Kathmandu 2010 Profit lacks good comparison

I am not a big fan of Kathmandu Ltd [KMD.NZ] I will admit that. A prospectus as bent as Elton John on speed and growth largely centered on debt driven store expansion.

Their 2010 half year profit out yesterday that blew the market out of the stratosphere, share price wise, hasn't changed my view.

The trouble with this particular profit release is that it suffers from lack of a good and accurate comparison from last year.

Shareholders are therefore still unable to assess the state of the company yet with any form of credibility.

In one example they are comparing pro-forma net profit after tax (NPAT), pointed out in the prospectus, with an "adjusted" figure for the "actual" 2010 HY NPAT - what does that really mean? I don't know.

All important same store sales look impressive at first glance but have they also been "adjusted" as well to show the company in a better light? Once again I don't know.

One glaring example of poor management were the IPO costs, $21.3 million compared to the prospectus estimate of $15 million - 40% higher.

IPO costs relating to advisory fees were substantially higher, due to the scope of work eventually required to meet the requirements of dual listing on both the NZX and ASX. Additional costs were also incurred as a result of the change in banking arrangements.

If management cant get that right then you have to wonder about management of the company in the future.

The stockmarket needed a reason to get this company back up above its IPO price (see 4 month chart above) and insiders sent the price up sharply from mid February and mums and dads got back in over the last few days and pushed the share price up by more than 10% to NZ $ 2.46

Kathmandu @ Share Investor

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Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
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Long Term View: Fisher & Paykel Healthcare Ltd

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Fisher & Paykel Healthcare Ltd [FPH.NZ] has been good to its shareholders in terms of returns since its forerunners NZX listing in 1979 - we will only be looking at the last 8 years of available data since FPH became a fully separate company from Fisher & Paykel Appliances [FPA.NZ] and listed on November 16 2001 at $NZ2.25 (adjusted for a 4:1 FPH stock split in 2004). With $NZ 84 cents in net dividends (see chart above) paid and another 33% of that figure gained for those eligible for associated tax credits, a slightly more than 93% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 8 year available data gives an approximate annual net return of just over 11%.

This is approximately an even return compared to the average of all NZX indexes.




Disclosure I own FPH shares in the Share Investor Portfolio


Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
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Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd

Fisher & Paykel Healthcare @ Share Investor

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FPH downgrade masks good performance

Discuss FPH @ Share Investor Forum

Download FPH Company Reports




c Share Investor 2010

Long Term View: Fisher & Paykel Appliances

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Fisher & Paykel Appliances Ltd [FPA.NZ] had been very good to its shareholders in terms of returns since its forerunners NZX listing in 1979 - we will only be looking at the last 8 years of available data since FPA became a fully separate company from Fisher & Paykel Healthcare [FPH.NZ] and listed on November 16 2001 at $NZ2.25 (adjusted for a 4:1 FPA stock split in 2004). With $NZ 1.44 cents in net dividends (see chart above) paid and another 33% of that figure gained for those eligible for associated tax credits, a slightly more than 11% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 8 year available data gives an approximate annual net return of just over 1.37 %.

This is more than 10 times worse than the return from the average of all NZX indexes.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Fisher & Paykel Appliances @ Share Investor

Stock of the Week: Fisher & Paykel Appliances
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Fisher & Paykel: A Tale of Two Companies
Fisher & Paykel Appliances: In a spin over nothing

Discuss FPA @ Share Investor Forum

Download FPA Company Reports

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The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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c Share Investor 2010