Sunday, January 30, 2011

Share Investor Portfolio: Value @ 31 January 2011

The Share Investor Portfolio ended back up this week after dropping for the first week of 2011 last week. The portfolio was up 0.75% or $2090.03 on the Jan 24 update . For the first 4 weeks of 2011 the portfolio has increased by 2.41% or $6690.32. This weeks rise was due, primarily to a 5c rise in SKC, the biggest part of the portfolio. PPL & HLG fell due to profit warnings (1, 2) and MFT continued to rise well above $8 on market optimism that the worst was behind them.

The total of unspent dividends in the bank from the 2010 earnings year is $16631.93 at close of reporting season for 2010. There are also approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.


Share Investor Portfolio as at 17:30:00, Friday 28 January, 2011 (NZDT)

Stock
Quantity
Cost price
Total cost
Market price
Market value
Change
%
AIA

2,000 $1.700 $3,400.00 $2.240 $4,480.00 $1,080.00 31.76%
AIA

2,000 $1.510 $3,020.00 $2.240 $4,480.00 $1,460.00 48.34%
AIA

803 $2.150 $1,726.45 $2.240 $1,798.72 $72.27 4.19%
AIA

445 $0.000 $0.00 $2.240 $996.80 $996.80
AIA

64 $1.650 $105.60 $2.240 $143.36 $37.76 35.76%
ASBPB

2,946 $0.000 $0.00 $0.707 $2,082.82 $2,082.82
ASBPB

7,054 $1.000 $7,054.00 $0.707 $4,987.18 $2,066.82 29.30%
BGR

438 $0.000 $0.00 $1.360 $595.68 $595.68
BGR

2,562 $0.990 $2,536.38 $1.360 $3,484.32 $947.94 37.37%
FBU

266 $0.000 $0.00 $7.890 $2,098.74 $2,098.74
FBU

848 $9.750 $8,268.00 $7.890 $6,690.72 $1,577.28 19.08%
FPH

3,000 $2.350 $7,050.00 $3.170 $9,510.00 $2,460.00 34.89%
FPH

541 $0.000 $0.00 $3.170 $1,714.97 $1,714.97
FPH

1,459 $3.720 $5,427.48 $3.170 $4,625.03 $802.45 14.78%
FRE

1,882 $0.000 $0.00 $3.250 $6,116.50 $6,116.50
FRE

6,749 $3.630 $24,498.87 $3.250 $21,934.25 $2,564.62 10.47%
GFF

541 $0.000 $0.00 $1.690 $914.29 $914.29
GFF

1,459 $2.330 $3,399.47 $1.690 $2,465.71 $933.76 27.47%
HLG

244 $0.000 $0.00 $3.860 $941.84 $941.84
HLG

756 $2.530 $1,912.68 $3.860 $2,918.16 $1,005.48 52.57%
KIP

190 $0.000 $0.00 $1.010 $191.90 $191.90
KIP

810 $1.480 $1,198.80 $1.010 $818.10 $380.70 31.76%
MFT

1,000 $7.960 $7,960.00 $8.160 $8,160.00 $200.00 2.51%
MFT

1,838 $8.000 $14,704.00 $8.160 $14,998.08 $294.08 2.00%
MFT

657 $0.000 $0.00 $8.160 $5,361.12 $5,361.12
MFT

1,505 $4.200 $6,321.00 $8.160 $12,280.80 $5,959.80 94.29%
MHI

1,646 $0.860 $1,415.56 $0.900 $1,481.40 $65.84 4.65%
MHI

7,000 $0.630 $4,410.00 $0.900 $6,300.00 $1,890.00 42.86%
MHI

718 $0.000 $0.00 $0.900 $646.20 $646.20
MHI

636 $1.050 $667.80 $0.900 $572.40 $95.40 14.29%
PPG

31 $0.000 $0.00 $0.270 $8.37 $8.37
PPG

1,500 $0.440 $660.00 $0.270 $405.00 $255.00 38.64%
PPG

1,004 $0.800 $803.20 $0.270 $271.08 $532.12 66.25%
PPL

1,000 $3.090 $3,090.00 $1.440 $1,440.00 $1,650.00 53.40%
PPL

1,000 $2.870 $2,870.00 $1.440 $1,440.00 $1,430.00 49.83%
PPL

939 $4.200 $3,943.80 $1.440 $1,352.16 $2,591.64 65.71%
PPL

877 $0.000 $0.00 $1.440 $1,262.88 $1,262.88
PPL

1,184 $1.530 $1,811.52 $1.440 $1,704.96 $106.56 5.88%
RYM

459 $0.000 $0.00 $2.400 $1,101.60 $1,101.60
RYM

4,586 $1.970 $9,034.42 $2.400 $11,006.40 $1,971.98 21.83%
SKC

5,750 $7.430 $42,722.50 $3.290 $18,917.50 $23,805.00 55.72%
SKC

1,000 $7.600 $7,600.00 $3.290 $3,290.00 $4,310.00 56.71%
SKC

2,750 $7.700 $21,175.00 $3.290 $9,047.50 $12,127.50 57.27%
SKC

1,431 $8.750 $12,521.25 $3.290 $4,707.99 $7,813.26 62.40%
SKC

25,085 $0.000 $0.00 $3.290 $82,529.65 $82,529.65
SKC

899 $4.720 $4,243.28 $3.290 $2,957.71 $1,285.57 30.30%
STU

78 $0.000 $0.00 $2.270 $177.06 $177.06
STU

322 $4.740 $1,526.28 $2.270 $730.94 $795.34 52.11%
WHS

4,500 $3.730 $16,785.00 $3.660 $16,470.00 $315.00 1.88%
WHS

6,979 $6.000 $41,874.00 $3.660 $25,543.14 $16,330.86 39.00%
WHS

2,880 $0.000 $0.00 $3.660 $10,540.80 $10,540.80
WHS

641 $3.710 $2,378.11 $3.660 $2,346.06 $32.05 1.35%


19.03%


Total cost Market value Change

$278,114.45 $331,039.89 $52,925.44


Share Investor Portfolio @ Share Investor

Share Investor Portfolio: Value @ 24 January 2011
Share Investor Portfolio: Value @ 17 January 2011
Share Investor Portfolio: Value @ 10 January 2011
Share Investor Portfolio: Value @ 3 January 2011
Share Investor Portfolio: Value @ 27 December 2010
Share Investor Portfolio: Value @ 20 December 2010
Share Investor Portfolio: Value @ 13 December 2010
Share Investor Portfolio: Value @ 6 December 2010
Share Investor Portfolio: Value @ 29 November 2010
Share Investor Portfolio: Value @ 22 November 2010
Share Investor Portfolio: Value @ 15 November 2010
Share Investor Portfolio: Value @ 8 November 2010
Share Investor Portfolio: Value @ 1 November 2010
Share Investor Portfolio: Value @ 25 October 2010
Share Investor Portfolio: Value @ 18 October 2010
Share Investor Portfolio: Value @ 11 October 2010
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c Share Investor 2011

Friday, January 28, 2011

Share Investor Q & A: Reader Questions to Auckland Airport CEO Simon Moutter

I have given up for the time being on getting Michael Hill for a Share Investor Q & A - its a long story - but have managed to jack up a good one today with Auckland International Airport Ltd [AIA.NZX] CEO Simon Moutter.

Auckland Airport is a company with an asset that is known by most New Zealanders who have traveled and we are all aware that it is an expensive place to shop, park and fly. It has also been a great investment for long term shareholders since it listed nearly 13 years ago.

Over the last few years though the company has stalled in profit growth due to a downturn in world travel and some high expense capital requirements to modernise and expand the business.

It looks set for some good gains over the next few years however.

AIA has been headed by Simon Moutter since 2008 but he is a relatively low profile individual.

What do we know of his plans for the Airport he heads, where does he intend to take the company into the future and what makes this CEO tick?

With that in mind I thought I would like my readers to put some questions to Simon for a Share Investor Q & A.

Please leave your questions here at the bottom of this post or email me here.

Disclosure: I own AIA shares in the Share Investor Portfolio


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

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

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Allan Hubbard Saga: Mental Challenge

The Allan Hubbard Saga has just taken a bizarre and unexpected twist.

As reported in the NBR this morning, Hubbard's official support team have been sending MRI brain scans to the Serious Fraud Office. To what end is unclear but one can see Mr Hubbard's Lawyers might be trying for the sympathy vote. If he can be seen as doddery, unable to understand detail and incapable of thinking clearly(hang on isn't that what this is all about anyway!) then there is the possibility a poor judge with charges brought before him by the SFO against Hubbard might be inclined to set them side because of Hubbard's delicate mental and physical shape:

But legal and medical specialists says they are astonished by that and suspect the use of an MRI brain scan is part of an attempt to prove Mr Hubbard is not fit to stand trial.

Both Serious Fraud Office director Adam Feeley and Mr Hubbard’s lawyer, Russell McVeagh partner Mike Heron, have indicated a decision on whether the Timaru accountant will face charges over Aorangi Securities is likely to be made late next week.

NBR understands the Serious Fraud Office has not requested any medical information about Mr Hubbard.

With impending charges due from the SFO next week, Hubbard's legal team is looking increasingly desperate to keep their man from facing serious charges of fraud, forgery, incomplete and missing paperwork. Clearly his lawyers think the SFO and other Government agencies have a strong case against their man otherwise their defence would be one of them gathering their own evidence against the charges rather than pleading a lack of mental capacity to stand trial.

The self appointed unofficial Hubbard Support team, who includes traveling salesman Paul Carruthers and religious devotee Michelle Halliwell, this time appear to be the sane ones with a really good point made on Hubbard's Lawyers possible plea:

“a slippery road that we do not want to go down under any circumstances” as it raised the prospect of an end-game.

“What if they say he is not fit for trial? Therefore he can’t run a company [and] it allows them to strike him off the companies register while bypassing the courts,” Paul Carruthers NBR

Although a contrary opinion from his supporters, who have thus far been publicly rallying for a quashing of any charges and an abandonment of a trial, Mr Carruthers and his fellow travelers have now done a sensible 180 degree turn and are right that if a trial is abandoned then the public are not going to see a clear decision about whether Hubbard is guilty or not of the charges thus far only brought against him in the media and investigated by the SFO and several other Government and private agencies.

I agree, we need a clear decision on his guilt or other and that is why the charges need to be placed and the trial needs to go ahead.


Allan Hubbard Saga

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c Share Investor 2011

Thursday, January 27, 2011

Share Price Alert: Pumpkin Patch Ltd



Pumpkin Patch Ltd [PPL.NZX] has been out with a profit downgrade this morning and this has seriously affected its share price, it has dropped by more than 9.5% or 15c at time of writing to be trading at $1.42.

There is an overall weakness in retailing stocks at present and just yesterday Hallenstein Glasson Holdings Ltd [HLG.NZX] came out with its own profit downgrade.

The Pumpkins profit levels have been up and down over the last 2-3 years after spending most of its listed life rising and the share price has reflected that.

Most recently it has taken hits from failed expansions into the UK and the USA but now its Australasian units have performed badly for the first time, indicating perhaps something more serious at play.

The company still lacks solid management but they have removed Greg Muir who cost the company millions through their failed expansion outlined above.

The company still has a core of loyal followers and a very strong brand and is well placed to ride out these tough times.

This is a good opportunity to buy on the way down.

I fear though there will be more bad news to come so be patient.


Disclosure: I own PPL shares in the Share Investor Portfolio


Share Price Alert

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c Share Investor 2011

Share Price Alert: Hallenstein Glasson Holdings Ltd

Chart forHallenstein Glassons Holdings Ltd (HLG.NZ)

Hallenstein Glasson Holdings Ltd [HLG.NZX] had a profit downgrade yesterday and they indicated that net profit after tax for the 6 months ended 1 February 2011 is projected to be in the range of $7.0 –$ 7.4 million, a decrease of 13% - 18% on the prior year ($8.549 million). Sales were marginally down indicating HLG was discounting to keep market share.

This comes on top of a pretty good FY 2010 result.

I was only questioning myself in September last year about whether I should sell or hold given that the shares were rocketing up and they peaked in November last year at $4.60.

The shares have been losing ground over the last few months before this announcement and they were down by 24c to $3.86 or almost 6% yesterday on low volumes traded.

It is a well managed company with excellent dividends and this bad news could be a good opportunity to pick some up as the stock price drifts south.

Buy on inevitable further weakness in the retail sector.


Disclosure: I own HLG shares in the Share Investor Portfolio


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Think Bigger: How to Raise Your Expectations and Achieve Everything

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c Share Investor 2011

Wednesday, January 26, 2011

Investing in the Stockmarket: Timing your Purchase

My Mainfreight Ltd [MFT.NZX] shareholding really is a tale of two stories.

I bought my initial shareholding at $7.96 and $8 over 4 years ago and my most recent addition in 2009 for $4.20.

Yesterday the stock closed at $8.15, an all time high.

The two stories are as follows:

1. The initial shareholding has returned $1.02c in net dividends and 33c in tax credits with a rise in share price of 2%. This gives a total return of approx 19% or an annual return of approx 4.75%.

2. The second shareholding has returned 42c in net dividends and 33c in tax credits with a rise in share price of 94%. This gives a total return of approx 107% or an annual return of approx 71 %.

Apart from the quality of the company and the research you must do to find the right performance and management, what I am pointing out here is that the timing of your investment purchase is critical to your returns.

I was happy to buy the company at 8 bucks because I knew long term that I would be a winner and the recent share price rise and performance of the company is vindication of that but clearly buying stocks when the prospects for a good company are at a high is not always the best way of buying.

I have learnt this over the last 2 years of the stockmarket volatility, buying beaten down stocks (see below for links) in companies I already own, and it looks like another opportunity will present itself as global stockmarkets like the NYSE start to reach all-time highs (with the exception of NZX, Japan and a few others) in a global economic background that doesn't fit with stockmarket gains.

I am keeping my options open and being patient, so should you if you want better returns.


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c Share Investor 2011

Tuesday, January 25, 2011

Queenstown Aiport Case: Air New Zealand VS Auckland Airport

On news that Auckland Airport Ltd [AIA.NZX] have secured a deal for China Southern Airlines to begin flights between Guangzhou and Auckland starting in March because of Auckland Airport's deal with Queenstown Airport at the end of 2010, we must revisit Air New Zealand Ltd [AIR.NZX] opposition to the marriage between Queenstown and Auckland Airports, especially in the light of the recent purchase by AIR of nearly 15% of Virgin Blue Holdings Ltd [VBA.ASX] last week.

Air New Zealand's Rob Fyfe and Bruce Parton last year indicated his airlines opposition to the AIA/Queenstown merger was because of their monopoly status and the "anti-competitive" nature of the company the port already had and the purchase of 27.7% of Queenstown Airport would cement that monopoly.

There are also several businessmen in Queenstown in opposition to the merger and factions within the Queenstown Council, who own the majority of the Queenstown port.

Apart from the clear benefits that the Chinese Airline will have on the New Zealand economy, benefits that I initially was dubious about last year when the deal was announced, the added revenue for AIA is going to be good for shareholders, especially as this route looks like it will develop further over the long term.

For Air New Zealand to continue their case in the Christchurch High Court is to be guilty of hypocrisy of the highest order.

While you may agree that Auckland Airport has a monopoly - it indeed does and that is why I am a shareholder, AIA's purchase of Virgin Blue is pretty much the same deal as engineered by AIA/Queenstown and also cements, for AIR, a history of anti competitive behavior in the Airline business in this part of the world and specifically the stranglehold they have on flights into the booming Queenstown tourism sector.

For them it is about protectionism of their near monopoly in Queentown and the benefits this has on their routes out of that port and Auckland Airport as well.

In effect they are attempting to do the same as Auckland Airport.

Don't expect AIA to take a court case against AIR though.

You wouldn't expect less from a quasi Govt Department though with taxpayer dollars bankrolling them.


Disclosure I own AIA shares in the Share Investor Portfolio


AIA @ Share Investor

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AIR @ Share Investor

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Discuss this stock at Share Investor Forum - Register free
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Think Bigger: How to Raise Your Expectations and Achieve Everything

THINK BIGGER: HOW TO RAISE YOUR EXPECTATIONS AND ACHIEVE EVERYTHING
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c Share Investor 2011