Wednesday, August 11, 2010

Long Term View: Comvita 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.

Comvita Ltd [CVT.NZX] has been a very poor investment for shareholders since its November 2003 listing* at $2.50c per share . With 26.3c in net dividends, 30% more in tax credits (see NZX chart above) and many rights issues and capital raisings; 0.4:1 subsequent public offering in 2004, 1:4 rights issue in 2006 and a 1:5 rights issue in 2007, gives CVT a minus 108% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 7 year listing of CVT an annual net return of minus 15.42%**.

This compares to an annual return from the average of all NZX indexes of 4.28%

* CVT was on the unlisted market prior to its listing on the NZAX in 2003 and subsequent listing on the NZX main board in 2006.

Long Term View Series

Auckland International Airport
Air New Zealand
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Infratil Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Wakefield Health Ltd

Comvita @ Share Investor

List of Bruce Sheppard's top NZX listed company debt worries

Discuss CVT @ Share Investor Forum
Download CVT 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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