Friday, March 4, 2011

Share Price Alert: The Warehouse Group Ltd

The Warehouse Group Ltd [WHS.NZX] like most other listed retailers, is on sale at the moment. The Warehouse stock has lost almost 12% in value since December 2010, around 8% of that loss over February alone, to close at $3.38 today.

Much of that loss has been due to a negative trading update in early January but the share price has come under pressure over the last 2 weeks as post Christchurch Earthquake 12 stores in that region will have compromised sales for some time and two stores will be shut indefinately because of structural damage.

There is also the prospect of lacklustre trading for at least another year as the New Zealand economy continues to bite hard on retailers of all persuasions.

Having said that the company is paying a rather attractive gross dividend of over 13%, with a net dividend of greater than 15c per share coming up post the March 12 profit announcement.

The prospect of another CEO taking over from Ian Morrice in the latter part of 2011 and changing the current flagging fortunes of the company is a possible bright spot on an otherwise darkish medium term horizon.

The current share price is 8c off a 52 week low of $3.30 and over the last year the stock has rallied from these levels 3 times so a short term gain could be nade as well as a relative bargain for long term investors like me.

Buy on further weakness. I will be looking

Share Price Alert

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Disclosure: I own WHS shares in the Share Investor Portfolio

Warehouse Group Ltd: 2010 Full Year Profit Analysis
Share Investor Q & A: Questions to The Warehouse' Ian Morrice
Long Term View: The Warehouse Group Ltd
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
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Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
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

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Think Bigger
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Think Bigger, By Michael Hill

c Share Investor 2011

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