Stock of the Week: Auckland International Airport

This Stock of the Week is a culmination of a number of additions to a stock in my portfolio that started from an original purchase of 1000 in 2006.

Auckland International Airport [AIA.NZ] makes up a bigger part of my portfolio this week as I almost doubled my holding to 5000 shares when I bought 2000 yesterday, at the 52 week low no less -that wont last, my purchases always dip after I buy in.

The share price closed at $1.53 today, close to the 52 week low of $1.51, still a bargain in my humble opinion and that is the main reason I picked it this week.

The share price reached a high above $3.60 less than 2 years ago and at less than half that price now it has a gross return of over 8% on offering, good considering returns on any other asset class these days.

The company is doing OK during the economic downturn, with a relatively stagnant profit and will perform to expectations once the economy recovers.

I like the company and bought more because of its monopoly status and the fact that several parties have taken large stakes in the prospect that the new National Government will be more relaxed to foreign ownership.

The Auckland Supercity's arrival in less than 2 years also puts the question of council ownership of airport shares up for grabs.

Above all the company is a good long term prospect for profit and therefore an increase in stock price.

Good luck!

Stock of the Week Series

Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances

Auckland International Airport @ Share Investor Blog

Long VS Short: Auckland International Airport
Auckland Airport needs main focus on its core business
Marketwatch - Auckland International Airport
Why did you buy that stock: Auckland International Airport
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?

Discuss this stock @ Share Investor Forum

Related Amazon Reading


How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World's Greatest Value Investor by Timothy Vick
Buy new: $17.21 / Used from: $0.99
Usually ships in 24 hours


c Share Investor 2009

I'm Buying: I can't resist a Bargain

I couldn't help myself and took the plunge again today. I bought some additional shares, Auckland International Airport [AIA.NZ] and Michael Hill International [MHI.NZ].

I resolved some time back that I would put a ceiling on my share buying but decided that share prices for these two stocks were getting very attractive and know I will regret not buying when they are cheap.

I bought an additional 2000 AIA in April for $1.70 to add to my original long term holding of 1000 and was getting very excited about the stock again in May, so today's low share price was a no brainer

I picked up two small parcels and may get some more if they get cheaper. I added 2000 AIA shares @ NZ$1.51 to my current 3000 holding and picked up 7000 more MHI shares @ 63c to take my total holding of that stock to a nice round 10000.

Here are my reasons for buying MHI and AIA.

I am still in the mood to get additional Sky City Entertainment Group [SKC.NZ] but think they could get cheaper still, finishing up 5c to $2.63 today and looking at Freightways Ltd [FRE.NZ] to dip below the $2.44 mark before taking the plunge there.

I am as pleased as punch at my shiny new purchases.


Michael Hill International @ Share Investor Blog

Michael Hill: Interview with Ian Fraser
MICHAEL HILL - Toughen Up: What I've Learned About Surviving the Tough 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 this Topic @ Share Investor Forum


Auckland International Airport @ Share Investor Blog

Long VS Short: Auckland International Airport
Auckland Airport needs main focus on its core business
Marketwatch - Auckland International Airport
Why did you buy that stock: Auckland International Airport
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?

Discuss this stock @ Share Investor Forum

Related Amazon Reading


Security Analysis: The Classic 1934 Edition by GRAHAM
Buy new: $37.80 / Used from: $23.10
Usually ships in 24 hours


c Share Investor 2009

Stock of the Week: Sky City Entertainment Group

This Stock of the Week is all about self interest, no not really, well maybe, nah, you be the judge.

Sky City Entertainment Group [SKC.NZ] makes up a large part of my portfolio by far but my main reason for including it this week is that the stock price has fallen below the recent capital raising price of NZ$2.61.

The share price closed at $2.58 yesterday, close to the multi-year low of $2.54.

It could go lower and that is the hard thing to pick, just when to buy on weakness. As I have said before I am interested in buying more because I got my shareholding diluted in the capital raising.

The stock is currently paying a gross dividend of over 12%, subject to a 20% lower dividend payout come full year profit announcement late August but that represents good value considering profits are holding up well to last years figures -a rarity in profit results and company health over the last year of the current economic crises. They are also likely to perform well over the medium term.

As I said there could be some more downwards pressure on the SKC share price to come (I haven't seen anything material for the recent drop) so best if you are interested in buying take a close look at what is happening before you pounce.

I hold the stock at a cost of below $1.90 per share.

Good Luck!

Stock of the Week Series

Reprise 4: Contact Energy Ltd
Reprise 3: Contact Energy Ltd
Delegats Group Ltd
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
Restaurant Brands
NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances


Sky City Entertainment Group @ Share Investor

Stock of the Week: Sky City Entertainment Group Ltd
Sky City set to lose National Convention Centre bid
Sky City Entertainment Group: Australian Acquisition on the Cards?
Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis
Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
Sky City Entertainment Group Ltd: Download full Company analysis
Sky City 2010 full year profit looking good
Long Term View: Sky City Entertainment Group Ltd
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year
Sky City Entertainment Group 2010 Interim Profit Review
Sky City to focus on Gaming
Sky City debts levels now more manageable
Insider Trading on Sky City shares
Sky City Profit Upgrade: Always on the Cards
Sky City's Current Cinema "Boom" a Horror Story in Disguise
Stock of the Week: Sky City Entertainment Group
Are Insiders selling Sky City Stock?
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City share offer confusing and unfair for smaller shareholders
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Sky City Convention Centre @ Share Investor

Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
SKC Convention Centre power-point slide illustrations & SKC submission to Auckland City Council

Discuss SKC @ Share Investor Forum

Download SKC Company Reports

Recommended Fishpond Reading



Buy The Intelligent Investor & more @ Fishpond.co.nz




c Share Investor 2009

Seppuku looking like an attractive alternative to doing nothing

I am not asking for a ritual Seppuku that originated from Japanese Samurai Swordsmen and is still practiced occasionally by shamed Japanese CEO's today but bloody hell I would like at least an attempt at showing responsibility and least some sense of shame when our business leaders do wrong. (gee I have been writing some negative stuff over the last few days - I will be back to stocks next column, I promise)

New Zealand leaders, especially the CEOs of our listed companies are renown for not taking responsibility for making mistakes and costing shareholders precious dollars and company reputations, in fact some have made an art of the practice.

Our company and cultural history is unfortunately littered with a very long list of them.

I have one such man in my sights for special attention, John Bongard from Fisher & Paykel Appliances [FPA.NZ]

When the company announced a few days back the appointment of two new board members from their largest shareholder and recent savior of the company from collapse Haier, one might have expected JB to take a running leap off a short board table and announce he would be taking early retirement from his CEO position.

It seems that it s not to be but that is not unusual in these days of avoidance of responsibility

John Bongard borrowed too much money too quickly to move the New Zealand domiciled and created company to overseas manufacturing bases and buying an overpriced European appliance maker a few years ago with borrowed money certainly didn't help -sure expand, but do so in a financially prudent and methodical manner without putting your company and your shareholder's moola at risk.

The thing is you eventually have to pay the money back or default on your loans as FPA did.

Go on, while I'm having a bitch I should be having a go at the rest of the board as well because they voted along with JB.

Lets hope the two Chinese gentlemen that have just put their feet under the board table can sort out the bottom drawers from the top loaders.

The company will simply limp along in the same hopeless direction they have under Bongard if they don't.


Recent Share Investor Reading

• Bruce Sheppard: Mark Weldon - "The Sherrif of Nottingham"
• List of Bruce Sheppard's top NZX listed company debt worries
  
• Cadbury could learn a thing or two from 1980's Coca Cola experiment
  
• Mainfreight Annual Report Packs a Punch
• Pumpkin Patch's North American Downsizing a Prudent Move
  
• Michael Hill: Interview with Ian Fraser

Discuss this topic @ Share Investor Forum


Related Amazon Reading


Managing by Accountability: What Every Leader Needs to Know about Responsibility, Integrity--and Results by M. David Dealy
Buy new: $24.95 / Used from: $20.03
Usually ships in 24 hours


c Share Investor 2009