$3.23 Inst taking re 10% , S Tyndall re 5% re 1% for retail sh/holders ex 13 c div. Highly dilutive.
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$3.23 Inst taking re 10% , S Tyndall re 5% re 1% for retail sh/holders ex 13 c div. Highly dilutive.
Hahahaha, oh dear.
Shorts will get out, LT holders will take this as an opportunity. I think retail investors have not fully understood the amount of time required to totally implement all the changes taking place at TWH. A total change in psychology and mantra by management.
hmm. They fail at Australia, they fail at Grocery, so now they try financial.
I thought their expansion into the broader retail (T7 and NL) made sense. Not so sure with financial. however, they have done lots of financial bits and pieces for a while so hopefully they have the market data correct.
Not good that they admitting growth in the red shed will be limited.
Think i will steer clear
Would you walk past a whole bunch of fat people buying discounted XXXL track pants in order to take out a mortgage, obtain investment advice, or ask about your KiwiSaver?
If you are a financial services company, would you want to lend money to and invest on behalf of the sort of person that would answer yes?
I think you guys have the wrong idea of what they are planning. Think more consumer finance like Fisher & Paykel Finance and GE Money.
Have a look at the Noel Leeming apply for finance page for a better idea. The 3 products offered are Interest Free via credit card (GE Money), Finance Now (SBS Bank) and Easy Lease (FlexiGroup).
They have also recently created a rewards/delayed payment card called BizRewards for business customers which gives you up to 55 days to pay. Look for them to create something similar to the Q Card by Fisher & Paykel Finance for consumers.
NZ is badly lacking in Credit Card competition compared to overseas so plenty of opportunity there as well. I was looking at credit card options yesterday and The Warehouse's current card compares pretty well with the lowest foreign currency transaction fees in the market. Not a big fan of Diner's which they have purchased but I guess it gives them the kickstart they were looking for. Hopefully they will continue to offer MasterCard cards as well.
Note Countdown in NZ have also recently released a branded credit card/onecard so the warehouse isn't the only one that has seen the opportunity.
The ultimate goal I imagine would be to build a business similar to that of Fisher Paykel Finance. When it was sold it had around $600m in receivables and $37.8m in operating profit. Like FPF after they establish the finance company they can apply to be a Non Bank Deposit take to sell debentures to the public and securitise their receivables. Both will help lower their cost of lending.
Successful examples of retailers bringing their finance offerings include Smith's City and Turner's Auctions. The Warehouse Group is bigger and more diverse so I think this move is overdue and likely to be very profitable. Maybe they could even get their finance products accepted in one or both of their shareholders, Woolworths and Foodstuffs.
I agree with Jaa.Makes sense for them to clip the finance ticket.
I think WHS are doing all the right things.
However, the market may not be happy waiting for the results,which will take some time to achieve.