For what it's worth (obviously nothing) I have $3.50 as my buy order. (just a toe in the water though)
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For what it's worth (obviously nothing) I have $3.50 as my buy order. (just a toe in the water though)
You'll get em Kura ... don't think you want 'em though !!!
Should be a good trade @3.98Quote:
quote:Originally posted by kura
For what it's worth (obviously nothing) I have $3.50 as my buy order. (just a toe in the water though)
well im out, brought it at 5.33 in march
out today sold for 3.74
to fuel for more OC's
ive given up hope for the turn around
surprising how it dropped another 5 cents today
but go NOGOCs!!!
Obviously a good learning experience for u.Quote:
quote:Originally posted by Dazza
well im out, brought it at 5.33 in march
out today sold for 3.74
to fuel for more OC's
ive given up hope for the turn around
surprising how it dropped another 5 cents today
but go NOGOCs!!!
I bgt at 5.83 and sold 5.13 but that was a long time ago...
u made the right choice and will be rewarded amply god willing
Amazing that WHS price is still the same as it was 5 years ago
Imagine some poor fella called Sid who went bush for 5 years in November 1999 happy that his WHS shares were $3.80 and came out today and found they were still about $3.80.
Sid asked his sharebroker what has happened to the WHS over the last 5 years - his sharebroker told him
**** Store numbers have increased from 87 to 351
**** Sales are nearly 2 1/2 times what they were - increased from $0.9 billion to $2.2 billion
**** Net assets have more than doubled - from $170M to $357M
**** Now have 15,877 empoyees - 10.262 more than 5 years ago
**** Spent $500M on capital expenditure
So Sid replies 'Thats impressive, they must be making heaps now'
Oh no his sharebroker told Sid - their profit has only increased from $54M to $61M in those five years ... and the earnings per share has gone from 19cents to 20 cents.
Poor Sid - he's incredulous. All that investment and all those extra staff and they are only making the same as they were 5 years ago.
Who does he blame? He can't blame investor sentiment because WHS is still trading at 20X earnings - it hasn't been rerated downward. Sid says to himself that is just as well as if they had been rerated down they might have only been worth $2-$3. At least he still has his capital and he has had a few piddly dividends put in his bank account but inflation has taken care of those.
Sid asks his sharebroker 'Have the WHS really stuffed up somewhere along the way?'
Sid's sharebroker tells him 'No not really. They are investing for the future and all should be right in few years and your WHS shares should be worth $10 each in 5 years'
Sid thinks thats good and decides going bush for another 5 years might be the caper
What will Sid's sharebroker tell Sid when he comes back to civilisation in 5 years time?
LOL I like that one. Now do the same for NOG.....
THE KING says this thread should be renamed " MOAN CITY "...[^][^][^]
Winner69 - well I like your sense of irony/humour. It helps balance all those stinging barbs elsewhere.:D:)[8D][:o)] Sid should swing a pick for NOG at the Pike River.
Well if I was brave I'd sell out of me MHI which have had about a 60pct run-up since March 04 and jump merrily into WHS which has been so unfairly hammered down and must be due to rebound some time soon. There can only be an upside, surely.
Do you think I should be brave?
no. enuf said.
Unfairly hammered down? No I think they have earned it. They are still too expensive.Quote:
quote:Originally posted by Placebo
...WHS which has been so unfairly hammered down and must be due to rebound some time soon. There can only be an upside, surely...
Winner, great story.
The happy ending:
Sid returns from the bush 5 years later and his stock broker gives him the news the shares are worth $10. He enthuses about the excellent mangament decisions the WHS took over the past 5 years. It cut its losses in Australia in 2005 to concentrate on NZ operations, first by better managing margins and second by following Walmarts lead and entering into the hypermarket format. Its superior stock control systems and smart marketing allowed it to take considerble market share from the supermaket chains. Margins aren't high but they are stable and the WHS more than earns its cost of capital. Sid's pretty chuffed, he sells his shares to move into a comfortable kauri villa in Freeman's Bay.
The sad ending:
Sid returns and the shares are worth $2.50. The broker consoles him by saying that its still 50% more than what they were two years ago when the WHS finally sold off their loss making Australian operations and marginal New Zealand red sheds to focus on stores earning a superior return on equity. The broker tells him Foresooth Barred research suggests it will be worth $4.00 on the 2011 earnings outlook. Sid sighs and goes back to the bush for another 5 years.
Until I see management making the tough decisions I lean to the sad ending...
Poor Sid. Hope he likes Huhu grubs
Tough weekend for Keith and Ian tossing around what they should be telling shareholders at the AGM this week.
Could be tough meeting seeing shareholders have seen their worth diminish by $720,000,000 since the last meeting
Keith agreed to do the nice warm fuzzy stuff saying that last year wasn't the best but things were on track and this year will probably be OK
Keith won't be able to give any guidance for the full year as Xmas sales have such a bearing on the result ... but trust me
Keith told Ian that he is the new leader so he can do the visionary thing ... like I have been in charge for a few months ... like what i see ... and once I change a few things ... build some new stores ... in a few years we will have a great company again
Anybody going to the AGM?
The tea lady (or the cleaner) at WHS HQ must have seen the slides the guys are going to use tomorrow
Must have been at lunch time because her friends certainly bailed out this afternoon .... and today was a good day on the NZX
WHS at 369 ... who would have believed that
Doesn't sound good .... I say some bad news hidden away in those presentations tomorrow
Anybody going to the AGM?
FALLING--------- sub $3.50 today?
Watch her drop. This is an interesting slope
So was 352 the low?
Looks like now is the time to buy
Ian saying he will reduce stock by 30% makes the $100M a year capital needs less daunting ... and WHS won't have to borrow to pay the dividend this year
Then again maybe Progressive is on the radar ... if you can't beat them buy them
Looking more like a $2.00 stock every day !!!
D.
Like a falling knife, there will be blood on the streets. Still looks expensive at $3.50 unless Aussie is fixed or cut and run.
should they be renamed 'the $2.00 shop"Quote:
quote:Originally posted by dnicholls
Looking more like a $2.00 stock every day !!!
D.
:D
THE KING says they should takeover the $2 shop bis know as the Reject Shop ,NZ & AUS to get a better footing as they have enough margin in the share price for a paper TAKEOVER.. [^]
always the same eh
WHS goes under $4 and all the doomers come out blazing...
where were YOU when WHS was pushing $8!!!!
BEFORE it lost $1,300,000,000 off it's market cap.
I was told it was going to takeover Aussie
...then head to China
and hit $8 and split again.
C9 was one of VERY few warning Bongo at the top;)
Now, stop jumping on the bandwagon and tell us
When will it hit the bottom??[:p]
http://www.stuff.co.nz/stuff/0,2106,3121953a13,00.html
...and where exactly does WHS fit in to this?
bit rich for WHS - (quote)Foodland's New Zealand assets Progressive Enterprises were valued at $2.0 billion before Metcash's bid.Quote:
quote:Originally posted by donner
http://www.stuff.co.nz/stuff/0,2106,3121953a13,00.html
...and where exactly does WHS fit in to this?
But you never know .... might be a partnership with somebody like Walmart? .... before the full takeover of WHS by Walmart .... and then they wont need to expand to China
important news is that the girls toy buyer resigned around two months ago and as at today the overall toy buyer has left. TWH have 70% of the toy business within NZ and this will have a major impact.
Panic in the streets. [:0]Quote:
quote:Originally posted by Bullet
important news is that the girls toy buyer resigned around two months ago and as at today the overall toy buyer has left. TWH have 70% of the toy business within NZ and this will have a major impact.
They can, of course, always find replacements. ;)
I would bet that all their Xmas + New Year sales stocks have been bought. [8D]
It is still overpriced mind you*.
*The SP, not the toys.
more bad news: WHS kicked out of NZSX10.
From NZX anouncement
Westpac (NZ) Investments Limited (WPT) will be added to the NZSX 10 index and
The Warehouse Group Limited (WHS) will be deleted.
NZSX MidCap Index
The Warehouse Group Limited (WHS) will be added to the NZSX MidCap index and
Westpac (NZ) Investments Limited (WPT) will be deleted.
NZSX 10 Index
Westpac (NZ) Investments Limited (WPT) will be added to the NZSX 10 index and
The Warehouse Group Limited (WHS) will be deleted.
NZSX MidCap Index
The Warehouse Group Limited (WHS) will be added to the NZSX MidCap index and
Westpac (NZ) Investments Limited (WPT) will be deleted.
Lots of girls like toys. More than the boys I think. It is for this reason the impact will be felt. But come to think of it. I am not sure if they have this department or not.Quote:
quote:Originally posted by Bullet
important news is that the girls toy buyer resigned around two months ago and as at today the overall toy buyer has left. TWH have 70% of the toy business within NZ and this will have a major impact.
I see that they are getting desperate for sales. They had a shareholders shopping night a week or two ago, where got 10-25% off.
Must have been a success, as they are having another one next week. I bought about 10 things and every one had the minimum discount of 10%. Even worse, after reading the posts on WHS on this site, every item scanned at the shown price!!
Just trying to get some of the money back WHS has cost me thus far. :( Maybe it's just a way to placate shareholders??
SSB
Xmas helping the WHS price
I say 400 by Xmas .... don't most say this is the Xmas to beat all Xmas's (sales wise)
I would be grateful for any TA viewpoint on the current WHS SP. I know that fundies think it is a solid share.Cap and the smart money think it may get back into gear in February.
The issue for me is about timing of entry.
K1W1 - I reckon that the T.A. indicates a buy right now. Short term trendline break. Good volume today after 3 previous day rises (improving candles) although there may have been a bit of profit-taking as todays has a bit of a long lower shadow. May want to wait a day or two for a DMI cross-over (or not) but On Balance Vol OBV and MACD or bullish. That will be 20 Guineas please (unless I'm wrong.)
Beats me why the sp wld rise on pre-Xmas sales. People are sooo fickle - that's why T.A. works.[:p]
Fundies see shares as part ownership of a business. If as you say the business is solid then it would follow that a shar ie part ownership of a solid business could also reasonably be described as "solid".
That is completely different from share price ie what Mr Market is prepared to pay for it on any day. Solid shares do not always have solid share prices. The art is to pick the value discrepancies.
On that point I would be interested in your views on Speirs Finance which traded today at $1.20.
K1W1 - In a word - Icck!
Too few trades on poxy volume to give a meaningful answer. Only 33 trading days since mid-August but it is in an uptrend. Have a look at http://bigcharts.marketwatch.com/javachart/ NZ:SGL is the code to use.
kiwi and other prospective WHS owners, after spending a good hour yakking through the NZ retail scene with the non-food purchasing manager of NZ's largest retailer by turnover (hint the outfit is not listed) I am seriously thinking of going short the WHS....looks like things are just going to get tougher for them in NZ going forward.
k1w1 Posted - 17/12/2004 : 6:24:49 PM
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Fundies see shares as part ownership of a business. If as you say the business is solid then it would follow that a shar ie part ownership of a solid business could also reasonably be described as "solid".
That is completely different from share price ie what Mr Market is prepared to pay for it on any day. Solid shares do not always have solid share prices. The art is to pick the value discrepancies.
On that point I would be interested in your views on Speirs Finance which traded today at $1.20.
Well I had to laugh when I read that again K1W1.
If one (techie) picks solely undervalued companies and the rest of the mkt (Mr Market) doesn't recognise this what happens to the sp? DOH!!!! [xx(] Nah - it doesn't work for me like that. It's all about what the market does , rather than what we think it should do.
If I go any further then I'd have to drag Cap' into this to talk about reality, perception, desire and hope.[:p]:)
Thanks for inviting me to respond about the Speirs thingie. There are several far more knowledgable people here who understand T.A. and I'd like to see their views on WHS. I appreciate the the value of F.A. but I'm too impatient to buy & hold long term.
Without cosidering the big picture I'd say the warehouse will be punished on Monday along with Briscoes. :)
Longtack sees WHS as a "buy" right now. I disagree, but it is obvious why we have different opinions. I am a less active, more conservative trader than LT. My systems are aimed at trading medium-term trends and LT's comments refer to the short-term trend. I have made only 2 WHS trades in 4 years, and that was one too many! (I was lucky to get out of the 2003 trade with any profit at all)
So, right now I see a stock in a clear long-term downtrend, with a confirmed trendline in place and with price action well below the trendline. In addition, there was such strong support for WHS at $4.00 that it would be reasonable to expect some resistance at that level on the way up. Not for me at all, but if you are keen to buy, why not wait for a break of the red long-term trendline? If you are really desperate to throw money at this thing, at least wait for a break of the blue short-term trendline.
http://home.ripway.com/2004-7/148483/WHS002.gif
Thanks Phaedrus
Longtack the Speirs reference was for Belg, we have a bit of history on that thread...but to your point, Warren Buffett used to make a living from picking stocks undervalued by the market. He used to say that although in the short term the market is a voting machine as when only one person gets a share, in the long term it is a weighing machine when stocks get reweighed up or down. WHS has been both ways now and I am wondering where it goes next and when. Techies may have a view that I would be keen to here.Quote:
quote:Originally posted by Longtack
k1w1 Posted - 17/12/2004 : 6:24:49 PM
--------------------------------------------------------------------------------
Fundies see shares as part ownership of a business. If as you say the business is solid then it would follow that a shar ie part ownership of a solid business could also reasonably be described as "solid".
That is completely different from share price ie what Mr Market is prepared to pay for it on any day. Solid shares do not always have solid share prices. The art is to pick the value discrepancies.
On that point I would be interested in your views on Speirs Finance which traded today at $1.20.
Well I had to laugh when I read that again K1W1.
If one (techie) picks solely undervalued companies and the rest of the mkt (Mr Market) doesn't recognise this what happens to the sp? DOH!!!! [xx(] Nah - it doesn't work for me like that. It's all about what the market does , rather than what we think it should do.
If I go any further then I'd have to drag Cap' into this to talk about reality, perception, desire and hope.[:p]:)
Thanks for inviting me to respond about the Speirs thingie. There are several far more knowledgable people here who understand T.A. and I'd like to see their views on WHS. I appreciate the the value of F.A. but I'm too impatient to buy & hold long term.
Thanks K1w1 - I knew there was more to you than that.;) Wazza B is nearly 80 I guess and he still has more patience than me.
The WHS is still expensive on the fundamentals, according to P the medium term technicals are weak and on top of that I've done my own bit of Macdunking which leves me even colder on the longer term profitability of the NZ ops on this one (check out a big non-WHS development in Licoln Rd...), let alone the mess in Oz. It really escapes me why some punters are keen on this one - as if being burnt at 5.50, then 5, then 4.50 and lately $4 wasn't enough!!!
THE KING says Please dont think about shorting these stocks all the eyes of NZ are now looking at them think more of a BUY chance not seen for a long time its always harder to BUY when stocks are DOWN..
Every victom that SELL is looseing vast amounts of money just so you can pick UP..[^][^][^]
U talk rubbish. That's what was said when the victims were selling out of the dot-com stocks.:D:DQuote:
quote:Originally posted by THE KING
THE KING says Please dont think about shorting these stocks all the eyes of NZ are now looking at them think more of a BUY chance not seen for a long time its always harder to BUY when stocks are DOWN..
Every victom that SELL is looseing vast amounts of money just so you can pick UP..[^][^][^]
THE KING says if you cant tell a dot.com from a WAREHOUSE you need GLASSES... [^][^][^]
I too think WHS is an opportunity, but not just yet. Timing is everything. Maybe when interest rates starts to fall again or when they quit Aussie is the time. WHS is still trading at a high P/E with possible further downgrades.
THE KING Posted - 18/12/2004 : 3:40:48 PM
--------------------------------------------------------------------------------
THE KING says if you cant tell a dot.com from a WAREHOUSE you need GLASSES...
preferably Warehouse ones - for $12.99 [:p]
No mate - $6.50 next week ... 50% off (most things) to give sales a boostQuote:
quote:Originally posted by Longtack
THE KING Posted - 18/12/2004 : 3:40:48 PM
--------------------------------------------------------------------------------
THE KING says if you cant tell a dot.com from a WAREHOUSE you need GLASSES...
preferably Warehouse ones - for $12.99 [:p]
Wonder what the 'bargains' on Boxing Day will be like ... MUST BE MORE DISCOUNT TO GIVE AWAY .... AND HEAPS AND HEAPS AND HEAPS OF SURPLUS STOCK TO SELL BELOW COST
THE KING says just to put yer both in the picture thos same reading Glasses as seen in Ware sell in AUS for AU$2.99.. [^][^][^]
YOUR MAJESTY, I thought harods would be your shopping place. Nice to see you mingle with the peasants on the shop floor. macdunk
THE KING says Well yer WRONG make beleive SCOT.. [^][^][^]
... but there is only one lens ... for one-eyed aussiesQuote:
quote:Originally posted by THE KING
THE KING says just to put yer both in the picture thos same reading Glasses as seen in Ware sell in AUS for AU$2.99.. [^][^][^]
WINNER 69, Sorry you are wrong its the one eyed poms that buy those they call them monarckles.
Sorry your majesty no pun intended. macdunk
THE KING says if the worst happened and Ware hit the WALL what would NZ`ers have to talk about ,, bet it wont be CRICKET.. [^][^][^]
Your majesty, we will always have the under arm bowling incident to keep us amused. He had to be an HORSTRILIAN not the british thing to do. YOUR LOYAL SUBJECT MACDUNK
Better end of town (Pumpkin Patch, Hallensteins, Michael Hill etc) appear to be doing OK but the cheap end of town (BGR and Postie Plus) struggling.
What about WHS then
Macdunk says estimate what the next result will be and position yourself accordingly. So here goes .... what I think the 1st half WHS profit announcement (in Feb) will look like
Red Sheds profit for the 2nd half of their 2004 year were down on the previous year. The announcements since have not been good ... price deflation and higher expenses etc ... so expect continued reduced profits (compared to the same period last year) from the Red Sheds for the 1st half of their year. Those Red Sheds are a real problem at the moment.
Stationary is a problem child ... margins shot and volatile sales ... at best profit about the same as last year
Australia - sales not fantastic but reduced losses
So overall, at best, profitability for the 1st half of the year about the same as last year .. ironically because of reduced losses in Australia offsetting reduced profits out of the Red Sheds. Who would have thought that Australia would make the situation look better. But then we should not be surprised if there just happens to be some large abnormals like stock writeoffs.
In view of WHS management 'being comfortable' with latest estimates of $80M profit this year this sort of result would not be a good result.
So Macdunks methodology would be to stay out of WHS until the next profit announcement and review any investment intentions then.
No, no, no, w69 you forgot to ask the tea lady.
Can anyone post a link to Phaedrus last WHS chart showing where the upward trendline is that needs to be crossed.
K1w1,
Upward trendline? WHS is in a [u]downtrend</u>.
There is a tentative short-term downward trendline in place, and a confirmed long-term downward trendline is also in place.
I am happy to post the chart again, if you like.
Doh !! Thanks Phaedrus if you could post it again that would be appreciated.
Phaedrus, by the end of December if WHS closes above 3.70 has it broken the unconfirmed trendline ?
Yes. $3.73 by my reckoning, but let's not quibble! You would have to be a very keen buyer to act on such flimsy evidence, though. Personally, I wouldn't dream of buying at that point. I would want to wait for an uptrend at the very least. (WHS is still making lower lows). There is also the possibility of Resistance to be overcome at around $4.00. I would much prefer to use the more conservative long-term trendline. A break of this would be a much safer option, though of course you are bound to pay a little more. Use of this trendline has kept me and others away from this dog for well over a year, so far. For the life of me, I cannot understand the level of interest in this stock when there are so many better options available, even on the local market.
Looks like both the shortterm and long term downtrend in placeQuote:
Did spike up to 378 one day .... traders remorse is the term I think
THE KING says WHS is KIWI with all the advertisments which run solid all day so they want to be part of it, NO worry what the company DOING.. [^][^][^]
When is the next offical annoncement for WHS on sales/profit etc?
analysts are predicting good sales...whs hasn't (so far) come back (continuous dislosure) and told them otherwise (ie the analysts are in the ballpark) so i would predict a movement up in shareprice soon...no i dont believe the good sales has yet been built into sharepriceQuote:
quote:Originally posted by evedder
When is the next offical annoncement for WHS on sales/profit etc?
I have not seen confirmation of good sales figures over the Christmas / New Year period so far..
Who wants to be part of it. Almost Every thing we buy in retail is made overseas, and sold on special. I do notice some of the timber products are cheaper to buy than we can buy the material in nz, never mind the labour or sale margin. They are all cutting each others throats with continual sales. The whole retail industry is not worth investing in at the moment. It is cheaper to throw a blunt saw away, and buy a new one rather than sharpen it. Free trade with china will kill retail in nz, even worse than what is going on now. Produce from the farm sector is the only winner.
macdunk
Quote:
quote:Originally posted by duncan macgregor
Who wants to be part of it. Almost Every thing we buy in retail is made overseas, and sold on special. I do notice some of the timber products are cheaper to buy than we can buy the material in nz, never mind the labour or sale margin. They are all cutting each others throats with continual sales. The whole retail industry is not worth investing in at the moment. It is cheaper to throw a blunt saw away, and buy a new one rather than sharpen it. Free trade with china will kill retail in nz, even worse than what is going on now. Produce from the farm sector is the only winner.
macdunk
surely cheap imports from china should be a boost for retailers.
It's the manufacturers who are hurting.
Mick
No, cheap imports from China are a boost for the consumer.Quote:
quote:Originally posted by Mick100
surely cheap imports from china should be a boost for retailers.
It's the manufacturers who are hurting.
Mick
Mass manufacturing has long since moved from NZ to China. So what's new?
Stick to hoarding those gold bars, o Mick of the Mouses. Better a 1% annual return on gold than -15% on retail.
It is a no win all round situation, discounts, continual sales. Cut throat margins the only winner is the shopper who demands more of the same. The competition is in killer mode my money wont be in this sector. macdunk
THE KING says Well dun mac what is your BUY stock.. [^][^]
6c down... is this the beginning of the next slide ???
All the signs point to retailers having a very hard 2005.Get your money out and into growth stocks.
ASX notice this morning from MRL,declining sales,declining profits,suspension of dividend.
Intense competition given some blame,will WHS Australian operation be similar?.
KING, YOUR MAJESTY it is a wise man that never gives or accepts advice but listens and then makes his mind up. Retail is rat poop end of story. Sectors to be in, power companies always good if times get bad, i am with TPW. Farm service companies especially if the dollar drops, i am with PGG. Companies that have done nothing due for a trend soon HQP safe as houses making heaps, with money in the bank to expand. Then we have NOG with a bit of thrill, and drill. The hype machine is in full bore with this stock, awaits announcements at the end of jan. Look for the sectors that have prospects and dump whatever is not trending up. MACDUNK
THE KING says RIGHT Mr MacD for the NON ADVICE..[^][^][^]
you askQuote:
quote:Originally posted by THE KING
THE KING says RIGHT Mr MacD for the NON ADVICE..[^][^][^]
MacDunk answers
you put down
down with the king, you arrogant [^][^][^]
THE KING says and your JOB Paper Tiger keeper of NZ morals..[^][^]
PAPER TIGER, you miss read his majesties post. he only thanked me for not giving him advice.
Who can blame him. MACDUNK
That Millers announcement is a shocker ... and i would have thought that they would have coped betetr than the Yellow Sheds.Quote:
quote:Originally posted by OldRider
ASX notice this morning from MRL,declining sales,declining profits,suspension of dividend.
Intense competition given some blame,will WHS Australian operation be similar?.
Not even the interim canned but the full year dividend as well. The WHS wouldn't do that ... would they?
And writing down the value of their discount business is indicative that these business's are not as valuable as they were - (Announcement)As a result of continued underperformance in the Discount Variety retail business the Board has resolved to reduce the carrying value of the intangible assets relating to the Discount Variety goodwill and brand name assets by $29.6 million.
Maybe those on this site who said a few months ago that WHS should writeoff the not insignificant goodwill they are still carrying for the Aussie assets might be on to something
Roll on the WHS announcement next month
THE KING says RIGHT Mr MacD,, and PT dont let that Share Comp GO to your HEAD.. [^][^][^]
With that Millers sad story some really supportive WHS lovers would say that Milers woes are because thay have been really stuffed by WHS ....YEAH
I say general market conditions and all are suffering the same woeful story
The Paper Tiger says [:I].
I apologise to his majesty unreservedly. [^][^][^]
THE KING says some MERGER`s would be in order for 2005 but who will cave in FIRST.. [^][^][^]
KING, the warehouse and BGR are sold to the gullible shareholder, who cares what happens. If a person is dopey enough to hold on, and average down,then good luck, [here is laughin at ya baby]. They are killing each other with sales price wars etc retail i repeat is rat poop. best of luck my friends macdunk.
THE KING says Mr MacD it is never THE KING move to average down but will aveage UP so in this case have not bought too many BGR.. [^][^]
KING, your majesty if you hold any BGR you are sitting on a loss. I wont allow myself to do that. I pick myself up and move on to come back another day if it proves its self first.macdunk
I can see WHS shareholders recoiling in horror to the announcment WAREHOUSE PAYS $250M FOR AILING MILLERS BUSINESSQuote:
quote:Originally posted by THE KING
THE KING says some MERGER`s would be in order for 2005 but who will cave in FIRST.. [^][^][^]
But as you say KING something has to give in Australia
But then WHS has enough problems in stopping the Red Sheds profit declining ... leave Aust to Ian to sort out
Winner it actually might be the logical answer to the australian problem, and might help the Red Sheds to as they used to be a big supplier. I don't know for sure if they still are.
Does WHS has the balance sheet for a acqusition like that at present? and if not, guess how much they can get from a rights issue? Sub $3.00 very likely.
I think they could easily make a buy of that quantum without resorting to a rights or share issue. However, it would be imprudent to maintain dividends under that scenario until Australia was paying its way. Might make them a little gun shy of such a move - particularly with the taste of their last Australian acquisition still so fresh in their mouths.
WHS could borrow $250M and debt to debt+equity ratio would still be only 60% odd.Quote:
quote:Originally posted by Halebop
I think they could easily make a buy of that quantum without resorting to a rights or share issue. However, it would be imprudent to maintain dividends under that scenario until Australia was paying its way. Might make them a little gun shy of such a move - particularly with the taste of their last Australian acquisition still so fresh in their mouths.
One inhibiting factor could be WHS huge capex investment program - at present very little free cash flow .... you could say that currently they increase borrowings to pay the dividend
Millers are profitable ... even though their discount stores are probably running at a loss.
What doesn't fit with WHS is Millers varied protfolio of brands (must be a dozen or more) and the size of the stores.
Millers discount stores (all 365 of them) have average sales of less than $2M. The 126 WHS stores average $4.5M sales and strategic intent seems to be increase this figure.
Millers not a good fit with WHS ... but WHS could be a good extension to the Millers business ... but WHS too proud and stubborn to admit defeat and divest themselves of the Aust problem
So a possible strategy could be to buy Millers sell off the bits that don't fit, shut down the stores going toe to toe with WHS and keep the profitable ones with a rebrand?
How would that be Winner?
Why worry about what they should do, plenty of good companies out there making profits to think about. They got themselves in a mess with stupidity, and you think they have the brains to get themselves out. The only shareholders left are the fall in love types, the rest of us only play withh winners or try to. macdunk
http://www.smh.com.au/news/Business/...810770967.html
We all know it will take years for sensibility to return but then we are not the experts
At least the Millers man in the article is blaming The Warehouse .. for what?
Not taking sales of them but stuffing their margins
Sure bet that the yellow things are hurting as well?
winner69, Good article explains what those companies should have known at the start. Discount your way into bankrupsy. The warehouse might get away with this stupidity in NZ to increase market share, but in australia where the big boys live not a chance.
People in nz are now awake to the fact only to buy large items at a sale at cut throat prices. The profit margins are now to low for me to even consider investing in retail. macdunk
Good stuff eh macdunk ... but then we are not the experts ...only realists
See Postie Plus actually used the LOSS word this morning .... yep they are lossing money this half year .... selling more but making no money