Long Term View: Vector 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.

Vector Ltd [VCT.NZX] has been a poor investment for shareholders since its August 2005 listing at $2.38c per share . With 61c in net dividends and 30% more in tax credits gives (see NZX chart above) VCT a 15% 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 5 year listing of VCT an annual net return of 3%.

This compares to an annual return from the average of all NZX indexes of minus 2%.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita 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
Mowbray Collectables Ltd
NZ Oil & Gas 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
Trustpower Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Wakefield Health Ltd


Vector Ltd @ Share Investor

Vector sale decision hangs on political knife edge

Discuss VCT @ Share Investor Forum
Download VCT Company Reports


Recommended Amazon Reading


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c Share Investor 2010

Long Term View: Trustpower 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.

Trustpower Ltd [TPW.NZX] has been a n excellent investment for shareholders since its April 1994 listing* at 75c per share . With $2.29 in net dividends, 30% more in tax credits (see NZX chart above) a 2:7 share buy back in 2003 and a 2:1 share split in 2004 gives TPW a 1220% 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 16 year listing of TPW an annual net return of 76.25%**.

This compares to an annual return from the average of all NZX indexes of 12.5%

* Adjust fig
** Returns exclude dividends from 1994-1998





Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita 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


Trustpower @ Share Investor

Discuss TPW @ Share Investor Forum
Download TPW Company Reports




c Share Investor 2010

Michael Hill International Ltd: 2010 Full Year Profit Analysis

Michael Hill International Ltd [MHI.NZX] delivered a strong 2010 full year profit today.

Underlying net profit of $26. 5 million was up by approx 60% on the 2009 full year profit of approx $16.5 million (excluding the one-off tax gain from 2009 for comparison to the 2010 figure) Significantly though the 2010 profit was just 0.7 million short of the 2008 full year net profit of $25.2 million.

Revenue was up 7.6% to $443,710 million on 2009 revenue of $411.999 million . Significantly half of this increase was from US stores which sales for were not included in 2009 sales figures.

Key Points

- Operating revenue of $443.331m up 7.6% on same period last year
- Same store sales 5.2% up on same period last year
- Net profit after tax of $26.509m. Last year's net profit of $66.788m included a deferred tax credit of $50.197m.
- Net debt of $45.437m at 30 June 2010
- 5 new stores opened during the twelve months and 12 closed including 8 in the US
- Final dividend of 2.5 cents per share up 66.7%


New Zealand and Australian stores did exceptionally well while Canada and the North American units continued to drag on the whole group.

Big losses were incurred in the United States while the Canadian stores increased losses from 2009.

Net debt increased by nearly $10 million to $45.4 million indicating costs involved in the North American market were still making a negative impact on the bottomline.

All important retail margins were under pressure but significantly same stores sales were up by over 5% which in this economic and retail climate is exceptional.

Management at MHI seem a little vague about the coming year for the company - just like most NZX listed companies have been over the reporting season - but what they have indicated is that they are "confident in the continued growth and profitability of the Group".

I am positive too but the reality is that 2011 is going to be just as tough as 2010 (and maybe even tougher) and their North American operations are going to continue to lose money in an otherwise solid Australasian business.

Disc I own MHI shares in the Share Investor Portfolio


Michael Hill International @ Share Investor

Long Term View: Michael Hill International Ltd
Michael Hill International: 2010 half year profit commentary
Michael Hill Makeover kicks off
Michael Hill International: 2009 full year profit commentary
Toughen Up: What I have learned from the hard times
Stock of the Week: Michael Hill International
Michael Hill TV3 60 Minutes Interview
Long VS Short: Michael Hill International
Marketwatch: Michael Hill International
Michael Hill's profit shines
Michael Hill takes on the windy city
Why did you buy that stock? [Michael Hill International]
MHI has defined growth strategy
MHI profit sparkles

Discuss MHI @ Share Investor Forum

Download MHI Company Reports


Buy Toughen Up: What I've Learned About Surviving Tough Times



Toughen Up - Fishpond.co.nz


c Share Investor 2010

Financial Adviser Alert: Murray Weatherstone

The loss of money in general for people investing in finance companies that have collapsed over the last 3 years pisses me off, especially when those people have been advised by supposed experts to invest in such rubbish.

When you know people who have been put in this situation - and I think most people do - then the vitriol that I feel starts to unsettle my stomach, make my heart tighten and leaves a bad taste in the mouth.

It gets bloody personal.

I have such a case to relay to you dear reader about a "financial adviser" and friend of mine who has lost a considerable sum of his or her life savings thanks to this persons advice.

I gave this person an opportunity to redeem himself before outing him but he wanted to hide behind the privacy act.

The advisers name is Murray Weatherston from Financial Focus (NZ) Ltd.

He advised my friend who is in his/her 70s to invest in dodgy companies (and they have always been dodgy) Hanover, St Lawerence, Dominion Finance and a couple of other finance companies.

All have gone bust.

We are talking about $50,000 per finance company and my friend has lost most of it.

He even advised him/her not to sell his/her Allied Farmers Ltd [ALF.NZX] shares when Hanover was subsumed into that company and the shares were trading at about 15c. He/She would have got back $20000.00 of his/her money then but the shareholding is now worth about $3500 and ALF is likely to go belly up before year end.

I warn anyone who is looking at investing money to do their own research and if they are looking for an adviser try and get a reputable reference from a friend and do your own checking on them.

Mr Weathersone should be avoided at all costs for his track record lacks credibility. My friend is not the only person that he has given similar advice.

You have been warned.


Recent Share Investor Reading

• Michael Hill International Ltd: 2010 Full Year Profit Analysis
• Mainfreight Ltd: 2011 1st quarter profit Analysis
• Sky City Entertainment Group: Australian Acquisition on the Cards?
• Compulsory Super fails on all fronts
• Fletcher Building Ltd: 2010 Full Year Profit Analysis
• Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis

Discuss this topic @ Share Investor Forum







c Share Investor 2010