Hell its bad. The royal oak jewellery shop that had a 200k smash up. 3 offenders only one jailed and not that long. They were spilling sob stories to the judge. If this were saudi there would be a lot of one handed people
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Hell its bad. The royal oak jewellery shop that had a 200k smash up. 3 offenders only one jailed and not that long. They were spilling sob stories to the judge. If this were saudi there would be a lot of one handed people
Action at last ..an acquisition
Going to be eps accretive immediately ……what a nonsense statement …of course if profitable it’s going to EPS accretive,
http://nzx-prod-s7fsd7f98s.s3-websit...165/392879.pdf
I think the acquisition makes sense.
Expanding the foot print of a "profitable" business should reward shareholders.
They will need to watch the cost of store fit outs.
Michael Hill stores took a very long time to cover their fit outs.
From memory it was 2 to 3 years, compared with LOV's under 6 months.
https://www.nbr.co.nz/investment/mic...atch-retailer/
NBR not as posh as AFR
nice little bolt on.
hard to watch this
Smash and grabber nabbed, diamonds on the floor in Hamilton mall heist | Stuff.co.nz
https://i.stuff.co.nz/national/crime...ton-mall-heist
At least mhj management expecting big increases in share price
The earn out payment seems to have a share component and the Table on Slide 13 of the preso has indicative share prices in a year from A$1.50 to A$1.90+
Cool eh
http://nzx-prod-s7fsd7f98s.s3-websit...166/392882.pdf
Market not too impressed with acquisition so far is it
Mhj prepared to pay 5.6 times ebitda for Bevilles
Much higher multiple that what they trade themselves
Sort of says they think their shares should be over 2 bucks
Heck
The acquisition is a million times better than buying the bankrupt jewelry chain in the USA during the GFC storm. Rational for that one was, ‘this is a great opportunity to quickly enter the US market’. Good one…
Reading the presentation linked (thanks winner) the rational for this acquisition looks solid. leaving no consumer surplus on the demand curve. I like the target of increasing current store count from 26 to 80-100 over the next 5 years. Some room to improve ebitda through synergies and utilizing MHJ head office functions.
Obviously not going to be the last little bolt on acquisition.
Trading dirt cheap multiples with a 11% dividend yield. we will see multiple expansion if management execute and if you look at their track record I am certainly happy to be on board this train while collecting a nice divvy waiting for the re-rating.
The next 5 years pretty exciting aye with organic growth and clearly going to be more bolt on acquisitions. Best type of growth
Its going to be interesting to see if this executes...
hard to not pay up as this is the end of the market sugar high... maybe better to have waited 12 months to buy but hey...
AUS is NOT NZ and mineral prices cycles for IRON and COPPER could keep the KANGAS bouncing along for the next decade..
Jeez … Spheria have been selling
Hope it’s not the start of selling the lot
Share price back to 106, about the same as when they announced that acquisition
You would have thought an acquisition leading to growth would have been positive news
taking a pounding today.. for no good reason or have i missed something?
this from DMX the other day:
During the month, the company announced the acquisition of Bevilles – a mid-market jewellery retailer with 26 stores across Australia. An acquisition of this nature had been well-flagged to the market, and in terms of size, is comfortably funded utilising the company’s current cash balance. Bevilles brand positioning is important as with its lower average basket size it has a very different market, but is complementary in terms of operating leverage through being a part of the larger group.
Paying in cash and without any equity component means the purchase is expected to be immediately EPS accretive. While there will be some obvious synergies, particularly around improved vendor terms and lease negotiations, the real value-uplift will be from rolling the Bevilles store network out to a more meaningful footprint in the Australian market. From a starting position of 26 stores, the company is preparing to add 10-15 stores pa for some number of years. For Michael Hill, Bevilles provides some growth potential that has been missing over the past couple of years. Success with Bevilles, together with continued business improvement momentum within the core Michael Hill brand, could make Michael Hill look very cheap from its current ~9 times P/E base.
That's the beauty and also the bane of such small caps ...go up fast when Gurus gets in and then go down fast too when Gurus already out but followers left in ...
Advise for choppy markets is always large cap blue chips as funds support them at lower valuations ...
KFL for a reason dont want too many small caps ...so Rawz idea of they looking at MHJ or TRA for PPH money maybe flawed ....they have burnt our money too many times on such stocks ..Metro Glass !!
KFL once a owner of MHJ.. back when MHJ was rolling out stores all over the place. Never say never... they may see the Bevilles growth factor as just enough to get them back on board
also please tell me KFL never invested in Metro Glass? if thats true wow loss of respect for them lol
Sheesh found this thread back on page 6...
Anyways close to $1. always good buying close to $1 in current trading range (based on my limited TA knowledge- gurus feel free to chime in).
Waltzing will be buying no doubt.
Are MHJ management the best capital allocators in on the NZX? Based on their excellent buy backs, acquisition and dividends......
Could be worse ….on ASX tonight
Trading Update
Given the prevailing economic conditions and resulting softening of consumer sentiment, trade has been more challenging for the jewellery industry in the second half, particularly in Australia and New Zealand, with New Zealand having also been impacted by significant weather events and a recent resurgence of security incidents and related costs.
Third party transactional data for the total Australian retail jewellery segment has shown a double- digit decline in sales for the first four months of the second half. However, Michael Hill group sales for the second half1 are only down 3.5%, demonstrating that Michael Hill has continued to take market share even in a more challenging environment. Michael Hill’s total group sales for FY23 year to date2 are up 5.5%.