Sky City Entertainment 2008 Full Year profit results

SKYCITY Entertainment Group 2008 Annual Result Monday 25 August 2008.

2008 Full Year Result Presentation

Media Release

NZX Announcement

Financial Statements

Result Briefing Webcast

FLYR: SKC: Summary full year to 30/06/08 $49.9m ($98.4m) -49.3% 10.5 cps

SUMMARY OF PRELIMINARY FULL YEAR ANNOUNCEMENT

Name of Listed Issuer: SKYCITY Entertainment Group Limited

For full-year ended: 30 June 2008

CONSOLIDATED OPERATING STATEMENT
Current Full Year NZ$'000; Up/Down %; Previous Corresponding Full Year
NZ$'000

Total Revenue:
$818,847; up 0.3%; $816,097

OPERATING SURPLUS BEFORE UNUSUAL ITEMS AND TAX:
$145,782; up 10.8%; $131,555

Unusual items for separate disclosure:
$60,000 Cinemas write-down; $0

OPERATING SURPLUS BEFORE TAX:
$85,782; down 34.8%; $131,555

Less tax on operating profit:
$36,534; up 10.3%; $33,125

OPERATING SURPLUS AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER:
$49,856; down 49.3%; $98,402

Extraordinary items after tax attributable to Members of the Listed Issuer:
$0; nil%; $0

OPERATING SURPLUS AND EXTRAORDINARY ITEMS AFTER TAX ATTRIBUTABLE TO MEMBERS
OF THE LISTED ISSUER:
$49,856; down 49.3%; $98,402

Earnings per share:
10.8 cps; 22.3 cps

Final distribution:
10.5 cps

Record Date: 12 September 2008. Date Payable: 10 October 2008

Attachments: Appendix 1, 7 and related documents

SKYCITY ENTERTAINMENT GROUP LIMITED

Chief Executive Officer's Review
Year Ended 30 June 2008

The full version of the Chief Executive Officer's presentation of the SKYCITY
result for
2008 is available on the company's website under the Investor Centre at
www.skycityentertainment.co.nz. The full presentation includes comprehensive

information some of which is presented in graphical format which is not able
to be
reproduced for this extract. SKYCITY recommends that the full presentation
be referred
to as it contains useful explanatory information.

FY08 Group Result

- Reported Net Profit after Tax at $49.9m (after non recurring items
including the Cinemas write down of $58.4m). FY07 NPAT $98.4m.
- NPAT adjusted for non-recurring items (including Cinemas write down) at
$111.9m, up 19% over FY07 ($93.8m)
- Earnings per share adjusted for non-recurring items at 24.2cps, up 14% over
FY07 (21.2cps)
- NPAT adjusted for non-recurring items and international VIP commission
business at theoretical at $102.0m, up 7% over FY07 ($95.4m)
- Normalised earnings per share at 21.9cps, up 1.4% over FY07 (21.6cps)
- Group revenue at $818.8m, up 1.7% over FY07 revenues (adjusted for
non-recurring items) of $805.1m
- EBITDA (before Cinemas and adjusted for non-recurring items) at $306.4m, up
7.7% over FY07 at $284.5m
- EBIT adjusted for non-recurring items up 8.0% at $238.5m (FY07: $221.0m)
- Underlying cash flow of $199.1m, up 15% on FY07 ($173.0m)
- Key financial metrics improved: operating cash flow increased from $268m to
$286m, net debt to EBITDA reduced from 3.4x to 3.3x and interest cover
increased from 3.3x to 3.8x
- Results in line with February guidance of $108m-$110m
- Retirement of $92m of debt ($93.1m in FY07) strengthened the company's
balance sheet, further reinforced by Investment Grade BBB- rating from
Standard and Poor's
- Total FY08 distribution 21.5cps (FY07 21.0cps). Final distribution of
10.5cps to be paid 10 October

Management and Operational Highlights

- Permanent CEO appointed in March 2008
- New management appointments have significantly enhanced operational
expertise
- Reorganisation of company to drive divisional profit focus and reduce
corporate overhead
- Auckland casino refurbishment completed March 2008
- Strong result from International VIP Commission Business in FY09

Outlook

- Business plans budget for growth in FY09
- Satisfactory trading in FY09 year to date (25 August 2008)

- Strong control to be maintained over capital expenditure
- Further debt retirement anticipated in FY09

Distribution to Shareholders

- Distribution payout ratio of 90% reaffirmed
- Total distribution 21.5cps for FY08 (21.0cps FY07)
- Final distribution of 10.5 cents per share (12.0cps FY07)
- Entitlement/record date 12 September. Bonus share Issue/payment date 10
October
- Distribution by way of non-taxable bonus shares with fully-imputed cash
buyback alternative
- Strike price for the bonus share issue for the FY08 final distribution will
be the weighted average SKC price on the NZSX during the 5 day period 15-19
September
- The number of bonus shares to be issued in respect of the FY08 final
distribution will be confirmed to shareholders on 24 September. Shareholder
elections (for the cash/buyback option) due to share registry (Computershare)
by 8 October

Funding Structure

- Very strong liquidity position
- Cash and undrawn facilities of ~$400m
- Debt repayment of $92m in FY08 (FY07 $93m)
- Debt maturity profile: FY10 $124m, FY11 $318m, FY12 $405m, FY15 $90m, FY17
$35m, FY20 $22m
- No maturity events until May 2010. Capital Notes mature in May 2010, but
the securities offer good rollover flexibility with limited refinancing risk

- Significant headroom within existing covenants
- Reflected in Standard and Poor's Investment Grade Rating (BBB-) with Stable
Outlook

FY09 Capex

Maintenance Capex

- FY09 maintenance capex of approximately ~$65m will include significant
reinvestment in core business operations
- Primary use of maintenance capex will be on gaming machine product,
technology and systems
- FY09 depreciation estimated at ~$80m

Project Capex

- Completion of Darwin Stage 1 expansion (FY09 spend A$18m)
- Completion of Manukau Cinema complex in Auckland (FY09 spend $8m)
- No significant capex on Little Mindil resort (Darwin) during FY09
- No plans to proceed with Adelaide carpark

Strategic Priorities for FY09

- The core objective for 2009 is to maximise the potential of the company's
existing assets
- SKYCITY's new management team focused on delivering revenue growth, driving
operational efficiencies and maximising EBITDA, while tightly controlling
capex

- To deliver an improved customer experience across all properties, focusing
on customer service, effective marketing and enhanced entertainment
experiences
- To significantly enhance IT and systems capabilities and reinvest in new
gaming technology and core operating systems, positioning the business for
growth
- To grow and diversify International VIP commission-based play business
- To improve employee engagement and employee advocacy across all business
operations

FY09 Outlook

- Results and progress achieved in FY08 provide a solid platform for FY09
- Business plans budget for growth in FY09
- SKYCITY's most recent revenue indicators suggest it is trading
satisfactorily in the current economic environment
- The new management team is focused on delivering revenue growth, increasing
operating efficiency and maximising EBITDA, whilst retaining tight control
over capex
- Further debt reduction anticipated in FY09

BUSINESS UNIT RESULTS
Auckland

- Sound result in challenging economic environment
- Revenue up 1.0% at $402.3m (+$3.8m)
- EBITDA down 0.1% at $208.3m (-$0.3m)
- EBIT down 0.3% at $174.4m (-$0.5m)
- New Auckland management team has strong focus on core business with
strategic concentration on product, mix, pricing, presentation, customer
service, marketing and loyalty
- Main gaming floor renovation completed March 2008
- renovation disruption impacted FY08 result
- improvements in casino revenues are evident
- positive feedback from customers and staff
- refurbishment completion provides platform for FY09
- New gaming product and relayout of main floor tables and machines will
further enhance customer experience during FY09
- Recent highlights indicate management strategies are gaining traction:
- 08/08/08 was biggest gaming day in Auckland in over four years
- $1m SKYCITY Auckland Festival of Poker tournament announced for
October
- SKYCITY Grand Hotel topped Auckland's occupancy levels in August
- record Auckland convention revenues in August

Adelaide

- Solid result given impact from smoking ban (from 1 November 2007)
- revenue impact less significant than anticipated
- minimal impact on table gaming revenues given partial smoking bans already
applied to tables
- Positive cost reductions achieved, holding EBITDA steady with FY07
- Revenue down 4.4% at A$118.2m (-A$5.5m)

- EBITDA down 1.0% at A$20.7m (-A$0.2m)
- EBIT down 3.6% at A$10.6m (-A$0.4m)
- Maintenance capex will be maintained to underpin revenue growth
- No plans to proceed with Adelaide carpark (costs relating to the project
have been written off)

Darwin

- Solid growth achieved in Darwin
- Regional economic momentum continues
- Revenue up 7.7% at A$100.8m (+A$7.2m)
- EBITDA up 13.9% at A$40.1m (+A$4.9m)
- EBIT up 14.7% at A$32.7m (+A$4.2m)
Stage 1 expansion (A$30m) commenced October 2007. Scheduled for opening by
March 2009. Includes increased gaming floor area (~20%) and new/upgraded
gaming, bars, restaurants and service facilities Darwin's proximity to the
Asian market is key to the International VIP Commission Business development
strategy
The Little Mindil site and associated resort development will support the
International VIP Commission Business growth strategy but no significant
capex will be incurred on this project in FY09

International VIP Commission Business
- Strong result from International VIP Commission Business (turnover $1.4bn)

- Revenue up 4.6% at $34.0m (+$1.5m)
- EBITDA up 267% at $17.2m (+$10.6m)
- Revenue assisted by favourable actual to theoretical win rate. FY08 win
rate of 2.63% vs theoretical win rate of 1.33% (FY07 actual win rate 1.24%)
- Core management focus for International Business is to increase
international VIP gaming turnover, to build sustainable revenue, and reduce
volatility

Hamilton

- Steady performance in FY08
- Revenue down marginally at $39.0m (-$0.7m)
- EBITDA down 5.1% at $18.5m (-$1.0m)
- EBIT down 4.8% at $14.0m (-$0.7m)
- New management team with significant additional casino and gaming
experience
- Current focus on increased utilisation/performance of the existing assets
and on the core gaming customers
- New machine introductions during FY09 expected to refresh customer interest

- New and upgraded facilities in place (including new bars and restaurants)

Christchurch

- Solid performance from Christchurch Casino in FY08. Earnings up marginally
at $5.7m, from $5.6m in FY07
- New management appointed
- Phased refurbishment initiated to renew/refresh the overall property,
self-funded from cash flows
- Crowne Plaza Hotel interest sold and Intercontinental Hotel Group's shares
in the casino acquired. As a result SKYCITY and Skyline have each increased
their ownership interest in Christchurch Casino by 5.2%, from 40.5% to 45.7%

Queenstown

- Increased revenues for FY08 lifted operating earnings
- Revenue up 9.4% at $7.0m (+$0.6m)
- EBITDA at $0.5m (+$0.2m)
- New management appointed
- Good progress at Queenstown during FY08, although result not material to
the overall Group result
- New machine introductions during FY09 expected to refresh customer interest

Cinemas

- Cinema's result for FY08 very disappointing
- New management team appointed and focused on growing core revenues
- Revenue (adjusted for non-recurring items) down 2.1% at $66.2m (-$1.4m)
- EBITDA (adjusted for non-recurring items) down significantly from $8.7m in
FY07 to $4.8m in FY08
- Cinemas' performance suffered as a consequence of unusually good weather
during FY08 summer and management distraction from the sale process
- Management team focus on greater customer value, increased facility
utilisation, and greater diversity of product aligned to demographics
- 55% market share in Auckland and 38% across all of New Zealand
- New cinema complexes improve SKYCITY's penetration in the important
Auckland market: Albany (10 screens) opened April 2008, and Manukau (10
screens) opens September 2008

Summary Profit and Loss for FY08 and Balance Sheet (and Notes) as at 30 June
2008
- A summary of revenue and earnings performance by site (FY08 and FY07) is
attached to this presentation
- Balance sheet positions as at 30 June 2007 and 2008, and explanatory notes,
are also attached.

Presentation Format

As referred earlier, the full CEO FY08 result presentation is available from
the company's website. Information presented in graphical format is
reproduced in this narrative format (as required by NZX) but a full and
detailed explanation of the result is set out in the website presentation
version.

Nigel Morrison
Chief Executive Officer
25 August 2008



Sky City Entertainment Group @ Share Investor

Sky City Entertainment Group Ltd: Never mind the width feel the volume
Sky City Annual Meeting & 2011 - 2012 Profit Forecast
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 2008

Fraudulent Emissions Trading Bill

The most contentious, dangerous and economically disastrous legislation in New Zealand's history is set to be rammed through by the Labour Party and its lapdog support parties over the next two weeks.

The Emissions Trading Bill, to allow the trading of "Carbon Credits" has had 1000 corrections, little critical input and is based on the well known fraud that man is "warming the planet".

If you want to voice your opinion to Helen Clark and her fraudulent legislation contact her office at pm@ministers.govt.nz or fax or phone: Fax : 64 04 473-3579Phone : 64 04 471 9998.

Ask John Key from The National Party to ditch their own intention to pass a similar bill should they take office after the 2008 Election contact him at the following.

Email: john.key@national.org.nzWebsite: www.johnkey.co.nzPhone: (04)4719307 (Parliament)Phone: (09)4122496 (Electorate)

Lets try and stop this garbage.


Related Political Animal reading

Kyoto critic comes to town
Global warming: Power to the people
Carbon Credit trading puts markets at extreme risk
Global Warning: Tax iceberg ahead
Unstoppable global warming
Earth Day: Turn on, tune out, buy some candles
TIME magazine slips inconvenient truth past its readers
The Great Global Warming Swindle
PRIME TV PRESENTS: The Great Global Warming Swindle
Kristen Byrnes-Ponder the Maunder
Helen Clark and Jeanette Fitzsimmons in conflict with business
Of tulip bulbs and tooth fairies

c Political Animal 2008

Sky City 2008 profit preamble

It is going to be Sky City Entertainment [SKC.NZ] 'tastic at the Share Investor Blog over the next few days as I take a look at the company, analyze and comment on tomorrow's profit announcement live webcast (10.00am Monday 25 Aug 2008-NZ time) and generally rip management a new one if I don't like what I hear.

The casino company is my largest holding and I have been a shareholder since 2002.

Its NZ$3.43c closing on August 22 2008 is lower than the $8.05c (pre 2:1 share split) it was on Jan 1 2003 and it had a profit of $107.2 million on $556 million in revenue.

2004 saw Sky City post a record $121.1 million profit (before abnormals) on revenues of $590 million and the 2007 year saw the company post a $98.4 million profit on record revenue of $798.6 million.

Sky City’s guidance (PDF) for the full year 2008 year to June 30 is for a net tax-paid profit of $108-110 million, excluding the $60 million write down of its cinema business.

These figures do not make pleasant reading for any investor. Rising revenues but patchy, stagnant and poor profit results.

There are a number of reasons for this.

Management under the previous CEO made some bad decisions.

The purchase and subsequent write off of NZ $20 million on Canbet, the Australian online betting company.

The purchase and write off of more than NZ $100 million on Force Corp's cinema business, now operating as Sky City Cinemas and barely breaking even.

Overpaying for the Adelaide Casino in 2000, even after 70 million of "refurbishing" it still earns less than $10 million annually.

Not a good record and that is understating it.

All this has been done in a regulatory environment that has had a huge negative impact on the bottom line.

The Labour Government banned smoking in bars and restaurants in December 2004 and that had a marked impact on gambler behaviour. Coupled with the limiting of slot acceptors to $20 from the previous $100 in 2005, that period was the beginning of a slow down in profit growth-minus management induced write downs.

So alot of the deleterious effects on profit were from influences out of management's control but the greatest negative impact has clearly been from bad management decisions and mis-management of largely good assets.

Revenue has tripled from 1999's $ 264 million to 2007's record $798.6 million but profit has less than doubled from $46.9 million to last years $98.4 million.

The bad decisions and government legislation has led to increased borrowing and debt servicing charges and had a subsequent impact on the bottom line after tax profit.

All is not lost though.

With that tripling of revenue comes an opportunity for the current new management to cut out the fat and increase that bottom line.

New CEO Nigel Morrison has hired his own team, who have already cut costs by slimming down middle management and minimising floor staff wages-so much so that some union staff are striking . There is easily more to trim.

At a possible NZ$110 million profit for 2008, Morrison clearly has the scope to increase profit-based on high historical revenues and cost cutting- by at least another $10 million for FY 2009 and beyond that, without even factoring in an increase in revenue from 2007's $798.4 million.

I would expect something between $125-130 million for 2010-barring Kerry Packer winning a baccarat hand or two.

The Auckland Casino historically has been the jewel in the crown for the company It has been stagnant in growth over the last few years but good management of that asset will positively affect revenue growth.

The future star, in my opinion is Sky Citys Darwin Casino. Situated in Australia's fastest growing region.

The Darwin casino has increased revenue from $62 million in its first full year after it was purchased in 2004 to $54.9 million in the half year to December 31 2007. It looks set to keep delivering in the future as a $30 million expansion of the gaming complex is on track to be finished at the end of this year.

The casino operates under a a more relaxed Government regulated gaming regime and is the only casino in the Southern hemisphere to continue to allow smoking. A must for gamblers who like to enjoy a drink and a fag when spending their hard earned.

Tomorrow's announcement will be interesting to see. It will be Nigel Morrisons first six months and his report will reflect somewhat how he has done and where he will take the company in the future.

I will look forward to seeing some positive direction from Morrison; what he is going to do and how he is going to achieve it.

I want to hear it described clearly, concisely and without the business gobbledygook Evan Davies was well known for.

I wait with unabated, and slightly restrained, enthusiasm.

From Amazon

	The Global Casino An Introduction to Environmental Issues by Nick Middleton Buy new: $54.95 / Used from: $51.68 Usually ships in 24 hours
	Dummy Up And Deal: Inside The Culture Of Casino Dealing (Gambling Studies Series) by H. Lee Barnes Buy new: $15.16 / Used from: $10.49 Usually ships in 24 hours
	Casino Capitalism by Susan Strange Buy used from: $29.73

Sky City @ Share Investor

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: Underperforming
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Share Investor Forum-Discuss this topic

Related Links

Sky City Entertainment Investor Centre

2008 Annual Result

SKYCITY Entertainment Group 2008 Annual Result will be announced on 10.am Monday 25 August 2008.

Result Briefing Webcast

2008 Interim Result
		2008 Interim Report 2008 Interim Result Presentation Media Release NZX Announcement Financial Statements Results: Briefing webcast

c Share Investor 2008

Michael Hill takes on the Windy City

The move by Michael Hill International [MHI.NZ] to buy 17 stores in the United States for about US$5 million ($7 million) from the Chapter 11 bankruptcy of Whitehall Jewelers Holdings-based in the Chicago area, with 2 stores in St Louis-has me a little worried.

I'm worried because this type of expansion activity veers slightly away from the tried and tested way that the company entered Australia then Canada.

The company set up a handful of stores when they entered their two overseas markets just to test the water.

Australia was started that way and now has 136 very profitable stores and Canada started with a couple and now has 22 virtually break-even stores 3 years later.

Why didn't Michael Hill test the Chicago area with 1 or two stores like they have previously?

It does make sound financial sense, it has worked before.

Micheal Hill, CEO, says the opportunity to buy the distressed sites was a "sound launching pad" to expand the Michael Hill brand across the big US market and secure some "prime sites", very true.

The NZ$7 million purchase price Hill says was largely for the inventory that the stores carried and that was bought at 80c in the dollar.

A good buy there.

Now I'm not an expert in retailing and Jewelry, as Michael Hill clearly is, but what is wrong with "testing the market" as he calls the US move, with a couple of stores, as he has done in the past?

In my opinion you don't test a market with 17 stores, it is too much too soon.

The US Jewelry market is different from Canada, it is more fragmented in demand from state to state and city to city even, and much more competitive. Chicago also has a large black population, with a much less than average yearly income, so the going will be tough, even if Oprah Winfrey does her bling shopping there.

As a shareholder, I would have much preferred little baby steps and less money spent upfront until a few stores were trading for 12 months or so and then make a decision to expand or retreat from there.

There will be more money spent on store refits, staff training etc so the total cost of this exercise will probably exceed NZ$10 million.

This news comes on the back of a great profit announcement this week.

The company reported a record tax paid profit of $25.232m for the twelve months ended 30 June 2008 compared to $21.017m for the previous corresponding period. This was a 20.1% increase in profit on top of a 8% rise in revenue to $376.664 million.

There were 22 additional stores added in the year to bring total store numbers to 210 for the entire group.

A final dividend of 2.0 cents per share with full imputation credits

The dividend will be paid on Monday, 13th October 2008 with the record date being Friday, 3rd October 2008.



Michael Hill shares have moved up strongly this week on the profit result and by almost 4.5% today on the US acquisition news.


Disclosure I own Michael Hill International shares in the Share Investor Portfolio.


Michael Hill International @ Share Investor

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 2008

Colmar Brunton Poll: 22 August 2008

Aug 22, 2008
By Therese Arseneau

The ONE News Colmar Brunton Poll has finally delivered Labour some good news. A majority of people polled disapprove of National's plans to increase borrowing; and only 37% believe National is being honest and open about its policy plans.

These reservations about National did not hurt the party's support in the poll - it remains relatively steady at over 50%. But these doubts, if left unchecked, are more likely to slowly erode National support and hurt the party in the longer term.

In terms of voting intentions the poll is more mixed for Labour. Its support has increased by 2% in the last month but the gain comes at the expense of the Greens (down 2%), leaving the centre-left no better off. And while there is cause for optimism in Labour's gains in back to back Colmar Brunton polls, their optimism must be guarded. It is simply too soon to know whether this is the start of a new upward trend for Labour.

Polling data is best viewed over a longer term as an indication of the trend of support for the various parties. The first graph is a visual representation of ONE News Colmar Brunton party vote polling data from the 2002 election up to August 2008. Election results in 2002 and 2005 are shown as large diamonds - the light grey lines indicate election dates. The dark blue and red straight lines are the best fit trend lines for National and Labour respectively. The lighter bands represent the 95% confidence limits around these trends.

The long term trend from 2002 remains relatively strong and consistent - and positive for National. But more revealing is the trend for the last year alone as seen in the horizontal dark blue and red lines. For this shorter time period, the better trend is flat with National on 54% and Labour on 36%, both +/- 3.1% with 95% confidence.

Again the news for Labour is mixed: in the last 12 months its downward trend has flattened out but support remains at a level significantly behind National.

The more crucial information in the latest poll concerns the smaller parties. If this snapshot of decided voters was the actual election poll, then none of the smaller parties would cross the 5% threshold. The Greens would be absent, as would New Zealand First, unless Winston Peters wins Tauranga. ACT, United Future and the Progressives would be one-electorate seat parties. The Maori Party would be the only small party with more than one seat.

Even more stark is the long term trend of support for the smaller parties en masse. The second graph is a visual representation of ONE News Colmar Brunton polling data from 2002 to present. It combines the support for all minor parties and is depicted by the orange line.

The trend is strong and clear - the smaller parties combined are losing support. Starting at a high of near 40% at the 2002 election, the combined support for the minor parties was at 12% in the latest poll.

There are further ominous signs for the smaller parties. First, most people polled in the 2005 New Zealand Election Study (NZES) believed there are too many parties in Parliament. Second, there is a public perception that the smaller parties are the tail wagging the dog in Parliament. Third, University of Victoria political scientists Levine and Roberts have found that voters' longer term attachment and loyalty to the smaller parties - known as party identification - is in steady decline: around 22% in 1996 and 1999; 19% in 2002; and down to 16% in 2005.

But New Zealand has a tendency to look like a two party system between elections and more multiparty on election day. This is mainly because the smaller parties do not feature prominently on the public's or media's radar screens between elections. In the first three MMP elections support for the smaller parties grew significantly during the campaign to 38% in 1996, 31% in 1999 and 38% in 2002.

The 2005 election was a notable exception. The smaller parties combined to draw only 20% of the vote. Was 2005 an aberration or the start of a new trend?

In 2002 the Alliance vote collapsed into Labour and in 2005 the centre-right vote consolidated in National. Are New Zealand voters 'going home' to the two major parties? Are we experiencing a profound realignment of our party system? These are the crucial questions of 2008.

ONE News Political commentator Dr. Therese Arseneau is a Senior Fellow in the School of Political Science and Communications at the University of Canterbury. In the lead-up to this year's election, she will be writing a regular column for onenews.co.nz, examining New Zealand's political landscape.


Related Political Animal Reading

Colmar Brunton poll: 17 August 2008
Colmar Brunton Poll: 20 July 2008
Colmar Brunton Poll: 22 June 2008

c Political Animal 2008

EPMU bullies employee out of job because of politics

Looks like a union standard for an employee that you mustn't be discriminated against because of sex,age or politics only apples at the EPMU if you are a Labour Party voter.

The Engineering Printing and Manufacturing Union, a division of the Labour Party, have bullied ACT party list candidate Shawn Tan, who works for them, and suspended him from his employment because of his ACT Party connections.

His employment rights have clearly been breached by EPMU president Andrew Little, a president with designs on being a part of the next Labour Government.

This is a union that has fought employers tooth and nail for doing the same thing that the EPMU are now doing to Tan-trying to bully him into submission because he has different political views to his employer.

This is a union who is also trying to campaign-as an entity separate from any political party-in the 2008 election as a third party under the terms of the Electoral Finance Act.

We all know that this is clearly bollocks of the highest order. The EPMU is closely affiliated with The Labour Party and its dopey members are directly funding Labour's 2008 Election campaign through their "union fees".

Presumably Tan belongs to a union, I hope that union takes the EPMU to the employment court and does them like the socialist basted turkeys that they clearly are.

c Political Animal 2008

PRESS RELEASE: NZ’ers Deliver Strong Message on Anti-Smacking Law

Friday, 22 August 2008, 2:38 pm Press Release: Family First
MEDIA RELEASE 22 August 2008

NZ’ers Deliver Strong Message on Anti-Smacking Law

Family First NZ is welcoming the success of the petition demanding a Referendum on the flawed anti-smacking law.

“To reach the required 285,000 signatures is difficult enough, but the final result shows that an extra 25,000 signatures have been attained. This is evidence of just how strong the opposition to this law is,” says Bob McCoskrie, National Director of Family First NZ.

“The evidence is pouring in that good families are being both persecuted and also prosecuted with eight prosecutions for minor acts of physical discipline in a recent six month period.”

“The rate of CYF notifications has sky-rocketed yet actual cases of child abuse found are remaining the same, and in some areas like the Waikato, actually falling.”

“The anti-smacking law has failed miserably. You know a law is flawed when it fails to address the problem it was supposed to, and implicates good families in the process. Supporters of the law are trying to herald its success because they incorrectly claim nobody has been prosecuted. But we actually want a law that works and catches actual child abuse!”

“The only reason the law was passed in the first place was because the two major parties were whipped to vote for it – which is a little ironic in itself, being an anti-smacking law,”says Mr McCoskrie.

Family First NZ continues to call on the politicians to change the law so that non-abusive smacking is not a crime (as wanted by 85% of NZ’ers according to research), and to tackle the real causes of child abuse.

Related Political Animal Reading

Sascha Cobern's letter a smack in the face for Deborah Morris-Travers
Sascha Cobern's letter to the Editor of the NZ Herald
Anti-smacking petition a slap in the face for out of touch Politicians
Cindy Kiro gets violent
Sue Bradford strikes out: Again

c Political Animal 2008

Man faces trial for flick of child's ear

Another failure of Helen Clark's anti smacking brigade.

The Christchurch man accused of assaulting his two young sons will face trial.

In January, Jimmy Mason claimed he was harassed by the police when he was spotted publicly disciplining his four-year-old son. As reported he flicked his sons ear when one of his sons put another in physical danger and was subsequently injured. Mason was surrounded by six police officers minutes after a teacher, witnessing the flick of the ear by the father informed an off duty female cop.

Police initially issued the man with a warning but will now prosecute him.

Those who supported the removal of section 59 to allow decent parents to discipline children said this sort of prosecution would not happen.

There have been many other parents similarly hounded and harassed by PC PCs since the section's removal, for lightly smacking their children.

The shame just continues.

In a related story, the petition for a referendum to repeal the new anti smacking law has officially succeeded, with 310,000 votes collected.

A referendum on the issue must now be held but well known anti democracy campaigner, Prime Minister Helen Clark asserts that there is no time to have it before the 2008 election.

Clark wants the referendum done separately.

It will cost around $10,000,000 extra to have a separate referendum.


Related Political Animal Reading

Sascha Cobern's letter a smack in the face for Deborah Morris-Travers
Sascha Cobern's letter to the Editor of the NZ Herald
Anti-smacking petition a slap in the face for out of touch Politicians
Cindy Kiro gets violent
Sue Bradford strikes out: Again
Anti smacking law puts young boy at risk

c Political Animal 2008

Ports of Auckland put a shot over competitor's bow

The news on Wednesday that Ports of Auckland have an interest in Port of Tauranga Ltd [POT.NZ] "container business" brings to mind this quote by Warren Buffett:

"Buy a business that an idiot can run, because sooner or latter an idiot will run it"

In this case the idiot or idiots are management at Ports of Auckland.

They fit the idiot moniker simply because they had a chance to merge with POT in 2006-07 and after much posturing by both sides, but mostly from Ports of Auckland, POA simply walked away from a possible deal because management couldn't deal with the fact that Port of Tauranga was worth more than Ports of Auckland and wouldn't budge from that stance because of petty local politics.

The Auckland port company like the look of Port of Tauranga's container facilities at Onehunga on the Manukau Harbour which is south of Ports of Auckland's main port on the Waitemata.

Unlike Auckland's big port in Auckland's CBD, POT's Onehunga container hub has scope for expansion and is in a area of high industrial growth and also close to Auckland Airport [AIA].

Port of Tauranga chief executive Mark Cairns wasn't keen on the idea of Ports of Auckland buying the Port of Tauranga container business but had this to say about a marriage between the two port companies.

"...always held the view that a full merger of Port of Tauranga and Ports of Auckland makes very good sense. That view has not changed"

Cairns is clearly right.

New Zealand is a very small market and it would make financial and logistical sense to merge the two businesses.

The capital expenses of expansion to encompass the much larger ships that shipping lines want to use would make the merger of these two ports sensible to say the least.

Port of Tauranga are in the box seat though. Their company has more geographical space for expansion at their locations and that is one reason why POA want them. The company is leaner and better managed and last but by no means least they are unencumbered by the politics that surround the ratepayer owned Ports of Auckland.

Port of Tauranga shareholders shouldn't lose all hope though and shouldn't think of selling their shares, yet.

It looks like the shots across the bow have just started, Ports of Auckland new managing director Jens Madsen says he wants to "buy POT's container business" and Port of Tauranga chief executive Mark Cairns reckons that portion of his business is "...worth substantially more than Ports of Auckland's container business".

Whatever the case it looks like this is the beginning of some sort of marriage process and it will no doubt send the POT share price in a northerly direction.

Lets hope the dropkicks at Ports of Auckland can let politics take a back seat to business acumen this time.


POT @ Share Investor

Long Term View: Port Of Tauranga Ltd
Port in a storm
Ports of Auckland put a shot over competitor's bow

Discuss POT @ Share Investor Forum





c Share Investor 2008

Condoms VS Herceptin

An appallingly bad decision by a politically correct New Zealand drug funding body, pharmac has led to the bizarre situation whereby the body is funding garbage like flavoured condoms instead of top notch life saving and life improving drugs like the anti cancer drug Herceptin and the best drugs for heart, arthritis and all sorts of other ailments.

The Labour Party and their zeal for "diversity" has reached ridiculous proportions even large a ribbed , banana flavoured condom wont cover

Pharmac's defence that the decision makes sense because their deal with the condom supplier gives more choice and therefore increases sexual health through increased usage of condoms, smacks of a stupidly that even a five year old born because dad didn't wear a condom can see through.

There is no evidence to back up increased sexual health because of condom use, in fact all good research shows the opposite:

GOVERNMENT attempts to reduce high-risk sexual behaviour among teenagers have had exactly the opposite effect, according to an authoritative new study.

Expanding contraceptive services and providing the morning-after pill free to teenagers have encouraged sexual behaviour rather than reducing it, according to economists at Nottingham University.

“The method which the Government’s teenage pregnancy strategy relies upon is almost guaranteed to produce these results. They have always promoted condom use, but have never contemplated the possibility of teaching young people abstinence.”

Timesonline.co.uk

In conjunction with a relaxed attitude by schools to to sex, including teaching students that anal sex is an acceptable alternative to typical intercourse- because pregnancy is clearly not on the cards-and Labour Government moves to make the morning after pill more widely available, Pharmac's move is another nail in the coffin for reversing the increased promiscuity that is ruining young peoples lives.

The aids foundation was canvassed before the introduction of the flavoured condoms by Pharmac and they advocated the use of the range of condoms.

Curbing pregnancy rates was another indicator for Pharmac to introduce the rainbow of coloured,ribbed and flavour rubbers. Most of us know though that flavoured condoms are used for oral sex and not intercourse so that puts Pharmac's assertions to bed, so to speak.

Instead of denying the best drugs and new drugs to New Zealanders because of "lack of funding" Helen Clark's Labour Party should be instructing Pharmac to cut back on politically correct funding of such things as pretty looking condoms.

They will be just the tip of the flavoured condom.

Related Political Animal reading

Labour will flip flop on Herceptin

c Political Animal 2008

Domino's Australia dominant in Australasia

Domino’s Pizza [DMP.AX] is the largest pizza chain in Australia, in terms of both store numbers and sales. It is also the largest franchisee for the Domino’s Pizza brand in the world.

Domino’s Pizza Australia now encompasses five countries, with more than 720 stores employing approximately 14,000 people and making more than 60 million pizzas a year.

The Domino's brand is owned by Domino's Pizza, Inc [DPZ.NYSE] a listed US company.






Domino's shares were down by 29c or 8.29% to AU$3.21 on the ASX today. Probably due to a slump in sales for the year. Profit however, was up by almost 30% compared to the previous year.


While Australian based Domino's dominate the New Zealand and Australian pizza market, it is leaving its competition in the dust.

Domino's total same-store sales grew 4.1 per cent over the last year, while its main competitor in New Zealand-Restaurant Brand's [RBD.NZ] run Pizza Hut-same store sales declined 7.1% for the 12 weeks ending 19 May 2008. That quarters total sales were $15.2 million, a decrease of 13.3% over the prior period.

As a customer one can tell the different immediately from the Domino's vs Pizza Hut experience.

Domino's generally has fast efficient friendly service, excellent pricing and a good line of pizza offerings and toppings Their pizzas and marketing are well excecuted.

It is the opposite at Pizza Hut; slow, rubbish service, unfriendly, extremely bad marketing and a disappointing menu and quality of food.

Apart from the differences above Restaurant Brands manage its pizza brand badly. I suspect much direction is from head office and the local input from sub par managers to bolster young uninterested staff to treat customers better is clearly missing.

Domino's New Zealand stores, which number 72 and will max out at 85, are franchisee run while Pizza Hut are company managed in NZ with a parent franchiser YUM! Brands Inc [YUM], based out of the US.

Having the owner running the business at store level is the important difference and another reason why Domino's will continue to kick Pizza Hut around in the coming years

The ASX-listed company yesterday announced net profit after tax for the year ending June 29 was A$11.8 million ($14.42 million), up from A$9.1 million last year.

The Australia-New Zealand market revenue for the group - which has outlets in New Zealand, Australia, France, Belgium and the Netherlands - fell from A$180.4 million to A$160.7 million.

Chief executive Don Meij said he was confident New Zealand operations would continue to perform strongly, regardless of the current recession.

"Pizza's very resilient in economic downturns. We think we're going to ride through whatever economic challenges are out there."

Domino's Australia is a well run company and a must for investors who want exposure to a listed Australasian fast food company but don't have the patience for the slack management at Restaurant Brands to get things right.

Related Share Investor reading

Restaurant Brands Pizza Hut faces further competition

The dots get the hots

Related Amazon reading

Pizza franchise operator seeks shelter of Chapter 11 bankruptcy. (Karam Enterprises Inc., Domino's Pizza franchisee) (company profile): An article from: Fairfield County Business Journal by Joan Stableford
Buy new: $5.95
Available for download now

c Share Investor 2008

Winston's $40,000,00 question

In the latest in the Winston Peter's payola scandal, a revelation made on Monday at the privileges committee hearing into Peters secret $100,000.00 donation from Owen Glenn, by Winston Peter's Lawyer Brian Henry, that he paid a $40000.00 debt owed for court costs to Tauranga MP Bob Clarkson and a subsequent statement made by Peters that he had paid the $40000 has today taken a bizarre twist.

Peters has come out this afternoon, as reported in the NBR with this statement:

"Mr Henry paid the money to ensure the bill was paid in time -- and he was later reimbursed by myself," he said in notes for a speech to members of Grey Power's Upper Hutt Branch.
"He checked his records yesterday and found this was indeed the case."

Mr Henry intended to notify the committee, which would effectively debunk claims he had broken Parliament's rules, he said.

"This issue is the last one my opponents had to go on."


This causes Peters an even bigger problem than the initial statement made by Mr Henry on Monday at the hearing, because Peters and Henry had both claimed that for 15 years Peters had a monkey no see, no hear or no listen approach to funding of Peters, and his NZ First Party. Peters claimed that this approach meant he didn't know who gave him money and in addition no bills were ever sent to Peters for legal services rendered.

Apparently records were kept of such a $40000.00 transaction, where no bills were sent and Peters paid this debt himself.

That contradicts Peters and Henry's claim made on Monday that Peters didn't know where money was coming from, where it was going to and that a distance was kept by him in financial transactions between him and his lawyer.

Just an acceptation is this case Winston, or another lie?

Mr Peters was either lying on Monday or lying today to cover up the former one.

The trouble is he has told so many fibs he probably doesn't know himself anymore.

The problem is if you live your life by constantly lying, you have to keep lying to keep the initial lie perpetuated as the perceived truth.

Winston Peters isn't as perfect as he thinks he is and he has now been nakedly caught out.

Unfortunately Both Helen Clark and John Key seem unwilling to come out and lay the political sword into his back, up to the hilt.

New Zealand voters deserve much better.


Winston Peters payola scandal @ Political Animal

Planned ignorance no defence in Peter's case
VIDEO: Winston Goes to Wonderland in Parliament
Don't let the bastard go
Dompost reels in another Peter's Payment
Winston isn't a conspiracy theorist: Yeah right!
Winston Peters lost in Wonderland
Winston Circus hangover continues
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

Donations saga impacts Peters (02:00) -Related Video

c Political Animal 2008

Orange Finance collapse should turn investors red, with rage

Orange Finance, which is 100% owned by Money Managers founder Doug Somers-Edgar, is no longer issuing debentures because of its suspect lending practices.

Doug has apparently sold his interest in Money Managers and has "stepped down" from it in June 2008 but still has manifold financial interests in companies that MM lend money to. Money Managers pushed Orange Finance to its investors.

Money invested with Orange Finance has been lent to some other Money Managers or Doug Somers-Edgar vehicles that have crashed and burned and lost investors money, Money Manager's First Step and its Totara Fund have both lost investors tens of millions so far.

Interrelated financial musical chairs have also been played to pay out investors from these various financial failures and it makes one wonder which investors will truly lose out in the end.

It is unclear at this stage whether investors in Orange Finance will eventually get their money back, considering the large amount of bad loans made by the investment vehicle and money outstanding from debtor borrowers, but the company says it can repay investors on their expected maturity date.

I would advise investors in Orange Finance to keep on the tail of Orange directors and or their adviser from Money Managers who advised them to put their money into the finance company in the first place.

Don't be put in the same position as this fellow:

One investor contacted by the Sunday Star-Times said he had been impoverished by a combination of dealing with Blue Chip, then putting what he had left of his life savings - some $50,000 - into First Step.

When he received $20,000 back (he's still waiting for the rest), he followed Money Managers' advice and put it into Totara.

Relying only on NZ Super, he is now facing $1700 a month mortgage payments he can't afford because of the Blue Chip deal, and has no access to the money he has with Money Managers.

Businessday.co.nz 2008

Doug Somers-Edgar, his part or fully owned companies or their subsidiaries and Money Managers cannot be trusted when it comes to your money.

Get it out now if you can.


Related Share Investor reading

The "New" Money Manager's Investment Vehicle still tainted by its past
Don't forget Money Managers
Money Managers First Step gives investors the middle finger
Money Managers First Step saga: 3 Story wrap

Related Amazon Reading


Madoff: Corruption, Deceit, and the Making of the World's Most Notorious Ponzi Scheme by Peter Sander
Buy new: $10.17


c Share Investor 2008 & 2009

VIDEO: Winnie goes to wonderland in parliament

I'm getting sick up to the back teeth with politicians today, especially with that crooked, lying, cheating, corrupt bastard Winston Peters.

So here is some Winnie Peters stuff that you might like to look at for a laugh.

The video is from Parliament on August the 6 and is Peters giving us his take on his funding scams "through the looking glass", as if he was living in Alice's Wonderland.

Given yesterday's behaviour by Peters at his privileges committee hearing, one could be mistaken for thinking that Winnie the poo is a central character in Alice in Wonderland.

I will leave you with a quote of the day from Winston's Blog:

"There are plenty of other sites if you want to post uninformed, anonymous comments..."

Perhaps Mr Peters was standing close to a mirror when practising this line.

Winston Peters payola scandal @ Political Animal

Don't let the bastard go
Dompost reels in another Peter's Payment
Winston isn't a conspiracy theorist: Yeah right!
Winston Peters lost in Wonderland
Winston Circus hangover continues
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

Donations saga impacts Peters (02:00) -Related Video

c Political Animal 2008

Big Fisher & Paykel Healthcare share trades a curious tale

Some very large volume trades of various stocks were traded on and off the NZX today.

Big volumes of Telecom NZ [TEL.NZ] Fletcher Building [FBU.NZ] Sky City Entertainment [SKC.NZ] and Fisher & Paykel Healthcare [FPH.NZ] went through before market opening today.






Shareinvestorforum.com -Discuss this company further


Of principal interest to me was 13,649,401 million shares of FPH being traded.

That volume traded represents just over 2.5% of the total of 509,452,817 million shares on issue as at 22 May 2008.

Big volumes of a similar number were last traded in June at around $2.40 and over the last year larger volumes have traded when the stock price hit new lows.

A large number of shares traded of a particular listed company above the daily average is usually a significant occurrence and smaller shareholders should keep an eye out for large money managers building stakes in undervalued companies, should they want to get in on the action.

Substantial holders owning between 9-14 million shares each, range from the Accident Compensation Corporation with 9.693 million shares, the NZ Superfund with 12.09 million shares, and JP Morgan Nominees (Aust Ltd) with 14.057 million shares, with 6 other much larger holders owning around 9-11% each.

The last substantial movement in Fisher stock was on 21 July and a half a dozen players have been amassing stakes of around 10% each as the stock has become cheaper over the last year with UBS Nominees most recently adding to their holdings to take their total to just under 9%.

Summary for: UBS Nominees Pty Ltd and its related bodies corporate
For this disclosure,-

(a) total number held in class: 39,345,377
(b) total in class: 509,476,963
(c) total percentage held in class: 7.723%
For last disclosure,--
(a) total number held in class: 45,192,939
(b) total in class: 509,037,055
(c) total percentage held in class: 8.878%


On June 6 AXA Asia Pacific Holdings Limited acquired a substantial stake for the first time of just over 5%.

Summary for the AXA Group

For this disclosure,--
(a) total number held in class: 26,342,324
(b) total in class: 509,452,817
(c) total percentage held in class: 5.17%

There have also been large crossings by Caledonia Investment's Ply Ltd.

The most interesting substantial shareholder to me is a recent one. Schroder Investment Management Australia began with an investment of 29,988,254 million shares or 5.9% on December 11 2007 and have progressively bought shares since then to end up with a stake of 47,573,694 shares or a 9.34% in Fisher and Paykel Healthcare.

Their rapid accumulation makes me wonder that it might be them who have purchased a large stake today-the market will find out for sure tomorrow. Schroders is a global asset management company with US$259.1 billion under management at 30 June 2008 and around $AU12 billion under management at its Australian branch office.

Their investment approach is one that aligns with mine and they certainly seem to be practicing it in buying up FPH.

We are long-term investors: establishing the fair value of a security takes the discipline to avoid being caught up in market fashions and the confidence to be contrarian when necessary. We focus on the ability of a business to generate sustainable value and earnings growth. We look at the quality, as well as quantity, of earnings and we meet company managers and ensure that we fully understand their marketplace and business strategy. We believe that, over time, the mis-pricing of stocks versus fair value will be recognised by the market, and that our long-term approach to research will lead to long-term outperformance.

Clearly Schroders see Fisher & Paykel Healthcare as a "quality earner" and they see the market mis-pricing the stock-it has been severely marked down over the last year.

I recently bought more at $2.35 a few months ago, with a long-term view for good growth based on the company's well placed R & D research and resultant innovative products successfully brought to market.

Schroders would have an approx 11.5% of fisher shares if they were today's substantial buyer which would make them the number 2 largest holder, behind HSBC Nominees with an 11.84% stake as at 22 May 2008.

Fisher & Paykel Healthcare shares were up 7c to NZ$2.95 in trading today(19 August NZ time)


Fisher & Paykel Healthcare @ Share Investor

Why did you buy that stock? [Fisher & Paykel Healthcare]
Drinking and Trading
Share Investor's 2008 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance

Related Links

Schroder Investment Management Australia
Schroder Investment Management Home

Fisher & Paykel Healthcare financial data

• Summary
• Charts
• Dividends
• News
• Announcements
• Price History
• Related Securities

Related Amazon Reading


The Business of Healthcare Innovation
Buy new: $36.00 / Used from: $22.50
Usually ships in 24 hours


c Share Investor 2008 & 2009

Planned ignorance no defence in Peter's case

Donations saga impacts Peters (02:00) -Related Video


Winston Peters was belligerent, argumentative and highly flustered in his first day before a privileges committee tonight regarding suspect donations given to himself personally or his Party NZ First.

Peters has stated that he didn't break any funding laws because his lawyer never sent him a bill!

Peters as a lawyer himself should know that ignorance of a law is no defence against evidence that clearly condemns a defendant.

Peters defences against the $100,000.00 dollar donation from Owen Glenn was that the cheque was paid into his solicitor Brian Henry's account to help meet his legal costs and Henry did not tell him about it until July this year.

Another clear cop out, It is still in effect a donation to Peters.

There seemed to be a lax relationship between Winston Peters and his lawyer Mr Henry, with Peter's legal bills, most related to political matters, paid for by Henry after he himself procured funding from various sources, one such source of funds coming from Owen Glenn.

Peters is clearly guilty of at least accepting money, one way or the other, from various sources, and not openly declaring that money.

The fact that Peters "didn't know" is highly erroneous because Peters knew because of his casual relationship with Mr Henry and that it might mean money used to pay any "legal bills" might need to be declared. Otherwise why would they both insist that Peters shouldn't know?

So now having been caught he can claim innocence because he "didn't know"?

The committee presiding over the hearing will now decide whether to get evidence from any other player in the saga before preparing a report to be debated in Parliament.

c Political Animal 2008

Mike William's letter to Labour Voters

A wee gem has fallen into my hands today. It is a Labour Party begging letter for funding from their voters and it is only in my hands because the Labour voter that it went to, who has voted for Clark the last 3 times, is no longer going to.

This letter has been delivered to a sickness beneficiary, with no excess income and living in taxpayer funded housing.

I will quote parts of it over the next week just to give readers an idea of what Labour is telling their supporters.

This courtesy of Mike Williams, Labour Party President:

"You know with Helen and with Labour that we do what we say".

Curious language from a party president who tried to cover up donations from billionaire Owen Glenn earlier this year and a leader well known for routinely lying: Painter gate, limo gate, anti smacking legislation and much more.

It gets even worse for Mike Smith and Labour when you consider the following quote:

"National is also bitterly opposed to the reforms of election finance which have made election finances much more open".

This is clearly a bizarre statement to make. The Electoral Finance Act, which Labour passed last year, has made election funding less clear and has led to unprecedented confusion over election funding.

It doesn't stop secret funding, to any party, so Mike is lying again to his Labour Party faithful.

Labour have broken their own Electoral Finance Act on at least 3 occasions this year and was the first to do so.

I leave the last words to Mike Williams from his letter because they really say it all:

"...Helen Clark stands ready to lead Labour for the fifth time..."

Related Political Animal reading

The Owen Glenn Saga: Singing the same tune but hitting a bum note

Helen Clark stares down the barrel and lies - Video

Labour first to break own Electoral Finance Act
Electoral Finance Act: The purpose is clear

c Political Animal 2008