New Image Group Wellness Industry

[badger]

The Next Trillion Dollar Industry
Date Created: Aug 05, 2004, 03:37 PM



According to Paul Zane Pilzer the boom in the Wellness Business is ready to explode in a way never before in our history. At over 12 billion dollars in the U.S.A. and Canada this is just the tip of an ever growing ice berg. In fact according to Zane's research the wellness health industry is headed for over ONE TRILLION dollars by the year 2010. This wellness movement will surpass the dot com revolution.

In contrast to traditional health food stores, pharmacies and food stores more than 80 Billion worth of products moves to consumers worldwide via network marketing. Undoubtedly this trend in self care is fueled by a aging baby boom generation that is affluent and wants to enjoy the retirement years in good health. By taking an interest in their own well being this economic force is clearly creating the demand for wellness products and services.

As people consume products that work for them the propensity to feel better is even stronger. Therefore there is unlimited desire to keep on consuming these products. In the 1990's and beyond ,the greatest opportunities lie in the distribution sector of our economy.

Few people are as eminently qualified as an authority in their field as Paul Zane Pilzer.


He completed college in three years and earned an MBA from Wharton in another 15 months


By age 24 he was a professor at New York University and by age 26 he'd earned his first $ million


He became Citibank's youngest officer at the age of 22 and youngest Vice President at the age of 25


When he was age 30 he had earned his first $10 million


He was Economics Advisor to Presidents Regean and Bush


He predicted the Savings and Loan debacle in 1985, in the 1980's predicted the Internet as the fastest growing industry of the '90's, and a trillion dollar industry by the year 2000

[Snow Leopard]

quote:
He was Economics Advisor to Presidents Regean and Bush


Presumably they didn't listen

[Longtack]

Earlier the similarities to Mannatec were mentioned. I believe that Mannatec is marketed by multi-level zealots, selling over-priced products of dubious nutritional value to desparate gullible people.
The diet-supplement industry is, in my not-so-humble opinion, 90% scam.

[Halebop]

I spend a bit on nutritional supplements although not on Mannatech nor New Image. There is a lot of science supporting the value of supplementing and also a lot of companies that offer products of dubious value due to flawed technology.

While there is huge value in taking doses of vitamins and phytonutrients well above the minimum RDI there are very few sources that prove to be both efficacious and good value for money. The other problem is that nobody will ever know for certain the value and effect of them. A double blind study would need some 250,000 people and take 20 years to prove some results! (This is the same reason why the smoking lobby was so successful for so long - their lies were hard to disprove).

I know a woman who has had MS for 25 years and as a former Nurse she knew the prognosis of using drugs, which is poor. There are theories about vitamin C and lecithin and MS that are too expensive to prove (because of the 250,000 people 20 year thing) but she decided to put it in practice. She takes MASSIVE doses of both and has totally arrested the development of her MS without any other drugs. Her doctors call her an idiot on one hand but on the other know they can't offer a viable alternative and can't explain why the MS has not progressed.

Anyhoo, this was a long way of saying there is value in nutrition. Also, New Images technology doesn't do much to excite me. I hope their marketing is better than the stuff they sell.

A useless fact and nutritional rule of thumb: If you take vitamin/mineral supplements and your pee is a funny colour - they aren't working. Supplements use a process called chelation to fool the body into thinking the minerals are a protein in order to coax it into trying to eat something it would normally prefer to avoid (metal after all isn't a very exciting part of our diet). Normally however, the chelation process is budget and the protein falls off the metal in your gut and your body just voids the metal from your body. Unfortunately, most of the vitamins need those metals to be processed properly as well so they are wasted without it. Net affect: your pee turns bright yellow and your body gets a little extra protein and very few minerals and vitamins. Spend more on a better quality supplement! Good supplements will use a better chelation process and organic sources of metals (certain plants have high concentrations of certain metals in them) that have higher levels of bioavailability.

[Longtack]

Thanks for the balance Halebop. I know of similar reliable successes with MS that are bagged by trad physicians. If they don't understand it then it's dismissed for the same reasons that MS was initially - it's <s>phyyschosmatic</s> <s>sychosomatic</s> all in your head.(psychosomatic)

[paul29]

new image group last trade 7c[:0]
could be good buying now at 7c [:p];)
Taking colostrum to India and beyond

Farmers have known the benefits of colostrum for years. New-born lambs and calves need milk from their mothers to get a dose of natural antibiotics and protection against infections. New Image Group chairman Graeme Clegg is expecting his colostrum-based tablets to be popular in India. The initial order, which is being dispatched to India, is valued at $500,000. The total three-year contract is worth several million dollars and allows for additional colostrum capsules and powders.
Mr Clegg said there was potential to considerably increase the export value of the deal.
The immune fortified colostrum-based tablets are targeted at 2- to 15-year-old Indian children through more than 10,000 paediatricians.
New Image had formed an alliance with major Indian pharmaceutical company Dr Reddy’s Laboratories, which is listed on the New York Stock Exchange, has revenue of $US462 million ($NZ648 million) and a bottom-line profit of $US59 million.
Dr Reddy’s would represent the Symbiotics Brand, New Image Group’s premier colostrum brand sold through pharmacies and health shops around the world, Mr Clegg said.
Dr Reddy’s would send 15 doctors to New Zealand for familiarisation of families, the country’s dairy industry and additional technical training.
Asked how he secured the Indian contract, Mr Clegg told the Otago Daily Times his company had international brand managers actively seeking opportunities.
“We have been securing export deals internationally, particularly in Asia, for a number of years. We are out there doing our marketing rather than waiting for people to come to us. We are looking for the right type of distributors for our company.”
Mr Clegg first exported to Taiwan 18 years ago. New Image products were exported to Korea where colostrum was used to fortify babies’ milk formulas.
The company’s colostrum-based products are sold in Australia, Indonesia, Singapore, Malaysia, Philippines, Hong Kong, China and Europe.
Mr Clegg said colostrum was a food supplement containing antibodies which helped strengthen the immune system and destroy pathogens that caused infectious diseases.
Children in India were the most exposed “at risk” section of the community for infections diseases.
New Image launched the first colostrum blend power shake called “Lifeline” in 1996. “It was innovative because it also contained the probiotic acidophilus, the recommended daily allowance of vitamins and minerals, and was fortified with 1150mg of calcium,” he said. The product remains the largest selling of the more than 20 available in the New Image direct selling range. Tonight, New Image conducts a seminar in Dunedin for the city’s elite athletes. Tomorrow, a public seminar will be held at the University of Otago focusing on natural immunity transfer as the best protection against infectious disease. Mr Clegg founded the company nearly 21 years ago after both his parents and his younger brother died from cancer.

[PrinceofWhales]

Ramp,ramp,ramp Paul29. The "Colostrum to India" story is 3 months old and was released to the NZSE on 14/1/2005. The NEW share price then was around 17c and as their last sale was at 7c it shows what the market really thinks of this deal and the company in general.

[paul29]

PrinceofWhales yes i know that was old news but that bit of information was out of the otago daily times dated april 12 2005 yes the share price is a long way from its high of 21cent


I still like this company and think its a buy at under 10c but by the look of the market and the share price looks like i am the only one [:0][:p]

[paul29]

Return to profitability after several years of losses: FY08 net profit after
tax $2.18 million; net profit before tax and before one-off items $3.90
million.

revenue up 53% to $39.1 million

The turnaround from the previous year's loss to a profit of $3.90 million was
the result of prudent initiatives, tough decisions and hard work by the
management team. The balance sheet is now strengthened going
into the current year


NEW.NZX - New Image Group Limited Ordinary Shares

Total Issue: 228,102,345
Market Capitalisation: $38,777,399 (@17)
Earnings/Share: 0.99 cents
Price/Earnings Ratio: 17.17
NTA/Share: 0.95 cents
Dividend/Share: NZD 0 cents
Dividend Yield: 0%
1-Week Range (Low - High): 14.9 - 17
4-Week Range: 10 - 17
26-Week Range: 10 - 20
52-Week Range: 9.5 - 20

[paul29]

Good news for New Image Sharehoders a dividend of half a cent


Company Announcements

New Image Group Limited - Announcements




Monday, 2 February 2009

New Image Group Limited

Revenue and Profit Update
Interim Dividend and Share Buy Back Announcements

New Image Group Limited (NZX:NEW) preliminary interim announcement for the six months ending 31 December 2008 will be finalised and reported later this month.

However, the Directors believe the market should be notified of the expected 31 December 2008 half year revenue and profit result as it is markedly different to the update given at New Image Group’s Annual General Meeting in October and because the Company is experiencing continued strong trading.

The provisional, unaudited consolidated result for the half year ending 31 December 2008
shows record revenues of approximately $40 million (compared with $16.37 million for the
same period last year) and net profit after tax of more than $5 million ($1.48 million
for the same period last year). For the full financial year ending 30 June 2008, the
Group reported audited revenues of $39.1 million and net profit after tax of $2.18
million.

New Image Group Chief Executive Stephen Lyttelton says over the last six months, the
Group has experienced strong trading conditions, especially in its Malaysian direct sales
operation.

“New Image’s brand is underpinned by its 24 year history of marketing high quality,colostrum-based wellness products that are scientifically-backed,� he says. �This track record, together with the competitiveness of our business model and our proven direct sales distribution channel, has enabled us to attract both new and retain existing, high quality distributors. As a result, we are experiencing heightened consumer buying interest and product sales throughout Asia.�
Interim Dividend Announcement

The New Image Group Limited Board has approved a maiden dividend of half a cent an
ordinary share, payable during March 2009. The actual payment date in March will be
advised when the Company’s preliminary interim announcement is made later this month.

Share Buy Back
New Image Group Limited gives notice in accordance with Listing Rule 7.6.2 that it will
undertake an on-market buy back of its ordinary shares. Such purchases will occur when
market conditions warrant and such a transaction would be of benefit to the Company and its Shareholders. The Company will acquire such number of ordinary shares as it
determines, up to a maximum of 5,000,000 ordinary shares. The purchases may occur within the period to 31 December 2009, with all transactions concluded notified to the NZX.

For more information contact:
Stephen Lyttelton?Chief Executive?New Image Group Limited
DDI +64 9 622 4715?Mobile +64 21 859 091?stephen.lyttelton@newimageasia.com??
New Image Group: "Improving people's health and wellness everyday"

[paul29]

share price up again 19.5 cents today


my sell price is 24 cents

[paul29]

Share price 22 cents



NEW IMAGE GROUP LIMITED

PRELIMINARY HALF YEAR ANNOUNCEMENT

FIRST HALF 2009 HIGHLIGHTS

- Revenue $40.95 million +150%
- Net Profit After Tax $5.59 million +277%
- Net Profit Before Tax/Revenue ratio 19%
- Cash and cash equivalents of $14.7 million
- Maiden interim dividend declared of half a cent an ordinary share:
paid 3 April 2009
- Outlook for the financial year looks favourable with the revenue
forecast revised to in excess of $80 million

FINANCIAL REVIEW
Revenue for the half year ended 31 December 2008 was $40.95 million (HY08:
$16.37 million), an increase of 150% over the previous year.

Unaudited consolidated net profit after tax for the half year ended 31
December 2008 was $5.59 million (HY08: $1.48 million), an increase of 277%
over the previous year.

Strong trading conditions were experienced du
ring the reporting period,
especially from the Company's Malaysian direct sales operation. This
operation became the Company's top performer in its direct sales country
markets, taking over from Taiwan which has also continued its growth.

A maiden interim dividend of half a cent per ordinary share will be paid on
Friday 3 April 2009. This dividend will not be imputed.

STRATEGIC INITATIVES

EXPANSION OF DIRECT SALES OPERATIONS INTO NEW MARKETS
The Company is progressively expanding into new direct sales country markets,
with South Africa opening last month, Thailand planned for mid-year and Japan
planned for the end of the calendar year.

INFANT FORMULA
The Company has received significant enquiries for infant formula from the
Asian market. As a consequence, a strategic business opportunity arose from
this for the Company's retail and manufacturing sales division.

The Company's first infant formula product in the proposed four product
range, fortified with colostrum as an ingredi
ent, will be launched in Hong
Kong next month, through a new Hong Kong joint venture, Golden Dairy (HK)
Limited. New Image has a 60% interest in this company. This product is
being produced at the Company's plant in Auckland and will also be sold
through other Asian outlets.

COLOSTRUM SHOT PRODUCT
The Company's ready-to-drink nutritious colostrum beverage is targeted for
launch in New Zealand and Asia later this calendar year. This is the first
time colostrum will have been sold in liquid form in international markets.
A new manufacturing plant in Auckland is being made ready for production.

OUTLOOK
At the date of writing, the outlook is favourable, with the Company expecting
at least similar levels of revenue and profit to be sustained for the second
half of the current financial year. The Company has revised its full year
FY09 revenue forecast to in excess of $80 million.

New Image Group - Improving people's health and wellness everyday

[paul29]

share price now 25 cents share price up 19.05% today with 140,000 shares traded things are looking good for new image


Website: http://www.newimageasia.com/

[paul29]

share price now 28 cents

[paul29]

Share price been as high as 35 cents i have sold all my shares and taken a good profit on the shares i bought for 4 cents on the 16/03/2006 long term investing does pay off

[paul29]

Had a high of 38 cents on the 20/3/2008 share price now 35 cents

New Image Group Limited (NZX: NEW) advises that trading is continuing
strongly, particularly in its Asian direct selling operation. The recent
Members Conference in Malaysia is believed to be the largest direct selling
event in Asia in recent time, with some 8,000 people attending. Trading for
January and February 2009 suggest that the New Image Group Limited's revenue
for the year to 30 June 2009 may reach $100 million (FY08: $39.6 million).

[paul29]

more good news for new image group share price being as high as 45 cents

FINANCIAL
New Image Group Limited (NZX:NEW) advises that unaudited consolidated management accounts
for the third quarter ended 31 March 2009 show revenues of $30 million, supported by
continued strong trading in Asia. Revenues for nine months total $70 million, with net
profit after tax in excess of $10 million for that same period.

The last trading update indicated forecast revenues of $100 million for the full year and
that figure is accordingly confirmed.

COUNTRY MARKET EXPANSION CONTINUES
New Image’s strategic initiative to expand direct sales operations into new country
markets continues with the establishment of a Tokyo office in Japan in April. The South
African operation, based in Cape Town, is underway following its opening earlier in the
year.

ASIAN REGIONAL OFFICE TO OPEN
The company’s Asian regional operating infra-structure will be significantly improved
with the opening of a new 850 sq m operating centre at North Point Tower, Mid Valley,
Kuala Lumpur later next month. These facilities will strengthen the servicing of New
Image’s growing business across Asia and is part of the on-going increased investment
into the region.

A third office in Taiwan, in the city of Kaohsiung, is to open shortly to further support
growth prospects in that country.

COL+ READY-TO-DRINK COLOSTRUM BEVERAGE
The company’s new, ready-to-drink, 100 ml colostrum beverage, COL+, is on track for
launch in New Zealand in the spring and then in rapid succession into hypermarkets in
Singapore, Hong Kong and Shanghai. Experienced distribution partners have been selected
in each of these markets. Colostrum is a well recognised product for promoting human
health and wellness across all age groups and COL+ opens up the power of colostrum to the
mainstream functional food market.

New Image has allocated significant resources to this venture, to develop a premium
international brand, with investment in new personnel with brand, distribution and
manufacturing experience. The product will be manufactured at the company’s new
pharmaceutical-grade facility in Penrose, Auckland, where the key piece of technology, a
high pressure processing plant, is currently being installed.

[Footsie]

This looks good paul....never heard of them

However its had a huge run. 10c to 45c in 3-4 months.
Might be a bit late to the party now.

Still, if this is a new bull market she could easily go to $1.00 over time if profit targets are hit.

Might pick some up if it pulls back.

[paul29]

share price now 50 cents

[Anna Naum]

So how much colustrum from NZ goes into the product they sell vs US I wonder

[Footsie]

looking for an entry into this one now

If its price were to advance to say 60c+ and maintain that then 6 months out this could be one inclusion into the index

The bottom 5 out of the top 50 all have a m/cap under 120m....so watch this space.

its rare to find a chart of this quality. no real overhead resistance.
i say rare as we have just finished a bear market and most stocks are only retracing previous price highs

[Footsie]

Given the following, NEW seems like a good buy

a) in a solid uptrend
b) earnings momentum
c) under radar, not covered by any analysts
d) ranked 51st on NZX.... could move into top 50 with a good year
e) looks like they will earn 6-7c EPS for FY09 and 8-10c for FY10.
f) divie could be 3-4c by next year.

all and all, stacks up nicely

i'm in.

The fact that this stock is not discussed widely on this forum shows that they fly under the radar but if they continue to perform and people become aware of NEW then logically price appreciation will follow.

[kizame]

Yep watching this stock,but has currently hit resistance at 50c,if it pushes through or declines to offer better value then i think i will also be on board.

[macduffy]

Hi Footsie.

Yes, interesting company and seems to have moved up a gear, both production-wise and profit-wise in the latest period.

One of the things that interests me is just how good their contractual arrangement is with Fonterra, both in terms of using Fonterra's process and in sourcing supplies of colostrum. I have this nagging feeling that if Fonterra are serious about their downstream, added value business they will want to reclaim this market for themselves one day.
On the other hand, perhaps the clean, quick way to do this would be to take over NEW?

Any thoughts on this ?

[Footsie]

IF and its a big IF Fonterra want into this market the easiest way for them would be to mop up NEW rather than start is own operation.

From my limited understanding of the farming -fonterra- NEW Image r/ship
New Image tells Fonterra how much Colostrum they will need , fonterra then tells the farming community to produce x colostrum.

collecting colostrum requires extra work so i guess its all abuot supply and demand. If demand for colostrum goes up and farmers need extra income, supply will be there.

we have a massive dairy industry so I cant see supply ever becoming and issue.

I mean if you ever wanted to base yourself in a country to secure colostrum supply you'd have to chose NZ right? or maybe norway.

so regarding a takeover, who knows, we can't really say what the strategic thinking of Fonterra is. However, if they think big $$ can be made globally from colostrum products i'd say they'd be in like Flynn. It's up to New now. If they could get sales to $200m+ my guess is they would be taken out.... either by FOnterra or someone else (as a backdoor to NZ's dairry industry/products).

i'm thinking this will be a nice 12-24 month play for me. By which point, assuming they achieve growth. a share price of 80c-1.00 or takeover should be on offer. :)

[macduffy]

Points taken, Footsie, but I think I'll sit this one out and wait for the June, 09 result.
Certainly a growth stock now after a few uncertain years but at 48c it's trading on an historical P/E of around 48 ( based on last year's earnings of about a cent per share). A doubling of revenue and NPAT in the year just ended will still be a P/E of 24, perhaps not excessive for a rapidly growing stock but I'd prefer to see them get those runs on the board first.

Cheers

[kizame]

Yep see where your coming from,but usually by the time they get those runs the share price has decided it likes big multiples and you end up in the same situation,missing the real growth.

[Footsie]

macduffy..... you need to look at your numbers again.


As at the last announcement they have made 10m NPAT for the first three qtrs and could/should do 15m for the full year

So, to date they have EPS of 4.3c or p/e of 11x for 3 qtrs

if they do 15m its EPS of 6.4c or p/e 7x


Personally, I dont think that is expensive for a growth company, even in this market.
not to mention the fact that they will probably have $20m cash on hand by year end.

[paul29]

NZX Market Announcement

NEW IMAGE GROUP CELEBRATES SUCCESS AT 25 New Zealand leading health food exporter New Image Group is celebrating 25 years of business and five years as a listed company.

250 of the health and wellness products company’s high-achieving distributors and also
company executives from throughout Australasia, the Asia Pacific region and South Africa
are attending an international conference in Auckland.

Fourteen international distributors, who are earning commissions of more than NZ$500,000 a year, will be acknowledged at a showcase extravaganza for around 1,000 guests on Friday evening.

New Image currently operates in 10 countries: New Zealand, Australia, Malaysia,
Indonesia, Singapore, Philippines, Taiwan, Hong Kong, South Africa and Japan. Operations
are planned for Thailand in FY10. New country market opportunities are being investigated in Vietnam, South Korea and India.

Chairman Graeme Clegg says 25 years in business is a significant achievement for any
business in a world of rapid change and uncertainty.

“New Image completes its first 25 years in superb shape, enjoying both exponential
revenue growth and profitability,” he says.

Chief Executive Stephen Lyttelton says New Image has met its forecast revenue of nearly $100 million for the year to the end of June. That is up from the $39 million the
previous year.

“New Image is one of New Zealand’s Top 30 exporters,” he says. “Coupled with that, the
growth in our share price performance of 1000% over the past four years places New Image among the NZX’s top performing stocks.” Mr Clegg says from the start New Image had the foresight to see that the “baby boomer” generation would take a greater pro-active interest in their health and wellbeing and seek out products that gave demonstrable health and wellness benefits.

New Image’s health and wellness product range is centred on the use of dairy cow
colostrum, which is internationally recognised for promoting human health and wellness
across all age groups.

“New Image also saw the shift in the global balance of power and influence away from the USA and Europe to the Asia Pacific region, from the West to the East,” Mr Clegg says.

New Image has a long established operating presence in the Asia Pacific region, where its
network marketing distribution model has captured the commitment of talented distributors throughout the region. New Image’s distributors based there are enjoying rapid growth in their incomes.

Mr Clegg says in turbulent times people the world over reaffirm their traditional values:
they seek security, health and wellness, longevity, improved performance and established
systems that have proved durable, with sustainable competitive advantages. They seek
genuine business models, with no gimmicks and low risk.

A new Asian regional office in Malaysia has just opened, providing a significantly
improved operating infrastructure. The 850 sq m operating centre is located at Northpoint Offices, Mid Valley, Kuala Lumpur. These facilities will strengthen the servicing of New Image’s growing business across Asia and is part of its on-going increased investment into the region.

A third office in Taiwan, in the city of Kaohsiung, has also been opened to further
support growth prospects in Taiwan and offices in Japan and South Africa have opened in the past couple of months.

New Image 25 Year Anniversary Highlights Revenues of nearly $100 million for FY09, up
251% from the $39 million the year before, with Malaysian FY09 country sales increased
300% over FY08 Reverse listed on the NZX in 2004, New Image has a current market
capitalisation of more than $100 million, placing New Image around the 50th largest
listed companies Ranked in the top 30 of New Zealand export companies In FY09 over one million cans of New Image’s top selling product Alpha Lipid Lifeline were produced at its dairy-registered dry powder packing plant in Avondale, Auckland, acquired in early 2008.

The new, ready-to-drink, 100 ml colostrum beverage, COL+, utilising technology licensed
from Fonterra, is on track for launch in New Zealand in September and then in rapid
succession into hypermarkets in Singapore, Hong Kong and Shanghai. Experienced
distribution partners have been selected in each of these markets.

The COL+ product will be manufactured at New Image’s new pharmaceutical-grade facility in Penrose, Auckland, where the key piece of technology, a high pressure processing plant, has been installed.

New Image’s FY09 preliminary full year result announcement is due to be released later
next month.

[kizame]

Yeah this company is really impressing me,might just have to dip the toes.

[Footsie]

persistent seller at 49c keeps reloading. I suspect they have been the ones keeping a lid on things.

Once they are cleaned out should head to new highs.

But we will probably need a catalyst to create the demand to do this. Full year results are the obvious one.

With that in mind i'd be very surprised to see these guys trading sub 50c by the end of August, more like 60c if the seller is cleared out.

[Footsie]

through 50c res

[kizame]

Yes picked up a few today,just couldn't help myself,don't want the shareprice to run away and leave me standing there wishing.

[Rif-Raf]

I'd be a little careful here

There are some pretty dubious practices they have implemented online by the creation of what appears to be illusory organisations that apear to have some independent authority/credibility. They have hidden their involvement in these "organisations"

For instance there is a website www.colostrumresearch.org for the "Institute of Colostrum Research" which provides a wealth of information about colostrum and is sponsored by "BTI Laboratories" who are "one of the worlds largest formulators and marketers of colostrum products in the world. BTI believes that the importance of colostrum to global health and the potential of this market as so large that everyone will benefit by sharing information."

The Institute of Colostrum Research has no address, phone number and just has an email address which if you do anough home work you can trace it back to NEW. From the annual report the founding chariman of NEW is a director of a company called Institute of Colotrum Research Ltd - note the limited!

As far as I can see there is no such organisation called "BTI Laboratories". Given it is "the worlds largest formulator and marketer of colostrum" you would think it had a website and got mentioned in the press.

It's all rather murky. I also doubt that a company like Fonterra would want to invest in them if they are adopting theses sorts of practices.

[Footsie]

still tracking up.... 60c today.... "NEW" high.

result due sometime this month should be good


rif-raf... point taken, but you cant argue with. solid cashflow, no debt and increasing earnings.

forgetting the moral high-ground. regardless of whether the stuff has any proven scientific benefit is largely by-the-by (plenty of wellness products that are consumed are probably nothing more than placebo effect only). people keep buying the product - and have been for over 20 yrs.

from a shareholdrs perspective. demand for the product is increasing, they make money and they arent doing anything illegal. end of

ITs a bit like garlic tablets. My father swears by them. says it stops him getting a cold, so he keeps buying. Does he care if its scientifically proven . No.

PS Fonterra is hardly squeaky clean. Remember Malamine infant forumla?

[paul29]

New Image Group, a seller of colostrum and other health products, has added a former chairman of the Direct Selling Association of Australia to its board.

Nigel Sinclair, who had been appointed as an additional director of New Image, is now the vice-chairman of the Australian Association and was previously chairman for two terms, New Image said today.

Mr Sinclair's appointment followed a New Image board meeting in Malaysia late last month, where the NZX-listed company celebrated its 25th anniversary with 6000 of distributors.

It also opened a new 850sq m Asian regional office in Kuala Lumpur, New Image said.

The company had international sales of nearly $100 million, mostly to Asia, in the year to the end of June.

NH Chua, New Image's vice-president Asia Pacific, said it was vital to have the infrastructure to support the company's growth, with Malaysian country sales, for example, increasing 300 percent in the past year.

In Taiwan, a third office, in the city of Kaohsiung, recently opened to further support growth prospects there. Offices in Japan and South Africa have also opened this year.

New Image shares were down 1c to 59c in late morning trade, having been as low as 10c in January.

[Footsie]

everything seems to be going well at NewIMage land.

anyone know when the result is out?

[Footsie]

Fantastic result.

22m cash in the bank.

15.5m profit.... EPS of 6.6c

dividend to boot.


well done to holders.
perhaps this might raise their profile somewhat.

[stone small green]

５2 week high of 0.65 too.

very impressing indeed

[Zito]

At 69c currently. Gives a P/E of a touch over 10. With further revenue growth forecast next FY it still appears cheap to me. And for those that are holding, the chart looks as good as the result.

[stone small green]

with respect to its long term trend, a further increase is expected,
strong cash flow and company earning

also the upward trend in chart,

I believe it has room for more

[modandm]

I am amazed and surpised at the share price of this company.

Has anyone visited their website? It is amatuer at best

To put this company in perspective it is now trading at 150m not far off what vitaco is worth...

Vitaco was formed for around $200m (aquisition of Nutralife and Healtheries) + alot of recent capex.vitaco for those of you who don't know is

Healtheries
Nutralife
Balance
and several other brands

a diverse product offereing and international scale. Colostum is sold by heaps of health food co's including Vitaco - whats so special about this new image co - NOTHING

Even their packaging is terrible and under developed please compare:

Here is NEW packaging:
http://www.newimageasia.com/products/colostrum.htm
Looks like something out of the 1980's

Here is one example of vitaco packaging:
http://www.punchsupplements.co.nz/supplements/balance-100-pure-colostrum.html

This new image wellness group is DODGY! Beware any Multi level marketing cos - they are a fad. Other big players in the supplement space will not take long to wipe them off the radar.

Will be discussing this co soon with health food industry insiders and will report what they tell me about it

[kerryo]

I am amazed and surpised at the share price of this company.

Has anyone visited their website? It is amatuer at best

To put this company in perspective it is now trading at 150m not far off what vitaco is worth...

Vitaco was formed for around $200m (aquisition of Nutralife and Healtheries) + alot of recent capex.vitaco for those of you who don't know is

Healtheries
Nutralife
Balance
and several other brands

a diverse product offereing and international scale. Colostum is sold by heaps of health food co's including Vitaco - whats so special about this new image co - NOTHING

This new image wellness group is DODGY! Beware

Will be discussing this co soon with health food industry insiders and will report what they tell me about it

Fontera have given New Image an exclusive licence to produce their non pasteurised colostrum shot .... doesn't sound dodgy to me.

A new plant has recently been commissioned at Penrose to produce New Image's
new COL+ product. This "daily 100ml liquid colostrum shot" is manufactured
utilising a high technology process developed by Fonterra and commercialized
by New Image through an exclusive manufacturing licence agreement. This
technology allows the product to be stablised without pasteurization, which
preserves the efficacy of the colostrum's bioactives and with no
preservatives, delivers a natural product. Consumers worldwide are seeking
such natural products.

[modandm]

your right - dodgey is not the right word to use.

Still am not a fan of MLMers, overhyped products (which are already in production by other manufacturers without the hype), sure this new delivery method (in liquid) is great and innovative but is it really worth where this co is valued. If fonterra thought it was so great surely they wouldnt have given an exclusive licence.

refer my other criticims of this co how do you respond?

[macduffy]

Just to add to the debate!

http://www.stuff.co.nz/business/2821696/The-rise-of-New-Image

Disc: Not holding. A pity!

[kizame]

your right - dodgey is not the right word to use.

Still am not a fan of MLMers, overhyped products (which are already in production by other manufacturers without the hype), sure this new delivery method (in liquid) is great and innovative but is it really worth where this co is valued. If fonterra thought it was so great surely they wouldnt have given an exclusive licence.

refer my other criticims of this co how do you respond?

Well you may not be a fan,but the turnover and net profit speak for themselves,the packaging,well do you need flash packaging selling mostly via direct marketing? The product and what it can do for you, is what it is being sold on.This co. has been around for 25years and now getting some traction.
If you have a look at Charlies,Phoenix products,they have the most boring labels out there,yet the stuff sells.

Dodgy? well we shall see. I don't care what they are selling,they are growing fast,so someone must like the products,I am investing in the financials and the trend,you can't argue with that.

[kizame]

Oh also,have a look at the growth of Mona Vie in the states,in way less time than this company,and have a look at what they sell.

[booty]

Director sells 2mm shares at 65c - no surprise to see it down at current levels. 63/65

http://www.nzx.com/markets/NZSX/NEW/announcements/2843291/Ongoing-Disclosure-Notice-Raymond-John-Thomson

I'd be also be concerned to have around 57% of revenues coming from one office (Malaysia) - The star performers there only have to call it a day and you have a major dent in the bottom line.These MLM sales platforms can be very fragile, but to NEW's credit, if their expansion plans are successfully executed, it should result in better geographical revenue diversification.

[morton_mains]

My beef is that this director sold 2m of the 6m sold in one sale on 3/9 at a price of 65c when the price the previous day was 80/81 and on the day opened at 81 & ended 78, probably due to this dampener.

Is there an explanation other than blatant price manipulation? Aren't directors supposed to grow their company's EV, not drag it down by 20% in the space of a week. When is he going to resign?

[waterboy]

i agree cant understand why he would sell such a big parcel in one day why not spread it out and get a better price for his stock, he is selling himself short and his share holders. What are they not telling us is what i want to know.

[booty]

waterboy & morton_mains

I agree, it's not a good look for the company and questionable ethics on the director's part. 20% below market for a block trade is far too generous a discount. A quick search of the companies office will reveal the director in question is also a director of Wellington Drive Technologies (WDT) and owns a decent chunk of WDT shares as of last filing date. Maybe he decided to lock in a quick gain on NEW in order to offset pain following recent WDT price performance....

[paul29]

whats wrong with taking some profit ?good on him. The directors would have paid about 5 cents for his shares 60 cents a share profit is good in my book

[morton_mains]

Paul - the issue is that a director should be selling at a price which immediately undermines a company market cap. by 20%!!!.

Nothing wrong with his taking a profit at FAIR market price but to do so at a level such as this makes no sense and destroys market confidence in the company by leaving doubts, e.g. what does he know that we don't? or is he manipulating price downwards for his mates to buy more?

Its shocking to think a director would want to knock $40m+ off his company's value. We need an explanation and he shouldn't be drawing any director fees.

I have a query with the co. secretary & the NZX

[paul29]

morton_mains I know what you are saying It is shocking to think a director would want to knock $40m+ off his company's value

I noticed the directors 2,000,000 shares was a Off market trade i would like to know who bought them or who the new major New Zealand institutional investor is?





PRICES

Date Open High Low Close Volume Adj Close*
7-Sep-09 0.78 0.78 0.75 0.75 28,500 0.75
4-Sep-09 0.78 0.79 0.78 0.78 184,900 0.78
3-Sep-09 0.81 0.81 0.78 0.79 6,127,900 0.79
2-Sep-09 0.81 0.81 0.80 0.81 77,700 0.81
1-Sep-09 0.77 0.81 0.77 0.81 204,400 0.81
31-Aug-09 0.78 0.78 0.76 0.76 153,600 0.76
28-Aug-09 0.75 0.83 0.75 0.78 414,400 0.78
27-Aug-09 0.62 0.75 0.62 0.72 1,328,400 0.72
26-Aug-09 0.62 0.62 0.62 0.62 2,300 0.62
25-Aug-09 0.60 0.62 0.60 0.62 43,500 0.62
24-Aug-09 0.62 0.62 0.59 0.59 52,800 0.59
21-Aug-09 0.62 0.62 0.62 0.62 54,100 0.62
20-Aug-09 0.62 0.62 0.61 0.62 42,500 0.62
19-Aug-09 0.62 0.62 0.62 0.62 80,400 0.62
18-Aug-09 0.59 0.60 0.59 0.60 67,300 0.60
17-Aug-09 0.59 0.60 0.59 0.59 0 0.59
14-Aug-09 0.60 0.60 0.60 0.60 97,000 0.60
13-Aug-09 0.59 0.60 0.59 0.60 11,100 0.60
12-Aug-09 0.59 0.60 0.59 0.59 0 0.59
11-Aug-09 0.60 0.60 0.58 0.58 32,300 0.58
10-Aug-09 0.60 0.60 0.59 0.60 150,000 0.60
7-Aug-09 0.59 0.60 0.59 0.60 80,100 0.60
6-Aug-09 0.55 0.58 0.55 0.58 33,800 0.58
5-Aug-09 0.54 0.55 0.54 0.55 69,500 0.55
4-Aug-09 0.55 0.55 0.55 0.55 74,000 0.55
3-Aug-09 0.54 0.55 0.54 0.54 0 0.54
31-Jul-09 0.54 0.54 0.54 0.54 89,100 0.54
30-Jul-09 0.54 0.54 0.54 0.54 21,800 0.54
29-Jul-09 0.54 0.54 0.54 0.54 48,100 0.54
28-Jul-09 0.54 0.54 0.54 0.54 26,700 0.54
27-Jul-09 0.54 0.54 0.54 0.54 353,900 0.54
24-Jul-09 0.54 0.55 0.54 0.54 269,700 0.54
23-Jul-09 0.53 0.54 0.53 0.53 0 0.53
22-Jul-09 0.51 0.52 0.51 0.52 33,500 0.52
21-Jul-09 0.53 0.53 0.51 0.51 130,000 0.51
20-Jul-09 0.54 0.55 0.54 0.55 27,000 0.55
17-Jul-09 0.51 0.53 0.50 0.53 160,000 0.53
16-Jul-09 0.48 0.50 0.48 0.50 275,500 0.50
15-Jul-09 0.49 0.49 0.48 0.48 35,000 0.48
14-Jul-09 0.49 0.49 0.49 0.49 79,000 0.49
13-Jul-09 0.49 0.49 0.48 0.49 63,200 0.49
10-Jul-09 0.48 0.49 0.48 0.49 93,000 0.49
9-Jul-09 0.48 0.49 0.48 0.49 71,100 0.49
8-Jul-09 0.48 0.48 0.48 0.48 39,200 0.48
7-Jul-09 0.46 0.48 0.46 0.46 0 0.46
6-Jul-09 0.46 0.47 0.45 0.47 182,000 0.47
3-Jul-09 0.48 0.48 0.48 0.48 10,000 0.48
2-Jul-09 0.48 0.48 0.48 0.48 48,600 0.48
1-Jul-09 0.48 0.48 0.48 0.48 43,000 0.48
30-Jun-09 0.48 0.50 0.48 0.50 80,000 0.50
29-Jun-09 0.48 0.48 0.48 0.48 2,400 0.48
26-Jun-09 0.48 0.48 0.48 0.48 150,000 0.48
25-Jun-09 0.46 0.48 0.46 0.46 0 0.46
24-Jun-09 0.46 0.48 0.46 0.46 0 0.46
23-Jun-09 0.47 0.49 0.45 0.49 140,100 0.49
22-Jun-09 0.47 0.47 0.47 0.47 12,800 0.47
19-Jun-09 0.48 0.48 0.48 0.48 5,000 0.48
18-Jun-09 0.49 0.49 0.49 0.49 28,000 0.49
17-Jun-09 0.48 0.49 0.46 0.49 143,300 0.49
16-Jun-09 0.48 0.48 0.48 0.48 1,900 0.48
15-Jun-09 0.47 0.50 0.47 0.50 92,900 0.50
12-Jun-09 0.47 0.48 0.47 0.48 12,900 0.48
11-Jun-09 0.46 0.50 0.45 0.46 668,900 0.46
10-Jun-09 0.44 0.46 0.44 0.44 0 0.44
9-Jun-09 0.43 0.43 0.43 0.43 7,000 0.43
8-Jun-09 0.43 0.43 0.43 0.43 1,000 0.43

[waterboy]

be very interested in who the new large holder, i see price is rebounding today back up to 72 in good volume already...still not happy with director though. Perhaps a notice of holding change will tell us soon what is going on.

[whatsup]

Morton_mains, great to hear from some body who is(I hope) from Morton _mains ( in the deep south) , my father was born there nearly a centry ago, 1912 , whats left of the place when we travelled there years ago there wasnt much ,just a cross roads on a slight rise from memory , in the early part of last centry it was a great farming hub, black smiths, general store , post office, pubs and a bank or two, those were the days of thriving country towns dotted all around the country before the days of ratioanaisation etc.

[Footsie]

A lot of newbies posting on this stock... unusual.
New image is not the kind of stock you would normally make your first few posts on.

I agree the discount was too great. You can complain all you like that ohh the price ran up prior to the deal etc, from 65c to 81c.

But the fact of the matter is, had it not been for that sell down the price would still be in the high 70's
In effect that director butchered the price of his own stock.

The irony is, had the price been trading at 80c then fallen to 65c instead of the other way around, would the buyers say, "oh we are happy to pay 80c because that's where the price was last week"
Hah, no way.

im not impressed. I totally understand why directors sell to take profits - buy houses, cars etc, but if you truly believed that the value of the company would be higher in 12 months than today. why would you sell?

[modandm]

youve answered your own question there - he obviously doesnt believe the stock will be higher.

Anyway back to report. I have discussed this stock with a insider who described the ceo as "a waster".

Apparently this co is doing well largely due to infant formula - on the back of reduced competition for nz manufactured infant formula (fonterra pullout).

the insider reveals that other nz companies are unwilling to put their brand at risk by selling infant formula

interesting.

i still see this co as small undeveloped and unsophistiacated relative to its peers and dont approve of its distribution methods (MLM). As pointed out MLM does have significant risks (easy targets for competitiors to approach)

anyway hope you all DYOR on this one - I wouldnt want to hold this one medium term but thats just me

[modandm]

as a side note

do you really have respect for a company that sells colostrum and also fuelsaver!!:confused: wat a joke

their website is a hillarious read - even a tagline:

"It’s time to start believing in miracles again!" lmfao as the kiddies say

[morton_mains]

Footsie - I haven't posted for couple yrs here, but couldn't find any one on HC to converse with about this NZ share.

Modandm - agreed the co. has its rough edges...but you can't ignore the CASH!.. you can't ignore the sales growth.. and the fact they get 3000 people turning up at a rally in Malaysia!! Could Red Sheds, Briscoes, HLG do that! Their channels, promotional collateral may appear unorthodox but hey it works!

The operating cashflow compared with Blackmores, Probiotec on ASX is stunning (check out margins, cashflow, debtors & stock - its all good) and worth a slice of my portfolio. In fact its right up there c.f. with any sector.

No they haven't done the infant formula yet - its coming. Imagine getting a slice of China infant formula market!
So are new markets - whole countries.
So is the Fonterra JV product Col+. Fonterra will be doing continuous QA checks on the product.

Just ONE of these would give them great sales growth (251% 2009, 53% 2008)

The co. needs to be viewed as still in early stage growth - its brand is solid and network of customers is rusted on, & the coy has the advantage of having cash to fund its growth, which many such companies struggle with. Their track record into Asia is a success and rare for a Western company - big markets, big potential.

I do give the company credit, but my beef is this strange going on with director sales at 20% below teh market valeu when the crossing was done.

Today the intrigue continues - we are getting the slow drip feed on RelInt notice - it seems we have 2 directors "shorting" their own stock. Total sale on 3/9 was 6 mill, for 2m shares each. Wonder when the other 2m will come out. Meanwhile bargain hunters have pushed it back into

Two possible positive scenarios:
1.) the directors have done some sort of sweet-heart deal - the new owner gets immediate gain in return ...?
2.) a variation on the first whereby the buyer had an option struck at 65c some months ago and then triggered by an event/market cap./ milestone on the 3/9

Either way it would have been appreciated to let other shareholders know - for the price of a time out of someones days to fax/email the NZX with a small ann.

P.S> Whatsup - I thought I chose a totally obscure name - my grandfather had a farm there and my mums family came from Dacre.
"PM" me if you want.

[morton_mains]

Correction to my post - NH Chua is on Senior Mgmt team and not a director. Only one director apparently involved so far in the 6mill shares.

[Footsie]

If Phaedrus showed a chart here it would illustrate a massive drop in OBV or "smart" money exiting.

In another comany i currently own the CEO sold a bunch of stock at a 20% as well. the line was that the price was agreed a week before the run and he felt obligated to honour it. it that case the volume was much smaller.

here with NEW, we had a seller of 6m.. for a stock that does 100k a day average that is a big chunk to move. So there was always going to be a disc. I think 70c woud have been more appropriate.

the cash is a little bit of a tease as they have no debtors. that being the nature of direct selling. but cash is still cash.

in summary their sell down has me a little concerned, but not worried. fundamentals matter more. Directors arent wizards, they can't pick the top or bottom of stock prices.
last year I followed a company where the CEO kept buying more and more stock as the price fell, in the end, the company went into recievership and he lost the lot.

[Jim]

last year I followed a company where the CEO kept buying more and more stock as the price fell, in the end, the company went into recievership and he lost the lot.[/QUOTE]

What company was that Footsie ??
I know that Sir Selwyn Cushing bought a large parcel of SKL and a large parcel at 80 cents when SKL had a right issue. Presently SKL is having another rights issue at 40 cents and Sir Cushing is believe to be taking all the entitlement. Is he an astute investor or he just got too much money and no where to throw around ??

[Footsie]

JIm it was an aussie company. ABC learning. I can actually cite a few examples

Like I said, just have to remember that not all CEO's are astute and that some are in fact idiots.

[kizame]

If Phaedrus showed a chart here it would illustrate a massive drop in OBV or "smart" money exiting.


One could argue that the smart money is actually entering the stock at a pretty reasonable price,Mr Chua is an insider don't forget too,the director selling out either needed the money now,or just wanted to cash in some very good gains.
You must have a lot more confidence it is an insider buying in,and a fairly hefty investment too.

The OBV on this one is a bit misleading,as you will note it has resumed it's upward movement, all be it from a much lower base.

[Footsie]

no matter which way you cut the cloth. insiders sold a bunch of stock and that means that
a) they figure the company is close to "fairly" valued
b) they don't think the price will appreciate that much over the coming 6-12 months.

[whatsup]

R T is an astute follower of the trotting industry, enough said.

[winner69]

R T is an astute follower of the trotting industry, enough said.

Enough said? Your impression of that industry/sport not that high at the moment whatsup

Plenty of scandal etc eh

[winner69]

I didn't realise that RT was also a director of Wellington Drive

[morton_mains]

Kizame, macduffy
The use of NZCSD Ltd may be used by an insto or a quango (e.g such as ACC etc., perhaps ) because NEW.NZX does not fit their strict investment criteria....yet. After all there is a compnay which although has a long past history has had its ups & downs - but it is obviously too good to miss so in meantime hence want to cloak their purchase under nominee.

I will post more into NEW thread

[morton_mains]

From the Top 20 list - NZ Central Securities Depository have suddenly appeared into Top #4 holder with 13.5m shares.

Where did they get the shares from ?

7 May09 New Image issues 5m @36c to “one major New Zealand institutional investor”

Insto wants more but so little on offer it goes to existing large holders.

May-Aug Top #5 Holder E J B Ltd lightens from 15 to 13m by feeding NZCSD 2m shares

I had commented on other thread that NEW won’t be a total match for investment criteria but they are VERY keen to get on board particularly after the 27 Aug09 Company announces their great result. Then..

8 Sept09 Director R Thompson sells 2m @65c to them

9 Sept09 Senior Manager NH Chua sells 2m @65c to them

Total 11m, sorry can’t figure where rest came from.

At first blush it appeared Dr. RT & Mr NH C. were shorting their company’s shares but we can see the buyer is of substance and eager to accumulate. Since then they are probably the buyers of the 28 Sept09 sales of a further 2m shares by Director R Thompson @ 72c. Holdings may now be up to #3 holder.

The Top 20 list was also useful to see 2 NZ holders;

E J B Ltd was notified as major holder of 15m shares last year 9-10-08. The company is owned by person who appears (from desktop research) to be a senior exec with Formway Furniture – successful NZ design icon. His purchases of these shares last year were obviously very cheap to him as his 2m sale would have easily covered the cost and he free carries a holding of $9m+ worth. Well done.

Also appearing for the first time, at #17 with 0.5% of the company, is a share broker who also is significant investor (1.94% of NZR.NZX and 0.24% of NZX.NZX).

So all in all very pleasing & comforting to me with my meager holding to see smart money staying in as well as coming in and a keen cornerstone institution who can see a good thing & accumulating.

I will offer some speculation soon on what joy the AGM might offer holders. :)

[morton_mains]

Yuk- down 14% in a single day to 65c so far.

Nervous holders didn't like the short ann. yesterday that was an obvious pre-warning of slower sales growth - down to increase 22% over last year , but that was a year when sales went up 251%!!

So we have sales level of last year being maintained, presumably profits too.

I had thoughts that tomorrows AGM might announce 2 or 3 items which would propel the SP, but now not so sure, feeling nervous with my av.81c seeing quite distant.

Looking forward to AGM to cheer me, maybe have a colostrum or 2.

Obviously the recent director sales heavily discounted because they knew of this growth "slowing".

[whatsup]

From Dr R T is a big follower of the trotters -if you know what i mean.

[whatsup]

Yuk- down 14% in a single day to 65c so far.

Nervous holders didn't like the short ann. yesterday that was an obvious pre-warning of slower sales growth - down to increase 22% over last year , but that was a year when sales went up 251%!!

So we have sales level of last year being maintained, presumably profits too.

I had thoughts that tomorrows AGM might announce 2 or 3 items which would propel the SP, but now not so sure, feeling nervous with my av.81c seeing quite distant.

Looking forward to AGM to cheer me, maybe have a colostrum or 2.

Obviously the recent director sales heavily discounted because they knew of this growth "slowing".

Sales growth of 22% not tooooo shabby in a recession I would have thought !! why the sell off?

[Footsie]

The insider selling from Dr RT Stinks..... when will the NZX ever wake up

You just couldn't get away with that on the ASX.

I think the OBV gave it all away 6 weeks ago... that was the time to sell around the 75-80c mark

but lets see what rabbit they bring out of the hat at the AGM

on the plus side, they still making good money and have no debt, just looks like the growth is over for the moment.

[kizame]

What do you mean the growth is over for the moment,22% is not to be laughed at,and that is on top of the phenomenal growth they had last year,still 3 quarters to go yet and still expanding.
Pretty darn good performance in my opinion,and moving into new markets.

Keep your feet on the ground and your heads out of the clouds.

[waterboy]

like the concept of new markets for the future, 22% is still very good growth for a 'normal company' but i guess what others are saying is that 22% is much lower than the 200+% from last year so maybe spooked a few people.
Not to concerned about the smaller trades but see one larger trade went through.
Good to see a small rise at the end of the day back to 69 c.
Cant make meeting but keen to hear from others who do go.

[morton_mains]

Footsie- what software gets you to see OBV for NZX shares?
Thanks

[Footsie]

metastock

costs around 800 for the software...and you have to source the data... 150 a quarter i think.

but well worth it....

[Phaedrus]

MM, I'm sure there are more, but OBV is available free from the following sites :-

Big Charts
FT.com
Findata.

NZ EOD data from Findata is $20/month. Any three exchanges cost $30/month.

[yabster]

If all you want is OBV -it's an option in the NZX charts- just click on show technical controls.

[morton_mains]

Thanks guys.

I attended AGM -real interesting.
DR Thompson has resigned as director as of today (hey- no notice to NZX yet - you heard it here first) so not up for re-election.

Things seem to be swimming for them - lots happening and no gloom as doom. They will be doing things in teh adult stem cell space (not embryo) - need to read up but this will be huge and they already have good reputation in wellness space.

Col+ shots up and running. Infant formula just starting into mainland China. Malaysia spin-off still being worked on - nothing firmed in terms of how, when, what format.

No great plans for cash!! other than extra $1m for R&D and usual need for boosting production for new lines.

New director bought recently so kinda balances out Dr T bailing. Spoke to Mr Sinclair and he's positive about company having done his DD.

Also I would like to speculate(based on my recognising the principal and execs huddled around them after event) the institution on the register now is Huljich Wealth Mmgt (Kiwisaver provider -directors incl. Mayor Banks of Auckland, Don Brash, ex Ldr of National Party, ex Governor of the Reserve Bank).

[stone small green]

I thought they mention something in the annual report that they will be relatively less profit for fy10 due to plan for expand..

glad we were one of the first to hear the news, MM .
cheers

[morton_mains]

small stone:
CEOs report and repeated in address is that profit "growth" may be constrained.

Hmm. I think he's saying u won't get profits growing by a factor of 6 like last year!! but that profits in absolute $ should be in line with same revenue - or thereabouts given that teh last qtr they grew by 22% ?
Still a truckload of cash!

[stone small green]

small stone:
CEOs report and repeated in address is that profit "growth" may be constrained.

Hmm. I think he's saying u won't get profits growing by a factor of 6 like last year!! but that profits in absolute $ should be in line with same revenue - or thereabouts given that teh last qtr they grew by 22% ?
Still a truckload of cash!

It gets pretty scary when a company grows like that,
I'm quite happy with the current results, as long as they will be maintained!

the theme of those days is "sustainable development" isn't it?

[Footsie]

Did they give a reason why DR Thompson has resigned?

Huljich.... interesting. wonder if they intend to buy more on market.

did they give any guidance.

[morton_mains]

footsie
No, no reason - given they had Dr T. on the printed Resolutions to be re-elected this announcement of resignation was quite a surprise. Purely my opinion that Graeme Clegg seemed a touch annoyed when announcing but he did express thanks for his contribution to the board.

Someone did ask but they couldn't give guidance due to constraints of announcements to NZX and that the global environment was volatile.

[kizame]

Interesting that direct sales were actually up 32% and that it was a contraction in wholesale and retail that led to the slip to 22% overall, AND that this has been addressed. I think the end of year could be better than is currently thought,interesting also that the effects of ramadan had a bigger effect this last quarter,than last year.

Very positive in my view.

[stone small green]

isn't they focused on direct selling anyway?
from this point, I believe it's like moving from one segment to another,
I guess we will have to wait and see.

[Anna Naum]

It would appear from the register that Dr T has been selling his stake to Huljich

[kizame]

isn't they focused on direct selling anyway?
from this point, I believe it's like moving from one segment to another,
I guess we will have to wait and see.

Don't understand your point,small green one.

The Huljich bros. were a very successful listed small goods manufacturer,can't quite remember the name, but sold to Huttons if I recall correctly,astute people.

[whatsup]

Don't understand your point,small green one.

The Huljich bros. were a very successful listed small goods manufacturer,can't quite remember the name, but sold to Huttons if I recall correctly,astute people.

Huljich et al are a sort of investment bank who has a so far successful Kiwi saver scheme that is top of its pool in the latest report on K S investor returns, so that said would buying Dr T shares be a good move or not so good for its K S clients if DIL were to be part of its investment horizon.
Are they buying at the top or the start of a growth cycle?

[paul29]

The shareholders and board of New Image gave themselves a pat on the back for a good year as the company's success in South East Asia leaves it eyeing a listing on the Malaysian share market.

Speaking at the health product manufacturer's annual meeting in Auckland yesterday, founder and chairman Graeme Clegg said the company's results spoke for themselves.

The June year's net profit after tax was $15.5 million up 711 per cent on last year's $2.2m.

This was built on the back of revenues rising 254 per cent from $38.6m in 2008 to $98.1m this year.

The impressive growth has seen a meteoric rise in market price since January, when New Image's shares traded at around 10c, to an all time high of 81c in September.

New Image's share price was trading around 70c yesterday.

Its market capitalisation is now $161m - almost on par with Fisher & Paykel Appliances.

New Image, whose products include energy drinks, shakes and baking products in powder form, said unaudited first quarter revenue rose 22 per cent from the same period last year.

Chief executive Stephen Lyttelton said first quarter revenues may have been even more impressive if the Islamic festival of Ramadan had fallen in the second quarter of the year, instead of the first, like last year.

New Image's revenue is mostly derived from South East Asia, where its products are marketed through a direct selling model.

Currently, 90 per cent of its revenue comes from direct selling, though it is branching out into retail stores in Singapore.

Mr Clegg said the products were very popular in Malaysia and Taiwan, where member conferences are attended by five to six thousand people.

Due to this popularity, Mr Lyttelton said the company was considering splitting off Malaysian operations so they could be listed on the Malaysian stock exchange.

New Image would retain a majority shareholding and the board was working through the details, particularly whether or not New Zealand investors would be issued rights in the new entity.

He said due to the complexity of the procedure, if it happened, it would not be for at least a year.

Mr Lyttelton said the prospects for the group were bright, but he did not expect the dramatic profit growth seen in 2009 to be repeated, because of continued investment in new products and markets. He said foreign exchange exposure was the biggest risk the company faced.

[COLIN]

Huljich et al are a sort of investment bank who has a so far successful Kiwi saver scheme that is top of its pool in the latest report on K S investor returns, so that said would buying Dr T shares be a good move or not so good for its K S clients if DIL were to be part of its investment horizon.
Are they buying at the top or the start of a growth cycle?

Isn't Huljich behind the NZF Group (NZ Finance Ltd & Mike Pero Mortgages)?
I see that you can buy their listed capital notes at a 72% yield, by the way - any takers?

[Anna Naum]

Don't understand your point,small green one.

The Huljich bros. were a very successful listed small goods manufacturer,can't quite remember the name, but sold to Huttons if I recall correctly,astute people.

I would suggest the Huljich business that has the NEW stake is one of the sons of the Huljich clan that sold the family small goods business about 15 years ago

[morton_mains]

Peter Huljich attended. He is MD of Huljich Wealth Mgmt (http://www.huljich.co.nz/?s1=huljich&s2=Our People) , a Kiwisaver provider with over $700m FUM, and as Whatsup says their RoR has been better than most. They have a absolute perpsective on investments

While he may have been their on his own account or that of his family, I assumed it was in his Huljich Wealth Mgmt role, given that New IMage referred to the holder as being an "institution."

I need to be more specific in telling you this.... such an institution will have a very formal investment selection process that is transaparent, auditable and accountable. This coupled with having old, experienced directors (Hulich Wealth that is) who are well-connected would lead me to conclude that New Image deserves and is getting a higher rating by the market.

[paul29]

New Image Group will shortly benefit from a tariff reduction




New Zealand leading health food exporter New Image Group will shortly benefit
from a tariff reduction following the signing of the New Zealand - Malaysia
Free Trade Agreement in Kuala Lumpur yesterday.

The company's Founding Chairman Graeme Clegg was at the signing ceremony as
part of the New Zealand business delegation.

Chief Executive Stephen Lyttelton says from 1 January 2010, the NZX-listed
company will receive a tariff reduction on its colostrum products exported to
Malaysia from 5% to zero. The company's lead export product to Malaysia is
its powdered daily breakfast drink, Alpha Lipid Lifeline, containing
colostrum, probiotics, vitamins and calcium.

"With Malaysia accounting for more than half of our total revenues of just
under $100 million in the year to June 2009, you can see that the tariff
reductions there will have a beneficial impact on the
group's bottom line,"
Mr Lyttelton says.

New Image's accounts show revenues from Malaysia for the June year at $56.3
million, up 578% on the previous year. The demand for New Image's health and
wellness products in Malaysia saw the company establish a new 850sq m
regional head office in Kuala Lumpur in July this year. The company is also
investigating the feasibility of floating the Malaysia arm of New Image on
the Malaysian stock exchange, to give the opportunity for the company's
distributors to invest directly in the business there.

[stone small green]

it's indeed a big volume today

[Footsie]

who is the big seller today? If its Dr Ray, it looks like that his last lot. Good. stock might start going up again now.

morton mains, you seem to be a supporter and know a lot about them. Do you invest with HWM?

[kizame]

who is the big seller today? If its Dr Ray, it looks like that his last lot. Good. stock might start going up again now.

morton mains, you seem to be a supporter and know a lot about them. Do you invest with HWM?

Nevermind who is the seller,it doesn't really matter on a day that the shares lift,with good buying support,and OBV will have risen today,A good day after a crappy one.

I think the volume today makes up for the fact that we are still down 3c on Fridays close.

Am a medium to long term holder,I expect a bit of volatility with this kind of stock.
A lot about this stock pleases me.

[stone small green]

the stock has been floating a bit, up and down, not as stable as before.
I am thinking if the top has been reached?
it touched 80C mark twice, and never pass it.

[kizame]

the stock has been floating a bit, up and down, not as stable as before.
I am thinking if the top has been reached?
it touched 80C mark twice, and never pass it.

Looking at the chart,I think this is a consolidation pattern,we must remember it has risen steeply of late and needs a rest.The fundamentals look too good for it to reverse too much,but I think the advance will continue in a month or two or three,see this on so many stocks of late and pretty much all have been bullish.
It's just a matter of time.

[morton_mains]

footsie - no , I attended preso given by Peter H. of HWM

NEW buyers thinning. Oh well hold tight.

[Anna Naum]

Jenny Ruth in todays SST has a bit to say about Dr T's selling and other 'red flags' that are a worry about NEW

[Anna Naum]

Got to laugh. Substantial Notice today from EJB Ltd (John Sorenson) going from 6.57% to 5.06% meaning a nice $2m in to the coffers. This was the same holder who sold about 5m shares to ex director Ray Thomson last year at I think about 12c. Note Ray Thomson has sold all his shares and now it looks like Sorenson is also leaving the building. Sorenson was a major shareholder in PLS before it hid the skids.

[kizame]

One thing that has bugged me for a while is; Why do shareholders have to wait 6 months to get their dividend,of a massive 1c/share,surely a company so profitable shouldn't have to delay payment for so long.Or was it to get the divi re-investment plan up and running,somehow though that just doesn't wash with me.

[Footsie]

jenny ruth has given this company the kiss of death.. not even Huljich willing to hold it up....


who is the new sub holder?

[waterboy]

Can someone please post comments from Jenny Ruth, I cant find her article anywhere on the net?

[stz]

Down 9c today with the buy side looking pretty sick D:
Anyone know whats going on?

[stone small green]

Down 9c today with the buy side looking pretty sick D:
Anyone know whats going on?

I guess it's the matter of fact that everybody suddenly started worrying about the company,

like Kizame mentioned. it's weird we have to wait ages for the 'massive dividend to be pay out." and they so called dividend reinvestment plan too.

I moved most of mine from the company yesterday. would like to see how it goes, my guess is it might fall back to the mid 40c.;)

[winner69]

Can someone please post comments from Jenny Ruth, I cant find her article anywhere on the net?

So all the good juicy bits that move the market don't get on the web for free.... bugger .... so long the newspaper you buy from shops

[kerryo]

It's probably Jenny Ruth buying up the cheap shares now. :D

[stone small green]

It's probably Jenny Ruth buying up the cheap shares now. :D


only buying 0.1m.. I thought he was rich:D

[stone small green]

it's funny that NZX ask NEW for an explanation regarding the recent fall in price.

[kerryo]

it's funny that NZX ask NEW for an explanation regarding the recent fall in price.

Perhaps the NZX can't find Jenny Ruths story on the net .... I know I can't find it.:o

[winner69]

Thats right blame the press .... as PGW says just 'uninformed speculation'

What would Jenny know anyway

The headline said "New Image hoists too many red flags"

and the byline was 'When a company exhibits a number of such red flags in short order, investors should be sitting up and taking notice'

The red flags are

- changing auditors (cahnged to reduce cost says company)
- heavy selling by major shareholders and key executives
- abrupt departure of Thomson - abrupt an understaement and no explanation given
- leaving the company with only one non executive director
- company not keeping a register of directors dealings

Nothing new - jst that someone put it all in one article with a bold headline

Read into it what you want .... did it spook the market ... doubt it

[kerryo]

Thats right blame the press .... as PGW says just 'uninformed speculation'

What would Jenny know anyway

The headline said "New Image hoists too many red flags"

and the byline was 'When a company exhibits a number of such red flags in short order, investors should be sitting up and taking notice'

The red flags are

- changing auditors (cahnged to reduce cost says company)
- heavy selling by major shareholders and key executives
- abrupt departure of Thomson - abrupt an understaement and no explanation given
- leaving the company with only one non executive director
- company not keeping a register of directors dealings

Nothing new - jst that someone put it all in one article with a bold headline

Read into it what you want .... did it spook the market ... doubt it

Thanks winner69:)

Nothing there spooks me:p

[waterboy]

Yes thanks for that winner69

Be glad when these directors stop selling off market!

I see NEW has responded to the query

RESPONSE OF NEW IMAGE TO SHARE PRICE ENQUIRY

New Image Group Limited confirms that there is no material information that
has not been disclosed to the market that would account for the drop in the
company's share price.

It has no reason to revise the positive outlook provided at the company's
annual general meeting on 22 October on the back of a 22% growth in revenue
for the first quarter to 30 September compared to the same period for the
previous year.

New Image Group Limited believes the fall in its share price in the past week
can be attributed to two reasons:

First, the off-market sale of two parcels of its shares, including one by a
former director, to a major institutional investor at a discount to the
market price. The company has no control over such transactions. A series
of sales of such substantial shareholdings by any director are not viewed
favourably by the company's board. Dr Thomson has his own reasons for
selling, which the company is not privy to but does not believe to be related
to the current trading position of the company.

Secondly, there has been some speculation about the company in the Sunday
Star Times and in particular an article that appeared in that newspaper last
Sunday. This article may have unnecessarily unsettled some investors. The
article highlighted the sale of a substantial number of shares in the company
by Dr Ray Thomson, whose resignation as a director was announced at the
company's annual general meeting on 22 October. This was the second media
report in that newspaper concerning Dr Thomson's New Image share
transactions. In the opinion of the company, the issues raised in the
article hardly justified the overall conclusion and the article's headline.
These issues were unrelated to the company's current business and prospects.

[Anna Naum]

Yes thanks for that winner69

Be glad when these directors stop selling off market!

I see NEW has responded to the query

RESPONSE OF NEW IMAGE TO SHARE PRICE ENQUIRY

New Image Group Limited confirms that there is no material information that
has not been disclosed to the market that would account for the drop in the
company's share price.

It has no reason to revise the positive outlook provided at the company's
annual general meeting on 22 October on the back of a 22% growth in revenue
for the first quarter to 30 September compared to the same period for the
previous year.

New Image Group Limited believes the fall in its share price in the past week
can be attributed to two reasons:

First, the off-market sale of two parcels of its shares, including one by a
former director, to a major institutional investor at a discount to the
market price. The company has no control over such transactions. A series
of sales of such substantial shareholdings by any director are not viewed
favourably by the company's board. Dr Thomson has his own reasons for
selling, which the company is not privy to but does not believe to be related
to the current trading position of the company.

Secondly, there has been some speculation about the company in the Sunday
Star Times and in particular an article that appeared in that newspaper last
Sunday. This article may have unnecessarily unsettled some investors. The
article highlighted the sale of a substantial number of shares in the company
by Dr Ray Thomson, whose resignation as a director was announced at the
company's annual general meeting on 22 October. This was the second media
report in that newspaper concerning Dr Thomson's New Image share
transactions. In the opinion of the company, the issues raised in the
article hardly justified the overall conclusion and the article's headline.
These issues were unrelated to the company's current business and prospects.

And then there is the small issue of 2nd largest shareholder selling a couple of % of the company.

[kerryo]

And then there is the small issue of 2nd largest shareholder selling a couple of % of the company.

Got any ideas Anna .... maybe a new home?:rolleyes:

[Anna Naum]

Got any ideas Anna .... maybe a new home?:rolleyes:

3.19m shares sold for $2.07m buys a lot of house I guess.

[kerryo]

Nearly another 1M dumped today:(

Sure makes for cheap buying but it must be giving NEW a bad name, then again I suppose people have the right to sell their shares whenever they like for whatever they like.:confused:

It's just the little traders like me that get hurt .... but I guess we don't matter, we are at the bottom of the food chain. :rolleyes:

[Anna Naum]

Nearly another 1M dumped today:(

Sure makes for cheap buying but it must be giving NEW a bad name, then again I suppose people have the right to sell their shares whenever they like for whatever they like.:confused:

It's just the little traders like me that get hurt .... but I guess we don't matter, we are at the bottom of the food chain. :rolleyes:

Note that most of the million shares was done at the end of the day as a special trade at 55c. Tells you the level of discount you need to accept if you want to deal more than 10-20k at a time to mums and dads that are late to the game.

[morton_mains]

My guess Dr R.T finally out and only has 63,130 left. Curious that last notice was a RelInt. of a "director" ? Do these notices continue after resignation?

Still can't see why SP has slipped so much. Company EV $120m (cap. $142M less CAsh $22m), Annual Sales $100m so Sales:Book ratio still great value.

[kizame]

Something just doesn't sit right with this company,I don't know what it is,but I was a bit confused and perturbed by some little things that other companies that have their shareholders best interests at heart, wouldn't do.
If these guys are selling out,what does that tell you?
If they decided that they needed the money fine,but do you need to cash up everything,when this company supposedly has such great prospects.
Even if I left the company,say there was a big personality clash, but the companies prospects hadn't changed,would I cut off my nose despite my face and sell everything,when I could still make a fair chunk more?

Will stand back a bit and watch,cashed out and made a good profit,so happy to escape for now.
One good thing is, I had just under 100,000 shares,and got out ok,so there is still interest.

[Anna Naum]

Something just doesn't sit right with this company,I don't know what it is,but I was a bit confused and perturbed by some little things that other companies that have their shareholders best interests at heart, wouldn't do.
If these guys are selling out,what does that tell you?
If they decided that they needed the money fine,but do you need to cash up everything,when this company supposedly has such great prospects.
Even if I left the company,say there was a big personality clash, but the companies prospects hadn't changed,would I cut off my nose despite my face and sell everything,when I could still make a fair chunk more?

Will stand back a bit and watch,cashed out and made a good profit,so happy to escape for now.
One good thing is, I had just under 100,000 shares,and got out ok,so there is still interest.

A look back in history tells us that Ray Thomson is known for buying things cheap and selling high. Ask Strathmore holders who sold to him at 5c odd many years ago when he tried to take the company over.

[kerryo]

Buying cheap and selling high .... isn't that what we are all trying to do?

[Anna Naum]

Buying cheap and selling high .... isn't that what we are all trying to do?

Sure but its not so good if you are on the other side of the deal

[Anna Naum]

Final Ordinary Dividend – Information

Market Announcement

12 November 2009

Announcement: Final Ordinary Dividend – Information

Amount & Payment Date

The Board of New Image Group Limited (NEW) on the 27th August 2009, announced that it had determined to pay a final ordinary dividend for the year ended 30 June 2009 of 1 cent per fully paid ordinary share (fully imputed).

This is to announce that this dividend will be paid on the 18 December 2009.

Record Date

The dividend will be paid to all holders of NEW ordinary shares who are registered on the share register as at the record date, 5.00 pm (New Zealand time) on 4 December 2009.

Dividend Reinvestment Plan (DRP)

The New Image Board has determined that in relation to the 2009 final dividend that the DRP will operate as follows:
the issue Price at which the shares are issued under the DRP will include a discount of 2.50%; and
the pricing period for setting the Issue Price will be the 5 trading days commencing 
7 December 2009.

If shareholders wish to participate in the DRP for the upcoming dividend, they must complete a DRP application form and return it to NEW’s share registry, Link Market Services, but no later than 5.00 pm (New Zealand time) on 4 December 2009.

The DRP and terms and conditions that apply to the DRP and the application form, can be found on New Image Groups Limited website www.newimagegroup.co.nz.

[kerryo]

It's not very big but it's a start.:)

[Glendoonie]

NEW down 5 cents. Well, at least no ex/directers have bailed - or is that going to be next week's news?

[Footsie]

there wont be anymore directors selling, more likely buying
the big seller is complete.... id sa 50c will hold

i'd personally like to see the CEO or CFO buying on this weakness.

What is key to their future is how this current quarter perfoms. meaning that all this talk about ramadam..will those sales be pushed into this quarter?

have to wait till end of january for that.

but back at 50c, cant see too much to worry about. Net cash. sales up, Dr thompsn finished selling.

80c different story, but 50c seems like a good buy/support level.

The market has had to absorb around 10m shares in the past 8 weeks thats a lot for a small company.

[winner69]

Thats right blame the press .... as PGW says just 'uninformed speculation'

What would Jenny know anyway

The headline said "New Image hoists too many red flags"

and the byline was 'When a company exhibits a number of such red flags in short order, investors should be sitting up and taking notice'

The red flags are

- changing auditors (cahnged to reduce cost says company)
- heavy selling by major shareholders and key executives
- abrupt departure of Thomson - abrupt an understaement and no explanation given
- leaving the company with only one non executive director
- company not keeping a register of directors dealings

Nothing new - jst that someone put it all in one article with a bold headline

Read into it what you want .... did it spook the market ... doubt it

Oh deary me ... Lyttelton pissed with Jenny's article and writes a letter to the SST saying it 'unfair' and 'unbalanced' .... and then all he did was repeat everything that Jenny had written .. with a different conclusion of course

SST response was that Jenny was only expressing opinions based on facts in the public domain and then suggested that if Lyttelton expects market and commentators to do otherwise he will have a tiough time as a CEO of a public listed company.

Good stuff .... nothing like a good stoush in public .... and how people react to something they don't think is fair is always a good signal as their overall demeanour and abilities .... sometimes it is better to just grin and bear it.

Lyttleton needs a bit of PR trianing methinks ... and take on board that a good market valuation is very dependent on how you 'massage' the market and commentators.

[kizame]

Oh deary me ... Lyttelton pissed with Jenny's article and writes a letter to the SST saying it 'unfair' and 'unbalanced' .... and then all he did was repeat everything that Jenny had written .. with a different conclusion of course

SST response was that Jenny was only expressing opinions based on facts in the public domain and then suggested that if Lyttelton expects market and commentators to do otherwise he will have a tiough time as a CEO of a public listed company.

Good stuff .... nothing like a good stoush in public .... and how people react to something they don't think is fair is always a good signal as their overall demeanour and abilities .... sometimes it is better to just grin and bear it.

Lyttleton needs a bit of PR trianing methinks ... and take on board that a good market valuation is very dependent on how you 'massage' the market and commentators.

Why did he not just address those issues mentioned in the paper,and set everyones mind at ease,or come out with a statement to the effect of resolving those issues.
A little bit of incompetence coming in here,unless they have something to hide.

[kizame]

See someone else has dumped 2 mil shares at 58c,why? if you can see good growth around the corner why would you.
Even at 7c discount that is quite a lack of confidence in the company.

[Anna Naum]

See someone else has dumped 2 mil shares at 58c,why? if you can see good growth around the corner why would you.
Even at 7c discount that is quite a lack of confidence in the company.

Seems to only be one buyer and that is Hulich, at this rate (if it is him) he will own the company soon.

[morton_mains]

Can;t figure it . EJB selling - their entry price was so low that it doesn;t really matter where they exit.

Anna as you say Huljich only big buyers but that will change given time...who knows how long that will take. But take heart this beauty is rare in its cash generating capacity.

[manxman]

14/12
NEW announces that the issue price for shares issued under the DRP will be 0.652 cents per share

15/12
NEW issues correction. The issue price will be 0.6096 cents per share.

Continuous disclosure requires that they issue a further correction.

[morton_mains]

About time we had some volume back in this. A single large buyer taking several bites this afternoon spaced minutes apart.
Things looking up that the drop in SP has based. Bollinger now very tight. One to watch into early part of New Year

Price Volume Time Cond
65 62,600 16:11
65 37,000 16:11
65 63,000 16:10
65 37,000 16:10
65 37,000 16:09
65 13,000 15:40
65 47,000 15:39
65 3,000 15:36
65 45,000 15:31
65 12,000 15:31
64 5,000 10:47
64 5,000 10:34

[Anna Naum]

About time we had some volume back in this. A single large buyer taking several bites this afternoon spaced minutes apart.
Things looking up that the drop in SP has based. Bollinger now very tight. One to watch into early part of New Year

Price Volume Time Cond
65 62,600 16:11
65 37,000 16:11
65 63,000 16:10
65 37,000 16:10
65 37,000 16:09
65 13,000 15:40
65 47,000 15:39
65 3,000 15:36
65 45,000 15:31
65 12,000 15:31
64 5,000 10:47
64 5,000 10:34

I can think of at least one fund manager and one big investor who has shares in this one promised to the bank who will be VERY keen to see this one close higher for the year end revaluation.

I am sure it is just new funds that they want to invest but the timing is at best, convenient.

[Footsie]

care to name those people?

[Anna Naum]

care to name those people?

Sure as long as you pay the legal bills. People with lots at stake will spend a lot to shut up others. Anyway I am sure you are smart enough to work it out for yourself. Right?

[Silverlight]

Well below is the list of people with 500k shares or more at 11 December is that helps.


EXOTIC CORP LIMITED 58,779,542
GRAEME LINDSAY CLEGG 54,214,286
NEW IMAGE TRUSTEE LIMITED 14,955,642
EJB LIMITED 11,801,198
SANNY DARMAWAN SUTJIO PRAWIRO * 11,722,850
ACCIDENT COMPENSATION CORPORATION 9,621,320
TEA CUSTODIANS LTD 8,562,080
PENG HYANG NG * 7,800,000
CHEW CHYE TAY * 6,193,910
WEN-CHON SUN * 5,250,000
CHUA NAM-HOAT * 4,025,000
LORRAINE ISABEL COLE 3,444,105
WALTER JOHN RIGG & JUNE FRANCES RIGG & BERNARD GEORGE ALLEN 2,039,643
CHUA JIN-FONG * 2,000,000
DAVID MITCHELL ODLIN 1,480,000
TSUN YU HUANG * 1,452,000
KUN PING TANG * 833,333
LESLIE ALLAN ADRIAN & DIANE BEVERLEY ADRIAN 700,286
CUSTODIAN NOMINEE COMPANY LTD 698,613
MURRAY WILLIAM CRAWFORD 668,775
XUQI WU & YAOHONG SHEN 554,000
FORSYTH BARR CUSTODIANS LIMITED <1 M A/C> 550,500
CHIN WEI LEE * 540,570
KEITH JOHN WRIGHT * 500,000

[Footsie]

my guess would be Graeme Clegg and Huljich

but I didnt think that Huljich had leverage in their kiwisaver fund?

[morton_mains]

silverlight - where do you get the details from?

NZ Custodian no longer there that i thought was Huljich? So maybe i was jumping to conclusions based on my seeing them at AGM - perhasp doing DD at that time.

Tea Custodians probably Trustees Executors so another insto, and the ACC (the probable NZC holder) holding now 9mill - still good to have them on board too. So pretty significant ticks by investmnet community.

Anna - do u hold or on watch?

[kizame]

A little too much speculation as to who holds what here.
If it is not written in plain english as the direct holder then you are just guessing.
Fact of the matter is, if the company stacks up looking at the figures and accounts,why do you need to worry about who else is on board?
It looks a good co. to me,as far as cash flow and profit are concerned, but unlike normal high growth stocks,this one has the point of difference,being a direct seller of overpriced products,that don't have a lot of research backing up their claims, and some of the so-called research leading straight back to their co.which means it isn't independant.
I do not like the way these co's do business with their distributors,a lot of hype,and flashing lights,that does not mean the products don't work.
The fact they lost an important director over what? Nobody knows and nobody has explained anything,and investors were not really put at ease over the article in the SST,they couldn't even take the points and make some sort of explanation point by point,that is what I was looking for as a shareholder at the time.
Oh well I sold out at a nice profit,not the maximum by any means,but I will not risk capital on a company that doesn't think it's shareholders are really important.

[Zito]

A little too much speculation as to who holds what here.....Fact of the matter is, if the company stacks up looking at the figures and accounts,why do you need to worry about who else is on board?


I can answer that with one word:
Enron.

[Silverlight]

silverlight - where do you get the details from?

NZ Custodian no longer there that i thought was Huljich? So maybe i was jumping to conclusions based on my seeing them at AGM - perhasp doing DD at that time.

Tea Custodians probably Trustees Executors so another insto, and the ACC (the probable NZC holder) holding now 9mill - still good to have them on board too. So pretty significant ticks by investmnet community.

Anna - do u hold or on watch?
http://companyresearch.nzx.com which used to be owned by Investment Research Group.

You can pull info on top 100 holders in any security, updates bi-monthly.

It is payed service, but well worth the money for quick access to all financial data and company information on any NZX security.

[Glendoonie]

Fact of the matter is, if the company stacks up looking at the figures and accounts,why do you need to worry about who else is on board?
It looks a good co. to me,as far as cash flow and profit are concerned, overpriced products,that don't have a lot of research backing up their claims, and some of the so-called research leading straight back to their co.which means it isn't independant.
I do not like the way these co's do business with their distributors,a lot of hype,and flashing lights,that does not mean the products don't work.

Not wishing to be nit-picky, but there is no peer-reviewed scientific evidence that their products work. None at all. But who cares? They cater to an emerging market in which people have more money than sense. And what does it matter that their investors are unaware of the lack of validity of their claims?

Heck, I bought some NEW, a few thousand actually. I'm just waiting for the sheep to come to the party. And they will.

[tango]

The agreement with somnaceutics sounds interesting. I don't know enough about NEW to invest but I'll be following it's progress

[Silverlight]

3 February 2010 - FIRST HALF 2010 HIGHLIGHTS

Half year revenues for the six months ending 31 December 2009 were steady at $40.1
million (HY09 $40.9 million), EBITDA was $5.8 million (HY09 $8.2 million)

The strengthening of the New Zealand dollar against key country market currencies, coupled with costs associated the development of new markets, saw a reduction in the unaudited net profit after tax (NPAT) to $3.6 million (HY09 $5.6 million)

New Image Group is in a strong cash position to continue growth in existing and new
markets and has shareholder funds of $23.0 million at the end of the half.

A fully imputed interim dividend declared of 1.0 cps, an increase of 100% over last year’s interim dividend of 0.5 cps, to be paid on Friday 23 April 2010.

[Anna Naum]

Well it looks like the market has spoken with its feet on this one. The result the other day did not improve things for the NEW shareholders either. 43c last suggests there was a reason for all those directors and substantial shareholders selling down at the end of last year.

[Footsie]

jenny ruth was right

and the "smart money" exit last year was also the key

[Anna Naum]

Looks like the fall in NEW is hurting these guys as well.

www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10624949

[Anna Naum]

Down again, trading at 40c. Wonder when the please explain will come from the NZX?

[winner69]

Last time they had to explain when the shareprice fell from 70 to 52 in October and they couldn't work it out except that maybe a big shareholder selling out and recent press had unsettled shareholders or something like that

Did note that they were so excited with the 1st quarters sales being so brillant they put out an announcement in big capital letters the great story - 1st quarter revenues UP 22%

But hang on the first half revenues were down slightly on prior year which means you don't say anything but if they were inclined to make an announcement it would have had to be like

NEW 2nd QUARTER REVENUES DECLINE 25%

This did lead to a 40% decline in 1st half profitability (and 65% less than H209 profitability as well)

So maybe a market cap of $100m and NPAT forecast of $7-$8m (mine) is still too high

maybe Jenny will find some more red flags but the market is talking with its feet at the moment .... sounds like all the hype was bull **** all along

[Phaedrus]

The "smart money" exit last year was a keyIt sure was - but only one of many. Here is a chart showing 10 separate indicators. They all signaled a very timely exit from this stock.

TA can be surprisingly forgiving. Over the next 3 months, every single one of these indicators triggered a second exit signal, giving a final warning.

Anyone still holding in the face of that little lot should not be surprised at their subsequent losses.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/NEW211.gif

[winner69]

Amazing eh Phaedrus - one doesn't really need to do fundamental analysis eh

If the market believes the hype stay in and reap the profits

And when hype turns to bull**** (OK maybe not completely bull**** but the point that reality kicks in) sell out

Simple as eh

I predict NEW will never be 83 cents again ... at least not in the next few years

It was all an illussion ... and didn't some of the bigger holders do OK out of this

[stone small green]

reminds me of "catching a falling knife."

ssg

[Phaedrus]

....at the point that reality kicks in, sell out I see it more as the point where doubts start to creep in. Much the same though eh?
All I advocate is selling on technical weakness. You don't need to understand the underlying cause(s) of the weakness, and in most cases they are unknowable - at least to mug-punters like us.

[Bobcat.]

I've just caught one of those knives -- 40c looks to be a support level this could bounce off - it's done so twice before - see Phaedrus's chart. Also, the stock is cum divi (payable April). This company does not to be so sick as to justify a complete bailout, and I like its products. So count me in.

[Phaedrus]

40c looks to be a support level this could bounce off - it's done so twice before.Well, Bobcat, NEW had support at
70
65 (twice)
59
58 (3 times)
57
51
48
47 (twice)
41 (twice)
.....and it went through all of these, breaking each in turn with barely a flicker.

A question :- What makes you think that 40 will be the one that holds?

Let's just hope you get lucky eh?

http://i602.photobucket.com/albums/tt102/PhaedrusPB/NEW211sup.gif

[stone small green]

Well, Bobcat, NEW had support at
70
65 (twice)
59
58 (3 times)
57
51
48
47 (twice)
41 (twice)
.....and it went through all of these, breaking each in turn with barely a flicker.

A question :- What makes you think that 40 will be the one that holds?

Let's just hope you get lucky eh?

http://i602.photobucket.com/albums/tt102/PhaedrusPB/NEW211sup.gif


fibonacci support, that's the only time comes to my mind.
I'm not touching this, as the deep are looking negative.
GL though Bobcat

:D
ssg

[winner69]

The 30 mark looks really solid as well

NEW market cap is still about $100m which prob is a tad high on current fundamentals ,,, but heck this a growth story so deserves to be overvalued

I'll leave the talking to the charts

Surprised Belg hasn't ended up on the share register recently ... this eems a true contararian play

[Bobcat.]

Phaedrus - I have no certainty that the sp will hold above 40c. But the sharp rise in the graph then a sharp fall soon after (over less than one year) is more akin to the charts of oil stocks rather than operators in the health care industry.

Also, I noticed a buyer come in yesterday looking solid to 43 until he was squashed later in the day down to 41. Today the sp has only gone down a cent lower. Yes...O.K., I'm taking a punt! I suspect I'll know better by Monday.

Notice today the announcements from Huljich and ELB Ltd. Looks to me like the sp has been dragged down to do a deal around 40c.

[Footsie]

Bobcat

Fundamentally this looks bad
Technically this looks bad

there is no reason to buy

It only looks cheap because it was 80c last year.


Sell out while you're not in a loss position. trust me , there are a lot better opportunities out there.

[Bobcat.]

Trust me - this worm has turned. I could sell half my holding at a profit right now if I want to, but I don't.
Footsie - what are these "better opportunities" to which you refer ? Here's a challenge: share them with us, and we'll compare ROI rates against my recent purchases in a month's time.

[Footsie]

Bob

the opportunity of a lifetime comes up once a week.

this IMHO is not one of them

Good luck.

[Bobcat.]

An interesting motto you sign off with, Footsie -- do you live by it?

You never answered my question: what are those better opportunities you claim to have discovered?
For my part, here's a few other speculative NZX punts to add to the mix:
ALF, TEL, NZS and NWF.

Discl: recent buyer of all four.

[COLIN]

For my part, here's a few other speculative NZX punts to add to the mix:
ALF, TEL, NZS and NWF.

Discl: recent buyer of all four.

Phew!! Bobcat, there's a mountain of difference between an outright gambler and a serious investor, and I doubt if you will have many fellow-travellers around these parts! Ever tried consulting your horoscope? Or studying the entrails of goats?

But, sooner or later, by the law of averages you will strike a winner.

[Bobcat.]

I'm a contrarian looking for stocks that have been oversold. You've got a problem with that? Let's catch up again after these pups have proven worthwhile investments at these prices.

And btw, it's not gambling - I do operate with risk controls (e.g. I sold out my RAK today after some large offers brought downward pressure on its sp. I'll look for another entry point after it has another 5-10c fall. I got my money back excl brokerage).

As for ALF, it has strong support at 10c (twice tested), NWF has found support after obtaining its resource consent, NZS is falling ahead of its result this week but recent operational update signalled sig. improvement.

And TEL - well, see my other thread.

I've laid out my cards. How about you identify four NZX picks that you consider stronger (in your opinion), if you're brave enough to do so.

[COLIN]

I've laid out my cards. How about you identify four NZX picks that you consider stronger (in your opinion), if you're brave enough to do so.

Let's not get too aggressive, here, shall we! But, for the record, I am NOT a buyer on the NZX, at the moment.

Love,

Colin.

[Bobcat.]

NEW has found support at 43c (8% higher since Monday) with very few offers on the ASK side under 54c.
Even tho' it's just 1cps, CUM DIV does help.

Discl: been holding these for about a week.

[Anna Naum]

NEW has found support at 43c (8% higher since Monday) with very few offers on the ASK side under 54c.
Even tho' it's just 1cps, CUM DIV does help.

Discl: been holding these for about a week.

Closed at 38c, with all this very bad information about major NEW shareholder Huljich Funds Management one has to wonder how long it is before investors start to pull money from Huljich and he is forced to start selling out of NEW....maybe the shareprice is telling us something.

[peat]

major NEW shareholder Huljich Funds Management

13% of the fund!
thats unbelievable and completely irresponsible.
Dr Who will have a chuckle.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10628900&pnum=0

[winner69]

They have about 23.5 mill shares at an average price of 56.7 cents .... at least according the SSH notices but reports were in the paper that the man said they were cheaper than this

The last lot they got were from long time shareholder Sorenson at 48 cents .... taken in instalmets over the next 10 months at 48 cents .... the previous ones cost 65 cents odd

Wonder the Wealth Fund is going at the moment ... no doubt reporting huge gains.

What a mess ...and even though he something to gain from Gareth Morgan says he is not a fit person to run a Kiwisaver fund

[morton_mains]

13% of the fund!
thats unbelievable and completely irresponsible.
Dr Who will have a chuckle.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10628900&pnum=0

There is a lot of kick'em while he's down going on...

Peat - while 13% is high if you want to get into a fund that replicates the index then as most funds holdings are 2, 3, 5%.

BUT

13% is high conviction but certainly not irresponsible....check out BHP holdins as % of two of the larger ASX listed funds and you see its not uncommon.......ASX:AFI a $4.8B markt cap, well hello 12.6% then there's ASX;DJW a $900+m fund where BHP is.......13%

[morton_mains]

I am as sore as some about teh decline of 50% in my SP, annoyed about director goings on, but the media have beaten up on the company with some misplaced emphasis on a lower profit result that has then played in to this distraction about Huljich and Morgan.


The company has NO debt and $23m in the bank
The company reported steady sales of $40m for HY
The company NPAT was 3.7m AFTER full write off of failed new product launch $1.7m i.e. "normalised" would still be $5m+
The company has untapped markets with high growth potential - milk powder in China, INdonesia for its direct sales channel
The comapny wil lIPO next year into Malaysia and potentially will free up further shareholder wealth
Huljich has bought into a highly profitable business generating CASH.

[winner69]

The company reported steady sales of $40m for HY


1st half sales flat yes ... but quarter 1 sales up 20% and quarter 2 sales down 25% .... wonder what quarter 3 sales were like?

[winner69]

There is a lot of kick'em while he's down going on...

Peat - while 13% is high if you want to get into a fund that replicates the index then as most funds holdings are 2, 3, 5%.

BUT

13% is high conviction but certainly not irresponsible....check out BHP holdins as % of two of the larger ASX listed funds and you see its not uncommon.......ASX:AFI a $4.8B markt cap, well hello 12.6% then there's ASX;DJW a $900+m fund where BHP is.......13%

but a big difference between NEW and BHP don't you think

What's BHP weighting in the ASX compared to NEWs weighting on the NZX ?

[morton_mains]

but a big difference between NEW and BHP don't you think

What's BHP weighting in the ASX compared to NEWs weighting on the NZX ?

Ha....quite right my dear Watson...13.68% of the ASX200!!
Ha. So all index funds by indexing at the magic no-go number a-la Mr Hawes, are also being irresponsible? They'd be irresponsible not to if they were an index fund and even an active fund would weight some toward high single digit surely?
My point is that its our naive media beating up with its own disinformation. Huljich are not indexers

Telecom makes up a huge portion of NZX - the irresponsible tag could be put on ANY fund manager (active/passive, regardless of % of their fund) based on putting any Kiwisaver money into an investment that over a full 5 year period showing a steady downward decline from $6.60 to $2.20!!

My point is that this slagging about irresponsibility is all relative and can be misleading.

[Lizard]

My point is that this slagging about irresponsibility is all relative and can be misleading.

Why the sole interest in NEW on this forum, MM?

The inference is that you may have an above average interest in NEW's success - something which might make your views misleading also if not declared.

[peat]

but a big difference between NEW and BHP don't you think


lol... i reckon

cant believe anyone would compare a newcomer minnow to a international supergiant with decades of performance behind it -
and, theres a huge difference between being selective with your exposure to the bigcaps and betting the farm on an outsider.

[morton_mains]

Why the sole interest in NEW on this forum, MM?

The inference is that you may have an above average interest in NEW's success - something which might make your views misleading also if not declared.

Sole interest in NEW in this forum...yeah i disobeyed one of my rules in investing on NZX..this is my only NZ stock. I had already declared an interest , actually was 20% of my portfolio, substantially less now.

[morton_mains]

lol... i reckon

cant believe anyone would compare a newcomer minnow to a international supergiant with decades of performance behind it -
and, theres a huge difference between being selective with your exposure to the bigcaps and betting the farm on an outsider.

boy oh boy.. you guys love to mislead, misconstrue and twist things....read again...i wasn't comparing the 2 companies, per se.

I was contending around the point about holding [an alleged] 13% of a total porfolio being "irresponsible" and showing such a number would be quite common, as with 2 listed examples i gave, for funds involving australian shares, which will almost certainly reach a figure of up to or around that number simply because of the weighting of BHP in those indices.

And i didn't make any reference or comparison to NEW's part in any NZX index, that wasn't my point.

[Anna Naum]

boy oh boy.. you guys love to mislead, misconstrue and twist things....read again...i wasn't comparing the 2 companies, per se.

I was contending around the point about holding [an alleged] 13% of a total porfolio being "irresponsible" and showing such a number would be quite common, as with 2 listed examples i gave, for funds involving australian shares, which will almost certainly reach a figure of up to or around that number simply because of the weighting of BHP in those indices.

And i didn't make any reference or comparison to NEW's part in any NZX index, that wasn't my point.

MM could you point me to any global research that would suggest a saving scheme like Kiwisaver should have such a high % of its total assets invested in such an illiquid small cap. Sure Mr Huljich was able to bail out invstors when the fund was $6m but now it is $100m+ what is he going to do when he next gets it wrong, and trust me he will, after all history in his case shows that he will.

[Anna Naum]

Did someone say smoke or just FIRE. So how long before we see an announcement saying Mr Brash has looked at the investments and is happy with all of them....yeah right.

www.goodreturns.co.nz/article/976496340/huljich-falls-on-his-sword-and-resigns.html

[peat]

Bernard Hickeys article quotes Brash as saying ....“I can assure all those who have invested in our KiwiSaver funds – more than 70,000 New Zealanders – that we continue to be absolutely committed to protecting their savings, and growing them in a careful and responsible way,”

I just have to post a picture here

http://www.public.iastate.edu/~teddo/orly.png
http://www.sharetrader.co.nz/images/misc/pencil.png

[minimoke]

– more than 70,000 New Zealanders –
70,000! That many. Are they fuc**g mad! I had no idea that we had that many loonies loose on the streets. And they have money to fritter. The mind boggles.

[winner69]

70,000! That many. Are they fuc**g mad! I had no idea that we had that many loonies loose on the streets. And they have money to fritter. The mind boggles.

thats what being #1 for you ..... the loonies (as you put it) want to join the bandwagon

Now Dons in charge (and chief investment officier) the numbers might increase ...... even loonier

[LeBOJ]

I don't have an opinion on New Image from a personal investment point of view, but Huljich must be mad to invest in it. Fisher invests in illiquid stocks, but this takes the cake, and some. There is no way he should be investing that large a chunk of client's assets in this. If he ever wants to move to cash, he's buggered, not to mention anyone else that is holding it when he starts to dump on market. The only advantage would be that he could manipulate the price of such a small and illiquid company by buying more on market and boosting his performance numbers (again!).

What an amateur! Or maybe not, he's fooled over 70k so far!

[Balance]

Well, we can expect in future when performances are bad with Huljich Fund for Dr Don to mutter "Utterly regrettable".

Frightful as he is unlikely to 'top' up as Huljich does.

Meanwhile, John Banks will take credit if performances are good but has no involvement if performances are bad.

What a mess.

[LeBOJ]

And look at that, the value of Huljich's holding in New Image just dropped by 7.9% on a trade of 630 shares!!! That sums up why he shouldn't be investing in it.

[morton_mains]

This should jump start things again - i couldn't figure why noone has supported price, obviously their investigation held things up.

I predict we will see the good doctor either buying more on market or he'll be invited, as representaive of HWM, to join the board of one its larger investments - either way the only way is up!

[percy]

I will not invest in a company that has an ex MP on the board.Wait for Don to bring Ruth Richardson on board.!!!

[Balance]

This should jump start things again - i couldn't figure why noone has supported price, obviously their investigation held things up.

I predict we will see the good doctor either buying more on market or he'll be invited, as representaive of HWM, to join the board of one its larger investments - either way the only way is up!

He is most likely to decide it's too big an exposure, imprudent and sell down.

[minimoke]

He is most likely to decide it's too big an exposure, imprudent and sell down.
I think that might be the way to go - but how to do this in a prudent manner? Huljich marketed themselves as a "responsible Investor" and signed up to the UN's "Principles for responsible Investment". Well that clearly was a crock of sh*t. They now have a MD and Chief Investment Officer who, I think its fair to say, has limited expereince in this area,

So where to from here. Investors are under no compulsion to remain with Hulkich and can very simply sign their Kiwisaver over to another provider. If I was in Huljich I'd be nervous. They appear to have been involved in door-to-door selling, topping up funds and failing to alert the Board of adverse events. So investors might like to look at other providers.

Say I have $1,000 in Huljich I would be looking at how the NEW exposure (which was originally valued at an average of $0.567 or is that $0.44 a share - they can't seem to get that right) is now worth $0.35 a share. I might decide a 25% loss on that investment is too big a hit and I want to transfer to, say, Aon. Huljich have to find that $1,000 from somewhere. That means it has to come from their liquid investments. There can't be too many of these since 13% of funds went into NEW. At some point these will run out and they are going to have to look at NEW. Huljich will then become a distressed seller and will have to flood the market with NEW shares to raise what they can.

In the interim there is a risk of a run on Huljich whcih will exacerbate the situation. Presumably Huljich will start spinning like mad for new investors and these new funds (and exisiting ongoing deposits) then go into funding those that are pulling out. At which point some Ponzi tests need to be set.

This scenario clealry looks very poor for Huljich investors as they see the value of their investments diminish - perhaps to zero. Its also not good for NEW holders as they value of their shares will get driven down as the tide goes out.

[Balance]

IN the end, doesn't it come down to how good NEW is as a company and its growth strategy?

Could be a great opportunity for others to get in cheap and a slice of the action if Huljich has to sell?

Not a company I know much about or understand or want to.

Cheers!

[minimoke]

IN the end, doesn't it come down to how good NEW is as a company and its growth strategy?

Could be a great opportunity for others to get in cheap and a slice of the action if Huljich has to sell?

Not a company I know much about or understand or want to.

Cheers!

You're right - but the trick will be how to work out where your entry point would be on a down trending stock. The trendline will also get a tad more complicated when the next set of sales results come out. How long will consumers/seller have faith in a nonmedically tested colostrum product and a dodgy fuel additive sold in a multi-level marketing structure.

[Anna Naum]

You're right - but the trick will be how to work out where your entry point would be on a down trending stock. The trendline will also get a tad more complicated when the next set of sales results come out. How long will consumers/seller have faith in a nonmedically tested colostrum product and a dodgy fuel additive sold in a multi-level marketing structure.

I wonder where they get all that colostrum from?

[winner69]

I

Say I have $1,000 in Huljich I would be looking at how the NEW exposure (which was originally valued at an average of $0.567 or is that $0.44 a share - they can't seem to get that right) .....

Interesting that eh .... send papers to the NZX that say 56 cents odd and then tell everybody he got them at 44 cents

Mind he hasn't had to pay for a lot of the recent ones yet

[LeBOJ]

I think that might be the way to go - but how to do this in a prudent manner? Huljich marketed themselves as a "responsible Investor" and signed up to the UN's "Principles for responsible Investment". Well that clearly was a crock of sh*t. They now have a MD and Chief Investment Officer who, I think its fair to say, has limited expereince in this area,

So where to from here. Investors are under no compulsion to remain with Hulkich and can very simply sign their Kiwisaver over to another provider. If I was in Huljich I'd be nervous. They appear to have been involved in door-to-door selling, topping up funds and failing to alert the Board of adverse events. So investors might like to look at other providers.

Say I have $1,000 in Huljich I would be looking at how the NEW exposure (which was originally valued at an average of $0.567 or is that $0.44 a share - they can't seem to get that right) is now worth $0.35 a share. I might decide a 25% loss on that investment is too big a hit and I want to transfer to, say, Aon. Huljich have to find that $1,000 from somewhere. That means it has to come from their liquid investments. There can't be too many of these since 13% of funds went into NEW. At some point these will run out and they are going to have to look at NEW. Huljich will then become a distressed seller and will have to flood the market with NEW shares to raise what they can.

In the interim there is a risk of a run on Huljich whcih will exacerbate the situation. Presumably Huljich will start spinning like mad for new investors and these new funds (and exisiting ongoing deposits) then go into funding those that are pulling out. At which point some Ponzi tests need to be set.

This scenario clealry looks very poor for Huljich investors as they see the value of their investments diminish - perhaps to zero. Its also not good for NEW holders as they value of their shares will get driven down as the tide goes out.

Excellent points minimoke!

I also note that in today's Herald, Brash says "Brash yesterday admitted although he had invested money on behalf of others in the 1970s he was not an experienced fund manager and said the company would be looking to hire someone to bring on to its investment committee." Obviously, that's why they purchased something like NEW. The new person may say to get rid of the NEW.

On your point about the run on funds , and having to sell the liquid assets, I'm not sure this will happen. I wouldn't think they could hold much more of NEW, they must have some internal or trustee rules about it, so I would think it was more likely they freeze the fund (ala ING). Now that would be a great look! lol

[minimoke]

On your point about the run on funds , and having to sell the liquid assets, I'm not sure this will happen. I wouldn't think they could hold much more of NEW, they must have some internal or trustee rules about it, so I would think it was more likely they freeze the fund (ala ING). Now that would be a great look! lol
I don't see a run on funds as being overly realsitic since most of Hujich investors won't be the most financially savvy. And I'll apologise in advance if you are in south auckland and signed up to the door-to door seller!. Where Huljich may benifit is the multi-level marketing expertise of NEW - that would certainly be of value. But it then makes extra complexities since you already have Mike Pero referring mortgage applicants to Huljich and Matt McCarten is sending sending his Union Members their as well. Huljich then send them no doubt to Pero. NEW just have to figure out how they can build their products into the mix. Perhaps we'll see increased sales of the weight loss products.
Disc: no intention of going anywhere near NEW

[Steve]

I will not invest in a company that has an ex MP on the board.Wait for Don to bring Ruth Richardson on board.!!!

Don may prefer to call on Wyatt Creech?! :p

[Vitamin]

The Hulijch overhang aside, here is a profitable, dividend paying company that after stripping out the $20-odd million in cash on the Balance Sheet is trading at an EV/EBITDA multiple of under 3.0x! There would not be another listed company certainly in NZ or Australia trading this cheaply. The only 'trading' downside is liquidity but at the end of the day, value will prevail. Super cheap in my opinion.

[winner69]

NEW up to their tricks again ....wow ... Q3 sales 10.3% UP they say .... on Q2 sales that is ... sounds great eh

A honest view would be NEW Q3 sales DOWN 26% on same period last year

Just like the announcement that Q1 sales were 22% up on last year but no mention that Q2 sales were down 20% NEW seem to take a fair bit of libert with the use of numbers and words

Last 3 quarters sales have been $21.1m, $19.0m amd $21,1m giving $60.1m year to date .... fair guess for full year $80m .... now do you hear NEW saying to the world sales will be down about 20% for the year ... no way

No wonder the share price is so low ..... the hype not turing into reality yet .... and to me being less than honest with the market

[winner69]

Quick sums $80m of sales lead to about a bottom line of $9-10m so trading at 10-11 times earnings

Vitamin - I would take you to task over youe EV:EBITA of <3 mate .... stuff all D and A and I in NEW eh so I would at about 5 to 6 based on that $80m revenue figure

So market price about right?

[winner69]

Maybe NEW could start a trend and start reporting sales on a seasonally adjusted basis .... make then anything you like then

[Anna Naum]

Looks like the only buyer is the main shareholder Mr Clegg from the last couple of disclosure statements.

[Vitamin]

Looks like the only buyer is the main shareholder Mr Clegg from the last couple of disclosure statements.

Whenever directors buy shares it's a good sign.

I read in E&Y's recent Exceptional magazine that Graeme Clegg forecasts NEW to have $1.0b in sales within five years.

And, he's buying shares.

Nice.

[Anna Naum]

Whenever directors buy shares it's a good sign.


Really, I was not aware of this fact?

[Anna Naum]

New Image chief executive resigns

New Image Group Ltd said chief executive Stephen Lyttelton is leaving in October to pursue personal business interests.

Mr Lyttelton has been chief executive since June 2008. His responsibilities will be taken over by founder and executive chairman Graeme Clegg.

[Anna Naum]

Price enquiry

[Anna Naum]

You have to laugh at the announcement, no idea why price falling BUT the only guy who has been buying for the last couple of months (CEO/Chairman MR Clegg) currently can not buy any so without him the shareprice is falling. I guess one could say that an insider was buying, but then when you own 60% of the company you have to believe.

The shareholding interests associated with Founding Chairman, Graeme Clegg, purchased 5,001,831 New Image Group Limited shares during the period from 31 March to 31 May 2010. The Company entered its share trading black-out period on 1 June 2010, so no associated parties are able to trade until the release of the Company’s preliminary result for FY10 in late August.

[winner69]

Interesting point that Anna .... nobody interested but Clegg eh

I'm just awaiting for the next outrageous announcement like New report 35% increase in quarterly sales or something

Even down a bit more today

[Lizard]

Wouldn't be surprised to see HBY with that problem too - falling share price due to no director buying during black-out. Not much depth once Belg stops buying...

[Anna Naum]

NEW closed at 30c....it will be cheap soon

[LeBOJ]

Doesn't need to be any particular reason for a stock like this to fall. Because of the lack of liquidity, all you need is one or two holders of average parcels to decide to sell for whatever reason, and the price plunges! Interesting to watch, and probably ok for traders.

[Anna Naum]

Doesn't need to be any particular reason for a stock like this to fall. Because of the lack of liquidity, all you need is one or two holders of average parcels to decide to sell for whatever reason, and the price plunges! Interesting to watch, and probably ok for traders.

To short or go long?

[LeBOJ]

Good question Anna, but I'm not a trader, so I'll leave that answer to them!

My area is more Oz miners.

[Anna Naum]

Released after market today......

NEW IMAGE GROUP LIMITED - FULL YEAR REVENUE GUIDANCE

The global financial crisis impacted on New Image Group Limited during the financial year to the end of June 2010, most significantly through the continual strengthening of the New Zealand dollar in the company’s main direct selling markets.

However, with second half revenues up 4% on the first half, with a forecast for a better profit. Growing consumer confidence and recently revised GDP forecasts of between 4.8-6% for the company’s main Asian markets, the directors anticipate a solid lift in revenues for FY2011.

New Image Group achieved unaudited total group revenues of NZ$81.7 million for the year ended 30 June 2010. That’s 17% below the revenue for the previous year (NZ$98.1 million), but only 6% down if revenue is measured in the local currencies of the company’s Asian markets. The group’s consolidated revenue was impacted through exchange rates by an estimated NZ$10.5 million.

Following extraordinary growth there in 2009, Malaysian revenue was down 37% to $35.7 million, or 28% in local currency for FY2010. Discounting of New Image’s lead product was uncovered during the year and is being addressed. New Image’s Slim Diet weight management product and programme is also quickly gaining traction in Malaysia.

In contrast, Taiwan saw a 16% lift in revenues to $32.5 million – or a lift of 33% in local currency terms. Taiwan and Malaysia make up approximately 80% of the group’s sales.

New Image continued to invest in the development of new direct selling markets during the final quarter. Indonesia has already seen a lift in sales. Offices have been established in Japan, the world’s second largest direct sales market, and in Thailand where product registration is nearly completed.

Regional commission agents were appointed in the final quarter of FY2010 as part of a restructuring of New Image’s marketing division. As a result brand sales doubled from May to June and forward ordering has substantially increased. At the same time a cost efficiency program has reduced overheads.

In New Zealand a $1.3 million investment has been put toward the upgrading of the company’s dry powder blending plant in Avondale, Auckland. An additional high tech, automated can filling line will cater for the expanded volumes of infant formula as well as other contract work after it is commissioned late July.

Increased revenues are also expected from the company’s colostrum fortified infant formula range and the ready-to-drink long life colostrum beverage, COL+.

As previously reported the company changed its COL+ distribution model and it is now finding some success through established distribution channels.

The audited full year result and accompanying commentary is expected to be provided to the market on Friday 28 August 2010.

END

[winner69]

Thought things were looking up ... but shareprice back to 30 again

[Anna Naum]

New problem for them.

www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10678084

Aussie ombudsman takes NZ company to High Court
11:30 AM Monday Oct 4, 2010

An Australian ombudsman is taking a New Zealand company to court to recover hundreds of thousands of dollars it says is owed to 14 Aussie workers.

The Fair Work Ombudsman has started legal action in the New Zealand High Court against New Image International, the parent company of Omegatrend International.

It's the first time the Australian regulator has taken action outside Australia.

Omegatrend, a direct-marketing company selling health food products, went into liquidation in mid-2007 owing 14 of its Perth-based marketing and administration staff more than $600,000 in unpaid entitlements, Fair Work Ombudsman executive director Michael Campbell said.

The decision to pursue the company showed the lengths the agency would go to for "wage justice", he said.

"When it is appropriate to do so, the Fair Work Ombudsman will not shy away from pursuing these matters in overseas jurisdictions if the legal regime exists to do so and there is some reasonable hope of recovering unpaid entitlements," Campbell said.


He said New Image International was associated with the New Image Group, which is listed on the New Zealand Stock Exchange.

New Image International closed its Perth Omegatrend office in January, 2007 making its staff redundant. It had agreed to pay Omegatrend employees their entitlements in fortnightly instalments, but wrote to them in April, 2007, to advise that no further payments would be made, he said.

Campbell said the workers pursued their outstanding entitlements by going to the Western Australia Supreme Court, which appointed Ferrier Hodgson as liquidator to investigate Omegatrend's affairs.

The Fair Work Ombudsman decided to support the employees and the liquidator to look into the circumstances of New Image International's purchase of Omegatrend's assets.

Campbell said it hoped to secure court orders that would allow the liquidator of Omegatrend to examine documents and to interview New Image International founder and executive chairman Graeme Clegg and other current and former directors and employees.

"In particular, the liquidator is investigating the circumstances relevant to the purchase by New Image International of Omegatrend's assets for an amount that appears to have been below the market value of the assets," he said.

"It is believed that the sale of the assets left Omegatrend with no means to meet its commitments or earn further income," he added.

- NZPA

[Vitamin]

At 24 c.p.s and the thick end of $20m still in the bank, surely these shares are starting to look cheap?!

[buns]

Anyone still following this? Any thoughts on where NEW is heading with this major investement behind it, and revenues now propping up to FY10 levels.

They seem to have a lot on, and pretty big ideas about expanding there product range. These new plants should allow them to do this at low cost, however is anyone going to buy this stuff?

[buns]

Also with Fisher taking over Huljich, is there a risk of their 24m shares being sold down some more?

[winner69]

Also with Fisher taking over Huljich, is there a risk of their 24m shares being sold down some more?

Fisher didn't take the New Image share apparently .... left them behind in the waste bin

[buns]

How do you know this? I haven't seen any large NEW sell downs since then, so where/who owns the 24m shares?

[buns]

You are right, they don't want a thing to do with them.

Fisher is not taking on any of the Huljich holdings, and has not kept on any of the Huljich portfolio analysts, instead kept a few of there customer relations employees.

Instead Peter Huljich has snapped up all of the Huljich NEW holdings.

[kizame]

You are right, they don't want a thing to do with them.

Fisher is not taking on any of the Huljich holdings, and has not kept on any of the Huljich portfolio analysts, instead kept a few of there customer relations employees.

Instead Peter Huljich has snapped up all of the Huljich NEW holdings.

No,I don't think he has snapped anything up!
He has been forced to take them more like.

[buns]

I haven't read up on the governance issues within NEW, I was more interested in them from a value point of view. To me the board looks to small, and lacks financial/investment nous and the CFO's claim to fame is 6 years of being a CA (promoted from within, prior financial controller). The Directors have been buying on market of late, but is this 'smart money'? Maybe not from what I've read on this thread.

From a value perspective they really look good! Cheap on all the key metrics, Strong Divy which could rise (even if earnings stay flat), huge cash yet huge capex behind it with all of those plant upgrades which should drive additional valu. The product set hitting the market is now more diverse, as are there revenues. They are 'probably' in the best space they ever have been, yet once were valued around 80c? Now you can get them in the low 20's.

However, I don't like retailers to start with, and I especially don't like these iffy 'natural health' products. I for one don't think most of them work, and don't see any reason why some hippy can't slap something in a bottle and sell it beside NEW's products.

If you do like these kinds of products, I think NEW is a worth more of a look

[Anna Naum]

Just remember that Mr Huljich used to post on this forum under another name spruiking this stock and NZ Finance (which he also owns) so be aware that he may start doing it again now that he apparently owns a big chunk of the company.

[winner69]

Probably out of context but "It couldn't be a part of our portfolio." says Carmel Fisher talking about NEW

Good one Carmel

[morton_mains]

I note that the 23.546m shares declared by the Huljich Kiwisaver Scheme (Feb'10) cost them an average of 56.7c $13.341M.
Todays notice declares Huljich Wealth Management (New Zealand) Limited bought the shares (now 23.612m) for $5.726m avg 24c
I still think the value is north of here so can only say Wow! the H. family have saved themselves $7m?

Does that mean the Kiwi saver holders value has declined by that much before being sold to Fisher? wonder if media will pick it up?

[winner69]

Love it ...... New Image experience pain to acquire gain

And they say they are well positioned

Not my cup of tea but heck this must be one for your guys to make a quick buck

[winner69]

not a chance. From what I can see this company is stagnating under the Church of Graeme Clegg, and their inability to repatriate funds easily, or hedge currency (from what I have historically understood about them). A friend gave me some of their colustrum milk to try once. It was revolting, though I accept it is for health rather than taste enjoyment.

It's a shame because if they dropped the multi-level marketing nonsense and focused on a message of "milk products for Asia" then the market would probably respect them more.

Sparks .... I said not my cup of tea but said this seemed to be one of beaten down ones worth a punt

We should have had the faith eh .... Back into the 20's now they going to make zillions

[noodles]

The Latest AGM provided forecasts of NPBT of $12-14 million.

Assuming a 30% tax rate and taking a midpoint, we could expect NPAT of $9.1 million or .039c per share.

That puts New Image on a foward pe of 6.7 at the current share price of 26c

They have had a rough time, but seem to have turned the corner. Comvita went through a similar poor patch and is now sitting on a pe of around 12.

If New Image can match CVT, then the share price could easily move to the mid 40c range.

Is there a better value stock on the NZX?

DISC: HOLD

[Balance]

The Latest AGM provided forecasts of NPBT of $12-14 million.

Assuming a 30% tax rate and taking a midpoint, we could expect NPAT of $9.1 million or .039c per share.

That puts New Image on a foward pe of 6.7 at the current share price of 26c

They have had a rough time, but seem to have turned the corner. Comvita went through a similar poor patch and is now sitting on a pe of around 12.

If New Image can match CVT, then the share price could easily move to the mid 40c range.

Is there a better value stock on the NZX?

DISC: HOLD

If it hits 40 cents, the market will then take note?

That's kinda how it works in the NZ market - eg. ATM, PEB, FPA, BFW etc etc

[noodles]

Could it be a nice acquisition for Synlait or ATM?

Well you would only need to talk to one person get control of the company. The Chairman, Greame Clegg owns over 50%. He recently brought at 26c per share, so I guess he sees more upside.

Comvita or Fonterra may see synergies also.