Thursday, June 4, 2009
Richard Worth: Goff's posturing hypocritical to the max
Posted by Share Investor at 1:02 PM 0 comments
Labels: political scandal, Richard Worth
Monday, June 1, 2009
Stock of the Week: The Warehouse Group
In this Stock of the Week we are going to be looking at New Zealand's dominant general retailer The Warehouse Group [WHS.NZ].
Its a stock that hasn't been in the news recently although it probably should be, for a number of reasons, the least not being a sale process that appears to be in some sort of credit crises limbo.
It has been trading at a pretty steady share price for the last 6 months (marking time until news about its sale is forthcoming) at a range between NZ$3.00 - $3.75 and represents value whether you want it for a quick buck for its probable sale or if a sale falls through and you want a good solid company for the long term portfolio.
On its long-term merits the company has a dominant position in its sector of the retail market and a great cash flow that helps contribute to a gross dividend north of 8%. Spectacular in these days of 3-4% returns for term deposits or 5-6% for rental property.
Retail is struggling these days but that isn't going to last forever and The Warehouse is coping well with the current recession. It historically does well in recessions because of its low price perception.
The company has recently met its own forecast for profit in its March release of its 2009 interim profit and its forecast for FY 2009 is on track to meet last years profit of $90.76 million.
Good luck!
Disclosure - I own WHS shares
Stock of the Week series
Fisher & Paykel Appliances
The Warehouse Group @ Share Investor
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
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
Share Investor Forum-Discuss this topic
Related Links
2009 Interim Profit Webcast
Go shopping at The Warehouse
Related Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours
c Share Investor 2009
Posted by Share Investor at 9:59 AM 0 comments
Labels: Stock of the Week, The Warehouse Group, WHS
National's Budget like watching paint dry, Labour's would have led to economic disaster
Posted by Share Investor at 8:39 AM 0 comments
Labels: 2009 budget, economy, michael cullen, National Party
Freightway's Capital Raising more of the same crap for small shareholders
I have been moaning, bitching and hitting my head against a brick wall recently because of how totally unconscionable a number of NZX listed companies have been towards their shareholders when it comes to the flurry of capital raisings that have happened over the last few months.
Scant little care and only lip service has been given to small shareholders like you and me.
The three capital raisings that I have participated in so far : Sky City Entertainment [SKC.NZX] , Fletcher Building Ltd [FBU.NZX] and Freightways Ltd [FRE.NZX] have all favoured the larger shareholders or in fact recent interlopers who haven't been shareholders at all. They received concrete shareholdings at a definite price, without having to stump up "lost cash" that stays in someone else's bank account until credited back to the recipient with their meagre allotment of shares.
Small shareholders have had to stump up the maximum amount of cash to get a scaled down number of shares at a price they are unsure of until after the offer is closed.
The latest stinker has been the Freightway's share offer that wanted NZ$5,000,000.00 from small shareholders but was over subscribed by 1040%!
As Kelvin Hartnall points out institutions got a great deal:
The total amount provided by small investors was $57 million, which is more than the total capital raising combined. This shows that it was completely unnecessary to dilute the share-holdings by giving institutions such a great deal. Essentially the institutional investors have received a great bargain at the expense of small investors.
I sent in the maximum $12500 and will get less than 500 shares. I needed around 1200 to avoid dilution. Here, from Kelvin Hartnall again is an approximate breakdown of what Freightway's shareholders can expect to get some time next week:
Aggregate pool | $5,000,000 |
Number of share-holders | 6,423 |
Pool available per share-holder | $778.45 |
Issue price | $2.44 |
Shares available per share-holder | 319 |
This favouritism to the big boys is more of the same we small guys have expected and we have little protection from securities law, the NZX or any independent body. Bruce Sheppard from the Share Holders Association has been vocal as usual but has been met with the typical stoney silence or bullshit from company management along the lines of "well that is the best we can do in this economic environment".
Clearly that is wrong. Share offers for every good company that has made one so far have been wildly over-subscribed, so the moola is out there.
Other companies have at least made an attempt to even the financial playing field in their capital raisings by using rights issues to raise money. As rights issues are structured, a non -renouncable rights issue is one where shareholders are given the right to purchase new shares according to the number of shares they hold or they can forgo those rights if they wish. On the other hand a renouncable rights issue would allow shareholders to trade those rights to others should they not want to take up the rights offer.
In my opinion a renouncable share offer is the fairest way of raising capital because you get to buy in proportion to the shareholding you have and if new shareholders wish to participate in the capital raising they can buy the rights off you.
After that if there is a capital shortfall then and only then should institutions get a crack at stumping up some cash and the incentive to offer them a better deal, at the back end, would not only be appropriate but more than warranted.
Related Share Investor Reading
- Sweetheart deal for Fletcher Building's friends makes small investors sick
- What 11 years of Stockmarket investing has taught me
- The NZX continues to lose ground with retail investors
- Sky City CEO doubles down
- More Moola Please!
- Are you experienced?
- Sky City share offer confusing and unfair for small shareholders
Relevant Links
Kelvin Hartnall's Blog
NZ Shareholders Association
NZX
Freightways @ Share Investor
Share Investor's Total Returns: Freightways Ltd
Share Price Alert: Freightways Ltd 3
Share Price Alert: Freightways Ltd 2
Freightways Ltd: 2011 Half Year Profit Commentary
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
NEW - From Fishpond.co.nz | Think Bigger, By Michael Hill
Join the Share Investor Facebook Group
c Share Investor 2009
Posted by Share Investor at 12:01 AM 2 comments
Labels: capital raising, FBU, fletcher building, FRE, Freightways, SKC, sky city entertainment