I would think that Australia is the last thing on WHS's mind, except the possibility of an Aussie in the form of WOW making a takeover bid.
Any evidence to the contrary or just idle speculation?
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I would think that Australia is the last thing on WHS's mind, except the possibility of an Aussie in the form of WOW making a takeover bid.
Any evidence to the contrary or just idle speculation?
It all depends on Mr T of course but I think it's inevitable that WOW will have another go sooner or later. And of course it may be sooner if the market gets any more depressed.
Whether or not Foodstuffs would contest the issue or not?
No idea, but I reckon WHS is worth more to WOW who would then have a ready-made network to adapt to and benefit from the greater purchasing power of their BigW operation.
Results for the six months to 25th January 2009 were released this morning.
- REVENUE - $923.490 million, a decrease of 2.9 %
- OPERATING PROFIT - $84.246 million, an increase of 1.1 %
- EBIT - $74.503 million, a decrease of 19.2 %
- PROFIT BEFORE TAX - $69.610 million, a decrease of 22.3 %
- NET PROFIT - $48.968 million, a decrease of 23.8 %
- EARNINGS PER SHARE - 15.9 cents, a decrease of 23.6 %
- INTERIM DIVIDEND – Maintained at 15.5 cps, fully imputed
Subject to any further material adverse change in operating conditions the Directors expect adjusted net profit after tax for the full year to be similar to adjusted NPAT for F08.
Full results announcement: The Warehouse Group 2009 Interim Results
WHS are in the process of converting the old New World supermarket in to a smaller scale store in Mosgiel. Due to open later in the year...
I finally got around to having a look at WHS's interim report to January, 2009.
Difficult trading conditions of course but significant improvement in the company's financial position, ie
- Net operating cash flow increased from $54m to $177m.
- Cash and cash equivalents up from $4m to $103m and foreign currency hedging contracts " in the money" to the tune of $45m.
- Inventories reduced by almost $10m.
- Borrowings reduced by $20m with consequent improvement in gearing.
WHS may not be a spectacular performer but it would appear to be one of the more soundly financed companies on the NZX at present.
A report that Woolworths may be looking at a major overseas acquisition rather than a share buy-back.
WHS may not qualify as "major" but it gets a mention here.
http://www.theaustralian.news.com.au...14-643,00.html
;)
The other big hurdle for WOW is Mr T and Foodstuff holding a large chunk of WHS. I guess these are huge hurdles to over come.
Now that WHS is not in the food retail business there wont be any interest from Woollies in this N Z company, market too small and a non specialist retailer in a low growth/country ( now ) market ! imho.
I don't think that that's necessarily the case.
The attraction from WOW's point of view is that it would give them the base for extending their highly regarded Big W operation to NZ with the buying power and other synergies that it would bring.
It may well be, too, that Foodstuffs would be more relaxed about WOW buying out WHS if they consider that the WHS chain won't be used to compete against them in the food business.
;)
A few years ago when Coles were trying to flog off KMart Woollies were offered but they turned it down, the same still applies , gen merchantdice is not their thing here in N Z , food and may be grog, although recently they were romoured to be looking at the aussie Jb-hify.
Well, they already have the Dick Smith's chain so they're not solely concentrating on food and grog in NZ.
There's a huge difference between what they could do with the WHS chain and what they were offered via KMart's comparative handful of stores. They will come in to NZ in general merchandise only if they get the right opportunity. WHS with it's 100+ stores offers this.
Mac, W bought Dick S off the establisher Dick Smith himself, it - D S already had a presence in N Z but a very small part of a sucessful Aussie operation.
The Warehouse now offer online shopping.
Interesting move from the WHS, great way to bring their offering to the smaller towns that do not have a red shed.
Something to keep an eye on...
Seems to be very strong last few days , something about to occur?
Solid Results- I'm looking forward to the webcast today. Special divi of 10c plus 5.5c
Went to the local Warehouse last Sunday and the place was packed
Yes, the announcement looks quite good, and importantly they had a good second half:
The board of The Warehouse Group today announced a net profit after tax excluding unusual items of $85.2 million compared to $80.9 million in F08, up 5.3%. Net profit after tax for the second half, excluding unusual items, was $28.4 million up 17.8%.
In announcing the result, Chairman Keith Smith says, “In light of economic conditions prevailing during the trading period this is an excellent result. Very strong cash flow has enabled us to not only maintain our final ordinary dividend for the year but to also distribute accumulated imputation credits to shareholders by way of special dividend, a very pleasing outcome”.
The Warehouse Group - 2009 Annual Results Announcement
Havent been paying much attention to this stock.
Yesterday recieved the special dividend , was a nice suprise .
Went into the barrington mall shop today , didnt look very busy for the time of year
DR WHO how many were actually looking for five finger discounts
If all the bad times are over and NZers are opening their wallets again then this mornings announcement from WHS was a shocker ..... flat sales in the last 9 weeks .... following a small decline in the 1st quarter
If flat sales equals flat profits then WHS EPS will remain about 25 cents .... so still has a PE over 17 which is pretty rich.
One concern would be 'price deflation' impacts (like craic saying he got a giant TV for $500 odd which was down from $1200) .... ie selling heaps more stuff for the same dollars ,,,,, which isn't good for margins (like heaps more stuff still has heaps more cost sort off) .... so earnings guidance in march will be much anticiipated by many
It was price deflation' which stuffed WHS profits up a few years ago .... and they have stayed at about those levels for some years now
Reading the announcement again it is really a profit downgrade of sorts in disguise .... or warning the market one will be coming soon
Maybe NZ is still stuffed .... jeez if The Warehouse can't sell more this year than when the times were really gloomy we are in trouble
For shareholders the action has to be for management to screw staff more .... averted industrial action pre Xmas .... need to push harder
People are reactionary (to bad news)....Code:Maybe NZ is still stuffed .... jeez if The Warehouse can't sell more this year than when the times were really gloomy we are in trouble
For the average kiwi things were far worse this Christmas than last year. More out of work, more with lower salaries, less overtime etc
Its the accumulation of the entire current year's earning's that factors into Christmas spending I reckon not ones hopes for next year as expressed by house and share prices.
Note the opposite is true in reverse for many people. They will spend a pay raise/bonus as soon as its offered and long before it is received.
Isn't it that big ticket items are the first area of retail to recover from a recession,I would be watching the sales figures of F&P Apl. and Smith City,and to a lesser degree Harvey Norman or maybe to a greater degree now.
Don't like the comment "Screw staff" No company gets very far doing that sort of carry on.Remember their staff are their greatest asset.
Good on you ratkin getting that special dividend .... the workers called it a bonus ... just like what senior managers got .... while they were stuffed around and had to work harder under some fancy project name
What the workers don't get is that shareholders want their bit of the action each year .... and come what may sometimes they have to be the sacrificial lamb .... should count themselves lucky they still have a job
Kizmae in his post infers shareholders shouldn't ask management to 'screw staff' because 'staff are their greatest asset' ...... come on Kizame .... get real
Customers (maybe not those wanting the five finger discount) are the centre of the universe ..... they buy heaps of stuff to pay the shareholders their dividends ..... in an operation like the WHS staff are just a means of making that happen and if you don't screw them down enough they'll be depriving (screwing) the shareholders of their decent dividends
You'd agree eh Ratkin
PS .. from your comment about the upgraded mall it would appear that The Warehouse is starting to lose its attraction. More friendly shopping malls with plenty of specials (on more decent stuff) and more Bunnings and Mitre 10 Megas (stock a lot of the stuff The Warehouse does or did) and maybe even Briscoes are starting to chanage the competitive landscape
WHS is starting too look a bit closer to fair value or maybe even undervalued. At $3.80 divedends will represent a 5.5% imputed return, better than money in the bank, and pretty safe as well. The potential upside is always the possibility of a takeover offer and in the meantime the divedends keep coming in plus the occasional special one as a bonus.
That was probably the biggest volume i have seen the Warehouse trade for about 12 months. Maybe Foodstuffs or woolworths staring to sell out?
Discl: Bought a few shares today having sold out before christmas.
In my book, WHS still has t/o premium built into its price. Way to go yet to fair value ...
Fail to see how todays price could have any take-over premium built in. Well capitalised company, produces good divedends and has proved itself to be relatively defensive during economic downturns. Admittedly has little growth prospects, but based on normalised profit has a P/E of 13.2, and is likely to produce a similar profit again this year, with small upside for Future years. P/e of 13.2 is easily justifiable in my book without takeover prospects, with these prospects, I tend to value WHS on a P/E of 15. Don't forget that Historically WHS has traded at a P/E raio of 20.
Disl: Re-entered WHS at $3.84
Doyle you admit that WHS has little growth prospects. That means that a PE of around 13 must be hard to justify. Look at RBD trading on a forward PE of around 10 (share price $1.75) yet they have only refurbished half of their KFC stores and the sell off of the unprofitable Pizza Huts is yet to come. I would argue the growth prospects of RBD are better and it trades on a lower PE than WHS.
Long term I think you will do OK out of the Warehouse Doyle, but I don't think that even if a takeover comes you will get anywhere near the $7 figures being bandied around a few years ago. That was all pre credit crunch. In the shorter term I think we could easily see $3.50 for the Warehouse. Don't get me wrong. I think WHS is a great company, better than RBD, but is it 30% better?
SNOOPY
discl: sold out of WHS at $5 some years ago.
I tend to agree with Snoopy that WHS is fully, if not overpriced at today's levels and that there is still some takeover premium there. Historical P/E's are irrelevant now that the growth phase is well and truly passed.
I still think though that we will see WOW attempt a takeover at some stage. WHS offers the only option for WOW to replicate its Big W chain here in NZ, giving it a ready made network of suitable stores in good locations. I suspect that Foodstuffs would be happy to quit their 10% once it is clear that the WHS stores won't be competing in the supermarket/food sector. May need a side agreement to that effect!
Some interesting posts today.
I tend to agree with Snoopy et al that a PE of 13 is unjustified given WHS flat growth, esp when RBD is trading on a lower PE with better growth prospects.
RBD is also in an uptrend, while WHS is now downtrending.
Two reasons why I'm a RBD holder and not a WHS holder.
It is interesting all the comparisons with RBD? Especially for me as I sold my WHS last June and put the money into RBD. I was thinking the shine had come off WHS and RBD was looking very good.
It is nice to occasionally get it right!
[QUOTE=Snoopy;290180]Doyle you admit that WHS has little growth prospects. That means that a PE of around 13 must be hard to justify. Look at RBD trading on a forward PE of around 10 (share price $1.75) yet they have only refurbished half of their KFC stores and the sell off of the unprofitable Pizza Huts is yet to come. I would argue the growth prospects of RBD are better and it trades on a lower PE than WHS.
Long term I think you will do OK out of the Warehouse Doyle, but I don't think that even if a takeover comes you will get anywhere near the $7 figures being bandied around a few years ago. That was all pre credit crunch. In the shorter term I think we could easily see $3.50 for the Warehouse. Don't get me wrong. I think WHS is a great company, better than RBD, but is it 30% better?
SNOOPY
Not quite comparible, in that RBD has turned out to be genuinely counter-cyclical where as the Warehouse is just realitively defensive. While you could argue RBD is a growth company I would big to differ, I think its peak in sales will be this financial year. The pick up in Pizza Hut is an aboration and in furture years it will continue to be a drain on profitability. KFC, is looking good but fast food is competitive, and if recessionary effects are dissapating and we start to see a tighter labour market, sales growth will slow (Counter intuitive). Starbucks could go either way, struggling at the moment but might be ok and Pizza hut is a great big anchor. If they figure out a way to cut pizza hut lose without to much of a loss I could become interested.
But in Short there is a good reason why RBD is trading at a Forward P/E of 10 and WHS 13.
P.S. If Woolworths really want it, they will have to pay a lot. Stephen Tindell hasn't expressed much of a desire to sell and has always said " That he doubts Woolworths would pay enough". This is perhaps the biggest hurdle to the takeover, still one can live in hope I suppose.
One way of looking at
Currently WHS EBIT about $128M (assuming this year to be about the same as last year) which after tax gives Operating Earnings of about $90M .... driven from shareholder equity of $$320m and debt of $100m .... so a 20% return on capital .... fantastic performance
At current shareprice market cap is $1.1 billion. So if you managed to buy the company it would cost you this $1.1 billion and you pick up the $100m debt so total cost (capital required) is $1.2 billion. All of sudden that $90m operating earnings is not that attractive .... it only gives you a 8% return on the capital invested (6% if you had to pay a 20% premium)
So honestly .... would any of you if you had $1,4 billion buy something for a 6% after tax return .... esp when they have essentially saturated the market and future growth potential is rather limited without further capital.
I doubt it ... therefore isn't WHS overvalued at the moment .... or there is some strategic value of the sites / footprint for a potential buyer included in the price.
Same sort of thinking Buffet applies ... as Snoopy would probably say Warren wouldn't be buying WHS at these prices .... but at what price? .... at least a 12% return i would say to cover cost of capital ... ie about $2.10 a share.
Is that what Warren pay Snoopy ... haven't checked your latest workings on sharechat
Interesting
Not really -- probably saying that that WHS as on ongoing concern is overvalued and those that think there is a reasonable take over premium currently built into the price are correct ... if that is the reason for the 'overvaluation'
At current price and current company performance returns for anybody taking it over is 8% ..... probably on the low side .... like Snoopy uses Buffet's number of 15% ..... so take it from there and WHS is not worth 385
Never mind all this crap .... the market is always right eh .... so it must be worth 385 .... no argument
think you guys have it wrong.
You can't think of any investment in the way you have described.
This is how people are thinking:
Solid blue chip co with defensive characteristics
Strong dividend yield with high likelyhood of 30cps special div this year.
Modest return risk characteristics
YES - il have this in my clients retirement portfolio please.
Sure its not going to be a double bagger unless there is a takeover but it is going to be reliable and provide a good income stream
believe it or not thats what most people want from their investments.
Plenty of room for upside as blue sheds get spun off or sold.
Cheers
modandum Take the blinkers off. With the present hopeless management I do not know if I would buy them at $3.00. Tindall needs to return & manage The Warehouse again to bring back some core business stratedgy. Instead of looking at every passing fad. Bluesheds are suffering because of poor management. With staff that know very little about there product how can they expect to charge the same sort of prices as the likes of Whitcoulls & Office Depot where you get personal service and the staff have lots of product knowledge.
The reported double digit sales increase by BGR doesn't put WHS in very good light
The market was not as stuffed as Ian made out .... some retailers have done very well and The Warehouse wasn't one of them
Prob stock a lot of stuff punters don't want .... Briscoes must stock the stuff punters want and at the price they are willing to pay
Be interesting to see whether WHS expanded margins like BGR say they have managed to do
Rod Duke continues to prove himself to be one of the countries most capable retailers.
In my opinion Stephen Tindall used to be one of the countries most capable retailers.
I'm not sure about the current Warehouse management or strategy. They have gone a little more upmarket in terms of layout, quality and prices and don't have the constant sales that used to appeal to a lot of people (or was it just me?)
I'm not sure any of these things suit the Warehouse brand that was created over a couple of decades? It seems they have tried to become a bit of a 'me too' (like Dick Smiths have just done) shop and have perhaps lost some of their appeal because of that?
Over the past few years I have found myself buying very little from the Warehouse. Briscoes sells better quality gear (in my opinion) for not much more (when it is on sale). If I want CDs and DVDS which I used to buy at the Warehouse I now go to JB HiFi as they have a much better range and are generally cheaper.
Putting on my "chief household shopper" hat, I find myself shopping less and less at our local Porirua store - even actively avoiding it. When I do go, I tend to leave feeling irritated:
- Never enough checkouts open - usually a queue of at least 3+ people at any checkout.
- Seems like assistant leaves the till for every other customer to check on something.
- Items often not visibly priced or not priced correctly or pricing is confusing (sale items mixed with non-sale)
- Unfriendly and unattractive.
- Pricing policy seems a bit random. No longer assume it will be best price there.
- The annoying "pay for bags" policy - I don't mind being asked if I want one, but the petty charging grates.
Okay, I admit I am probably no longer in WHS target demographic, but I think a little more pride at shop floor and improved focus on customer experience wouldn't go amiss.
Actually, if there was one store in Porirua I'd like to be a shareholder in, I think it would be "Pete's Emporium". I'm not usually a fan of these types of shops, but this one just keeps going up in my estimation!
Bring on the IPO and nationwide roll-out :D
The service at the Warehouse has always been terrible. I think it has improved a little in recent years but not much. Personally I used to accept that as part of 'you get what you pay for'.
That said, it is interesting to compare the service at Bunnings and the Warehouse. Both pride themselves on having large shops with the cheapest gear. Surprisingly the Bunnings people are incredibly helpful and know a lot about a huge range of products (at least at the Naenae and Porrirua big stores in Wgtn). So if Bunnings can get the service aspect right why can't the Warehouse? Perhaps there is no management focus on this? Actually it seems pretty clear that good customer service isn't their focus which for a retailer is a really bad thing!
I also wonder if the world has changed a bit from the best days for the Warehouse? There isn't much doubt now that the world has limited resources and which kinda makes you want to buy a product that will last so you don't waste resources and fill up land fills. Cheap alone isn't enough anymore.
The Warehouse have improved the quality of many items, but they still seem to be missing something?
The Warehouse has a few things to do to get their business back on track. I have no doubt they can get back on track, but maybe not with the current management/board/focus?
Up 12 today , any ideas?
Sellers are all pulling out.
Something is up?
Who would be interested with both Woolworths & Foodstuffs holding blocking stakes
Is now a good opportunity to buy WHS shares? We seem to be coming out of the recession, more consumers are buying up and the wharehouse is a discount retailer for bargains for the majority of people who don't want to spend on the upper class retail stuff. The management is also undertaking a complete re-shuffle in the upcoming months to cut costs and regenerate more profits.
I've saved up $5000 and want to make the most of it. I'm undecided whether to go for the "security" of either ANZ or Westpac shares, the dividend and possible capital gain on Wharehouse or the more volatile and risky Tourism Holdings.
Any advice would be appreciated.
Only advice i would go with is dont choose tourism holdings
ENP at least split it in half Two lots of $2500.00 would suggest of those you have asked about ANZ & TEL diversification reduces the risk.
ENP $29.90 per each purchase up to NZ$15000.00 per trade at Direct Broking. But you cut your risk for an extra $29.90 I started with $50 lots many years ago
ENP
THL has a lot tied up in capital,hard to make good returns as always has to upgrade vans etc.I would go either bank as would give you an aussie share.WHS is better focused than TEL and is a possible takeover target.Remember NZ shares usually pay the tax on the divie while aussie shares you have to pay tax on the divie.makes a huge difference on nett yield.Good luck with your investments.Just take your time.
Without knowing your risk appetite and investment horizon, difficult to advise anything. I'd say, you'd double your money if you fold it in half, and keep it in your back pocket. Check back returns in a year. Pretty sure, the money in your back pocket will still be "secure".
With The Wharehouse and Vector giving dividends on 12% and 9% respectively, I don't see where you can go wrong?
12% dividend from a Whorehouse is pretty impressive .... is that why that ASB fraudster invested in whores?
Sorry ENP - your spelling of Warehouse makes me smile - you must be of Maori descent
Your best bet ENP, with 5k or so to spend on NZ shares would be to put it in the index fund TENZ. TENZ takes a market proportional stake in the top ten shares by capitalisation. You can buy TENZ like a share on the market. That way you will get diversification at low cost with low ongoing fees, and a decent ongoing dividend stream as well.
If you try to pick winners off the bat one of two things will happen.
1/ You will get lucky and outperform the market. Your ego will then inflate beyond your ability and you will become more reckless with future investments and lose everything you have made.
2/ You will get unlucky and spend the rest of your life 'burned' by the market after you vow that all those corporate guys are crooks anyway. Then you will never return.
Your naievity with regards to the Warehouse for example, since that is the thread we are on, is breathtaking to me.
Did you know that the 12% yield you are quoting includes an historical special dividend that is not guaranteed to be repeated? The yield based on normal dividend policy you will find is much less.
Also why if we are coming out of a recession would people be more inclined to spend at a discounter for bargains? If we really are coming out of a recession, why wouldn't people use their increasing purchasing power to move away from the lower price/quality Warehouse stuff ?
When a share's earnings are not growing (as is WHS at the momnent) you would not expect any capital gain. In fact there is every chance that such a share may suffer 'price multiple deflation' which could see the WHS share price fall even when earnings do not. So what capital gain are you talking about? Perhaps you think WHS will be a takeover target? Perhaps it will, but guess what? This fact has been known by the market for *years* and is almost certainly already partially priced into the market.
WHS is better 'focussed' than Telecom? There is difficulty in comparing businesses across different sectors. But I would say recently regulatory changes and network problems have made Telecom management very focussed on getting stuff done. If anything, the relative underperformance of WHS verses the other retailers would suggest that it is Warehouse managment that are asleep at the wheel.
Despite what I have said above, long term, I think you would be onto a winner backing the Warehouse. But it may take time, lots of time. Perhaps the increased shop renewal program will show dividends? But I'm not convinced WHS is an obvious winner based on today's market prices.
SNOOPY
discl: Bought in at $4, sold out at $5 a few years ago when the Aussie expansion turned to custard.
Buy two, 2470 dollars worth of WHS , and for the other i would recommend same amount on SKC. Cant go far wrong imo
CFO buys shares on market. Good sign. Once the bond issue finishes up the special dividend will be coming. 30c minimum. I already have marked my words on this one.
Supermarkets have these 'Wind back the prices' promos every now and again ... prob all marketing hype suggesting they are selling things today at proces from years ago
Hey ... is the NZX having a wind back sale ..... WHS nearly down to last century prices (at least that what the charts shows which I assume are adjsuted for the share split they once had (I think))
Always said that $2.50 to $3,00 is a fair price for WHS .... getting closer to that $3,00 .... week by week just that bit closer
Keep watching .... problen being when it gets to $3.00 will still be overvalued relative to the market but could be interesting
A check of the records show that WHS paid a special div of 10cps last year. 'Normalised" div for the year was 21cps, the same as the previous year.
That would give an indicative yield of about 6.25% without the benefit of any imputation credits although these are likely to be available again this year. Still not a bad deal in today's conditions with the added possibility that Woolworths or Foodstuffs might decide to take some action regarding their respective shareholdings.
...what/who to believe?? just spoke with a broker this afo about WHS (pure coincidence as I dont normally consult such creatures)...he claims a divi return of 9.2% year ahead. National Bank site is showing almost exactly half this figure so I can only take from that National Bank is showing a 6mnthly return as the broker was adamant it is around 9.2%pa. ??
The 9.2% sounds about right as a gross yield ( including imputation credits) and assuming WHS pays out the same "normalised" dividend as last year.
..or wait for it National Bank site NOW claiming 14.27%!!!...........I kid you not, a couple of hours ago NB was showing about 4.69% from memory, I was discussing the return with a broker and thats what it was showing then....and now this....what the hell is going on....madness!!!
It always pays to read the small print ( if any) that appears at the bottom of such tables.
For example, in the DomPost's listing, supplied by Craigs, it notes :
"Dividend (CPS). Dividend Cents per Share over the last 12 months excluding imputation credits"
ie, it doesn't exclude any special dividend nor does it claim to be a forecast of ongoing dividends.
"Dividend yield. Dividend CPS as a proportion of the current share price."
Again, purely a historical statistic.
Take care and DYOR!
Keeping a close watch - someone is paying up on this potential corporate play.
Be there or be square!
Worse - see someone sold 150,000 NZS at 40c on 5th July - missed out on 35% in 2 weeks. Ouch!
anyone have any comments on the annual report?
From my readings:
- I am pleasantly impressed particularly by the long awaited turnaround at warehouse stationary. I was expecting the flat performance from the red sheds.
- I was disappoited at the lack of a capital management initiave - read high special dividend, but im sure many retirees will be attracted to the 90% payout ratio and conservative balance sheet. This company is a really good yield play imho.
- I am impressed by the culture at the warhouse and the drive to innovate with the online platform and the push into growth segments such as sporting goods.
Overall after purcahsing the stock at 3.80 early this year I am reasonably happy that it has been a safe place to park cash, but with a recovery on the cards now imho and the chnce of a double dip fading fast I may look to exit post dividend and chase some high beta stock.
Yes, a fair result from a difficult year.
I'm not sure that lifting the payout ratio to 90% is the same as "providing superior returns to shareholders". I'd prefer to see some of this achieved through higher growth and SP appreciation but I guess it's an admission that WHS has run out of ideas to grow.
I wonder if WOW and Foodstuffs have given up any notion of taking WHS and are content to sit there with their respective blocking stakes?
.......I think the "intelligent" buying public are well and truly over the Wharehouse brand and the absolute rubbish they sell (shud be giving away)..........Ive been in just lately (99c cards still seem to work) and look around in disbelieve that they are still in business. Pretty much the same low low quality goods they were flogging about 15yrs ago............unbelievable that sort of junk is allowed to cross our borders......only to end up in wheely bins each week to then contribute to our landfill and litter problems......."BUY ONCE and BUY QUALITY" i say.
I agree about the tat they sell , however it hasnt stopped me being a shareholder.
A large number of kiwis seem happy to waste their money on cheap plastic crap.
Having said that i bought a couple of books in there recently which were cheaper than
identical booms in the books and more store next door. The cds are also cheap
I think that quote definitely applies to shares - none of this trading every day to time the market! However Warehouse does have good prices on consumer goods like DVD's, CD's, Books which compare favourably to specialist retailers. The movement to convenience (shop once and buy everything!) in this present world means that they will sell other goods successfully from people who first come in to check out items like those.
The quality isn'y all bad by any means, often you are buying identical kids toys/books/CD's/branded products at lower cost. Sure, they also sell a lot of cheap rubbish, but I'm sure there is plenty of money to be made selling to the 50% of the population who are below average intelligence!
There are shares out there I would buy despite not buying the products they produce. McDonalds and Coca-Cola would be classic examples ...
I can't see how the WHS can grow anymore. Aussie is/was a shamble, as was the Warehouse xtra. Now I have been told that their latest crazy plan is to open shops in small towns with population of around 3 to 4 thousand with 3500m2 shops with at least 24 staff. These shops will most certainly loose money, the population is simply to small, and no doubt they'll be locked into huge leases. Also apart from the CD's, they are not that cheap unless the product is on sale which always finishes a day or two after they have advertised it. Time to sell your WHS shares for sure.
I don't think things are that bad at The Warehouse, opac.
Sure, the growth seems to have gone out of WHS but it's settling down now to be a good income stock with just a glimmer of a prospect of takeover one of these days. Depends a bit on what you want from a stock but I see it as having a place in a well diversified NZ portfolio.
Just put them in the bottom drawer , collect the dividends and then one day in the future pick up the takeover cheque
Up 4% whats the latest gossip?
The official response is that WHS are not aware of why the share price would increase like this in the absence of new information.
See http://www.nzx.com/markets/NZSX/WHS/...rading-Enquiry for the statement.
I note the share price has gone back a little since then (from $4.00 to $3.95), but its odd all the same. Perhaps a market just getting carried away on 'signs' that were in fact random?
Post-AGM article:
http://www.nzx.com/news/4393869/The-...nline-offering
Growth plans:
- Looking to grow online offering to $30m-40m revenue p.a. including a number of online items (e.g. spa pools). Nice to see that they're already getting 200k hits per week, you'd think this would be a massive growth area for them.
- more stores, with 5-8 red sheds in the next few years, 3 blue sheds by christmas(!) - good to see the stationary business turning around after a lousy few years
- "refresh and refit" a swag of stores, and "compete vigorously" in core categories like footwear - so more of the same there then.
So The Warehouse had a pretty bad couple of months with same store sales down 4%
Things might be tough in retail land but I think The Warehouse need to face up to reality in taht they are probably losing market share to the likes of Briscoes, Bunnings and Mitre 10 Mega (and CDs and DVDs going to JB Hi Fi)
I went to The Warehouse yesterday .... dead as but was really amazed as to how much cheap crap sitting on shelves and on the floor ... and the place was a mess as well ... and the garden section looked worse than my garden after I have neglected it for a few months
Hardware / tools - utter crap and no choice ... and power tools at higher pruces than Bunnings around the corner
Why would anybody buy a 42 inch Transonic TV when name brands are about the same price at the many other stores competing like hell
No doubt WHS will still have sales over a billion but heck if growth is on their minds they have problems ... big problems
They have not kept up witht he changing retail landscape ... and blaming a bad economy is keeping their heads in the sand
Christmas cheer bypasses Red Sheds
http://www.nzherald.co.nz/business/n...ectid=10698035
I agree with you.Also if you look around you will notice they are out of the most popular sellers.I noted in meanswear in shirts they did not have a full range of sizes.Allways plenty of small,but out of mens, large,or xl sizes.So their buying and supply clain is not working.Also remember to have same sales you need to be up 2.5% with GST increase.
None of the instos really want to be out of WHS as they could miss out if Woolies made its next move.
Just like what happened with NZS and PGW - if you are not there, you miss out.
Is Stephen going to accept a price around $5 tops
Can't see Woollies etc offering upwards of what they paid for their 5-10% earlier