Chart of the Week: Sky City Entertainment Group Ltd

The rise of the Sky City Entertainment Group Ltd [SKC.NZ] share price over the last month (see 1 month SKC chart above) by just over 5% is a move this stock has always made before its August full year result. On good news insiders have pumped up the share price and the inverse is also the case.

I am a shareholder and was hoping to pick up some more as the stock seemed to lose support and start to test levels of around $2.50 last seen in late 2009 (see two year SKC chart below).




As the SKC price history chart shows (see full share price data below - adjusted for share splits & other relevant data) the current share price is close to that of the share price it traded at in 2002 when profit levels were lower than they are currently and prospects for growth were looking poor and have indeed been flat for the last 6 of 8 years.

My point?

If you are looking at this stock for a short term gain things look promising for a good rise from here (depending on overall market sentiment) and longer term investors should look for possible shareprice weakness after the August 17 release of the 2010 full year result for an opportunity to buy.

The dividend for the fully year will be more than 7.5c per share, more than 10% more than last years result and possibly one impetus for the increase in share price.

Disclosure: I own SKC shares in the Share Investor Portfolio


Sky City @ Share Investor

Sky City Entertainment Group 2010 Full Year Profit Preview
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
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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
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Sky City Assets: Buy, sell and hold
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Sky City Share Volumes set tongues wagging
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NZX Press release: Sky City profit to HY end Dec 2007
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Sky City sale could be off
Opposition to takeover
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Sky City Casino Full Year Profit to June 30 2007
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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

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Sky City Entertainment Group 2010 Full Year Profit Preview

Sky City Entertainment Group Ltd [SKC.NZ] announces its 2010 full year profit on Tuesday 17 of August and it is going to be a record one. The company itself has indicated a net profit ranging from $126-132 million but the market seems to be indicating - if its share price has anything to do with anything at all - that profit could be at the top of this range or higher. The share price has gained slightly more than 5% over the last month and it is typical of this stock (and probably most other NZX listed stocks) to rise if insiders know profit results are going to be higher than expected.

In May I gave some reasons why the August result would be a good one:

In addition to the continued cost savings through paying down debt and other business costs there will be a gross $60-70 million from the proceeds of the sale of their cinema business which will be an approximate $10 million straight to the bottom-line. This would already be accounted for but the contribution to the 2010 full year is unclear because there is additional disposal of associated cinema assets that may not be sold before the June 30 financial year end.

One big determinant for the full year profit figure will be the Australian/Kiwi dollar cross. Back in August 2009 the Kiwi was buying over 81c Australian and over the last half has been trading well below 80c. Its Australian casino assets in Darwin and Adelaide have been trading well and the currency swap from revenue exported to head office in Auckland should give a good boost.

A solid 2010 result will continue a good run for SKC since its $NZ115 million 2009 full year result and will mean an increased dividend of at least 7.5c on the 6.5 paid out last year.

The market has reinforced my positive feeling that I got after interviewing CEO Nigel Morrison in mid June and my visit to the Auckland site and a good look around at how business was going on that particular day.

I have been a shareholder in SKC since 2003 and it makes up slightly more than one third of the Share Investor Portfolio and the August result is one of my most anticipated profit releases for this company for I think it will show how well the CEO has done since his appointment in March 2008.

In two years he has done well to turn the company around from the poor management of former CEO Evan Davies. One of the reasons he was hired because he was well known as a casino "Mr Fixit" and he has done what he was employed for and more.

I look forward to him telling us where the company is headed over the next year and what new strategies he might have to grow revenue and profit.


Disclosure: I own SKC shares in the Share Investor Portfolio


Sky City @ Share Investor

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
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Share Investor Q & A: Questions to The Warehouse' CEO Ian Morrice

I have got a Share Investor Q & A coming out, probably next week sometime, from the CFO of Ryman Healthcare Ltd [RYM.NZ] but have managed to jack up a good one today with The Warehouse Group Ltd [WHS.NZ] CEO Ian Morrice.

The Warehouse is a company with a long established history in New Zealand as the bargain retailer and it has been a great investment for long term shareholders over the past.

Over the last 5 years though the company has stalled in growth and now faces more serious competition from its rivals.

It has been headed by canny Scot, Ian Morrice for the last few years and he has done well. What do we know of his plans for the Red Sheds and how he intends to take the company into the future will be of interest as well as how the man works.

With that in mind I thought I would like my readers to put some questions to Ian and The Warehouse.

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


Disclosure: I own WHS shares in the Share Investor Portfolio


Share Investor Q & As

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
Share Investor discusses Convention Centre proposal with Sky City CEO Nigel Morrison


The Warehouse Group @ Share Investor

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The Warehouse Group: 2010 Interim Profit Review
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Share Investor Short: Warehouse Group yield worth a second look
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Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
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History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Discuss WHS @ Share Investor Forum - Register free

Download WHS company reports

Shop online at The Warehouse


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2010 NBR Rich List

The 24th annual 2010 NBR Rich List (see full list at NBR - Requires Sub)was out this morning and revealed the usual bunch of multimillionaires with a few additions to last year and some notable omissions from the 2009 list.

Graham Hart topped the list with a $5 billion plus fortune and there was an inclusion for the first time by Rod Drury, CEO of Xero Ltd [XRO,NZ] and the exclusion of folk like Terry Seripisos and beleaguered businessman Allan Hubbard.

The usual entry of old money from the likes of the Myers, Todds, Fay, Richwhites and Spencers also continue to eek out places in the top ten.

The top 10:
1 Graeme Hart $5.5 billion
2 Todd Family $2.7 billion
3 Eamon Cleary $2 billion
4 Lynette Erceg $1.5 billion
5= Christopher Chandler $1.4 billion
5= Richard Chandler $1.4 billion
6 Goodman Family $850 million
7= Stephen Jennings $800 million
7= Sir Douglas Myers $800 million
8= Sir Michael Fay $750 million
8= David Richwhite $750 million
9= Michael Friedlander $700 million
9= Spencer family $700 million
10 Peter Cooper $650 million

NBR @ Share Investor

2009 NBR Rich List
2008 NBR Rich List
NBR Headlines


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From Fishpond.co.nz



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c Share Investor 2010