Michael Hill TV3 60 Minutes Interview

I just watched the Michael Hill interview on TV3's 60 Minutes.

I know little about the man but the usual stuff: he bought his first Jewelry shop in the late 1970s when his house burned down. He was 43.

Along the way he wrote down his goals that he would have x number of Michael Hill International [MHI.NZX] stores by a particular date. He has achieved every goal he set in that respect and now has well over 200 stores in New Zealand, Australia, Canada and from late last year the USA.

His future goal is to have 1000 stores by 2020, with the bulk of them being in the United States.

His recipe to get there is to brand himself and his company as "desirable" brand that everyone would want -a tough proposition in these tough times considering that other luxury brands are floundering with sales drops of up to 50%.

The image change has started in Australasia, with flash new stores that sell cut price jewelry as they traditionally have but alongside that higher end bling and Michael Hill branded watches and his own perfume line.

He seems very excited about current economic conditions, seeing it a an opportunity rather than a curse. The opportunity is, as he sees it, is that these dire conditions will allow him to reach his goal of 1000 stores just that much sooner, and cheaper.

I think he is going to get there.




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c Share Investor 2009

Cadbury's chip off the old family block & lose customers

It has been 5 minutes since my last confession, I am chocoholic. I don't however need help with that.

The following is only serious if you love chocolate.

What I do need help with is Cadbury's decision to change package size design and formula for their range of family sized block chocolate range.

Previously 250g, these family blocks now range from 190 grams for the "chrunchie bar" block to 235 grams, all at the same price.

The dairy milk block is 200g and Carramellow 220g for example. 

Looking at a old 250g Carramellow next to a new one today I noticed that the were the same size. 

Why is that you ask?

Well the new blocks are packaged in thick cardboard instead of paper and aluminum - how sneaky of Cadbury.

I noticed shoppers looking at the new blocks with confusion and then going down to the Whittakers display to buy different flavours, all in the same size pack don't you know!

Also their chocolate is now made with vegetable fat rather than animal fat - that ain't chocolate anymore folks its a cocoa drink with water.

After calling 0800 Cadbury to complain, the chick there told me their family block had been different sizes for 20 years ( PR bollocks!) and that I was mistaken -hey I told you I was a chocoholic, I know my chocolate baby.

Whittaker's is who I will be buying my chocolate from now on -less confusing and they are made in New Zealand instead of Cadbury's blocks that are made in OZ.

A glass and a half of milk per block?

Not anymore.

c Political Animal 2009

(UPDATE) TVNZ Follows China with Wendy Petrie censorship

           A picture of said fist pump

I wasn't going to post the Wendy Petrie (dish?) Youtube clip where she punches the air after David Bain trial coverage , just like the synapses in her little blond head are doubtless doing the same, until TVNZ got all high and mighty about it because they wanted the clip removed.

This was apparently due to the fact that it harmed the State broadcasters "image" - they mean the image of a left leaning muck-raker that spoon feeds its viewers with opinion dressed as fact.

So here for your enjoyment is the offending clip. It is  not viewable from the Youtube website which says the clip "cannot be view from your country" because TVNZ have come down on them.

Guess they cant report on China doing the same with the internet?

Doesn't Wendy's hair look great though?!

c Political Animal 2009

Stock of the Week: Contact Energy Ltd

In this Stock of the Week I am going to look at the electricity generator and retailer Contact Energy Ltd [CEN.NZ]

The company has had short-term profit speed bumps, with another profit downgrade out today, but long-term the company will continue to grow its profit.

A part of a quadopoly, its generation assets alone should put it in anyone's bottom draw. Its attractiveness in today's turbulent stockmarket background made it one of my picks back at the end of last year and the solid nature of its profit, during an economic downturn and in better times should make it the backbone of anyone's portfolio.

There is another good reason to own the stock, especially if you have a short financial attention span. Origin Energy, Contact's majority owner, is likely to make another play at getting control of the whole company. Origin would have to pay close to double today's market capitalisation.

Beware though, there are drawbacks to owning shares in the company-the management, inside Contact and those that hold the purse strings at big daddy Origin are awful managers of this asset.

Yes a monkey could run an electricity company and that is exactly what you get with these guys but they will always make money under good and poor management.

Good luck!

Disclosure - looking at buying


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c Share Investor 2009