Stock of the Week: Metlifecare Ltd

Metlifecare Ltd [MET.NZ] has been on my watchlist for yonks. I already own Ryman Healthcare Ltd [RYM.NZ] I love this sector and it is because of its very high historical revenue and profit growth and its similar future protects as the number of older people (especially those greedy economy sucking baby boomers) increases in very large numbers

Metlifecare has been somewhat of a poor cousin to Ryman over the last few years when it comes to its profit. It has had a couple of big asset writedowns over the last 2 years and that has lead to a punishing in its stock price.

A great opportunity.

That is why it makes my Stock of the Week this week (better late than never, I know it is the end of the week) that, and it will bounce back into profit when property prices recover.

The stock has hit a 52 week low of NZ$1.38 and a high of $4.60 but that is well off its all time high of nearly 9 bucks reached not that long ago (see chart above) so you can see the potential for a good long term and medium term gain even if today's closing share price is $2.06.

Buy on weakness, there should be some more for this stock come its profit reporting in November.

Good luck!


Related Share Investor reading

Stocks on My Watchlist: Metlifecare Ltd
Why did you buy that stock? [Ryman Healthcare]
Time for retirement?

Discuss Metlifecare @ Share Investor Forum

Stock of the Week Series

Fisher & Paykel Healthcare Ltd
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances

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c Share Investor 2009

Market announcement delay abandonment should be just the start in NZX restructure

Further to my piece on insider trading of Sky City Entertainment Group [SKC.NZ] shares last week and a convenient waiver given by the NZX for Contact Energy Ltd's [CEN.NZ] David Baldwin to get rewarded for stuffing up, it appears that the NZX is relenting to pressure from the bearded one, Bruce Sheppard from the NZ Shareholders Association, to get market announcements, previously delayed to the poor and downtrodden like you and me, now available.

Those market participants who have had NZX terminals in their offices have been using this information to trade before it is available to us, of course this is highly illegal but as Bruce has pointed out, nobody has been prosecuted by NZX, the market regulator, let alone a case of insider trading taken before.

This delay has always confused me because the advantages this gives users of this information means millions of dollars in their pockets - am I a naive idiot?

It is one of those hangovers from a regulated market that has been held onto with great gusto but other relics of a bygone age still give the advantages to the big boys.

The granting of waivers to break NZX rules, lack of clear separation of the day to day running of the New Zealand Stockmarket and its regulation and the reluctance to piss off mates by prosecuting clear breaches of insider trading rules and other market hanky panky by brokers and insiders really needs to be scrutinized closely by Government stockmarket regulators the Securities Commission because the NZX ain't going to do it.

Sadly this is unlikely to happen in any sort of expedient manner, so it is up to people like you, me and stockmarket advocates like Bruce Sheppard to keep the pressure on Mark Weldon and his mates down there in Wellington.

Of course the thing that would keep the NZX a little more honest would be a little healthy competition, and as I pointed out some ten or so years ago, why couldn't a website be set up for stockmarket investors to directly buy and sell shares without a middleman getting involved?

I'm sure others with the tech savviness that I don't have would be able to pull off such a thing.

A great little opportunity for someone to have a go.


Recent Share Investor Reading

• Help me, I am making good short term money, it must be time to sell?
  
• Long VS Short: Fletcher Building Ltd
• List of Bruce Sheppard's top NZX listed company debt worries
  
• Beam me up Davy
• Share Investor's NZX Market Diary: 27 July - 3 Aug 4
  
• Auckland Airport Sale: Ready to Fly

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c Share Investor 2009

List of Bruce Sheppard's top NZX listed company debt worries (UPDATE 7)

This update adds GFF, SKT & SKC to the List

Further to rumblings made by Bruce Sheppard on behalf of the New Zealand Shareholder's Association in May that in his opinion, roughly 20 listed companies in New Zealand were breaching banking covenants and after writing to these companies 2 so far have replied to Bruce. He is naming names as each company replies to him.


1. Fisher & Paykel Appliances [FPA.NZ]

2. Nuplex [NPX.NZ]

3. Tourism Holdings [THL.NZ] - Read THL's letter to Bruce
4. Vector Ltd [VCT.NZ] - Read VCT's letter to Bruce

5. Freightways Ltd [FRE.NZ] - Read Bruce's letter to FRE & the reply
6. Skellerup Holdings [SKL.NZ] - Read Bruce's letter to SKL & the reply

7. Comvita Ltd [CVT.NZ] - Read Bruce's letter to CVT & the reply

8. Ebos Ltd [EBO.NZ] - Read Bruce's letter to EBO & the reply

9. Abano Healthcare Group [ABA.NZ] Read Bruce's letter to ABA & the reply

10. Metlifecare Ltd [MET.NZ] Read Bruce's letter to MET & the reply

11. Restaurant Brands Ltd [RBD.NZ] Read Bruce's letter to RBD & the reply

12. Kirkcaldie & Stains [KRK.NZ] Read Bruce's letter to KRK & the reply

13. Sky Network TV [SKT.NZ] Read Bruce's letter to SKT *

14. Sky City Entertainment Group [SKC.NZ] Read Bruce's letter to SKC & the reply

15. Goodman Fielder [GFF.NZ] Read Bruce's letter to GFF & the reply *


I will post the rest here as and when the other 5 odd companies reply to Brucie.

The laggers need to get a wriggle on, otherwise it wont look good for them.

Bruce is going to list those that didn't reply to him next week.


Disc I own FRE, SKC & GFF shares in the Share Investor Portfolio


Related Links

NZ Shareholders Association

Recent Share Investor Reading

• Market announcement delay abandonment should be just the beginning
• Help me, I am making good short term money, it must be time to sell
• Long VS Short: Fletcher Building Ltd
• List of Bruce Sheppard's top NZX listed company debt worries
• Beam me up Davy
• Share Investor's NZX Market Diary: 27 July - 3 Aug 2009
• Auckland Airport Sale: Ready to Fly

Discuss this topic @ Share Investor Forum




c Share Investor 2009

2009 NBR Rich List

NBR have their rich list out today. The Herald has a preview. Graeme Hart is once again at the top of the heap, while the Fays, Richwhites, and Todds, as usual, fill in the top ten.

Still mostly old money on the list but great to see the self made man Hart continue to pull in the bucks.

Great to see acknowledgment, without the jealous sneering, of those who have worked hard and done well to enable themselves to get on such a list.

1. Graeme Hart $2.75b
2. Todd family $2.6b
3. Eamon Cleary $2.1b
4. Christopher and Richard Chandler $2.0b each
5. Goodman family $1.8b
6. Stephen Jennings $1.0b
7. Erceg family $700m
8. Douglas Myers $700m
9. Sir Michael Fay $660m
10. David Richwhite $660m

NBR @ Share Investor

2010 NBR Rich List
2009 NBR Rich List
2008 NBR Rich List
NBR Headlines


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c Share Investor 2009