Showing posts with label Burger Fuel. Show all posts
Showing posts with label Burger Fuel. Show all posts

Friday, December 11, 2009

Burger Fuel Worldwide: 2009 Half Year profit analysis

The Burger Fuel Worldwide [BFW.NZ] 2009 half year profit to 30 September is more of the same from this company, continued and mounting losses.

Revenue is up strongly but so are expenses, and the loss, while down by more than 50% to $NZ 296,000, is still a loss and is difficult to compare with last year's half year loss because that figure could be stacked with IPO expenses and other establishment costs -this is not clear from the accounts - and does include a more fulsome period of new store construction by new franchisees.

Cash reserves have dwindled down to below $1.5 million, from over $2 million in the previous corresponding period. While still conservatively geared at a debt to equity ratio of around 32% that cash balance is going to dwindle if the company is to get back on track and deliver the growth they promised in their July 2008 IPO.

As franchisors the only significant income BFW are currently receiving is their cut of franchisee sales and advertising income. The promised windfall of franchise and management fees are paltry at best.

More money was earned from cash in the bank than franchising and construction fees combined.



Key Points from BFW 2009 Half Year

1. $296,000 loss - down 54%

2. $4.2 million revenue - up 19%

3. Cash reserves down 25%

4. Earnings per share -52c VS -$1.26 last year

5. No new stores added

6. 2 stores in Australia incurring significant losses.

*Download the BFW half year Financials & other docs @ Share Investor Forum - Register free to download.


Burger Fuel Worldwide @ Share Investor


Stock of the Week: Burger Fuel Worldwide

Download full company analysis from Thomson First-Call
Burger Fuel doesn't rule out capital raising
Burger Fuel Worldwide: Closer look at Company Accounts

Analysis - Burger Fuel Worldwide: FY profit to 31/03/09
Burger Fuel: Running on Empty
Burger Fuel leaves investors hungry

Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary

Discuss this stock at Share Investor Forum - Register free




c Share Investor 2009





Wednesday, June 17, 2009

Charlies Group: A Triumph of Style over Substance

There was much fanfare, overwhelming hype and plenty of free publicity when Charlies Group [CHA.NZ] listed on the NZX through the back door in 2005 and that has been the way the company has operated for the last 4 years.


They had Marc Ellis as its largely titular head and Stefan Lepionka in the back room squeezing the juice and running the business side.

Shareholders who got in at the entry point have lost millions and are unlikely to get it back and many of these same people would have participated in the 42 below IPO a few years back expecting Charlies to pay back the same way that deal finally did.

We have learnt that the company is looking at raising capital in some way to enable them to continue to function as a going concern and their original idea to build up the company to sell it off to a major beverage player has failed because they cannot get what they think it is worth in the current economic climate.

Burger Fuel Worldwide [BFW.NZ] which is contemplating capital raising itself, is another one of those flash harries that investors got hyped up in and ended up largely kissing goodbye to the 2 million that was raised from them in that particular IPO in 2007.

These companies all share a sense of style over substance and should be avoided at all costs by those without money to lose and that should be pointed out clearly before virgin investors plunk down their cash.

The fact that these sort of IPOs were pitched to those without much financial nous and got caught up in the hype is a testament to Kiwis lack of financial skill and those that were raising funds were counting on when they targeted the financially illiterate for their hard earned moola.

Fare enough for Ellis & Co to take a big risk in business but to pitch there IPO without spelling out there was a fair chance the business would fail is, once again, a triumph of style over substance.

Footnote: Charlies have just issued a press release to the NZX softening up shareholders for more money.


Charlies Group @ Share Investor

Takeover Documents

Charlies Group Ltd: Asahi make takeover offer
Share Price Alert: Charlies Group Ltd
Share Investor Q & A: Charlies Group CEO Stefan Lepionka
Chart of the Day: Charlies Group Ltd
Charlies Group: A Triumph of Style over Substance
Charlies juicing through Shareholder cash

Discuss CHA @ Share Investor Forum
Download CHA Company Reports

From Fishpond.co.nz



Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz




c Share Investor 2009





Tuesday, December 9, 2008

Burger Fuel: Running on empty

Listed Franchisor Burger Fuel Worldwide [BFW.NZ] results out yesterday were disappointing for shareholders.

Back in September 2007 directors anticipated NZ$50,000.00 in losses per month but losses of NZ$669,000 in the six months to 30 September 2008 were more than double that figure.

Even more worrying, losses have mounted as 2008 continued. If you strip out 2007 IPO costs the losses for the 9.5 months to 31 March 2008 were $83,578.00 per month. This compares to $111,500.00 per month for this latest reporting period.

Hardly a positive trend.

Lets look at revenue for the company to see if that changes the picture.

Surely if losses are more than double company estimates then revenue should be sharply up when we compare the 30 September 2008 revenue with the previous 3.5 month period in 2007?

Yes it is but sadly not more than double.





Burger Fuel @ Share Investor


Burger Fuel leaves investors hungry
Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary



With revenue of $3,518,000 in the six months to 30 September 2008 and $ 2,336,000 for the 6 months to 30 September 2007, it is quite a good lift but hardly the stellar stuff that was shouted from Burger Fuel's advertising pre IPO, because it shows costs have far outstripped income and as I pointed out above these costs appear to be increasing rather than abating.

These revenue figures are based on 4 more stores since listing so this makes income figures look even worse.

Burger Fuel management say the next six months will be about cost containment and they will not anticipate opening any new outlets until well into 2009.

This will clearly be important to stem the franchisors already increasing operating expenses as their franchisees come under pressure from increasing business costs such as labour, ingredients and energy.

Like its bigger listed cousin Restaurant Brands Ltd [RBD.NZ] who had a recent poor last quarter sales, Burger Fuel will continue to struggle in the face of increasing competition, fickle consumer tastes and demands for better service and quality fast food.

Its short company history as a listed vehicle have been wildly disappointing and it looks even further away from any tangible success than it was when it listed mid 2007.

As least there is still their bastard Burger.

Burger Fuel shares were at 38c at close of the NZX at 5.00pm Tuesday 9 December 2008.




c Share Investor 2008





Wednesday, May 7, 2008

Burger Fuel management cagey over company progress


Further to the story about Burger Fuel Worldwide[BFW] signing a master franchise deal with a business in Dubai, I mentioned I was going to ask Josef Roberts, Executive director of the company a couple of questions to flesh out the details of the deal to the market and his investors.

He was very accommodating before the July IPO, granting me an email interview about where the company was going, in some detail.


Here were the questions I put to him yesterday


Hi Josef, I hope you are well.

Interesting announcement today re the Dubai franchise deal. It took me by surprise.

On that note, I wonder if you could inform my readers as to some of the finer points of the deal and some of the reasons why you took the business across the other side of the planet.

Assuming you could answer some questions because the market is speculating.


1: why are you going to develop a new overseas market before establishing the current Australian one?

2: Did the Dubai company approach BF or you them?

3: Are the terms of the master franchise similar to that of individual franchisee agreements in New Zealand?

4: What number of outlets do you see in Dubai?

5: Are customers likely to be locals or expat kiwis/Aussies/Brits etc?

6: How will the BF menu be different in such a unique country?

7: What experience does the Dubai company have being a food franchisor?

8 How is Burger Fuel Worldwide going in terms of revenue created for the Franchise company as a whole and are you on track?

9: How has your experience of your company now differ from what you thought it would be when you initially planned this listed franchising model, have things changed considerably?

10: Is Australia proving difficult to crack, given the amount of competition in Sydney?

11: How has the current credit crises affected your business expansion, if at all, and is the associated economic slow down having any affect on store sales?

12: Finally, where do you see Burger Fuel being in 12 months?


I would appreciate your assistance in informing my readers. There is much google interest on our blog every time you guys have a press release and we have had a handful of Dubai hits today, just as a matter of interest.

Regards, Darren



Josef's answer to my questions


Hello Darren

To paraphrase your own comments about BurgerFuel and me – “Go Figure”.

All the best.

All I can say is it would have been nice to hear some detail about the Dubai deal and where his company might be heading and how it was doing.

My questions were really stimulated by the company and its big leap right across to the other side of the world before being properly established outside New Zealand, in their first overseas market, Australia.

I felt that his investors might like to know the finer points of this move.

As I said above, Josef was very accommodating before the Burger Fuel IPO and I was expecting the same sort of candidness as the company progressed.

I realise his curt response maybe motivated by some of my criticism but after all it is only my opinion and therefore his side of the story would at least balance things.

Nevertheless I still wish him and his company well and hope his lovely burgers(minus the bacon) take off in Dubai.



Burger Fuel @ Share Investor Blog

Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary




c Share Investor 2008






Monday, January 28, 2008

Second stab at Burger Fuel denied

Chart for Burger Fuel Worldwide Limited O (BFW.NZ)

Trading in Burger Fuel shares has been spasmodic at best, since listing on the NZAX
on July 17 2007. They hit a low of 29c earlier this year.



The Burger Fuel(BFW) chart tells a horrible story.

Down 18% today to NZ 42 cents and testing its all time low of 29c.

No operating news yet but sales and profit figures will be coming up in the next month or so.

Some news just at the end of last year though that a Wellington Burger Fuel store was extensively damaged. That would take out a fair amount of revenue.

My efforts to get BF shares have again come to a greasy end.

I tried to put a bid in today at 25 c but was refused by ASB Securities because "it was too low"

The "5% rule" applies, where you cant bid below 5% of what the last sell price was.

That is, even though a bid of 29c was on a buy order a few weeks back and the last sell was above 60c the buy order was allowed to be placed.

The ASB broker told me "someone at the NZX put it through".

I still cant figure out how I'm supposed to get my bid in, for what I think the company is worth, in such an illiquid stock if I'm not allowed to put my bid in how I see fit.

Time may take care of the share price though.


Related reading on the Share Investor Blog

NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary


C Share Investor 2008

Sunday, January 6, 2008

Share Investor's 2008 Stock Picks

As the price of gas to starts to reach for the stars, fixed mortgage interest rates look like they are ready to go double figures, a continuation of the 2007 finance company meltdown set to drag on, and Helen Clark and her merry bunch set to plunder taxpayer wallets again in 2008, this writer is still in a holiday frame of mind.


On that light note then id like to offer my completely unbiased opinion (yeah right) on what my picks are in 2008 for stocks to watch for.

Keep in mind that global stock markets this year are going to get a beating from the aforementioned and a probable recession in the US, and my picks are going to reflect the actual prospects of the companies and not the wider short term global influences mentioned.

My picks are long term, with a bare minimum of 5 years, and have an emphasis on companies with good long term prospects.

Without further ado and out clauses, here are my picks.

Like a lot of other stock pickers poking their heads above the parapet in 2008 I am going to put Fisher and Paykel Healthcare[FPH] at the top of my list.

Unlike its cousin Fisher and Paykel Appliances, FPH has good long term prospects and that is driven mainly by an R and D department that keeps coming up with cutting edge products with good margins that keep the revenues coming in.

Recent positive developments in the USA over increased health provider payments for FPH's sleep apnea products in-home mean this area is a driving force for profit and as new products are developed for the at home market profit looks set to rise.

The only negative is the weak US dollar, which is something quite frankly the company and analysts need to get over.

Pumpkin Patch Ltd[PPL]is on my buying list again for 2008. I have already picked up increased quantities of this 2007 beaten down stock and the short term punishment from slightly weaker global profit margins due to higher living costs means this stock will pick up when these pressures disappear.

Its strong global brand awareness and loyalty to that brand also helps during downturns.

Another retailer suffering from a mammoth stock slide in 2007, Hallenstein Glasson [HLG] is a pick for 2008.

A very well run company that shares the same reasons for its downturn with the likes of Pumpkin Patch and all other retailers.

Already retracing some of its 2007 slide, the stock price will be downwards volatile in the first part of the year and add some value as we come out to Christmas 2008.

Burger Fuel Worldwide[BFW] has heated up the Google box in 2007 and may gain interest as it expands in Australasia in 2008.

An indicator of what the share price will do will be sales figures from the Kings Cross Burger Fuel opened towards the end of 2007.

Indicators are that sales are good.

Like Pumpkin Patch, its strong brand awareness and loyalty will help it prosper long term. Although profit isn’t going to come in 2008.

I’m picking Burger Fuel as my wild card and recommend buying in the 20-30c range.

Mainfreight is another company that I have a shareholding in, and far be it from me to pick yet another already in the Share Investor Portfolio but I wouldn’t have picked it in the first place if it didn’t rate a mention in my 2008 picks.

Mainfreight[MFT]is a very well run company and perhaps more than any other listed on the NZX, management have set it up to succeed long term.

Everything has been set up with company long term sustainability and success in mind, and the pressures that Mainfreight will come under in 2008: increased fuel, wage, and interest rates, will be largely ameliorated because of careful forward planning.

The share price has been beaten down to around NZ$6.50 from a 2007 high of over 8 bucks, so the upside is obvious.

Other 2008 notables for me are:

Sky City Entertainment[SKC] if it isn’t sold it ain’t the end of the world and its new head that starts soon looks promising and has a track record of reorganizing casinos and making them tick.

Telecom New Zealand[TEL] if its new leader can change the whacked out culture of its workers and respond to its current and new customers in a preemptive instead of a reactive way then they have a good shot.

Serious money must be spent on infrastructure in 2008 to move Telecom’s technology into the 21st century.

If Michael Hill International [MHI] can build on its 2007 success, with good indicators for sales in Canada and material efforts to expand into Mainland USA, then the after 10 for 1 split share price of just over NZ$1.10, looks set to hit record highs in 2008.

Rakon’s [RAK] share price was slaughtered from highs over 5 dollars in 2007 and there were a few teething and integration of new business problems that put the foot on the brakes.

Higher than usual Kiwi dollar crosses wiped some profit off the balance sheet but management should focus on the business first before worrying about things they cant control.

A great long term prospect.

Two US stocks that I'm picking for 2008 are Yum Brands [YUM]and Starbucks [SBUX] I like Yum because of its potential for expansion of its operations in China and India and Starbucks for the same reason.

Yum's KFC operation seems to be the star of the show, especially in China, as increasingly wealthy Chinese get the taste for western protein such as chicken and the number of possible units there would dwarf the US store count.

Starbucks had a rough year in 2007 but this former bull star has room left to run in 2008 as its stock price was given a good frothing due to its slowing sales and profit and Asian expansion could put some cream on the lattes as 2008 goes forward.


2008 is going to be a tough year for investors but with the right research and focus on how the business you are going to invest in works, you are going to set yourself up well in the long term.

Like any picks from people like myself, they must be taken with caution and may not be the right ones for you.

My picks come from my own research and I have backed them mostly by plunking down hard earned cash, with the exception of Burger Fuel, Rakon , Telecom and Hallenstein Glasson.

Burger Fuel and Hallensteins are on my radar to add to my portfolio in 2008.

Happy investing for 2008!

Disclosure: I own Sky City, Mainfreight, Michael Hill, Hallenstein Glasson, Pumpkin Patch and Fisher & Paykel Shares.



Share Investor's Annual Stock Picks

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c Share Investor 2008





Wednesday, December 12, 2007

Burger Fuel results and commentary


Image result for burger fuel


Once again Burger Fuel came out on top for Google search results on Share Investor today, so you might have been looking for the profit result that they posted today(see below story for detail)

Image result for burger fuel


But no free lunch, or dividends yet
For BFW shareholders.
Not happy reading but it is early days yet of course.

One of the biggest reasons for the $1.9 million loss for the last 6 months was the 900 thousand odd spent on an IPO to raise a measly 8 million bucks, which management still has just under half of it in the bank left.

Having the $1.9 million "combined" loss stated at the bottom of the announcement isn't a good indicator for clear disclosure in the future.

The headline figure should be $1.9 million, not $1.3 million because the company is incurring the cost of the IPO regardless of management differentiating "pre" and "post" float numbers right at the bottom of the press release.

The announcement is titled as a 6 month result and last time I looked at my own personal accounts I had to take into account all figures positive or negative, even though I might have wanted to ignore any overdrafts.

According to their own figures the company's "one-off" costs of the IPO and a store opening in Sydney sent the loss higher than expected.

All that cash in the bank is very tempting but not much considering the level of expansion the small company seek in the next financial year, 4 more stores.

The positive news is that same stores sales were up 4% and that really is the only meaningful figure to comment on as we don't have a previous year revenue figure on hand for a comparison.

Josef Roberts should have some pause for optimism considering the same store figures on which Burger Fuel, as the Franchisor, reaps royalties from individual store sales.

Shares were up 4c to 64c on less than $700 volume.




Burger Fuel Worldwide @ Share Investor


Burger Fuel Worldwide: Losses Mount

Burgerfuel: Dubai Marketing Hype!!!
Burger Fuel 2010 Full Year Profit Analysis
Burger Fuel 2010 Full Year Profit Preview
Burger Fuel Worldwide: 2009 Half Year profit analysis
Stock of the Week: Burger Fuel Worldwide
Download full company analysis from Thomson First-Call
Burger Fuel doesn't rule out capital raising
Burger Fuel Worldwide: Closer look at Company Accounts

Analysis - Burger Fuel Worldwide: FY profit to 31/03/09
Burger Fuel: Running on Empty
Burger Fuel leaves investors hungryBurger Fuel management cagey over company progress

Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary

Discuss BFW @ Share Investor Forum - Register free



c Share Investor 2007









BFW
12/12/2007
HALFYR

REL: 1419 HRS Burger Fuel Worldwide Limited

HALFYR: BFW: Burger Fuel Worldwide Ltd Preliminary Half Year Results

Burger Fuel Worldwide Limited

Results for announcement to the market

Reporting Period 3 and a half months to 30 September 2007
Previous Half-year Reporting Period N/A

Amount (000's) Percentage change
Revenue from ordinary activities 1,400
Profit (loss) from ordinary activities after tax attributable to security
holders (1,355)
Net profit (loss) attributable to security holder (1,355)

Interim/Final Dividend Amount per security Imputed amount
per security

Record Date -
Dividend Payment Date -

Comments: See attached Directors commentary and following

To be followed by the balance of the information required in the report
pursuant to Appendix 1.

BURGERFUEL WORLDWIDE RESULTS TO 30 SEPTEMBER 2007

The directors of BurgerFuel Worldwide Limited (BFW) today reported an
un-audited loss of $1.35 million for the three-and-a-half month period to 30
September 2007, of which $991,000 represented costs associated with the
company's Initial Public Offering (IPO).

Of the remaining loss, the amount of $203,000 related to BFW's investment in
Australia, where the company opened its Kings Cross store on 7 October 2007.

BFW results for period 14 June to 30 September 2007

$(000's)

Operating Revenue 1,400

Operating Expenses * (2,755)
Loss (1,355)

* includes $991,000 of non-recurring costs associated with the IPO.

Directors say the loss is in line with the Boards' expectations after costs
associated with the IPO, as outlined in the company's prospectus.

They say continued losses of $50,000 per month are anticipated, but expect
these will progressively reduce as additional stores are opened.

Four additional BurgerFuel stores have opened since the incorporation of BFW
on June 14, one of which is company-owned. Total stores now number 24, of
which two are in Sydney, Australia. Of the 24 stores two are company owned
and the remaining 22 are franchised.

A further four new BurgerFuel stores are planned to open in this financial
year, at sites currently under negotiation.

BFW has four main areas of revenue: up-front franchise fees, on-going royalty
fees, sales of certain proprietary goods and store income from company-owned
stores.

System sales up 40%

For the 6 month period 1 April to 30 September 2007 (which included
pre-listing trading)

BurgerFuel's total system sales for all stores, from which BFW derived
franchise royalties were up 40% from $7.8 million to $10.9 million compared
with the previous corresponding period. Comparative results for same store
sales for the 6 month period were up 4%.

Following the company's NZAX listing, management has been firmly focused on
new store development and continued sales improvements and that in accordance
with the prospectus, BFW will continue to invest and expand the chain in New
Zealand as well as other potential markets.

To obtain an understanding of the overall consolidated trading results of the
BurgerFuel group of companies pre and post IPO for the 6 month period to 30
September 2007 the results are set out below:

Combined results pre and post IPO for the 6 month period, 1 April to 30
September 2007

($000's)

Revenue 2,336
Expenses * (4,284)
Loss (1,948)

* These results include non-recurring expenses of $1,321,000 for the
IPO.

A further amount of $298,000 relates to the costs associated with entry into
Australia.

BFW was incorporated on June 14, 2007. It raised $8M in its IPO. Funds have
been used for IPO costs, repayment of all loans and further capital
investment, such as the Kings Cross store.

BFW's cash reserves as at 30 September were $3,987,000. The company has no
borrowings.

For further information contact:

Josef Roberts
Director

021 444-786


Friday, December 7, 2007

Share Investor Friday Free for all: Edition 13

Bollard sits on his hands

http://www.illustr8.co.nz/images/Editorial%5Calan-bollard.jpg

Allan Bollard in a more animated frame of mind.


Allan Bollard rattled his sabre again this week.

Keeping the cash rate at 8.25% while telling us inflation was a risk down the road.

Well helloooo! could one of the reasons to the risk of inflation be your 4 rate hikes this year and multiple ones over the last few years?

The short answer is yes but the less interesting answer is that Bollard is clearly out of his depth.

Barely able to see over the rims of his accountant style glasses, he rarely has the vision to see further than what happens from day to day..

Instead of dropping the cash rate, as he should have, he risks putting the New Zealand economy at the sort of risk the Labour Government has put it under for the last 8 stifling years.

Labour did it with world record breaking high taxes, removing cash and investment from the economy and Bollard did it with the worlds highest interest rates outside the worlds other banana republics, ditto removing cash from street level and strangling productive investment, savings and business.

World economies are cutting rates to stimulate economies and Bollard sits on his hands. It looks like he will only move once the economic cycle we are in is in the middle of a meltdown.


The Warehouse wont be sold for a bargain


http://www.ezgo.co.nz/images/default/galleryimages/silvia%20park%20warehouse.jpg

Warehouse extra store, one of only three


It looks like it is all on for young and old in the fight for The Warehouse.

After the recent High Court decision granted New Zealand's Foodstuffs and Australia's Woolworths the right to bid for the general merchandise retailer the two prospective buyers have wasted no time in talking to Warehouse management.

Competition between the two to bid for the company is going to be intense and this writer has a $NZ 50000.00 bet that the bidding is going to be explosive.

There is talk of Foodstuffs teaming up with a private equity player to make a bid but the star likely to shine through is Woolworths. It has a very strong balance sheet, excellent cash flows and a history of paying good money for assets it really wants.

The share price has already done the impression of a Nasa rocket by taking off from below 5 bucks last week to close at NZ$6.65 today.


The Canadians Fly in, again.

In the long running saga that is the Auckland International Airport merger/takeover, yesterday news that the Canada Pension Plan Investment Board has changed the terms of its proposed amalgamation with the airport, stimulating more interest in the company's shares. CPPIB would reduce the convertible note component and increase the value of the ordinary share.

http://upload.wikimedia.org/wikipedia/commons/thumb/f/f8/Auckland_airport_international_terminal.jpg/800px-Auckland_airport_international_terminal.jpg

Part of the main Auckland international airport at Mangere

It is offering a convertible note, valued at $2.75, an ordinary share valued at 70.5c and 20c cash.

The proposal will be put to airport shareholders only if CPPIB's $3.66 a share all-cash partial takeover bid for 40 per cent of the airport is successful.

The proposed amalgamation, which requires the support of 75 per cent of airport shareholders, is the second part of the CPPIB's two-pronged scenario to negotiate a restructure of the airport's balance sheet to realize tax benefits.

That offer opens on December 14 and closes mid-March.

The possibility that the board will recommend the bid to shareholders could be a little dodgy considering the pedigree of some of its board members.

Lloyd Morrison or John Brabazon have voiced their opposition to such deals over the last 6 months or more of this long opus and the two council shareholders look reluctant to sell.

Who the hell knows really. The sale process of the airport has only been trumped in its complexity and opaqueness by the sorry tale of Sky City Entertainment and its managements' dilly dallying over bids for the casino company.


Hobson's choice


http://www.kiwisaver.org/assets/2007/5/9/GirlwithKiwifruit.JPG

According to NZ Government stats the Kiwisaver super scheme has 300,000 participants that have "chosen" to "enroll" in it.

What is left out of any analysis is that the scheme is an opt out one rather than opt in so the bulk of those 300,000 haven't done anything. They are merely too lazy to opt out.

Micheal Cullen, our out of his depth Minister of Finance, of course trumpets this as a great success but as usual leaves out the details when they don't stand the scrutiny of logical argument and clear thought processes.

Of course this is the chap who has spent the last 8 years telling New Zealanders that tax cuts don't stimulate economies but is going to hand our money back to us in election year 2008.

Good luck balancing your check book Mr Cullen.

I'm no big fan of this harebrained state controlled and controlling scheme because it is expensive and tax inefficient but it will benefit shareholders in New Zealand listed companies.


Burgers going for half price


http://nzdaisuki.com/yellowpage/upload_img/Burgerfuel.jpg

In Burger Fuel news, you guys out there love Burger Fuel:

According to Google information released this week, Burger Fuel was the subject of the most internet searches of any New Zealand listed company.

This is no surprise to me because I have known this little tidbit since the company listed back in July. Its the biggest search term on my blog as well, followed by the worlds credit problems and Pumpkin Patch Ltd.

Incidentally the share price still languishes at 60c and is thinly traded, with a massive $150 going through today.

Its still on my watchlist though.


NZX Market Wrap & commentary

6:27PM Friday December 07, 2007
By Melanie Carroll, NZ Herald


New Zealand shares made a late rebound today to recover the ground lost after last week's downgrade by international share index compilers MSCI.

The benchmark NZSX-50 index closed up 49.4 points, or 1.2 per cent, at 4092.9, its highest in over a week. Turnover totalled $109 million, and rises outnumbered falls by 58 to 38.

Lines company Vector was the standout stock, recovering to a two-month high of 251, up 6c or 2.5 per cent, from 218 last week.

"The stock always looked cheap anyway but particularly post-the MSCI selldown the market is starting to focus on fundamentals behind the stock, and the fact that there was effectively a profit upgrade in recent times," Macquarie Equities NZ investment director Arthur Lim said.

Other blue chips to rebound were Telecom, up 13c to 444, Auckland Airport, up 7c to 289, Fletcher Building, up 29c to 1169, Fisher & Paykel Healthcare, up 11c at 329, and F&P Appliances, rising 6c to 340.

Sky City was up 6c at 491, Sky TV rose 3c to 566, and Contact Energy slid 17c to 847.
The compilers of the MSCI indexes, which guide international trading and portfolio composition, downgraded New Zealand and are removing five of the top-10 stocks due to lack of liquidity and market capitalisation.

Remaining in the index are Telecom, Fletcher Building, Contact Energy, Auckland Airport and Sky City.

The Warehouse
was up 10c at 664, having jumped over 12 per cent since the High Court overturned a Commerce Commission ruling blocking supermarket chains Foodstuffs and Woolworths from bidding for the retailer.

"If you add back the special dividend of 35c, it means that the price is now the equivalent of $7. Clearly the market is saying it is unlikely that the Commerce Commission is going to appeal, and it follows news in Australia that discussions have started taking place between the different parties," Mr Lim said.

Air New Zealand was up 3c at 182, Nuplex gained 10c to 700, Infratil was up 7c at 297, Mainfreight rose 11c to 721, and Ryman Healthcare was up 2c at 212.

Freightways fell 6c to 374, Pumpkin Patch was down 5c at 265, NZX fell 5c to 925, and ING Medical Properties was down 2c at 122.

Among dual-listed stocks, ANZ jumped 50c to 3225, Westpac was up 35c to 3265, AMP rose 16c to 1192, and Lion Nathan rose 17c to 1090.

NZPA


Disclosure: I own Auckland Airport, The Warehouse shares

C Share Investor 2007