Friday, May 20, 2011
John Key: Budget Speech 2011
Posted by Share Investor at 8:06 AM 0 comments
Labels: John Key: Budget Speech 2011
Thursday, May 19, 2011
Larger Incentives for Sky City CEO Make Sense
There is nothing like a good and appropriate incentive to get an individual to do a better job and in the case of Sky City Entertainment Group [SKC.NZX] CEO Nigel Morrison , to retain his services for a longer period.
The Sky City board announced yesterday that Morrison's incentive package will be sweetened to potentially triple his current incentive package which currently sits at interest free loans to purchase $1.2 million shares based on hitting a number of financial targets.
The new deal allows Morrison to receive SKC shares worth up to $3.6 million immediately rather than wait for 2-3 years as per the old plan. This incentive is based on the company’s financials for the six month period to 31 December 2010, which were announced to the market on 16 February 2011. Incentives based under a long-term incentive plan are in addition to his salary, which was stated in last year's annual report as $2,556,408.
Now it is not often that I champion increased pay packages for CEO's and boards (you can bet other executives will be getting bigger pay packages in the near future) but under Morrison's tenure profit for the company has risen from $102 million before his appointment to a record $129 million to June 30 2011 (see 2010 Annual Report) so his bonus for results and retaining him for the medium term is a very good move by the board and one that other boards should look to to incentivise CEOs.
My only gripes are that given his track record of raising profit by 30% in 3 years the potential tripling of his pay appears mostly for retaining him rather than his past results and that the board sought a waivier from the NZX rather than consulting owners like myself who would have gladly voted some sort of increase in incentive.
Nigel Morrison therefore will be under intense pressure to deliver big increases in profit over the next 3 years and I can only see one more big result coming in 2012 full year to 3o June due to the 2011 Rugby World Cup before he will have to spend some big money either buying another casino somewhere in Australasia or spending much larger sums that he already is to increase foot traffic through his casinos.
Of course this sort of incentive does have the risk that the CEO will take bigger risks to get his bonus but he does have a track record of good results wherever he has been in charge and as he is an accountant by trade they tend to be completely focsed on the bottomline before anything else and that cannot be a bad thing at all where shareholders moola is concerned.
Disc: I own SKC shares in the Share Investor Portfolio
Sky City Convention Centre @ Share Investor
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
SKC Convention Centre power-point slide illustrations & SKC submission to Auckland City Council
Sky City Entertainment Group @ Share Investor
Share Investor's Total Returns: Sky City Entertainment Group Ltd
Sky City Entertainment Group Ltd: Presentation to Macquarie Group
Morningstar Revalues Sky City Entertainment Group
Guest Post - Michele Hewitson Interview: Nigel Morrison
Failed Sky City bid for Christchurch Casino good news for Shareholders
Sky City Entertainment Group Ltd: Christchurch Casino bid falls short of Investment Criteria
Sky City Entertainment Group Ltd: Never mind the width feel the volume
Sky City Annual Meeting & 2011 - 2012 Profit Forecast
Stock of the Week: Sky City Entertainment Group Ltd
Sky City set to lose National Convention Centre bid
Sky City Entertainment Group: Australian Acquisition on the Cards?
Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis
Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
Sky City Entertainment Group Ltd: Download full Company analysis
Sky City 2010 full year profit looking good
Long Term View: Sky City Entertainment Group Ltd
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year
Sky City Entertainment Group 2010 Interim Profit Review
Sky City to focus on Gaming
Sky City debts levels now more manageable
Insider Trading on Sky City shares
Sky City Profit Upgrade: Always on the Cards
Sky City's Current Cinema "Boom" a Horror Story in Disguise
Stock of the Week: Sky City Entertainment Group
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: $6.99
Usually ships in 24 hours
c Share Investor 2011
Posted by Share Investor at 8:00 AM 0 comments
Labels: Incentive schemes, SKC, Sky City Entertainment Group
Tuesday, May 17, 2011
Share Investor's Total Returns: Michael Hill International Ltd
I have written about returns for stocks on a general basis in the Long Term View series of posts and the Long VS Short series but in this series, Share Investor's Total Returns, I will be giving my actual returns for stocks in the Share Investor Portfolio for as long as I have held them.
The return calculation will include dividends earned along with qualifying tax credits and of course any capital increase in the share price. It will be a total return over the length of holding of the share expressed in overall dollar figures with an individual value per share of what the stock currently is held at.
The fifth stock in this particular series is a big long term punt in the portfolio and one that I have held for nearly 3.5 years, Michael Hill International Ltd [MHI.NZX]
The current holding of 10000 shares was kicked off by an initial purchase of 1000 (adjusted for a 1:10 share split in November 2007) in November 2007 plus 2000 in June 2008 and in July 2009.
The stock cost a total of $7165.84. It has returned net dividends of $569.72 and total tax credits of $279.32, with $92.00 in brokerage.
I am eligible for the full tax credit so if the gross dividend (net dividend plus tax credits)is added and brokerage taken off my full return over the total holding period of 3.5 years is $757.04
The current capital value of the company in the Share Investor Portfolio as at 13 May 2011 is $9200.00. The capital gain therefore is $1942.16. This gives a total return on this share of $2699.20. This is a 37.5% return over 3.5 years or 10.71% net per annum.
I hold MHI therefore at a total cost of $4558.64 or 45.5c per share.
Disc: I own MHI shares in the Share Investor Portfolio
Share Investor's Total Returns Series
Freightways Ltd
Mainfreight Ltd
Sky City Entertainment Group Ltd
The Warehouse Group Ltd
Michael Hill International @ Share Investor
Michael Hill International: "Takeover" Undervalues the Company
Share Investor's 2011 Stock Picks
October 2010 Top Stock: Michael Hill International Ltd
Michael Hill International: Is Kim Kardashian the right fit?
Michael Hill International: Tall Tales & Rumours
Hill Family makes Claytons Takeover bid for Michael Hill International
Michael Hill International Ltd: 2010 Full Year Profit Analysis
Long Term View: Michael Hill International Ltd
Michael Hill International: 2010 half year profit commentary
Michael Hill Makeover kicks off
Michael Hill International: 2009 full year profit commentary
Toughen Up: What I have learned from the hard times
Stock of the Week: Michael Hill International
Michael Hill TV3 60 Minutes Interview
Long VS Short: Michael Hill International
Marketwatch: Michael Hill International
Michael Hill's profit shines
Michael Hill takes on the windy city
Why did you buy that stock? [Michael Hill International]
MHI has defined growth strategy
MHI profit sparkles
Discuss MHI @ Share Investor Forum
Download MHI Company Reports
Buy Toughen Up: What I've Learned About Surviving Tough Times
Toughen Up - Fishpond.co.nz
c Share Investor 2011
Posted by Share Investor at 5:33 AM 0 comments
Labels: MHI, Michael Hill International Ltd, Share Investor's Total Returns, Share Investor's Total Returns: Michael Hill International Ltd
Monday, May 16, 2011
Share Investor's Total Returns: Freightways Ltd
I have written about returns for stocks on a general basis in the Long Term View series of posts and the Long VS Short series but in this series, Share Investor's Total Returns, I will be giving my actual returns for stocks in the Share Investor Portfolio for as long as I have held them.
The return calculation will include dividends earned along with qualifying tax credits and of course any capital increase in the share price. It will be a total return over the length of holding of the share expressed in overall dollar figures with an individual value per share of what the stock currently is held at.
The forth stock in this particular series is a staple of the portfolio and one that I have held for nearly 4.9 years, Freightways Ltd [FRE.NZX]
The current holding of 8631 shares was kicked off by an initial purchase of 8200 in June 2006 plus 431 bought as part of a 2009 capital raising.
The stock cost a total of $30817.64. It has returned net dividends of $6871.00 and total tax credits of $3300.50, with $89.45 in brokerage.
I am eligible for the full tax credit so if the gross dividend (net dividend plus tax credits)is added and brokerage taken off my full return over the total holding period of 4.9 years is $10082.05
The current capital value of the company in the Share Investor Portfolio as at 13 May 2011 is $30381.12. The capital loss therefore is $436.52. This gives a total return on this share of $9645.53. This is a 31.3% return over 4.9 years or 6.38% net per annum.
I hold FRE therefore at a total cost of $20735.59 or $2.40 per share.
Disc: I own FRE shares in the Share Investor Portfolio
Share Investor's Total Returns Series
Mainfreight Ltd
Sky City Entertainment Group Ltd
The Warehouse Group Ltd
Freightways @ Share Investor
Share Price Alert: Freightways Ltd 3
Share Price Alert: Freightways Ltd 2
Freightways Ltd: 2011 Half Year Profit Commentary
Share Price Alert: Freightways Ltd
Freightways Ltd: 2010 Full Year Profit Analysis
Long Term View: Freightways Ltd
Freightways Ltd: 2010 Half Year profit commentary
Freightways Ltd: 2009 Full Year profit commentary
Freightway's Capital Raising more of the same crap for small shareholders
Long VS Short: Freightways Ltd
Freightway's keeps delivering
Why did you but that stock: Freightways Ltd
Freightway's delivers
Freightway's packages up a good result
Discuss FRE @ Share Investor Forum
Download FRE company Reports
c Share Investor 2011
Posted by Share Investor at 8:28 AM 0 comments
Labels: FRE, Freightways, Share Investor's Total Returns: Freightways Ltd