest in the bank from the 2010 - 2011 earnings years is $23479.21 at close of reporting season for 2010 and near the end of the 2011 year. There are also approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.

The Share Investor Portfolio has increased in value by 14.33% or $37870.53 since I began tracking it for this blog on October 11 2010.

Share Investor Portfolio as at 17:30:00, Friday 15 April, 2011 (NZT)

Stock	Quantity	Cost price	Total cost	Market price	Market value	Change	%
AIA	2,000	$1.700	$3,400.00	$2.185	$4,370.00	$970.00	28.53%
AIA	2,000	$1.510	$3,020.00	$2.185	$4,370.00	$1,350.00	44.70%
AIA	558	$0.000	$0.00	$2.185	$1,219.23	$1,219.23
AIA	754	$2.150	$1,621.10	$2.185	$1,647.49	$26.39	1.63%
ASBPB	3,027	$0.000	$0.00	$0.680	$2,058.36	$2,058.36
ASBPB	6,973	$1.000	$6,973.00	$0.680	$4,741.64	$2,231.36	32.00%
BGR	619	$0.000	$0.00	$1.420	$878.98	$878.98
BGR	2,381	$0.990	$2,357.19	$1.420	$3,381.02	$1,023.83	43.43%
FBU	284	$0.000	$0.00	$9.180	$2,607.12	$2,607.12
FBU	830	$9.750	$8,092.50	$9.180	$7,619.40	$473.10	5.85%
FPH	3,000	$2.350	$7,050.00	$3.180	$9,540.00	$2,490.00	35.32%
FPH	541	$0.000	$0.00	$3.180	$1,720.38	$1,720.38
FPH	1,459	$3.720	$5,427.48	$3.180	$4,639.62	$787.86	14.52%
FRE	2,054	$0.000	$0.00	$3.340	$6,860.36	$6,860.36
FRE	6,577	$3.630	$23,874.51	$3.340	$21,967.18	$1,907.33	7.99%
GFF	586	$0.000	$0.00	$1.600	$937.60	$937.60
GFF	1,414	$2.330	$3,294.62	$1.600	$2,262.40	$1,032.22	31.33%
HLG	299	$0.000	$0.00	$3.900	$1,166.10	$1,166.10
HLG	701	$2.530	$1,773.53	$3.900	$2,733.90	$960.37	54.15%
KIP	190	$0.000	$0.00	$1.000	$190.00	$190.00
KIP	810	$1.480	$1,198.80	$1.000	$810.00	$388.80	32.43%
MFT	1,000	$7.960	$7,960.00	$9.340	$9,340.00	$1,380.00	17.34%
MFT	1,838	$8.000	$14,704.00	$9.340	$17,166.92	$2,462.92	16.75%
MFT	657	$0.000	$0.00	$9.340	$6,136.38	$6,136.38
MFT	1,505	$4.200	$6,321.00	$9.340	$14,056.70	$7,735.70	122.38%
MHI	1,646	$0.860	$1,415.56	$0.900	$1,481.40	$65.84	4.65%
MHI	7,000	$0.630	$4,410.00	$0.900	$6,300.00	$1,890.00	42.86%
MHI	494	$1.050	$518.70	$0.900	$444.60	$74.10	14.29%
MHI	860	$0.000	$0.00	$0.900	$774.00	$774.00
PPG	31	$0.000	$0.00	$0.250	$7.75	$7.75
PPG	1,500	$0.440	$660.00	$0.250	$375.00	$285.00	43.18%
PPG	1,004	$0.800	$803.20	$0.250	$251.00	$552.20	68.75%
PPL	1,000	$3.090	$3,090.00	$1.300	$1,300.00	$1,790.00	57.93%
PPL	1,000	$2.870	$2,870.00	$1.300	$1,300.00	$1,570.00	54.70%
PPL	939	$4.200	$3,943.80	$1.300	$1,220.70	$2,723.10	69.05%
PPL	975	$0.000	$0.00	$1.300	$1,267.50	$1,267.50
PPL	1,086	$1.530	$1,661.58	$1.300	$1,411.80	$249.78	15.03%
RYM	459	$0.000	$0.00	$2.470	$1,133.73	$1,133.73
RYM	4,586	$1.970	$9,034.42	$2.470	$11,327.42	$2,293.00	25.38%
SKC	5,750	$7.430	$42,722.50	$3.440	$19,780.00	$22,942.50	53.70%
SKC	1,000	$7.600	$7,600.00	$3.440	$3,440.00	$4,160.00	54.74%
SKC	2,750	$7.700	$21,175.00	$3.440	$9,460.00	$11,715.00	55.32%
SKC	1,431	$8.750	$12,521.25	$3.440	$4,922.64	$7,598.61	60.69%
SKC	272	$4.720	$1,283.84	$3.440	$935.68	$348.16	27.12%
SKC	25,712	$0.000	$0.00	$3.440	$88,449.28	$88,449.28
STU	78	$0.000	$0.00	$2.660	$207.48	$207.48
STU	303	$4.740	$1,436.22	$2.660	$805.98	$630.24	43.88%
WHS	4,500	$3.730	$16,785.00	$3.520	$15,840.00	$945.00	5.63%
WHS	6,979	$6.000	$41,874.00	$3.520	$24,566.08	$17,307.92	41.33%
WHS	15	$3.710	$55.65	$3.520	$52.80	$2.85	5.12%
WHS	3,506	$0.000	$0.00	$3.520	$12,341.12	$12,341.12

26.16%

	Total cost	Market value	Change
	$270,928.45	$341,816.74	$70,888.29

Share Investor Portfolio @ Share Investor

Share Investor Portfolio: Value @ 8 April 2011
Share Investor Portfolio: Value @ 1 April 2011
Share Investor Portfolio: Value @ 14 March 2011
Share Investor Portfolio: Value @ 8 March 2011
Share Investor Portfolio: Value @ 28 February 2011
Share Investor Portfolio: Value @ 21 February 2011
Share Investor Portfolio: Value @ 14 February 2011
Share Investor Portfolio: Value @ 7 February 2011
Share Investor Portfolio: Value @ 31 January 2011
Share Investor Portfolio: Value @ 24 January 2011
Share Investor Portfolio: Value @ 17 January 2011
Share Investor Portfolio: Value @ 10 January 2011
Share Investor Portfolio: Value @ 3 January 2011
Share Investor Portfolio: Value @ 27 December 2010
Share Investor Portfolio: Value @ 20 December 2010
Share Investor Portfolio: Value @ 13 December 2010
Share Investor Portfolio: Value @ 6 December 2010
Share Investor Portfolio: Value @ 29 November 2010
Share Investor Portfolio: Value @ 22 November 2010
Share Investor Portfolio: Value @ 15 November 2010
Share Investor Portfolio: Value @ 8 November 2010
Share Investor Portfolio: Value @ 1 November 2010
Share Investor Portfolio: Value @ 25 October 2010
Share Investor Portfolio: Value @ 18 October 2010
Share Investor Portfolio: Value @ 11 October 2010
Share Investor Dividends


Share Investor's Annual Stock Picks

Share Investor's 2011 Stock Picks: Looking Back
Share Investor's 2011 Stock Picks
Share Investor's 2010 Stock Picks
Share Investor's 2009 Stock Picks
Share Investor's 2008 Stock Picks

Brokers 2011 Stock Picks


Related 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: $9.73
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Security Analysis: The Classic 1934 Edition by GRAHAM
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c Share Investor 2011