Share Investor

Tuesday, August 9, 2011

Global Market Sell-Off Stocks: Sky City Entertainment Group Ltd

Quite frankly, and as I pointed out on Friday, the whole NZX is on sale and while people are losing money people like me are contemplating buying rather than selling. On fundamentals alone there are many NZX stocks that are looking way more attractive than they had been just 3 trading days ago.

Lets look at some specific stocks though and in the first of a new series to coincide with the current stockmarket sales we will look at the biggest part of the Share Investor Portfolio, Sky City Entertainment Group Ltd [SKC.NZX]

The company has a consensus forecast of slightly below $128 million for full year 2011 which is out to the market on Tuesday 16 August. This is around the same as full year 201 0. The 2012 full year is likely to be a record year though. This is primarily due to the Rugby World Cup, which will make its impact felt in the first half of 2012 and the capital expenditure on the Auckland Casino, which has seen more than a dozen new eateries bars and new gaming areas opened or about to open in time for RWC punters. There is of course no guarantee that these new capital expenditures will keep paying for themselves after RWC customers dwindle but there will be a big positive impact on the bottomline at the very least in the first half of 2012.

During the big sell-off over the last 3 trading days the fundamentals for this stock are of course looking much better.

Lets have a look:

P/E	19.880
EPS	$0.169
NTA	$0.630
Gross Div Yield	7.334%

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c Share Investor 2011

Monday, August 8, 2011

Share Investor Portfolio: Value @ 5 August 2011

The Share Investor Portfolio is substantially down over the last week due to the US debt crises and a credit downgrade from Standard and Poors out over the weekend in the first week of August. The portfolio was down a record 4.64% or $12494.33 on the July 29 update . For the first 30 weeks of 2011 the portfolio has increased by 9.53 % or $23732.66 . Big drops right across the board especially from shares making up the biggest part of the portfolio. As of market opening on the NZX, Monday morning 8 August (10.12am NZ time) you can more than double the above loss.

The total of unspent dividends and interest in the bank as at 26 May from the 2010 - 2011 earnings years is $25382.95 at close of reporting season for 2010 and at the end of the 2011 1st half reporting year. There are also approx $55000.00 in tax credits earned from the portfolio since it began in late 2002.

The Share Investor Portfolio has increased in value by 14.26% or $37489.80 since I began tracking it for this blog on October 11 2010

Track the Share Investor Portfolio 2 .

Share Investor Portfolio as at 09:20:02, Monday 08 August, 2011 (NZT)

Stock

Quantity

Cost price

Total cost

Market price

Market value

Change

AIA

2,000

$1.700

$3,400.00

$2.230

$4,460.00

$1,060.00

31.18%

AIA

2,000

$1.510

$3,020.00

$2.230

$4,460.00

$1,440.00

47.68%

AIA

558

$0.000

$0.00

$2.230

$1,244.34

AIA

754

$2.150

$1,621.10

$2.230

$1,681.42

$60.32

3.72%

ASBPB

3,109

$0.000

$0.00

$0.740

$2,300.66

ASBPB

6,891

$1.000

$6,891.00

$0.740

$5,099.34

$1,791.66

26.00%

BGR

619

$0.000

$0.00

$1.430

$885.17

BGR

2,381

$0.990

$2,357.19

$1.430

$3,404.83

$1,047.64

44.44%

FBU

284

$0.000

$0.00

$7.710

$2,189.64

FBU

830

$9.750

$8,092.50

$7.710

$6,399.30

$1,693.20

20.92%

FPH

3,000

$2.350

$7,050.00

$2.490

$7,470.00

$420.00

5.96%

FPH

1,365

$3.720

$5,077.80

$2.490

$3,398.85

$1,678.95

33.06%

FPH

635

$0.000

$0.00

$2.490

$1,581.15

FRE

2,054

$0.000

$0.00

$3.320

$6,819.28

FRE

6,577

$3.630

$23,874.51

$3.320

$21,835.64

$2,038.87

8.54%

GFF

586

$0.000

$0.00

$1.080

$632.88

GFF

1,414

$2.330

$3,294.62

$1.080

$1,527.12

$1,767.50

53.65%

HLG

299

$0.000

$0.00

$3.500

$1,046.50

HLG

701

$2.530

$1,773.53

$3.500

$2,453.50

$679.97

38.34%

KIP

763

$1.480

$1,129.24

$1.000

$763.00

$366.24

32.43%

KIP

237

$0.000

$0.00

$1.000

$237.00

MFT

1,000

$7.960

$7,960.00

$10.330

$10,330.00

$2,370.00

29.77%

MFT

1,838

$8.000

$14,704.00

$10.330

$18,986.54

$4,282.54

29.13%

MFT

1,375

$4.200

$5,775.00

$10.330

$14,203.75

$8,428.75

145.95%

MFT

787

$0.000

$0.00

$10.330

$8,129.71

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

PPG

$0.000

$0.00

$0.240

$7.44

PPG

1,500

$0.440

$660.00

$0.240

$360.00

$300.00

45.45%

PPG

1,004

$0.800

$803.20

$0.240

$240.96

$562.24

70.00%

PPL

1,000

$3.090

$3,090.00

$0.990

$990.00

$2,100.00

67.96%

PPL

1,000

$2.870

$2,870.00

$0.990

$990.00

$1,880.00

65.51%

PPL

939

$4.200

$3,943.80

$0.990

$929.61

$3,014.19

76.43%

PPL

975

$0.000

$0.00

$0.990

$965.25

PPL

1,086

$1.530

$1,661.58

$0.990

$1,075.14

$586.44

35.29%

RYM

555

$0.000

$0.00

$2.580

$1,431.90

RYM

4,445

$1.970

$8,756.65

$2.580

$11,468.10

$2,711.45

30.96%

SKC

5,750

$7.430

$42,722.50

$3.500

$20,125.00

$22,597.50

52.89%

SKC

1,000

$7.600

$7,600.00

$3.500

$3,500.00

$4,100.00

53.95%

SKC

2,750

$7.700

$21,175.00

$3.500

$9,625.00

$11,550.00

54.55%

SKC

1,431

$8.750

$12,521.25

$3.500

$5,008.50

$7,512.75

60.00%

SKC

272

$4.720

$1,283.84

$3.500

$952.00

$331.84

25.85%

SKC

25,712

$0.000

$0.00

$3.500

$89,992.00

STU

$0.000

$0.00

$2.390

$186.42

STU

303

$4.740

$1,436.22

$2.390

$724.17

$712.05

49.58%

WHS

4,500

$3.730

$16,785.00

$3.400

$15,300.00

$1,485.00

8.85%

WHS

6,979

$6.000

$41,874.00

$3.400

$23,728.60

$18,145.40

43.33%

WHS

$3.710

$55.65

$3.400

$51.00

$4.65

8.36%

WHS

3,506

$0.000

$0.00

$3.400

$11,920.40

26.15%

	Total cost	Market value	Change
	$269,603.44	$340,111.11	$70,507.67

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c Share Investor 2011

United States Debt Crises: Is Warren Buffett Nuts?

I have been increasingly losing my respect over the last 3 year for Warren Buffett on his stance and comments about the state of the globe and its economic prospects, especially his comments about America and their dire situation but he has made some interesting comments overnight about the state of the US economy and its ratings downgrade (see here for S & P's full report) by Standard & Poors over the weekend:

"Billionaire Warren Buffett said Standard & Poor’s erred when it lowered the U.S. credit rating and reiterated his view that the economy will avoid its second recession in three years.

The U.S., which was cut Aug. 5 to AA+ from AAA at S&P, merits a “quadruple A” rating, Buffett, 80, said yesterday in an interview with Betty Liu at Bloomberg Television. The downgrade followed the biggest weekly selloff in U.S. stocks in 32 months, with the S&P 500 slumping 7.2 percent to its lowest level since November.

“Financial markets create their own dynamics, but I don’t think we’re facing a double dip recession,” said Buffett, chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. [BRK.A] [BRK.B]“Clearly what stock markets do have is an effect on confidence, and this selloff can create a lack of confidence.”

Stocks plunged last week amid signs the U.S. economy is slowing and speculation that Europe will fail to contain its sovereign-debt crisis. Reports on manufacturing and consumer spending trailed economists’ forecasts. Euro-region central bank governors are planning emergency talks aimed at limiting the market fallout from the first U.S. rating downgrade in history.

The U.S. cut, announced after the close of trading in New York, was prompted by rising public debt and “greater policymaking uncertainty,” S&P said in a statement. The U.S. has the top credit rating at both Moody’s Corp [MCO:NYSE] and Fitch Ratings. Buffett said he doesn’t rely on the views of ratings firms when buying and selling securities. Berkshire is the biggest shareholder of Moody’s Corp".

He maybe right about the downgrade but who the hell should take notice of Standard & Poors anyway. They gave subprime loans prime status when they should have been rated as junk so why take them seriously now? Being the biggest shareholder in Moodys though you have to take what Buffett says about S & P with a bucket of salt.

What he is hopelessly wrong about is his statement that the United States will not go into a second recession. What the hell is Buffett talking about? A recession in the US is a 95% dead cert given the last recession was a result of Obama pumping borrowed money into the economy and will probably do so again with the same impact on the economy.

I am gobsmacked by Buffett's lack of independence and self interest in making a statement like this and would expect him to tell us what he really thinks given his previous impeccable track record and huge influence on markets.

Expect him going around the traps over the coming weeks with interview with CNBC, Fox Business and who ever else will listen.

I have almost stopped given his latest positive media assault.

US Debt Crises @ Share Investor

Overdrawn in the U.S.A
Are we there yet?
The Definition of Insanity
The $700 Billion Question: How much will the taxpayer Bailout affect my Investments?
Who is attacking your portfolio?
Global credit squeeze: There is no free lunch
Of tulip bulbs and tooth fairies
Current credit crunch a blessing is disguise
Leaders must come clean over losses to restore faith
Market Meltdown: I can smell the fear from here
Free Market to Pollies: We don't want you!
Don't dare use the "D" word
Strap yourself in baby
Will the Stalactites hold?

Discuss this Topic @ Share Investor Forum

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

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

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c Share Investor 2011

Share Investor

Tuesday, August 9, 2011

Global Market Sell-Off Stocks: Sky City Entertainment Group Ltd

Monday, August 8, 2011

Share Investor Portfolio: Value @ 5 August 2011

United States Debt Crises: Is Warren Buffett Nuts?

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