Share Investor

Monday, February 14, 2011

Freightways Ltd: 2011 Half Year Profit Commentary

The half year profit to December 31 2010 that came out this morning from Freightways Ltd [FRE.NZX] is an indication that life is starting to get better for the company in these tough times and as a bell-weather stock it perhaps is first evidence that the economy as a whole has picked up after all. I am still dubious about that though.

The net profit of is up 9% to $15,796 million on the comparable 2010 half year.

Revenue was also up by 7% to $176,166 on last year, a year in when revenue was down by the same amount so the net profit is a combination of slightly higher revenue and a focus on costs.

A healthy dividend of 7.25 c is to be paid compared with last years half of 7c, so it looks like management are confidant that the rebound has some legs.

Financing costs for a sizable company debt have also increased markedly over the half, by 13%, so that increase in dividend may not be wise after all -better to pay down the debt.

Naturally management are cagey about company prospects for the coming year given economic uncertainty and they see the possibility that their good result is "not sustainable", especially as revenue growth has not been consistent throughout the group's businesses. I would have to say that business operations and therefore revenue will probably come under pressure over the rest of 2011 and into 2012 and once again careful capital management and a focus on business costs will see them through another tough year until the New Zealand economy bounces back and real consistent growth for the company can return.

Overall, the half year 2011 result has been a good indicator of a very tough 2010 and an indicator that there is more patchiness to come for Freightways. The same can also be said about the New Zealand economy as a whole.

FRE has not traded at time of writing this morning with a big gap between buyers and sellers.
9 out of ten.

Disc I own FRE shares in the Share Investor Portfolio

Freightways @ Share Investor

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

Share Investor Portfolio: Value @ 14 February 2011

Like a Hone Harawera interview The Share Investor Portfolio took a dive in the second week of February. The portfolio was down 1.69% or $4704.51 on the Feb 7 update . For the first 6 weeks of 2011 the portfolio has increased by 1.61% or $4473.76. This weeks fall was due, primarily, to a 4c fall in SKC, the biggest part of the portfolio and big falls in MFT & WHS also weighed heavily.

The total of unspent dividends in the bank from the 2010 earnings year is $16631.93 at close of reporting season for 2010. There are also approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.

Share Investor Portfolio as at 17:30:00, Friday 11 February, 2011 (NZDT)

Stock

Quantity

Cost price

Total cost

Market price

Market value

Change

AIA

2,000

$1.700

$3,400.00

$2.220

$4,440.00

$1,040.00

30.59%

AIA

2,000

$1.510

$3,020.00

$2.220

$4,440.00

$1,420.00

47.02%

AIA

803

$2.150

$1,726.45

$2.220

$1,782.66

$56.21

3.26%

AIA

445

$0.000

$0.00

$2.220

$987.90

AIA

$1.650

$105.60

$2.220

$142.08

$36.48

34.55%

ASBPB

2,946

$0.000

$0.00

$0.720

$2,121.12

ASBPB

7,054

$1.000

$7,054.00

$0.720

$5,078.88

$1,975.12

28.00%

BGR

438

$0.000

$0.00

$1.400

$613.20

BGR

2,562

$0.990

$2,536.38

$1.400

$3,586.80

$1,050.42

41.41%

FBU

266

$0.000

$0.00

$8.160

$2,170.56

FBU

848

$9.750

$8,268.00

$8.160

$6,919.68

$1,348.32

16.31%

FPH

3,000

$2.350

$7,050.00

$3.080

$9,240.00

$2,190.00

31.06%

FPH

541

$0.000

$0.00

$3.080

$1,666.28

FPH

1,459

$3.720

$5,427.48

$3.080

$4,493.72

$933.76

17.20%

FRE

1,882

$0.000

$0.00

$3.200

$6,022.40

FRE

6,749

$3.630

$24,498.87

$3.200

$21,596.80

$2,902.07

11.85%

GFF

541

$0.000

$0.00

$1.630

$881.83

GFF

1,459

$2.330

$3,399.47

$1.630

$2,378.17

$1,021.30

30.04%

HLG

244

$0.000

$0.00

$3.900

$951.60

HLG

756

$2.530

$1,912.68

$3.900

$2,948.40

$1,035.72

54.15%

KIP

190

$0.000

$0.00

$1.000

$190.00

KIP

810

$1.480

$1,198.80

$1.000

$810.00

$388.80

32.43%

MFT

1,000

$7.960

$7,960.00

$8.150

$8,150.00

$190.00

2.39%

MFT

1,838

$8.000

$14,704.00

$8.150

$14,979.70

$275.70

1.88%

MFT

657

$0.000

$0.00

$8.150

$5,354.55

MFT

1,505

$4.200

$6,321.00

$8.150

$12,265.75

$5,944.75

94.05%

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

718

$0.000

$0.00

$0.900

$646.20

MHI

636

$1.050

$667.80

$0.900

$572.40

$95.40

14.29%

PPG

$0.000

$0.00

$0.260

$8.06

PPG

1,500

$0.440

$660.00

$0.260

$390.00

$270.00

40.91%

PPG

1,004

$0.800

$803.20

$0.260

$261.04

$542.16

67.50%

PPL

1,000

$3.090

$3,090.00

$1.450

$1,450.00

$1,640.00

53.07%

PPL

1,000

$2.870

$2,870.00

$1.450

$1,450.00

$1,420.00

49.48%

PPL

939

$4.200

$3,943.80

$1.450

$1,361.55

$2,582.25

65.48%

PPL

877

$0.000

$0.00

$1.450

$1,271.65

PPL

1,184

$1.530

$1,811.52

$1.450

$1,716.80

$94.72

5.23%

RYM

459

$0.000

$0.00

$2.370

$1,087.83

RYM

4,586

$1.970

$9,034.42

$2.370

$10,868.82

$1,834.40

20.30%

SKC

5,750

$7.430

$42,722.50

$3.300

$18,975.00

$23,747.50

55.59%

SKC

1,000

$7.600

$7,600.00

$3.300

$3,300.00

$4,300.00

56.58%

SKC

2,750

$7.700

$21,175.00

$3.300

$9,075.00

$12,100.00

57.14%

SKC

1,431

$8.750

$12,521.25

$3.300

$4,722.30

$7,798.95

62.29%

SKC

25,085

$0.000

$0.00

$3.300

$82,780.50

SKC

899

$4.720

$4,243.28

$3.300

$2,966.70

$1,276.58

30.08%

STU

$0.000

$0.00

$2.440

$190.32

STU

322

$4.740

$1,526.28

$2.440

$785.68

$740.60

48.52%

WHS

4,500

$3.730

$16,785.00

$3.530

$15,885.00

$900.00

5.36%

WHS

6,979

$6.000

$41,874.00

$3.530

$24,635.87

$17,238.13

41.17%

WHS

2,880

$0.000

$0.00

$3.530

$10,166.40

WHS

641

$3.710

$2,378.11

$3.530

$2,262.73

$115.38

4.85%

18.23%

	Total cost	Market value	Change
	$278,114.45	$328,823.33	$50,708.88

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c Share Investor 2011

Friday, February 11, 2011

Allan Hubbard Saga: Supporters Risk Legal Action

The unappointed and unofficial support team for Allan Hubbard, traveling salesman Paul Carruthers and his team, last week sent a complaint to the Chief Ombudsman, Ms Beverley Wakem, requesting information over their failed bid to prove a conflict of interest surrounding Simon Botherway in relation to Allan Hubbard's failed business interests made late last year.

The following paragraph from the complaint is also the basis of their former complaint and the reason for the latest one:

We (the Hubbard Support Team) remind you that Allan Hubbard was the Chairperson and majority shareholder of SCF at the time SCF took receivership action against Botherway's brother. Following South Canterbury's Finance's actions for receivership Simon Botherway's brother was later adjudicated bankrupt. We note six days following the bankruptcy declaration (www.insolvency.govt.nz) the decision to place Allan Hubbard into statutory management was made. Bankruptcy in itself is a significant infringement on any individual. A bankrupt can not travel out of New Zealand or engage in business unless they first seek official authority. Nor can the bankrupt apply for credit unless they first disclose their bankruptcy to the creditor.

It was of course revealed here last year that the basis for the Allan Hubbard Supporters complaint concerning Mr Botherway had no basis in fact:

NZB (NZ Breweries) appointed a receiver on Friday 26th of June 2009. Their receivers sent a fax to SCF about 11am that morning giving them until 2pm to respond, SCF had no option but to appoint their own receivers to Merivale Ale House (Auckland Bars).

A week later PWC advised SCF to place the South Island bars in receivership so they could control all the businesses. The detail of this is available in the easily obtainable Receivers Report

Furthermore, Botherway was not involved in any of the decision making regarding Allan Hubbard's South Canterbury Finance and related companies and investigations into those companies.

These are the facts of the case from a reliable source and Allan Hubbard Supporters, led by Mr Carruthers, risk possible legal action from some of the parties named in their complaint if they continue to push such falsehoods as indicated in the latest missive from them, from the toilet block from where it is clearly written.

There will be a 6th Grant Thornton Report out late February.

Allan Hubbard Saga

Full SFO Statement on SCF Fraud Investigation

Hubbard Letter to Simon Power

Telecom New Zealand 2011 first half profit review

The Telecom New Zealand Ltd [TEL.NZX] half year 2011 result out today of NZ$164 million net profit after tax is 32.2% lower than the result for the same period last year. This comes on gross revenue of $2,583 billion, down 3.3% on last year.

This comes in a year of turmoil for the company where its share price plunged and regulatory issues continued to hamper growth and future planning.

Telecom CEO, Paul Reynolds said , ‘Telecom’s delivery of the turnarounremains on track, with EBITDA growth in the second quarter. The quarter saw progress on a range of fronts, including the addition of 60,000 customers in mobile, Telecom Retail attracting 64% of broadband connection growth, reduced fixed line churn and the success of our cost out programme".

I see more of the same for full year 2011. With a stagnant to dropping revenue base the only way profit can grow slightly or stay at current levels is to cut operational costs further. Telecom have tried to do this over the last half but with mixed success as clearly the bottomline shows this.

Shareholders might like to look for more positive news from the company for the medium term 2012-2014 as their foray into the Government fast broadband initiative rolls out and could well mean an end to falling sales.

Until then expect the status quo

Key Points

Net profit: 166,000; Down 32.2%; 243,000

Total operating revenue and other gains
(before adjusting items):

2,583,000; Down 3.3%; 2,671,000

Earnings per share: 9 cps; 13 cps

Second Quarter Dividend: 3.5 cps

Increased competition impacting on margins

2011 HY Profit Detail

Transcript from Investor Briefing
Management commentary
Presentation
Accounts

Telecom NZ @ Share Investor

Telecom New Zealand 2011 first quarter profit review
Telecom Chart: Lazarus Recovery on lower volume
Telecom maybe oversold
Telecom NZ Share Price has "Jumped the Shark"
I was Wrong... sort of
Telecom NZ: TV3 60 Minutes Segment more like Corporate PR
Telecom Share Price Limbos but has it jumped the Shark?
Telecom NZ: Saint Gattung gets her Ya Ya's out
Telecom NZ: Bye Bye Paul Reynolds
Long Term View: Telecom NZ Ltd
Stock of the Week: Telecom Ltd
Revisiting Telecom
Getting cute and fluffy with Teresa Gattung
Telecom NZ Hangs up
Business Gobbledygook puts up barriers to communication
A Rare Breed
Telecom NZ facing a watershed period
Biology a major key in "glass ceiling" for women
Telecom rewards Gattung for mediocrity

Download TEL Company Reports
Discuss TEL at Share Investor Forum - Register free

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c Share Investor 2011

Share Investor

Monday, February 14, 2011

Freightways Ltd: 2011 Half Year Profit Commentary

Share Investor Portfolio: Value @ 14 February 2011

Friday, February 11, 2011

Allan Hubbard Saga: Supporters Risk Legal Action

Telecom New Zealand 2011 first half profit review

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