Thanks for sharing that.
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MHJ have been closing these non performing stores for awhile now. Good! Their website is impressive + loyalty scheme = 110% online sales growth on previous corresponding period. Cost base much much lower when selling online VS a store = 200bp margin growth on previous corresponding period. COVID stops travel, travel money going to some jewelry purchases maybe? Their last update: "it is currentlyanticipated the Company is likely to deliver an EBIT result for FY21H1 materially exceeding the prior year half one result(FY20H1: $31.6m), before taking into account the favorable impact of wage subsidies and AASB 16 Leases."
Rob Fyfe purchased $450k worth of shares in Sep, on market. Jacqueline Naylor purchased $50k. I brought when I saw them buying and have MHJ as one of my top 5 picks for 2021 :t_up: $1+ isn't unreasonable. Start of an uptrend?
Good catch Rawz. More like half way through uptrend
https://stocknessmonster.com/charts/mhj.nzx/
ive owned micheal hill shares for 25 years , a very small holding though so its good to hear they are doing good
MHJ sp has continued on its march, currently at $0.74. Would be good to see it clear $0.75 and then continue on to $0.80. I have a value on them of $1.06 when playing around with a spreadsheet. Based on 15% growth in EBITDA for FH21 and revenue in line with last year (due to the store closures). The model assumes a very conservative 3% growth rate for 10 years which they seem to do, with ease, on a same store level. I'm just not sure how many non performing stores are yet to be closed with the transition to online- huge YoY online sales growth expected to continue- which of course has far better margins.
Gosh I love MHJ. Such a simple business to understand and people have been buying precious metals/stones to wear for thousands of years so I can't see it changing. I see them as a brand sitting above Pascoe's and I guess just below Walker and Hall. A nice mainstream spot in the market.
There is no reason they can't pay a 6cent divvy this year- 8% gross in this low yield environment!! Low/no debt. I do like. Just as long as they don't do another big expansion like the failed USA acquisition post GFC. Stick to NZ/AUS/Canada which has ample growth opportunities ahead.
First purchased at $0.33. 9% of my portfolio. Looking forward to Feb FH21 update. DYOR
Cool jeweller is James Alfredson Jewellers in Melbourne
Love visiting him when over there .. even opens after hours for me ...must be one of his good customers
Amazing update
Should be a great day for MHJ share pricn
Might get close to a buck soom
http://nzx-prod-s7fsd7f98s.s3-websit...233/338817.pdf
Yes great to see onwards and upwards.
Absolutely MASSIVE trading update.
30-40% pcp EBIT growth. 150-250bps margin expansion. Dividend finally being distributed.
Look at the financials and you'll see this is in for a serious re-rating. If they can sustain this then Spheria's expectation of $1.50-2.00 isn't unrealistic. I see this easily in the $0.90-1.00 range in the short term (unless ACC keeps trimming).
Disc: hold.
The 1.4m shorts on the ASX might feel a bit of pressure today!
This is an amazing trading update and includes periods of store closures (28 Melbourne stores reopened late Oct, 9 other Aussie stores closed for a short period and 21 Canadian stores closed since Nov).
The online sales growth is huge and margins will only get better with this growth. They possibly don't have anymore non performing stores as no stores were permanently closed. Inflection point???
This is heading to $1.
“Amazing”, “great”, “excellent”, “absolutely MASSIVE” and another ‘amazing’ so update must have been pretty good.
Not good stuff all sales growth in NZ ...and strange that Q2 appears to have been weaker than Q1 in NZ
Never mind it’s the HEADLINES that matter ....no need to look at the detail as knowledge is superfluous in acrosring bull market.
I have to admit MHJ have not disappointed me.:t_up:
NZ same store grew 2.8% FY21H1. Not "amazing" but when margin increases 150-250bp it is AMAZING:p . I'm sure some heavy discounting promo's would have seen higher same store sales but eroded margins..
NZ Q2 sales 44m (same store)
NZ H1 sales 68.4
= NZ Q1 sales 24m?
Good to see MHJ finally come clean & cut loose the deferred previously deferred March 2020 Div they put the stops on..
about time too after their posturing on better recent trading in past weeks .. ;)
Probably wouldn't consider buying these again .. far better fish to fry elsewhere ..
The details in the devil they say and I've updated a model I had i couple of years ago before I gave up on them.
Today's announcement - narrative is good but the numbers aren't that good. OK, there's extenuating circumstances like covid stuff and they say they are still in turn around mode but its hardly an inspiring story
I reckon that even at current share price there's still a lot of hope of things coming right
In nztx camp ..... put it this way even if MHJ share price doubles others will have more than doubled.
DCF comes in about 50 cents ....... extremely bullish case about 70 cents (hence my comment about heaps of hope built into share price)
Yes these are turbulent times and MHJ could go anywhere.
I think H1 sales are really disappointing. There's been no catch up on the so called $80m of lost sales in H220 - other retailers have all had a decent amount of catch up)
But essentially I just can't see enough in the outlook to justify the current share price when its book value is about 40 cents