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Phaedrus
24-12-2004, 06:56 AM
http://home.ripway.com/2004-7/148483/SCY001.gif

cragga
24-12-2004, 09:30 AM
Phaedrus,

I like your charts, which charting package do you use? Do you mostly trade off your technical analysis?

Smeagol
24-12-2004, 10:47 AM
Thanks Phaedrus, to a TA newbie like myself your charts speak volumes!

duncan macgregor
24-12-2004, 11:01 AM
PHEADRUS I will give you a laugh from a scotty charting system. I go to stocknessmonster.com which is free. I log in the company plus the moving average required then print it. The chart is to small so i go down the road to my mates place and get it enlarged. I copy out at home and stick whatever treadlines in place. It might not be the best way but its free.
THANKS FOR YOUR INPUT THIS YEAR CHEERS MACDUNK.

whiteheron
24-12-2004, 01:27 PM
MACDUNK

Have a look at the charts ( NZX and ASX )available free of charge via www.fatprophets.com.au

They may or may not be suited to your requirements
I use them a lot and find them to be very useful , with a heap of different options available

They show up clearly on the computer screen but they dont seem to print out very clearly --- maybe they are designed that way or maybe it is my printer , I dont know

Cheers

Phaedrus
02-02-2005, 10:25 AM
The expected support at 80 cents has appeared (albeit at 79 cents) giving a new reaction low which nicely confirms the previously tentative trendline. Note that while support at 80cents was Expected, it was NOT predicted. - a subtle distinction, but an important one.

http://img.photobucket.com/albums/v418/789456/SCY001.gif

Cragga, I use MetaStock software and trade solely from TA. I use FA to select the stocks that I am "allowed" to trade. I do not hold SCY - the chart was posted because it was such a good example of how support and resistance work.

k1w1
02-02-2005, 11:53 AM
Phaedrus can you define the difference between expected and predicted?

Phaedrus
03-02-2005, 09:45 AM
K1w1,
A prediction is a forecast of an event that you are confident will happen.
An expectation carries less certainty. If you have a reasonably good transport service, you expect trains to be mostly on time. It would be a little rash though to predict that the 10.00 train would arive at 10.00.
There is no point in getting hung up on semantics here. Whatever the odds were of SCY finding support at this level, the important thing is whether it did or not, regardless of the words you use. Had SCY continued on down with its 2 month downtrend, I would have written a very different post. Something like "SCY has not found support at around 80 cents as expected. (Resistance, when broken, often becomes Support) This is significant, especially since it also takes price action below the current trendline that had held good for 7 months. If I held this stock I would Sell. Now."
There is also the important matter of ego involvement. If anyone makes a prediction, they then have a vested interest in that event occuring. Their reputation is at stake. This inevitably leads to a loss of objectivity ("I'll be proved right, just you wait and see")
With an expectation, the focus is on the market action - something either will or will not happen. You, as an impartial observer, simply react to the market. You are not right or wrong, you just take action A or action B depending on whether something has or has not happened. No emotional involvement at all. Anyone who has trouble attaining this degree of detachment could try an interesting experiment. Take a trade and tell NOBODY, not even your spouse. You will most probably find that you feel much more free to buy/hold/sell than you would had you posted your Buy decision on ShareTrader, for example. See, you can be "wrong" and no-one would even know. You have no vested interest in proving yourself "right". There are all too many examples here of people who have "nailed their colours to the mast" and then felt compelled to strenuously uphold their chosen stock regardless of how badly it has performed. I believe that if they had not made their position public, they would have quietly sold just as soon as it became evident that they had made a mistake. Never underestimate your ability to deceive yourself. It is only too easy to project your hopes and preconceptions onto your "chosen" stocks, thus losing your objectivity.
It pays to make your trading as ego-free as you possibly can.

Phaedrus
09-02-2005, 09:39 PM
SCY has failed to sustain the support postulated at around 80 cents. (Resistance, when broken, often becomes Support) This is significant, especially since it also takes price action below the current trendline - one that had held good for 7 months. In addition, price action has breached a 7x ATR trailing stop and a 35 day Variable Moving Average. The plot at the top of the chart is a 30 day Directional Movement Indicator. This fairly conservative trend indicator gave a Sell signal early last month. None of these indicators have triggered any previous Sell signals.

http://img.villagephotos.com/p/2004-10/848030/SCY29002.gif

10-02-2005, 09:59 AM
THE KING says even though the chart shows the trend of prices the value of turnover is next to nothing,, your sell signals is at the Ex-Div time of the company as most Co`s is there weak time,, like a lot of NZ stock its just a plain week MARKET.. this is a GOOD stock.. [^]

BRICKS
10-01-2007, 11:15 AM
BRICKS has just concluded a trip to Christchurch and an interview with SCY. MD Rick Hellings who pass on the following information about Smiths City position and the way ahead.

The current position of SCY is its expanding as much as possible against the changing trend of retail and the Norm Harvey type of expansion, by enlarging stores to a min of 20,000 square meters floor plates. At Greymouth, South Dunedin and Palmerston North.

Finance operations are a Diamond as it lets them do what the Bank love, to put it in a nut shell going gang busters.

The property division is small but moving ahead more in 2007.

North Island expansion will continue at a slower rate but more sound footing as most of all the nta of SCY is over 77 cents but all is paid for and little outside debt.

Conclusion. Rick is or seems comfortable with the company`s position with an eye on retail constant change and Australian attacks over the Tasman which says will hold Smith`s position and stated Div`s are approx 50% of profits which will be continued to be PAYED..

Sideshow Bob
10-01-2007, 05:19 PM
Bricks,

You've either blown cover or taken English lessons over the Christmas break???

Complete sensible sentences!!

OMG [:p]

BRICKS
11-01-2007, 07:48 AM
quote:Originally posted by Sideshow Bob

Bricks,

You've either blown cover or taken English lessons over the Christmas break???

Complete sensible sentences!!

OMG [:p]


The year is 2007 and BOB your still the same a NO COMMENT person
about the SUBJECT so just do your best in the MARKET,, Regards.. [8D]

StainlessSteelRat
11-01-2007, 08:45 AM
quote:Originally posted by whiteheron
They show up clearly on the computer screen but they dont seem to print out very clearly --- maybe they are designed that way or maybe it is my printer , I dont know

Cheers

It's because of the difference in resolution between screen and printer. The average dpi of a computer is screen is 96, whereas most printers are now 600dpi (some are even 1200 or higher). Unless there has been some interpretation taking place between the two (ie: some web pages have a "printer friendly" link) you are most likely going to see it about 7x smaller than the equivalent screen represenation.

BRICKS
11-01-2007, 08:52 AM
quote:Originally posted by StainlessSteelRat


quote:Originally posted by whiteheron
They show up clearly on the computer screen but they dont seem to print out very clearly --- maybe they are designed that way or maybe it is my printer , I dont know

Cheers

It's because of the difference in resolution between screen and printer. The average dpi of a computer is screen is 96, whereas most printers are now 600dpi (some are even 1200 or higher). Unless there has been some interpretation taking place between the two (ie: some web pages have a "printer friendly" link) you are most likely going to see it about 7x smaller than the equivalent screen represenation.


Think the rat has slipped between the CRACK.. [8D]

Steve
11-01-2007, 07:50 PM
quote:Originally posted by BRICKS

The current position of SCY is its expanding as much as possible against the changing trend of retail and the Norm Harvey type of expansion, by enlarging stores to a min of 20,000 square meters floor plates. At Greymouth, South Dunedin and Palmerston North.


The South Dunedin store is the old Mitre 10 building and it definately much better than the 2 stores in town (1 retail store that floods when it rains and 1 outlet store that they appear to flog off repossessed items and shop-soiled items)

While I am a SCY holder, I generally don't shop with them

BRICKS
15-01-2007, 08:31 AM
WELL been a bit disappointed with the little response to RICKS statements on the current SCY position,, did refer to him that the investing people put SCY on the same standing as AIR lack of support took a take over in AU to get AIR large price may be the same for SCY there are AU firms out that want a chain of store in the South Island to name one is J&B electrics,, good buying back to AU WEDNESDAY.. [8D]

BRICKS
06-02-2007, 02:07 PM
SCY has just gone x div and HOLDING.. [8D]

BRICKS
08-02-2007, 11:21 AM
INTRIM report out the OUTLOOK comments are good stated the following:

Moved to larger premises at Greymouth, South Dunedin and Timaru with new bolt on company`s of Selectrix and Star Appliances in Rotorua, New stores Smith City named at Palmerston North a FEB opening at Gisborne also stated looking to t/o finance and properties as they ARISE.. [8D]

Steve
08-02-2007, 11:46 AM
The comments do appear favourable. Recently in Dunedin, Powerstore merged with Selectrix and moved into the Selectrix store.

BRICKS
11-08-2007, 10:19 AM
BRICKS thought you should know some small changes in holdings @ SCY,

Increase in numbers holdings of up 72 to 2,450 appears some small KIWI like the stock.

People with the surname Smith 6 in number have appeared in the top twenty list for the first time are they the original family of the store dose any one know??.

With a share price @ 64 cents and NTA @ 86 cents not many on the NZX are in the same position.

But still the engine behind this company is the Smithcorp Finance Limited this is where the real gains are made that Buys the new stores.

Have a happy day.. BRICKS..

LTI
22-11-2007, 01:11 PM
Hello all

I’ve recently started to have a look at Smiths and have a few questions from the Annual Reports that BRICKS or any of you may be able to help me with.

1. ‘07 operating cash flow was negative (due to increased working capital). Have any comments been given as to why it increased?

2. Simthcorp Finance interest received less interest paid has gone very negative over the last couple of years?

---see attachment

3. Smithcorp’s interest differential is usually slightly negative. If Smithcorp is run at arms length, shouldn’t it be positive?

4. The unearned income provision of the finance book has dramatically increased from an average 8% of finance receivables to 24% over the last 3 years? I assume the unearned income is future interest, is this correct? If so I can’t reconcile the increase even with the general increase in interest rates?

5. In the ’07 report, Smiths borrowed $6mil from F&P Finance above the normal lending facility?

Any help on this greatly appreciated.

BRICKS
22-11-2007, 04:22 PM
DEAR LTI with questions like that you should just ring up Rick Hellings MD. and ask him direct and if you don't like the answer tell him, if you do like the answer then BUY some they are at a very good price at the MOMENT..

Phaedrus
22-11-2007, 04:27 PM
You're not the only one with "doubts", LTI! This stock has been getting sold down all year.

Way back in January the OBV stopped rising, the trendline was broken and SCY went into an on-going downtrend. (Red arrows are sell signals) The chart shows some interesting features. Once the support at 64 cents was broken, it became a resistance level (this is fairly common). The circled sharp drops in the 'On Balance Volume' mark where bigger holders (the smart money?) were selling.

SCY appears to have found good support at 56 cents - but then it had support at 64 cents too - for a while.

http://h1.ripway.com/Phaedrus/SCY1122.gif

BRICKS
22-11-2007, 04:36 PM
WHAT we need is a supporters CLUB..

LTI
26-11-2007, 08:38 AM
Many thanks for your replies. I'm not for or against the company yet, just started looking at it. I don't like to call MDs until I have as good an understanding of the company as possible so not to waste their time. Hence this post.

BRICKS
27-11-2007, 07:35 AM
WHAT we need is a supporters CLUB..

WHAT should have been said is KIWI`s with money to invest not just talk about INVESTING.. and NO money..

BRICKS
21-12-2007, 05:02 PM
WELL its steady neddy as we go profit up 1.3% to $1.759 million and a 1.5 cent div Feb 15, thanks.
The big move is the purchase of 100% of L V Martin now fully owned and able to control better along with joining Narta. NZ an org that buys appliances in bulk to sale while the NZ market is flooded with these type of items but will give SCY the edge.

ITS a slow road but a sure one, that is the real name of this GAME..

BRICKS
18-03-2008, 02:29 PM
WELL bugger me another bargain has turned up below 50 cents but worth more is this another case of stagnation or just a lack of BUYERS NO matter have increased the holding 25%.. In Oz these people are call distressed SELLERS..

Phaedrus
18-03-2008, 03:55 PM
Bricks, SCY has been in an accelerating downtrend for over a year, so far.
How can it be a good investment (let alone a bargain) if the shareprice keeps falling?
I can but admire your fortitude.

http://h1.ripway.com/Phaedrus/SCY318.gif

Steve
22-03-2008, 08:17 PM
The South Dunedin store is the old Mitre 10 building and it definately much better than the 2 stores in town (1 retail store that floods when it rains and 1 outlet store that they appear to flog off repossessed items and shop-soiled items)

The outlet store went a while ago (now a Nood store) and they have just announced that they are closing the store in town to focus on the larger store in South Dunedin. Sign of the times...

BRICKS
23-03-2008, 12:28 PM
THANKS Steve for your observations in the Southland it appears one big store is enough for its demands ,But as the South Island is now well covered the move is to the North Island with 7 new stores starting up with the latest at Gisborne for $2.3 million cash paid it is good to note with all these real holdings the NTA is 86 cents for every 50 cent share so this is just another bargain on the NZX and to boot BRICKS is buying the STOCK..

Steve
23-03-2008, 10:04 PM
THANKS Steve for your observations in the Southland it appears one big store is enough for its demands ,But as the South Island is now well covered the move is to the North Island with 7 new stores starting up with the latest at Gisborne for $2.3 million cash paid it is good to note with all these real holdings the NTA is 86 cents for every 50 cent share so this is just another bargain on the NZX and to boot BRICKS is buying the STOCK..

South Dunedin is not in Southland!!! I am unsure if there is a SCY store in Southland... :)

BRICKS
25-03-2008, 09:17 AM
South Dunedin is not in Southland!!! I am unsure if there is a SCY store in Southland... :)

ANYTHING south of WELLINGTON is SOUTHLAND...

Dr_Who
25-03-2008, 09:32 AM
ANYTHING south of WELLINGTON is SOUTHLAND...

Anything south of Bombay Hills is Southland! :D

POSSUM THE CAT
25-03-2008, 09:37 AM
Well if BRICKS is buying it is a priority SELL

BRICKS
25-03-2008, 12:51 PM
Well if BRICKS is buying it is a priority SELL

WELL cat try buying below 50 cents if you have some SCY which i doubt put them on the MARKET..

BRICKS
22-04-2008, 10:54 AM
SYC still chugging along at its pace cause there is NO news like always but you can shop at a store near YOU..

Steve
28-06-2008, 07:15 PM
SCY appear to have not been as badly affected as other retailers so far...

Smiths City Group's profit eases (http://www.stuff.co.nz/4599870a13.html)
Smiths City Group's annual net profit has dropped, adding to the string of bad news coming from New Zealand's retailers.

The listed Christchurch big-ticket retailer announced its annual net trading surplus had eased 1.7 per cent to $3.56 million, from the previous April year. The final unimputed dividend has fallen from 4c to 3c, payable on August 15.

The final dividend lowers the unimputed annual rate from 5.5c to 4.5c, giving a yield of 11.25% on the last traded share price of 40c.

BRICKS
16-08-2008, 11:05 AM
Got the pay check today how sweet it is,, Well we lost 58 small shareholder to the top 20 holders just get bigger they now hold 71.76% of the company..

The new store at TAURANGA is now up and running which makes the 6 store in the top North Island for the Group, the quite growing chain and one day some bigger fish will take
NOTICE..

BRICKS
04-09-2008, 10:07 AM
Well Smith`s had there annual meeting yesterday and only the time when you get the good oil on what there doing told us they are moving two Power house stores to bigger buildings
and pointed out that the 8 stores in the North Island produce 21% of the profits need more people to live in the South Island..

The chairman also pointed out what a good price the share was @ near 12% div and half the NTA value he feels its a BARGAIN along with BRICKS..

Phaedrus
04-09-2008, 11:48 AM
Well Bricks, as I have said before, I can but admire your fortitude. You have been a steadfast supporter of this stock through thick and thin. Unfortunately, though, it has been mostly thin - SCY has fallen 45% in 20 months.

This worm may be close to turning, though. A sale at the Bid or the Ask would now trigger buy signals.

After firing off a slew of Sell signals, SCY has been in a nice, tidy, orderly, accelerating downtrend for 20 months. Frequently it found support levels, but these were all sequentially broken as the downtrend progressed. You can clearly see "big money" (smart money?) exiting as shown by the "steps" in the OBV plot (magenta circles).

The 4 indicators used here have given excellent signals in the past, even though the Sell signals of late 2006 were spread out over a month or more.

Bricks, would I have any chance at all of persuading you that buying or holding downtrending stocks is not a good idea?

http://h1.ripway.com/Phaedrus/SCY94.gif

BRICKS
04-09-2008, 12:31 PM
The turnover is very low and most the time would not support the chart,, BRICKS buys at very low prices but constant have a good low priced holding which pays dividends what more can you ask, Along with coming and going to NZ there is not much worth buying on the NZX at cheap prices that has not fallen over may remember you saying the same about
Mr Chips of which BRICKS made a very LARGE KILLING..

BRICKS
18-10-2008, 12:47 PM
BRICKS can now buy at the lowest prices how & when he likes so one day day the
tide will turn and that's when rewards will be paid, this stock should be for new NZ investors
they can accumulate a bigger holding cheaper, But with everybody holding off and being smart they will miss the boat just like KFC & Co.. this stock would be a WARREN BUFFET BUY..

Stranger_Danger
18-10-2008, 01:16 PM
It would?

Care to explain to us how you view the long term durable competitive advantage that SCY has, or analyse the "economic moat" that protects it from competition?

Granted, its a cheap stock, granted, I have *some* time for the company but a Warren Buffett buy? Hahaha.

BRICKS
18-10-2008, 01:38 PM
It would?

Care to explain to us how you view the long term durable competitive advantage that SCY has, or analyse the "economic moat" that protects it from competition?

Granted, its a cheap stock, granted, I have *some* time for the company but a Warren Buffett buy? Hahaha.


ALL your words are to big for me just buying them a BARGIN at very low prices and
collect the DIVIDENED...

Stranger_Danger
18-10-2008, 02:01 PM
So, in other words, you have nothing?

BRICKS
19-10-2008, 10:58 AM
So, in other words, you have nothing?

Never debate with anyone because you never WIN and they drag on for ever if they don't see your or mine reasons don't worry it will not change the PACE..

Sideshow Bob
19-10-2008, 05:22 PM
Never debate with anyone because you never WIN and they drag on for ever if they don't see your or mine reasons don't worry it will not change the PACE..

Bricks,


You made a statement about Smiths City being a Warren Buffet type buy. SD simply asked you to back up this statement with your reasoning, to which you came back with your usual gibberish.

I'm not saying you are right or wrong (well I have my opinion), but I as well would be interested in your reasoning also.


SSB

BRICKS
19-10-2008, 07:09 PM
Bricks,


You made a statement about Smiths City being a Warren Buffet type buy. SD simply asked you to back up this statement with your reasoning, to which you came back with your usual gibberish.

I'm not saying you are right or wrong (well I have my opinion), but I as well would be interested in your reasoning also.


SSB

DO your shopping at Smiths City help out NZ and YOURSELF.. also thanks for not being a SHAREHOLDER..

Sideshow Bob
20-10-2008, 09:17 PM
To quote SD:

So, in other words, you have nothing?

shasta
20-10-2008, 09:29 PM
DO your shopping at Smiths City help out NZ and YOURSELF.. also thanks for not being a SHAREHOLDER..

Where do Smith City buy there products from?

BRICKS
21-10-2008, 09:42 AM
Where do Smith City buy there products from?

PHONE them up and ask THEM..

Stranger_Danger
21-10-2008, 10:11 AM
Bricks, do you actually know anything about this company other than their name?

BRICKS
21-10-2008, 12:16 PM
Bricks, do you actually know anything about this company other than their name?


TELL me something that we can all use..

Stranger_Danger
21-10-2008, 12:54 PM
I don't have any insider info or anything other than an opinion. You're the one close to this share *cough*

Given they operate on razor thin margins but have - to date - been somewhat sheltered by consumer senitment due to their South Island focus, I wonder about the current year seeing as the farming sector seems to have peaked.

Also, the fall in the NZ dollar can't be helping them as an importer.

With a large part of their business being higher value discretionary, they're not the best place to be, somewhat offset by stable management, the tax benefits obtained a couple years ago and not too much of the "rah, rah" in their culture.

My guesstimate is to expect earnings to be down 20-25% this current financial year and have priced that into my valuation range. What earnings increase/decrease is priced into YOUR valuation?

Long term, they'll struggle to compete with the Harvey Norman's of the world on buying power, nor with the single store retailer on service fanaticism. They have a credible business, but no "economic moat". I would not pay for a "Buffett style" long term durable competitive advantage as I do not believe they have one.

In summary, I see a profit making, dividend paying company in a difficult sector that has done well to recover from oblivion, will survive these conditions and on guesstimate is currently slightly under valued to fairly valued.

Not a dog. Not a Buffett buy.

Now, your turn?

BRICKS
21-10-2008, 01:27 PM
I don't have any insider info or anything other than an opinion. You're the one close to this share *cough*

Given they operate on razor thin margins but have - to date - been somewhat sheltered by consumer senitment due to their South Island focus, I wonder about the current year seeing as the farming sector seems to have peaked.

Also, the fall in the NZ dollar can't be helping them as an importer.

With a large part of their business being higher value discretionary, they're not the best place to be, somewhat offset by stable management, the tax benefits obtained a couple years ago and not too much of the "rah, rah" in their culture.

My guesstimate is to expect earnings to be down 20-25% this current financial year and have priced that into my valuation range. What earnings increase/decrease is priced into YOUR valuation?

Long term, they'll struggle to compete with the Harvey Norman's of the world on buying power, nor with the single store retailer on service fanaticism. They have a credible business, but no "economic moat". I would not pay for a "Buffett style" long term durable competitive advantage as I do not believe they have one.

In summary, I see a profit making, dividend paying company in a difficult sector that has done well to recover from oblivion, will survive these conditions and on guesstimate is currently slightly under valued to fairly valued.

Not a dog. Not a Buffett buy.

Now, your turn?

NOT a DOG, South Island expansion is put on hold, North Island is the new position mainly in the mid towns small at the moment but will grow, as for Harvey Normans NO threat as they come to Smiths to have there stock repaired and his store biz is just one great agent
stop for other firms he just rakes a FEE.. All firms are hurting but SCY price is RIGHT and you SD should be enlarging you holing at these cheep prices. But WB would love to visit Smiths if he lived in your country..

Stranger_Danger
21-10-2008, 02:16 PM
I have a few Smiths City actually. I'm certainly not against the company.

As for Buffett, read the book he just co-operated with, specifically the bits about buying third rate retailers at a fourth rate price.

Whilst there are plenty of ways to turn a dollar doing things Buffett wouldn't do, to even suggest he'd give Smiths City a second glance shows ignorance of Buffett, or Smiths City, or both.

BRICKS
21-10-2008, 04:36 PM
I have a few Smiths City actually. I'm certainly not against the company.

As for Buffett, read the book he just co-operated with, specifically the bits about buying third rate retailers at a fourth rate price.

Whilst there are plenty of ways to turn a dollar doing things Buffett wouldn't do, to even suggest he'd give Smiths City a second glance shows ignorance of Buffett, or Smiths City, or both.

NEVER suggested that he would buy,, But he did say he never BUYS Mice companies
any more that he needs elephant companies now you cant apply every situation to his style
you should read Buffett letters they are up to date and make good reading for POOR people
like yourself..

BRICKS
29-10-2008, 09:26 AM
UP, because when your at the bottom its the only DIRECTION..

Lizard
29-10-2008, 09:35 AM
Bricks, will you be in Wgtn on election day? Would be great to see you at the Wgtn ST meeting. :)

BRICKS
29-10-2008, 10:39 AM
Bricks, will you be in Wgtn on election day? Would be great to see you at the Wgtn ST meeting. :)


ARRIVE 12th. NOV probably to see HELEN back at her DESK..

BRICKS
09-11-2008, 05:18 PM
ARRIVE 12th. NOV probably to see HELEN back at her DESK..

Wednesday arrival to inspect the latest moves at SMITH CITY.. for Xmas..

POSSUM THE CAT
09-11-2008, 07:59 PM
Bricks inspected a Smiths City store in Gisborne after checking the yellow pages for Gas Appliance retailers and wanted to buy a simple accessory for a gas stoVe (ie a kettle) they said they never stocked accessories for gas stoves. What a store would not bother thinking about them again.

BRICKS
10-11-2008, 09:04 AM
Bricks inspected a Smiths City store in Gisborne after checking the yellow pages for Gas Appliance retailers and wanted to buy a simple accessory for a gas stoVe (ie a kettle) they said they never stocked accessories for gas stoves. What a store would not bother thinking about them again.

SO it happened to you CAT but remember you looked in the YELLOW pages first you did not know what a kettle looked like , Hope you do better next TIME.. Ha, Ha..

POSSUM THE CAT
10-11-2008, 01:46 PM
Bricks; Just what I would expect from a Brick (as A Brick is solid object & it is definately not solid brain) as I had a kettle in front of me that needed replacing for a elderly relative. I certainly know what one would look like. Yellow Pages was the obivous place to look for stockists of gas Appliances. But that would definately be out of range of a Bricks thinking. As stocking accesories for the goods they sell is out of range of the skills SCY's management.

BRICKS
10-11-2008, 02:17 PM
Bricks; Just what I would expect from a Brick (as A Brick is solid object & it is definately not solid brain) as I had a kettle in front of me that needed replacing for a elderly relative. I certainly know what one would look like. Yellow Pages was the obivous place to look for stockists of gas Appliances. But that would definately be out of range of a Bricks thinking. As stocking accesories for the goods they sell is out of range of the skills SCY's management.

A true CAT story all I can say is your a REAL DILL to even write the story it in the first and then blame SMITH CITY for your supity and in the long run the kettle it was not for you..
Ha, Ha..

So CAT have a nice Xmas visit SMITH`s when in need hope you have better luck next time and BUY the Share it will make you feel BETTER..

Sideshow Bob
10-11-2008, 05:49 PM
Brick of the Dogs, you've outdone yourself today!! You should be concentrating on your shares.....

http://www.nzx.com/markets/NZSX/SCY/announcements/4756420


ANNOUNCEMENT 10.11.08

“The Board of Directors of Smiths City Group Limited advises that trading conditions have been more difficult in the period from mid-September. Excluding the building supplies business which the company sold during the first half of the last financial year, sales for the first half of the 2009 financial year (1 May 2008 to 31 October 2008) are down 8.4% with same store retail sales down 7.7%.

As a result of the lower sales and a lower contribution from the property company, which has not sold a property this six months, profit for the first half of this financial year is expected to be substantially down on the same period last year. As in previous years the actual half year result will be published in December and a further update will be given at that time.”

POSSUM THE CAT
10-11-2008, 06:37 PM
Bricks the stupid thing was to think after owning SCY shares in 1987 that because they have survived they had good management. But obviously they have not. Have heard RUMOURS that the only reason they are still in Gisborne is it cheaper to lose money than close as nobody else wants the building. Please Note This is ONLY RUMOUR.

BRICKS
11-11-2008, 10:37 AM
Bricks the stupid thing was to think after owning SCY shares in 1987 that because they have survived they had good management. But obviously they have not. Have heard RUMOURS that the only reason they are still in Gisborne is it cheaper to lose money than close as nobody else wants the building. Please Note This is ONLY RUMOUR.

THANKS cat for the RUMOUR along with BOB`s RUMOUR why don't both of you ring the

BOSS, Rick Hellings MOB. 0299833011 and ask his advice on all these pressing matters

instead of telling BRICKS.. Have a happy ONE..

POSSUM THE CAT
11-11-2008, 12:47 PM
BRICKS Customers do not ring the management they just do not comeback and if enough of them do the company goes bust. But that would be to much for a Brick to understand.

BRICKS
11-11-2008, 01:22 PM
BRICKS Customers do not ring the management they just do not comeback and if enough of them do the company goes bust. But that would be to much for a Brick to understand.

JUST keep your hopes alive and don't go back but stop telling me and ring Rick on
0299833011. and tell him you hate SMITHS..

Crypto Crude
11-11-2008, 06:41 PM
bricks you come accross real nasty eah...
taken light hearted though...
The best come back ive heard all year
goes like this...


possum the cat-Just what I would expect from a Brick (as A Brick is solid object & it is definately not solid brain)
:cool:
.^sc

Sideshow Bob
11-11-2008, 08:45 PM
THANKS cat for the RUMOUR along with BOB`s RUMOUR why don't both of you ring the

BOSS, Rick Hellings MOB. 0299833011 and ask his advice on all these pressing matters

instead of telling BRICKS.. Have a happy ONE..

Rumour?? It's called a stock exchange announcement under continuous disclosure rules.

Bricks, I am beginning to think you and CujoDog are one and the same!! ;)

BRICKS
12-11-2008, 05:34 PM
Rumour?? It's called a stock exchange announcement under continuous disclosure rules.

Bricks, I am beginning to think you and CujoDog are one and the same!! ;)


BRICKS don't care what you think your a one eye DILL with NO real information about any company and spook at any note you can lay your grubby hands on thinking that your telling the world which is available to every one,. NZ has NO market to talk about let a lone make any money and you stupid type of people do not CONTRBUTE anything for your punishment go and shop at SCY and tell-em you HATE them don't tell BRICKS..

BUGGER OFF..

Sideshow Bob
12-11-2008, 08:00 PM
BRICKS don't care what you think your a one eye DILL with NO real information about any company and spook at any note you can lay your grubby hands on thinking that your telling the world which is available to every one,. NZ has NO market to talk about let a lone make any money and you stupid type of people do not CONTRBUTE anything for your punishment go and shop at SCY and tell-em you HATE them don't tell BRICKS..

BUGGER OFF..

Wow Bricks, that is almost comprehensible!! You make more sense when you are angry!!

To be honest, the only reason I post on this thread is because of your incomprehensible ramblings, childish attitude to those who disagree with you, butchering of the English language and your illogical logic.

As for adding nothing, believe it is more than a little of the pot calling the kettle black there Sir!! I got bored but after reading your last 10 posts, what a waste of cyberspace!!


Merry Christmas and Happy New Year to you

Your friend,
Bob.

BRICKS
15-11-2008, 07:54 AM
Wow Bricks, that is almost comprehensible!! You make more sense when you are angry!!

To be honest, the only reason I post on this thread is because of your incomprehensible ramblings, childish attitude to those who disagree with you, butchering of the English language and your illogical logic.

As for adding nothing, believe it is more than a little of the pot calling the kettle black there Sir!! I got bored but after reading your last 10 posts, what a waste of cyberspace!!


Merry Christmas and Happy New Year to you

Your friend,
Bob.

THEN don't come back unless your got something to say about a company as your posts are getting bigger about BRICKS than SMITHS ,, BOB your NO COBBER please don't REPLY..

Sideshow Bob
15-11-2008, 05:50 PM
I promise not to post if you don't...... ;)

BRICKS
16-11-2008, 07:53 AM
[QUOTE=Sideshow Bob;233634]I promise not to post if you don't......


BOB`s is NO cobber and may be a DOBBER.. BRICKS promise`s NOTHING..

Sideshow Bob
16-11-2008, 10:52 AM
BOB`s is NO cobber and may be a DOBBER..

Oh the poetry.....

BRICKS
16-11-2008, 12:12 PM
Oh the poetry.....

DOBBER, the word is

BRICKS
22-04-2009, 12:21 PM
For the last few months there has been a larger than normal buyer in the market for SCY
a 100,000 parcel has been common not all at once but constant anyone know something
small details lead to big RESULTS..

BRICKS
24-04-2009, 10:13 AM
For the last few months there has been a larger than normal buyer in the market for SCY
a 100,000 parcel has been common not all at once but constant anyone know something
small details lead to big RESULTS..

Another 400,000 today that's 500,000 for the week in such a low turnover company
there is a wind starting to BLOW..

BRICKS
06-05-2009, 12:45 PM
For the last few months there has been a larger than normal buyer in the market for SCY
a 100,000 parcel has been common not all at once but constant anyone know something
small details lead to big RESULTS..

UP pops Mr D C Belton & Co. with 5.537% that's nice wonder what he is up to like him to ring me. but it has done one thing its mopped all the loose shares around and we now have a more solid base.

Dose anyone know him.. and we Welcome him Douglas to Smith City..

BRICKS
06-05-2009, 02:27 PM
UP pops Mr D C Belton & Co. with 5.537% that's nice wonder what he is up to like him to ring me. but it has done one thing its mopped all the loose shares around and we now have a more solid base.

Dose anyone know him.. and we Welcome him Douglas to Smith City..

Mr Belton is all ready a holder of 2.72% which has been enlarged to 5.196%
[its hard to read these disclosure notices] so he must know something..??

Please tell us , THANKS..

macduffy
26-06-2009, 08:13 AM
Mr Belton is all ready a holder of 2.72% which has been enlarged to 5.196%
[its hard to read these disclosure notices] so he must know something..??

Please tell us , THANKS..

I wonder if he knew that SCY was going to report a 71% drop in profit?

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10580751

BRICKS
26-06-2009, 10:29 AM
I wonder if he knew that SCY was going to report a 71% drop in profit?

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10580751

IT appears macduffy did not know as well but reads the paper like every one else..

Then we all know,, BUT the actually the chain of shops is still growing like they always do
new and larger store at Timaru along with 3 others its all in the report and not in the PAPER..

macduffy
26-06-2009, 11:05 AM
No one knows, but I think we all expect listed retailers to report pretty dismal results for a while.
Let's hope that a drop of 71.5% is the worst!

BRICKS
26-06-2009, 11:24 AM
No one knows, but I think we all expect listed retailers to report pretty dismal results for a while.
Let's hope that a drop of 71.5% is the worst!

THEY are still paying a DIV as best they can But unlike a lot of companies including the big BANKS who charge the bum of small people have CUT.. and reduced div`s and income
RATES.. GOOD on SMITH`s CITY for trying as hard as they do while and employing over 500 people...

Lizard
10-12-2009, 07:14 PM
Just noticed the new store opening up in Porirua. Good location right next to Harvey Normans with good parking available and central to the mega-centre.

I don't think I have seen inside a Smith's City store since the 1980's, so will be interesting to have a look.

BRICKS
23-12-2009, 09:02 AM
WELL the div is up 1 cent + .15 input its the first of a TAX return, along with store numbers up but sales down cant win them all its a cheep stock and one day someone
will notice IT..

percy
23-12-2009, 11:38 AM
margins thin, retail tuff,opposition ruthless.
however;solid growth.
stores well maintained,
point sales upgraded.
store locations upgraded.
solid growth.
further expansion.
excellent directors with most skin on the line.
rick hellings exceptional managing director.
dividend paying company.
all this without coming to shareholders for cash as so many fancy companies have. a good steady earner.
bricks; enjoy your dividends and remember buffett brought mrs b's furniture store .

BRICKS
29-12-2009, 10:18 AM
This news is always the Best with SCY trading at half its NTA but been pushing on with store openings now for some time in the North island and the latest @ Porirua with the full
shopping block and L V Martin located together it cant go wrong..

Today rose 17.65% to 40 cents but this is cheep and wont last long, BRICKS is now well position for another good COLLECT..

Steve
29-12-2009, 10:42 AM
So you have been buying up SCY this morning, eh BRICKS?! ;)

BRICKS
29-12-2009, 10:54 AM
So you have been buying up SCY this morning, eh BRICKS?! ;)

MR STEVE you like SCY.. own up..

Lizard
29-12-2009, 10:57 AM
the latest @ Porirua with the full
shopping block and L V Martin located together it cant go wrong..


...very apt Bricks. I went into SCY Porirua for a look yesterday. Actually checked the price of a small appliance I wanted. Too expensive at SCY - but made me realise that I'd never noticed LV Martin were there! Went inside and found the appliance (same brand/model) for about 40% of the SCY price. Oops. Guys in LV's said the arrival of SCY had been great for business...

BRICKS
29-12-2009, 11:04 AM
...very apt Bricks. I went into SCY Porirua for a look yesterday. Actually checked the price of a small appliance I wanted. Too expensive at SCY - but made me realise that I'd never noticed LV Martin were there! Went inside and found the appliance (same brand/model) for about 40% of the SCY price. Oops. Guys in LV's said the arrival of SCY had been great for business...

GOOD thinking SCY send the dopey customers next DOOR..

percy
29-12-2009, 12:33 PM
lizard.
sorry you made brick's day.
i am still laughing.
l v martin set up made it easy for smiths to set up in wellington area,watch out for more stores,same back office, warehouse,delivery vehicle and back up service.
leemings do it with bond and bond.
j b hi fi with stewart and hill.
harvey norman with norman ross.
best to have OPPOSITION next door as customers like to do what you did.
if no opposition customer will go elsewhere.

Lizard
29-12-2009, 01:01 PM
GOOD thinking SCY send the dopey customers next DOOR..

:D

Yeah, I think the SCY team were too busy selling the big stuff - helping fill out credit forms and the like...

BRICKS
29-12-2009, 01:58 PM
:D

Yeah, I think the SCY team were too busy selling the big stuff - helping fill out credit forms and the like...

Must admit Liz when i was down there to check the store out and first looked at the complex and saw Smiths and lv`s in one block as good but LVM was there first SCY
second but your twist was an add on really rang the BELL..

Steve
29-12-2009, 03:02 PM
MR STEVE you like SCY.. own up..

Disc: SCY :)

Omega
29-12-2009, 10:34 PM
Today rose 17.65% to 40 cents but this is cheep and wont last long, BRICKS is now well position for another good COLLECT..

Only $2720 value traded today -Bricks the most likley buyer!

BRICKS
30-12-2009, 06:58 AM
Only $2720 value traded today -Bricks the most likley buyer!

ITS ABOVE is the answer,, Could you afford only $2720 if so come and join US..

winner69
30-12-2009, 08:28 AM
Bricks you be pleased to know i spent a couple of grand on a TV at LV Martin just before Xmas .... screwed a few hundred of the price but knew too well that it would be cheaper in the Boxing Day sale but never mind that they do a have a 24 day price guarantee .... only hassle is you have to go back and ask for the extra few hundred thay took after

Its the old Newbolds store in Adelaide Rd .... seems to do OK ..... would have preferred to go to JB Hi Fi as a shareholder but parking and service does go a long way .... and the price was much the same after a bit of haggling

BRICKS
30-12-2009, 10:41 AM
Bricks you be pleased to know i spent a couple of grand on a TV at LV Martin just before Xmas .... screwed a few hundred of the price but knew too well that it would be cheaper in the Boxing Day sale but never mind that they do a have a 24 day price guarantee .... only hassle is you have to go back and ask for the extra few hundred thay took after

Its the old Newbolds store in Adelaide Rd .... seems to do OK ..... would have preferred to go to JB Hi Fi as a shareholder but parking and service does go a long way .... and the price was much the same after a bit of haggling

Have not seen the Adelaide Road store as yet but its the growth factor that's working for
SCY the north island is the way to go you have to go where the population is South Island
lags in this respect NO use building new stores where NO one LIVES..

percy
28-01-2010, 12:32 PM
hi bricks
received scy interim report today.good stuff.
during december the company opened a new smiths city store in porirua.
the store has traded strongly since opening .,anticipates having a second store trading by the end of this financial year.in wellington market ps i note their year ends 30th april. cash flowfrom operating activities excellent $3.881mil.
Look forward to your positive posts when you have read the report.

Silverlight
28-01-2010, 01:59 PM
I had a quick browse of their Interim Report, can anyone give comment on why SCY are trading for such a low price relative to NTA.


All in '000

CA
Cash 2,595
Trade 11,046
Property -
Inventories 34,956
TCA 48,597

SCA
Cash 686
Receivables 54,517
Receivables 34,900
TSCA 90,103

NCA
Property 24,603
Intangible 3,539
Investment Properties 1,220
Investments 636
Deferred Tax 3,793
TNCA 33,791

TA 172,491

CL
Overdraft -
Term Loan -
Borrowings 9,362
Trade Payables 22,720
Other Payables 597
TCL 32,679

SCL 80,477

NCL
Borrowings 14,375

TL 127,531

Net Aseets 44,960



With 52,956,884 shares on issue this gives a NTA of 78.2 cps. Last price 39 cents.

The largest asset at 54m is Smithcorp Receivables (its financing arm). So is the big discount due the the market believing that this money won't be repaid? or that a lot of the lenders will default on their repayements?


The revenue of 1,018,000 for 6 months gives a PE of 10.1, if they do the same for the second half of their financial year.

Year end Apr 2009 profit was 1m.
Year end Apr 2008 profit was 3.5m.
Year end Apr 2007 profit was 3.6m.

percy
28-01-2010, 03:04 PM
Silverlight.
I have been a shareholder since 1991 and have asked that question 100s of times.
here are the reasons; competition.
low margins.
retailers have large leverage liabilities with store leases.
scy have a large staff which means a large consta nt cost.

Silverlight
28-01-2010, 03:23 PM
Interesting notes on cost, their profitability is there to see though, even in the horrible 08 -09 year they were still profitable.

They own a lot of their own property as well, so I don't see leasing as as issue, I also find it quite intriguing that they pay two dividends a year with no Tax Credit's!


It would be more beneficial for the shareholders if SCY did an on market buyback of shares and save up the tax credits, especially when such a discount to NTA exists, unless of course mgmt don't beleive their own figures on Smithcorp.

percy
28-01-2010, 06:11 PM
Interesting notes on cost, their profitability is there to see though, even in the horrible 08 -09 year they were still profitable.

They own a lot of their own property as well, so I don't see leasing as as issue, I also find it quite intriguing that they pay two dividends a year with no Tax Credit's!


It would be more beneficial for the shareholders if SCY did an on market buyback of shares and save up the tax credits, especially when such a discount to NTA exists, unless of course mgmt don't beleive their own figures on Smithcorp.

scy ownes colombo st property only.I agree a share buy back would help.

winner69
28-01-2010, 07:12 PM
Interesting notes on cost, their profitability is there to see though, even in the horrible 08 -09 year they were still profitable.

They own a lot of their own property as well, so I don't see leasing as as issue, I also find it quite intriguing that they pay two dividends a year with no Tax Credit's!


It would be more beneficial for the shareholders if SCY did an on market buyback of shares and save up the tax credits, especially when such a discount to NTA exists, unless of course mgmt don't beleive their own figures on Smithcorp.

SCY have so many millions in tax credits its not funny .... they won't be paying incoome tax for years

Therefore your divies are 'inflated' by SCY not having to pay tax ... therefore no impuation credits attached

Expansion into Wellington could be interesting ... there is void of big furniture shops in the area as a result of a few casualties in recent years

shasta
28-01-2010, 08:04 PM
SCY have so many millions in tax credits its not funny .... they won't be paying incoome tax for years

Therefore your divies are 'inflated' by SCY not having to pay tax ... therefore no impuation credits attached

Expansion into Wellington could be interesting ... there is void of big furniture shops in the area as a result of a few casualties in recent years

Winner

You forgetting the rather large Freedom store in Thordon?

winner69
28-01-2010, 08:20 PM
Maybe void was the wrong word ... maybe less than there were

Big Save has a decent sized stores and Harvey Norman is pretty big in Porirua and Lower Hutt for furniture

Thinking that the likes of Radfords and Hazelwoods have gone in recent years

winner69
28-01-2010, 08:23 PM
Silverlight.
I have been a shareholder since 1991 and have asked that question 100s of times.
here are the reasons; competition.
low margins.
retailers have large leverage liabilities with store leases.
scy have a large staff which means a large consta nt cost.

I think it is the low margins .... or razor thin considering they don't need to pay tax

Silverlight
03-02-2010, 08:05 AM
NEW STORE OPENING


Smiths City Group Limited (SCY) advises that it has signed an unconditional
Agreement to Lease with Trentham City Investments Limited to open a retail outlet in
a new retail development in Upper Hutt. The shop, with a foot print of 2,196 square
metres in area, will open for business in March.

The Upper Hutt opening supplements a successful opening of a 1,800 square metre
shop in the Porirua Mega Centre prior to Christmas.

The openings are the result of a strategic review by the board of SCY which has
identified Wellington as the best area for immediate growth.

As reported in the recently released Half Yearly Report as at 31 October 2009, it is
expected that the opening of stores in the Wellington area will make use of the
logistics already in place for the operations of LV Martin & Son without increasing
Group warehousing and delivery costs.

The company will continue to seek other opportunities in the Wellington region.

BRICKS
04-02-2010, 03:59 PM
WELL @ 40 cents it would take NO effort to hit 50 cents a 20%+ in the short term and with the plan for 4 shops in the WELLINGTON area could all happen in the next 3 MONTHS..

percy
04-02-2010, 04:11 PM
WELL @ 40 cents it would take NO effort to hit 50 cents a 20%+ in the short term and with the plan for 4 shops in the WELLINGTON area could all happen in the next 3 MONTHS..

Good on you Bricks.We are with you.
Siverlight.I think SCY would rather expand than do a share buy back.
I do however think they could do both.Shares brought back ,they could cancel,divy saved would pay inerest bill.So net no cost.

macduffy
04-02-2010, 04:47 PM
But 50c is a brave call on a stock that's hit 40c a couple of times in the last 15 months without being able to break through.

Good luck. I don't hold.

BRICKS
05-02-2010, 07:48 AM
But 50c is a brave call on a stock that's hit 40c a couple of times in the last 15 months without being able to break through.

Good luck. I don't hold.

Now that you have disclosed that you don't hold AIR or SCY but you do run a FREE advice service on these stocks , BRICKS will disclose that he dose not hold NOD but will not offer
ADVICE..

Sideshow Bob
05-02-2010, 12:41 PM
Now that you have disclosed that you don't hold AIR or SCY but you do run a FREE advice service on these stocks , BRICKS will disclose that he dose not hold NOD but will not offer
ADVICE..

Since May 2005, BRICKS has missed the fact that this is a forum, where posters offer opinions and perspectives from differing viewpoints, that won't necessarily, and very quite likely, agree with his opinion. Just because someone does or doesn't own the same shares, doesn't mean that they don't have a (valid) opinion or point.

BRICKS
05-02-2010, 01:01 PM
Since May 2005, BRICKS has missed the fact that this is a forum, where posters offer opinions and perspectives from differing viewpoints, that won't necessarily, and very quite likely, agree with his opinion. Just because someone does or doesn't own the same shares, doesn't mean that they don't have a (valid) opinion or point.

Thanks for more FREE advice..

BRICKS
17-02-2010, 10:11 AM
IF anyone notice`s the new store @ upper hutt is going into action could you please
advise BRICKS..

percy
07-03-2010, 02:26 PM
I was in Timaru on friday. checked out new smiths city store.on same lines as their other stores.pretty big store with a good layout.
Will be back there this friday ,so will check out powerstore.believe it is in old smiths shop cut in two with kathmandu in the other half.

BRICKS
09-03-2010, 08:23 AM
I was in Timaru on friday. checked out new smiths city store.on same lines as their other stores.pretty big store with a good layout.
Will be back there this friday ,so will check out powerstore.believe it is in old smiths shop cut in two with kathmandu in the other half.

THANKS for the NEWS but is TIMARU a growth town it seems this the go in the South Island for SCY they have been expanding into larger stores for some time now in many towns
but the SOUTH does not make the profits according to the size of the shop.. Feel the NORTH Island expanding would have been better for profits just by the number of people
who live THERE..

percy
09-03-2010, 11:33 AM
You are right there Bricks ,still all regional stores and new stores have impressed me.I was thinking of Greymouth,but then I was impressed with Kaikoura,Ashburton.Oamaru,The huge one at Dunedin is a cracker.all done including north island expansion with out coming back to shareholders for more money!!! I look forward to north island posters to see if they are impressed with SCY stores.

percy
12-03-2010, 05:31 PM
hi bricks,
timaru revisited today.power store now very well located.with scy big store and now a good power store,we have timaru covered.my experience says regional stores do very well.it is important to remember your customer base.

Silverlight
25-03-2010, 01:33 PM
FURTHER EXPANSION IN WELLINGTON

Smiths City Group Limited (SCY) continues its strategy to expand into the Wellington region with the opening of a new store in Queen Street, Upper Hutt.

At 2,196 square metres in area, it is the second Smiths City store to be opened in the Wellington region. The Upper Hutt store adds to the one opened in December at the Porirua Mega Centre. It will carry the full range of product traditionally stocked by Smiths City which includes appliances, furnishings and sporting goods.

The new store will make use of the storage, delivery and installation structure already in place for the LV Martin & Son retail chain, also owned by Smiths City.

As referred to in the Group’s Half Year report, the Wellington area has been identified by directors as the best area for immediate growth.

Smiths City will seek further retail opportunities in the lower North Island to increase its coverage in the region.

BRICKS
30-03-2010, 03:39 PM
SMITHS CITY at last seems to be changing its approach to biz as to its past habits as 1 July 2010 cutting ties with F&P and change its whitegoods approach along with
better located stores it stands to move forward the full year should show better RESULTS..

BRICKS
23-04-2010, 10:30 AM
NAUGHTY BRICKS been out buying more SCY for Xmas o what a feeling with all these new Wellington stores money for JAM..

winner69
29-06-2010, 05:47 AM
Headline results look good even though management say that such a resukt would be unacceptable in normal times

Razor thin margins - $1.6m (no tax) profit on $230m odd revenues not much is it

From the accounts the retail arm continues to trade at a loss .... what profits there are come from financing arm

Wonder what 'normal times' would deliver?

BRICKS
29-06-2010, 02:44 PM
Headline results look good even though management say that such a resukt would be unacceptable in normal times

Razor thin margins - $1.6m (no tax) profit on $230m odd revenues not much is it

From the accounts the retail arm continues to trade at a loss .... what profits there are come from financing arm

Wonder what 'normal times' would deliver?

WELL 69 profit up 60% and NTA a real 79 cents plus a 1 cent div along with expanding well into the North Island
and payed for as you go all you need now is customers like all the other shops find it hard to keep up..

Look at PPG they try every thing but does not work, how do you know Harvy Norms is doing well because they dont
have to tell any one, Noel Lemond who are reporting to so SCY is not that bad..

ITS the NZ public share buyer`s they dont support not that many companies in NZ, STU, GFF, and others so one day
you may have a better MARKET..

percy
08-07-2010, 11:21 AM
I see this morning's daily sharechat was SCY.Mcdouall Stuart value them at 71cents and their recommendation is Buy.

BRICKS
30-07-2010, 01:42 PM
BRICKS asked Rick Hellings if a share buy back had been considered he said all options had been look at but at this point of time the company wants to continue its expantion in the Wellington area with two more stores making 4 in
number as he feels the increase in stores would produce more profit.

But he did say if the company could not find good sites or trading changed the buy back could be an option which BRICKS agrees with so this is the two alternates time will TELL..

percy
24-08-2010, 08:21 PM
AGM was held this morning.Chairman Craig Boyce and Chief Executive Rick Hellings spent a lot of time explaining the business,the finance company,NZ GDP,where they see SCY in the market place,and SCY's future growth prospects in the North Island.Pleasing to see director's giving shareholders so much insite and information about the company they own.Nice to meet mouse,and Boyce confirmed when asked by mouse that they intended to pay out half tax paid profit in divies,while retained profit will be used for expansion.No one asked about shareback.Last time I mentioned it to Boyce he had an adverse reaction to it, and I am not game to mention it again.We await your return to good health Bricks and look forward to you asking about it at next AGM.

easy money
05-09-2010, 10:21 AM
will the share price drop on monday because of the earthqauke?

percy
05-09-2010, 11:11 AM
will the share price drop on monday because of the earthqauke?

SCY may do well with people having to buy new carpets,new TVs and furniture.The Alectra service division will be keep busy.The SP could go up.Still very thinnly traded. With having their own finance company,a lot of customers will make use of it to replace damage possesions.

percy
30-06-2011, 03:51 PM
Well done SCY.Profit,paying a divie.Positive Colombo Street store will be rebuilt/upgraded.

winner69
12-01-2012, 10:33 AM
Those 831 small (mom and pop?) shareholders will be in tiz when they get the letter from SCY .... hope they don't think it is Mr Whimp or whoever it is and ignore it ..... then SCY wil sell there shares for them anyway by the sounds of it

percy
12-01-2012, 02:46 PM
Those 831 small (mom and pop?) shareholders will be in tiz when they get the letter from SCY .... hope they don't think it is Mr Whimp or whoever it is and ignore it ..... then SCY wil sell there shares for them anyway by the sounds of it

Should have cleaned up the small parcels years ago.Good for small holders as they do not incure brokerage charges.Will save SCY a lot of money not having to print and distribute 831 extra reports.

winner69
28-06-2012, 11:58 AM
Good stuff .... made some money in the retail shops this year

percy
28-06-2012, 03:16 PM
Good stuff .... made some money in the retail shops this year

A truly splendid result.

Snoopy
29-06-2012, 03:06 PM
A truly splendid result.

Splendid in comparison with what they did last year. In real terms 'net margin' and 'return on shareholders funds' at SCY are well under half that achieved by 'The Warehouse' as a comparative example.

Now, how does the five year average dividend valuation for SCY stack up? The dividends declared over the last five years are as follows:

-----

2012: 1.0cps, 2.5cps
2011: 1.0cps, 1.0cps
2010: 1.0cps, 1.0cps
2009: 1.0cps, 1.0cps
2008: 1.5cps, 3.0cps

-----

That equates to an average dividend of 2.8cps. SCY does not pay tax because they are sitting on a large pile of tax losses. So in this instance, because the shareholders do pay tax on receipt of SCY dividends, the gross income for shareholders is the amount of the dividend paid.

2.8c/0.08= 35c

That may look low with buyers in the market at 50c. And if SCY can keep churning out results like they did this year then 50c is probably a more accurate valuation. But can they?

SNOOPY

Snoopy
29-06-2012, 03:13 PM
And if SCY can keep churning out results like they did this year then 50c is probably a more accurate valuation. But can they?


I think one thing Smiths City has done well is recover from the Christchurch earthquake quickly. Their store in the centre is now up and trading, even as a grand redevelopment is planned, while rivals like Harvey Norman across the road show no signs of reopening. In addition the secondary stores at Upper Riccarton and Belfast have allowed Smiths City to continue tradiing through a visible platform right through the earthquake season. But as the competition comes back, then Smiths City will have to outmarket their rivals to maintain this momentum.

Also how much of the 'trading income' they declared for FY2012 was in reality interruption of trading insurance payouts, rather than real sales?

SNOOPY

percy
29-06-2012, 04:24 PM
I think one thing Smiths City has done well is recover from the Christchurch earthquake quickly. Their store in the centre is now up and trading, even as a grand redevelopment is planned, while rivals like Harvey Norman across the road show no signs of reopening. In addition the secondary stores at Upper Riccarton and Belfast have allowed Smiths City to continue tradiing through a visible platform right through the earthquake season. But as the competition comes back, then Smiths City will have to outmarket their rivals to maintain this momentum.

Also how much of the 'trading income' they declared for FY2012 was in reality interruption of trading insurance payouts, rather than real sales?

SNOOPY

Yes retail is not the place to be.Will be interesting to see if SCY do well in ChCh rebuild or will too many players mean little profits for everybody?

macduffy
29-06-2012, 04:47 PM
Not only have Smiths City recovered well from the Christchurch (big) earthquake but of course they are "disproportionately" represented there, in that Christchurch forms a major part of their business. Seems they have captured a big chunk of the business in furniture/appliance replacement via insurance payouts.

Guild
17-12-2012, 09:17 PM
Just took advantage of my Shareholders Xmas discount. Havn't been into the shop in Colombo St since it reopened, was pleasantly suprised at the range and variety of stock considering the smaller foot print.
Impressed with the quality of the sales staff and the product knowledge, quite happy to look in manuals and product books instead of pretending that it was the perfect product for me. Also felt they were listening to me rather than adding up their commission.
Pricing was pretty competitive I bought some kitchen items that were good quality and pricing less than Briscoes, Farmers or Stevens on sale. Checked out garden products similar to Bunnings prices.
Looking at appliances also comparable to NL HN and reasonable range, will probably take advantage of the discount on appliances by the end of this week.

winner69
18-12-2012, 05:24 AM
Hope you put on the never never ..... financing is where they make their money

Guild
18-12-2012, 10:22 PM
Cash is king, sometimes.......

percy
17-04-2013, 03:23 PM
Today's announcement that Smith's will end their finance company funding from FPF [F&P finance for 30 years] to ANZ is no surprise.What was a surprise was that they were paying 10% for their funds.New finance is from ANZ [National Bank have supported Smiths well] at 6%.Smiths will use the savings to remain competitive in their HP deals I expect.Must be no love lost with FPF as they are charging Smiths $1.4m break fee.!!!Bet Craig Boyce will be looking for a new whitware supplier.May cost FPA a huge "slotting fee" for Smiths to stock FPA appliances.Does $1.4mil sound fair?

POSSUM THE CAT
17-04-2013, 03:32 PM
Percy who in there right mind wants F&P appliances anyway. May be some of the reason for the split. They did not want to have to stock F&P appliances.

percy
17-04-2013, 03:51 PM
Percy who in there right mind wants F&P appliances anyway. May be some of the reason for the split. They did not want to have to stock F&P appliances.

I really don't know more than I read.
I sold out my SCY shares a few years ago.
However F&P and SCY certainly had great respect for each other,F&P supported SCY through their receivership,so it is the ending of a very long successful partnership/business relationship.

blackcap
26-07-2013, 01:29 PM
Its been a while since anyone posted on this stock. But their Annual Report is out today. THey had a what I thought was reasonable profit announcement a while back (one off items accounted for 5.5m) and operationally they reduced their profit but we all know its been a tough time esp for retailers. But I am excited about the restructuring of their funding for their Finance Division. They now borrow the money from the bank (to speak colloquially) and this will give them savings annually of $2.5m which will go straight to the bottom line. THis is in itself 5 cents per share. For a stock trading at 65 cents this is material. Even if operational profits remain flat at about $2m total profit will still be in the vicinity of 9 cents per share and that I believe is a pretty good buy. Any detractors out there please set me straight about all the caveats investing in retail or this stock in particular.

please dont get pedantic about my figures... they are very approximate but its the story im trying to tell not amaze you with my mathematical genius :) ;)

percy
26-07-2013, 02:48 PM
Its been a while since anyone posted on this stock. But their Annual Report is out today. THey had a what I thought was reasonable profit announcement a while back (one off items accounted for 5.5m) and operationally they reduced their profit but we all know its been a tough time esp for retailers. But I am excited about the restructuring of their funding for their Finance Division. They now borrow the money from the bank (to speak colloquially) and this will give them savings annually of $2.5m which will go straight to the bottom line. THis is in itself 5 cents per share. For a stock trading at 65 cents this is material. Even if operational profits remain flat at about $2m total profit will still be in the vicinity of 9 cents per share and that I believe is a pretty good buy. Any detractors out there please set me straight about all the caveats investing in retail or this stock in particular.

please dont get pedantic about my figures... they are very approximate but its the story im trying to tell not amaze you with my mathematical genius :) ;)

In theory you are correct.
You just got to hope they don't give that extra profit away, by offering cheap finance deals to attract customers [as they did the last time they had a big interest saving]. The retail space they are in is madly competive.Harvey Norman often give very long interest free terms,which Smiths have to match to stay in business.Their margins are very slim.With price deflation,they have to sell more to stay where they are. You will note their turnover has decreased over the last few years.Fixed overheads remain very expensive.A large staff is a big liability.A large vehicle fleet is a big ongoing cost.

winner69
27-07-2013, 09:02 AM
Radio advertising this morning some 'really good specials' and 40 MONTHS FREE CREDIT

Wouldn't know if his more than they normally do but from Percy's point tempting to do this sort of activity

percy
27-07-2013, 09:37 AM
Radio advertising this morning some 'really good specials' and 40 MONTHS FREE CREDIT

Wouldn't know if his more than they normally do but from Percy's point tempting to do this sort of activity

You are excused from your native tree planting,so take advantage of those specials.I look forward to your Sunday morning rave telling us what wonderful products you brought.!!And the lovely 40 months free credit,!!
Money saved can be used to fly down to ChCh so you can take advantage of my offer to transport you to and from HNZ agm.

winner69
27-07-2013, 09:49 AM
When I was in charge if the household duties when wife indisposed a few months ago blew up washing machine, drier, electric wok in. Week.

L v Martin got the business. Always bought everything from that shop back when it was a 100% outfit because of the service etc and price matching. Must say l v Martin do a good job as well ....all the purchase history still kept there and they say hey mr winner you good client we deliver and install free for you because we know you useless at putting things together and getting them to work.

So no need for anything today ....just heard the ad on the radio.

Do they normally do 40 months free credit ..maybe taking advantage of healer money

percy
27-07-2013, 10:27 AM
When I was in charge if the household duties when wife indisposed a few months ago blew up washing machine, drier, electric wok in. Week.

L v Martin got the business. Always bought everything from that shop back when it was a 100% outfit because of the service etc and price matching. Must say l v Martin do a good job as well ....all the purchase history still kept there and they say hey mr winner you good client we deliver and install free for you because we know you useless at putting things together and getting them to work.

So no need for anything today ....just heard the ad on the radio.

Do they normally do 40 months free credit ..maybe taking advantage of healer money

Great that you support L.V.Martin.Great business,great reputation.Great that it is owned by SCY.
I don't know about the 40 months interest free.
You will laugh at me.Wife and I have not been able to agree on a new lounge suite.Saw one we agreed on at Smiths in Tauranga.Went into buy it here in ChCh.Well price just kept going up,yes the leather is lovely,yes that leather is a lot softer ,etc.Silly old me paid for it.!! Yes we will deliver free when it arrives in about 100 days.So most probably using my free money for the promotion.!! I would only have brought more HNZ shares with the money.!!! lol.

Jay
27-07-2013, 01:05 PM
Not sure how these Interest Free offers work (from a retailer point of view)
They are financed thru a finance company and the FC give the retailer a commission?? or do SCY have their own fnance arm and does the retailer get the funds straight away??
The finance company bank on alot of people not paying off within the interest free terms and/or buying more stuff with the credit limit.

I read recently that a lot of these big retailers are wanting you to buy on credit/interest free as they make more money this way??

Disc: Not a holder at present

winner69
27-07-2013, 01:30 PM
SCY have their own Finance Company .... about half the company profits come from Finance

So all inhouse - so even if 'Finace" gives 'Retailer' the cash or not when things are sold are not not really relevant

percy
27-07-2013, 01:57 PM
Not sure how these Interest Free offers work (from a retailer point of view)
They are financed thru a finance company and the FC give the retailer a commission?? or do SCY have their own fnance arm and does the retailer get the funds straight away??
The finance company bank on alot of people not paying off within the interest free terms and/or buying more stuff with the credit limit.

I read recently that a lot of these big retailers are wanting you to buy on credit/interest free as they make more money this way??

Disc: Not a holder at present

The cost of finance comes off the retailer's margin.
The retailer must pay the say 40 months interest.The retailer offcourse pays a lot less interest than the customer would.
So the longer the interest free time is, the greater the cost to the retailer.It is a sales tool.
Same principal with cars.
However financing cars ,or furniture/appliances is very profitable,refer HNZ thread where we looked at UDC and FPF profits.
Smiths' Finance company borrows money from ANZ.ANZ will want their interest no matter if Smiths charge interest or not.
I take it Smiths charge booking fees and insurance,and if you have not paid the item off at the end of say the 40 months then you start paying the full [profitable] interest.
I note in this year's annual report they have approx. 64,500 active accounts.

percy
28-08-2013, 07:03 AM
I see in this morning's The Press that Smiths are still waiting for rebuild demand for their products.

benjitara
14-01-2014, 12:55 PM
I've recently gone over their figures for the last few years... I think on a macro basis they should be well placed with rebuilds and greater economic activity next year, yes they have small margins but their ROE has returned to acceptable levels and they're competitive in the P/EPS. chart activity would be a problem wit few trades...

percy
14-01-2014, 01:14 PM
The share price is testing the 200 day moving average,so take care.

benjitara
14-01-2014, 02:05 PM
but is that all that relevant if the liquidity is poor in the first place? traders obviously are more likely to invest in stocks with high turnover?

percy
14-01-2014, 02:30 PM
I have checked yahoo charts going back 10 years and find it very relevant.Take care.

winner69
28-06-2014, 08:54 AM
Another reasonably respectable result from Smiths considering all the issues over the last few years

EPS of 7.7 cents so currently on PE of about 8

Finance book of $70m odd

Percy - you were a bit down on them .....things improving?

Me just a satisfied customer at nearby Martins ......match cheapest price in town, great service and install things for free (even TVs have too many wires these days)

blackcap
28-06-2014, 09:04 AM
Another reasonably respectable result from Smiths considering all the issues over the last few years

EPS of 7.7 cents so currently on PE of about 8

Finance book of $70m odd

Percy - you were a bit down on them .....things improving?

Me just a satisfied customer at nearby Martins ......match cheapest price in town, great service and install things for free (even TVs have too many wires these days)

Definitely an improvement on last year and if you dig into the cash flow statement provided you can see that the majority of the profit is attributable to the finance division. Rick Hellings confirmed that when I spoke with him yesterday but did say the retail operations were profitable but "bloody hard work". He also said the homeware division was doing better than the appliance division.
7.7 cents (after tax correct me if I am wrong) on a shareprice of 54 cents if very acceptable to me. A lot better than last year but you would hope that things are going on the up.

winner69
28-06-2014, 09:14 AM
Definitely an improvement on last year and if you dig into the cash flow statement provided you can see that the majority of the profit is attributable to the finance division. Rick Hellings confirmed that when I spoke with him yesterday but did say the retail operations were profitable but "bloody hard work". He also said the homeware division was doing better than the appliance division.
7.7 cents (after tax correct me if I am wrong) on a shareprice of 54 cents if very acceptable to me. A lot better than last year but you would hope that things are going on the up.

Thanks for those insights blackcap

Finance has been the main driver of profits for a while.

Must be hard selling product in this market. Plenty of choices where to buy and ultra competive.

As I said location and service makes me one of the loyal customers. They just look in the computer and say yep Mr Winner what can we do for you this time....and make friendly comments like did your son appreciate the new fridge Mrs Winner bought him the other day.

percy
28-06-2014, 09:37 AM
Definitely an improvement on last year and if you dig into the cash flow statement provided you can see that the majority of the profit is attributable to the finance division. Rick Hellings confirmed that when I spoke with him yesterday but did say the retail operations were profitable but "bloody hard work". He also said the homeware division was doing better than the appliance division.
7.7 cents (after tax correct me if I am wrong) on a shareprice of 54 cents if very acceptable to me. A lot better than last year but you would hope that things are going on the up.

Rick Hellings is "a breath of fresh air." Good directors, top CEO in Hellings but "bloody hard work" sums it up.I note they have closed Riccaron and Invercargill Power Stores.Slim margins. I no longer hold.The reasons I sold out remain.And yes our family are loyal customers too.Good products,fair prices and you know they service what they sell through Alectra.

noodles
28-06-2014, 12:00 PM
Definitely an improvement on last year and if you dig into the cash flow statement provided you can see that the majority of the profit is attributable to the finance division. Rick Hellings confirmed that when I spoke with him yesterday but did say the retail operations were profitable but "bloody hard work". He also said the homeware division was doing better than the appliance division.
7.7 cents (after tax correct me if I am wrong) on a shareprice of 54 cents if very acceptable to me. A lot better than last year but you would hope that things are going on the up.

They did not pay the full tax rate. Only paid 600K tax on NPBT of $4.7Mill.

Still a credible result. Even if it is all through the finance division.

blackcap
28-06-2014, 12:06 PM
They did not pay the full tax rate. Only paid 600K tax on NPBT of $4.7Mill.

Still a credible result. Even if it is all through the finance division.

Thanks noodles.. I did see that tax paid was very small. But the result is still after tax but yes tax may impact more in subsequent years. Yes a credible result and I am happy that their finance division is doing well. I guess by having a finance division it helps you weather out the tough years and also means you can sell product at cost? if people are going to buy via finance. So that gives a competitive advantage. Dividend not imputed either this time around but once they get to paying tax again maybe they will pass it on. I might look to accumulate a few more as funds arrive but am wary of retail as the whole sector seems to be suffering.

percy
28-06-2014, 12:19 PM
They did have millions in tax credit.
Not sure what they have left before they need to pay tax ?
What you have to careful of is that they do not give away finance "profits" attracting or trying to stay in business.

blackcap
28-06-2014, 12:47 PM
They did have millions in tax credit.
Not sure what they have left before they need to pay tax ?
What you have to careful of is that they do not give away finance "profits" attracting or trying to stay in business.

Yes indeed Percy, well said, however the conundrum is that without their normal business they have nor finance business. One could almost argue that SCY is a finance company with a novel concept of attracting borrowers....

winner69
28-06-2014, 12:47 PM
The 2013 accounts showed tax losses carried forward of $11m odd. Goes back to their pre-receivership days

So a few more years of tax relief yet

Snoopy
28-06-2014, 01:41 PM
Still a credible result. Even if it is all through the finance division.


Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY

percy
28-06-2014, 01:42 PM
Yes indeed Percy, well said, however the conundrum is that without their normal business they have nor finance business. One could almost argue that SCY is a finance company with a novel concept of attracting borrowers....

I think that is the correct way of looking at it.Farmers used to be the same before they had to sell their finance company to FPF.
They have very few problems with loans.Most hire purchase agreements are put in the wife's name.Welfare will assist with payments should Hubby leave the nest.! A lot of families always have something they are paying off.Smiths' have a reputation of working with people who face hardships,rather than against them.When Smiths went into receivership a great deal of people paid up their accounts trying to help Smiths.
Thanks winner69 for the up to date figure.It was amazing out come for Smiths.One of their auditors thought the way The Smiths City Group was structured, they could claim subsidiaries tax losses.The board then financed the cost of research and fees in claiming those losses. The rest is as they say history.

winner69
28-06-2014, 01:57 PM
Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY

Half year Finance profit was $1.84m out of $2.10m

noodles
28-06-2014, 02:39 PM
Whre is the divisional result breakdown in the released results noodles? Or are you just looking at the cashflow statement?

Interest Received- Smithcorp Finance: $7.9m
Interest Paid - Smithcorp Finance: $2.9m

=> net positive cashflow from Smithcorp Finance $5.0m. That is rather a high proportion of the 'Trading Profit' of $5.5m!

SNOOPY
Yeah, just looking at the cashflows.

blackcap
28-06-2014, 02:45 PM
Yeah, just looking at the cashflows.

I queried Rick on the divisionals with reference to the cashflows. He did say the cashflows are a little skewed in that there are timing issues with recievables etc and that it does not paint a complete picture. But admitted that most of the profit came from the finance division. Annual Report should provide further detail.. out soon according to Rick.

percy
28-06-2014, 04:35 PM
There are actually three arms to Smiths City.We know the retail and the finance arms,but have not mentioned their third arm,property.
The property arm retains ownership of Colombo street,ChCh store.The property arm has also achieved good property development profits.These have been achieved by buying a property,upgrading it,openning either a Power Store or Smiths city,then onselling the property.New owner has a great listed retailer as tenant.Development margin gained by Smiths City.
Now I was thinking if they don't buy an existing Auckland furniture retailer they may start developing their own sites.Have done it very successfully in the past. Gore,Invercargill,and Gisborne come to mind straight away.
Blackcap.If you see them doing it in Wellington or Auckland you know they will make good money.

Snoopy
29-06-2014, 02:46 PM
Half year Finance profit was $1.84m out of $2.10m


Just done a quick EBIT to segment assets ratio for SCY finance. Assuming:

1/ the finance division EBIT is $5m (maybe a bit high)
2/ Smithcorp Finance Assets are $1m + $42.2m + $29.1m = $72.3m

Then EBIT /Segment Assets = $5m / $72.3m = 6.9%

Using just the end of year balance to calculate this is suspect. But compared to the previous year the changes are small. So I think it is fair in this case.

Compare that to the equivalent figure from Dorchester Pacific and Turners (my post 983 on Dorchester thread). (I admit that comparing motor vehicle finance with household item finance is not an apples with apples comparison.)

------

So the FY2014 EBIT for the DPC finance division is $3.360m - $0.01014m = $3.350m

We also are told the segment assets for the finance division total $37,953m at years end.

So EBIT /Segment Assets = $3.35m / $37,953m = 8.83%

Now compare this with the equivalent TUA finance division result:

TUAF FY2013 ($1.861m-$1.151m+$1.926m) / ($10.684m + $14.916m) = 10.3%

------

Despite SCY making most of their profit through finance, - Smithcorp Finance is Smith's City's declared golden goose- , it does seem that the SCY finance division is not as fundamentally profitable as that run by Dorchester Pacific or Turners, both in the motor vehicle lending market.

SNOOPY

winner69
29-06-2014, 03:14 PM
What's their leverage /equity ratio like?

noodles
29-06-2014, 06:41 PM
Another reasonably respectable result from Smiths considering all the issues over the last few years

EPS of 7.7 cents so currently on PE of about 8



Winner69, on a PE =8, even I might be tempted to have a stab at this retailer.

However, I think to get a realistic figure for operating EPS, we should adjust as follows:
1. Remove the insurance proceeds of $550K
2. Apply a full tax rate of 28%

So now we can calculate a normalised NPAT as follows:
(trading surplus before tax - insurance proceeds) *(1- corporate tax rate)
(4700-550)*(1-.28)=2988

So my normalised NPAT is $2.88mill
EPS=0.057
PE=9.52

Still not expensive, but perhaps not such a bargain

percy
30-06-2014, 10:18 AM
What's their leverage /equity ratio like?

Be careful how you work this out.
Two very different equity ratios.One for a retailer,the other for a finance company.
Should you put them together [which is wrong] you get an over geared retailer.

percy
30-06-2014, 02:31 PM
----

Despite SCY making most of their profit through finance, - Smithcorp Finance is Smith's City's declared golden goose- , it does seem that the SCY finance division is not as fundamentally profitable as that run by Dorchester Pacific or Turners, both in the motor vehicle lending market.

SNOOPY
I agree with that statement.
My concern is using part of their finance company profits to drive retail sales,24 month and 36 month interest free terms,can be "set" against finance company rather than retail company.
Historically FPF made good profits out of comsumer lending.however Marac's motorvehicle lending was more profitable.
Both forms of lending have very few problem loans.

percy
03-07-2014, 06:51 AM
Well a few changes going on the Smiths City share register.Long term holder [former chairman/director] John Holdsworth has sold out.Holdsworth,was an excellent director.I really respected him.
The arrival of Duncan Saville's Utilico,will be interesting!?

Joshuatree
03-07-2014, 08:02 AM
Yes ; vaguely remember him doing well in Utilico i think but not shareholders?

The Grinch
27-08-2014, 05:24 PM
Arvo,

Surprised no ones made a comment today about SCY's recent report they had Edison commission. Had a skim through and will be an interesting 24 months if there considering moving into Waikato and Auckland space. Agree that they would need to acquire a smaller operator with some sort of distribution centre in Auckland. Wonder how far the SCY team have developed this to date? Do they have half a dozen potentials lined up?

Thought exhibit 10: peer valuation was a bit rubbish (vary different retail groups compared) but other than that pretty respectable report with a steady as she goes mentality. Have kept a lazy eye on this one for a while.

Not likely to dip my toes in just yet but inching closer.

Would appreciate others thoughts.

Cheers

percy
27-08-2014, 05:40 PM
Loved the Edison report.According to it the future looks very bright.Share Price value over 80cents.More profits in furniture.....Yes great stuff...
Then read Rick Hellings agm address for a reality check;"We expect trading to continue to be tough and we have to absorb increases in interest rates".
It is not going to get any easier for them.

noodles
27-08-2014, 07:10 PM
Loved the Edison report.According to it the future looks very bright.Share Price value over 80cents.More profits in furniture.....Yes great stuff...

yes, written by 2 analysts from London. Come on. Is it even worth reading? Or are they just writing the story management tell them?

thl has commisoned edison as well. It is a shame that our local analysts won't cover the small caps.

Lizard
27-08-2014, 07:15 PM
Presumably, they get the report written to try and get the share price to a point where they can reasonably use equity in some form to fund the purchase of an appropriate business in Auckland/Waikato?

percy
27-08-2014, 07:17 PM
I think any one reading it and acting on it would be making a big mistake.!!
"He who pays the piper calls the tune."
SCY commissioned this report.

winner69
27-08-2014, 07:21 PM
yes, written by 2 analysts from London. Come on. Is it even worth reading? Or are they just writing the story management tell them?

thl has commisoned edison as well. It is a shame that our local analysts won't cover the small caps.

I really lookin forward to their PEB report

That be a boomer methinks

winner69
27-08-2014, 07:30 PM
I think any one reading it and acting on it would be making a big mistake.!!
"He who pays the piper calls the tune."
SCY commissioned this report.

But Percy me old mate Smiths say 'This report has been prepared using information that is publicly available. It should be noted that the opinions and conclusions in the report are those of Edison Investment Research Limited and not Smiths City.'

See, it is independent

percy
27-08-2014, 07:35 PM
But Percy me old mate Smiths say 'This report has been prepared using information that is publicly available. It should be noted that the opinions and conclusions in the report are those of Edison Investment Research Limited and not Smiths City.'

See, it is independent
Yeah Right!!!
For fear of being sued that's my only comment.!!

troyvdh
27-08-2014, 11:03 PM
Giday you grumpy lot...can you folk post any holdings please...just asking is all.

percy
28-08-2014, 07:28 AM
I see this morning's daily sharechat was SCY.Mcdouall Stuart value them at 71cents and their recommendation is Buy.

Above posted 08-07-2010.
I used to be a top 20 shareholder,as was my wife.A very successful investment, as I started buying them the day they were delisted from the NZX and going into receivership.I kept buying their shares off market from Christchurch brokers who had estate holdings to clean up.At one stage I was receiving in dividends what my original shares cost me.!!!
I sold out a few years ago.My reasons for selling were.Competition,low margins,increasing staffing costs [ie extra week holiday,and company having to contribute to staff Kiwi savings],huge costs with large fleet of vehicles.
Earlier this year I brought some SCY shares off one of my daughters as she needed some money.Sort of felt a traitor selling out of Smiths.Thought they would do well with the ChCh rebuild.They when I read the latest annual report I realised nothing had changed.The issues that made me sell were still ongoing.I then sold the shares I had brought from the daughter,so neither my wife nor I hold any SCY shares.The other daughter is still holding her shares ,so I still have access to the annual report.
You may think they are "well positioned",however I think they are still on the road to nowhere.

noodles
13-09-2014, 04:21 PM
Always good to see the face of who is running the company.
https://www.youtube.com/channel/UCZ6mjQForwG_IrR64NZAkOw

blackcap
07-08-2015, 11:56 AM
Always good to see the face of who is running the company.
https://www.youtube.com/channel/UCZ6mjQForwG_IrR64NZAkOw

Sweet and sour. They sell Colombo Road store for $20m (38 cents per share) but then say they are going to put the money back into the business. Bye bye 38 cents is my initial thought. The retail division is still making losses, only supported by finance which keeps posting profits.
I am really disappointed they did not give at least half of the proceeds back to shareholders. Might consider whether its worth staying with this investment. Cannot see retail (in its traditional form) getting any easier.

ASSET: SCY: Smiths City Colombo Street Property, Christchurch 11:36a.m.
SCY
07/08/2015 11:36
ASSET
PRICE SENSITIVE
REL: 1136 HRS Smiths City Group Limited

ASSET: SCY: Smiths City Colombo Street Property, Christchurch

7 August 2015

SMITHS CITY COLOMBO STREET PROPERTY, CHRISTCHURCH

As advised to the shareholders of Smiths City Group Limited in its annual
report for the year ending 30 April 2015, the directors have engaged Colliers
International to investigate market interest in the Colombo Street property
including the possible sale and lease back of the property.

The company is pleased to advise that Smiths City Properties Limited (one of
its subsidiaries) and the owner of the Colombo Street property has entered
into a conditional agreement to sell that property. In addition Smiths City
(Southern) Limited (another of its subsidiaries) and the main retail trading
arm of the Group has conditionally agreed to enter into a lease in respect of
the property from the new purchaser.

In terms of the sale the subject property is located at 550 Colombo Street,
Christchurch. The sale price is $20 million plus GST. Settlement will be 18
September 2015 conditional on satisfaction of the further terms in the
agreement. There is a due diligence condition and lease approval condition
both inserted for the benefit of the purchaser within 10 working days. The
agreement also contains conditions requiring the approval of the transaction
as a major transaction by both vendor Smiths City Properties Limited and the
shareholders of Smiths City Group Limited. In terms of the latter approval,
this will be put to shareholders of Smiths City Group Limited at its annual
general meeting to be held on Tuesday 25 August 2015 in Christchurch.

With regard to the lease the commencement date is to be aligned with
settlement of the property and rental is $1.409 million per annum plus GST
and outgoings. The initial term is for 12 years with two further rights of
renewal of six years each.

This transaction is also subject to the approval of Smiths City (Southern)
Limited and the shareholders of Smiths City Group Limited as major
transactions.

ROY CAMPBELL
CHIEF EXECUTIVE OFFICER
0272239574

http://www.stuff.co.nz/the-press/business/70922597/smiths-city-confirms-store-sale-and-leaseback

winner69
28-08-2015, 02:47 PM
So Ron Brierley taken a reasonable stake in Smiths City

Must be after the shareholder discount for the fridge ....oops Smiths City don't have a branch in Sydney and going down to Harvey Norman would be a better bet.

Must see something in the business. Obviously not Colombo St seeing that's gone. Must be the finance part.

winner69
28-08-2015, 02:47 PM
Maybe Ron read the Edison valuation and said why not.

blackcap
22-12-2015, 03:48 PM
Ok they have repaid debt with their money from Colombo road. Thats ok. Retail making profit again but at the expense of the finance company. Not glamorous... but at 56 cents a dividend of 3.5 cents per year (unimputed) and EPS (normalised at about 8cps?) is worth holding onto for now....
NTA of 90 odd cents as well gives a bit of a buffer.

https://nzx.com/companies/SCY/announcements/275603

percy
22-12-2015, 04:15 PM
Ok they have repaid debt with their money from Colombo road. Thats ok. Retail making profit again but at the expense of the finance company. Not glamorous... but at 56 cents a dividend of 3.5 cents per year (unimputed) and EPS (normalised at about 8cps?) is worth holding onto for now....
NTA of 90 odd cents as well gives a bit of a buffer.

https://nzx.com/companies/SCY/announcements/275603

Well retail just does not get any easier.
Hard work for very little return.

blackcap
22-12-2015, 04:48 PM
Hard work indeed Percy, but with the finance company, if they can make $4 per annum (8cps) on a 56 cent stock, is still a 14.28% return on investment. And I am happy enough with that.

percy
22-12-2015, 05:20 PM
Hard work indeed Percy, but with the finance company, if they can make $4 per annum (8cps) on a 56 cent stock, is still a 14.28% return on investment. And I am happy enough with that.

I think they would be too.!!! lol.

blackcap
22-12-2015, 06:03 PM
I think they would be too.!!! lol.

Haha fair enough. I meant to say $4 "million". Anyway have a good Christmas and New Year. Seems SCY have their work cut out but if they keep going as is I will continue holding. :)

PLYNCH
26-06-2016, 02:29 PM
A good result on Friday.
Anyone still following?

blackcap
26-06-2016, 02:52 PM
A good result on Friday.
Anyone still following?

Following and very happy with what came out Friday. two or more such results (showing increased sales and profits) and this stock will be well over $1

percy
26-06-2016, 03:02 PM
Following and very happy with what came out Friday. two or more such results (showing increased sales and profits) and this stock will be well over $1

Be a little careful.
Sales revenue went from $210.6 mil to $211.6mil.So sales are flat.
Also read note 15.
Trading profit of $4mil included $1.8mil from sale of property,leaving $2.2mil which is just over 1% of sales.Too low.
A lot of adjustments to be made.

blackcap
26-06-2016, 03:26 PM
Be a little careful.
Sales revenue went from $210.6 mil to $211.6mil.So sales are flat.
Also read note 15.
Trading profit of $4mil included $1.8mil from sale of property,leaving $2.2mil which is just over 1% of sales.Too low.
A lot of adjustments to be made.

I did see that, but what I meant was that if they can keep making profit from trading (and not taking $ from the finance business) then this will go over $1. The market will have to have a few years of consistency for this to occur though. But a lot better this time than what I was expecting :)
Cheers for the caveat Percy! (in the meantime I am happy with the last 3 or 4 years 3.5 cents fully imputed annual dividend)

percy
26-06-2016, 03:58 PM
I did see that, but what I meant was that if they can keep making profit from trading (and not taking $ from the finance business) then this will go over $1. The market will have to have a few years of consistency for this to occur though. But a lot better this time than what I was expecting :)
Cheers for the caveat Percy! (in the meantime I am happy with the last 3 or 4 years 3.5 cents fully imputed annual dividend)

REAL BIG CAVEAT for you.SCY are still using up tax losses,so there is still NO imputation credits.!!

blackcap
26-06-2016, 04:24 PM
REAL BIG CAVEAT for you. SCY are still using up tax losses,so there is still NO imputation credits.!!

Haha yes off course, thanks for pointing out. Got confused with another stock. Still not going to sneeze at the 3.5 cent annual, and if when they get consistent sales then all steam ahead. This is a good start, if the retail arm can break even or better the finance arm will pave the way. Cannot complain to now what SCY have done in the last 3 years, considering market conditions as well. Happy to hold for potential turnaround.

percy
26-06-2016, 04:34 PM
I seem to remember sales were about $205mil ten to fifteen years ago.
With such fine margins sales growth will add liitle to the bottom line.
As you point out the profits come from SCY finance.So they had better not give away margin trying to maintain sales.
They said Taupo store is going well,but I hear JBHiFi are opening in Riccarton Mall with whitware,so competition will only make an already difficult market even more challenging.

percy
27-06-2016, 05:07 PM
Today's announcement that Tony Allison will join the board as representative of UIL Ltd is positive step for the company.

blackcap
02-08-2016, 12:56 PM
A little more interest in SCY, I see Ron Brierly et al have increased their stake to 17.7% or thereabouts. So either they go to 19.99 and stop or they do the takeover thing. Wonder what their game is. Nice to see SCY in the 60's again though and cum a good 2.5 cent dividend.

blackcap
08-08-2016, 03:35 PM
Some media exposure for SCY...

http://www.stuff.co.nz/business/82940791/brierley-companies-up-stake-in-retailer-smiths-city

winner69
29-01-2017, 12:57 PM
Think Ron will make an offer for SCY

I see GFI are matching Ron share for share

Company performance improving.

Don't shop there any more seeing they closed the local shop that provided fantastic personal service (ex LV Martin store)

blackcap
29-01-2017, 02:31 PM
ThinkK Ron will make an offer for SCY

I see GFI are matching Ron share for share

Company performance improving.

Don't shop there any more seeing they closed the local shop that provided fantastic personal service (ex LV Martin store)

well they are now at 19.8 or so % so cannot buy anymore without an offer. You could be right, Sandon Capital really do like the prospects and think a shakeup at board and management level will help SCY, and the fact that SCY trades under NTA. (p.16 of attached PDF)

http://www.asx.com.au/asxpdf/20161118/pdf/43d0prhhd5m0c9.pdf

percy
29-01-2017, 03:11 PM
Some fun things in the interin report.
Looks as though the usual yearly "one offs" will continue next year,should Roy Campbell get his way for a new information platform.
Roy has certainly upset the staff replacing loyal staff with his people.Now a them and us atmosphere.
Love the cash flow hedges in the accounts,whatever they are.?
Moving away from supplier rebates could be costly.
Still appears to me to be a not for profit retail operation, providing customers for their profitable finance company.
Offcourse the finance business would not survive without the retail customers.
Not owning any real property,I find it hard to see how the NTA could be realised.
Like other retailers SCY have to work extremely hard to make profit.

blackcap
30-01-2017, 08:53 AM
Some fun things in the interin report.
Looks as though the usual yearly "one offs" will continue next year,should Roy Campbell get his way for a new information platform.
Roy has certainly upset the staff replacing loyal staff with his people.Now a them and us atmosphere.
Love the cash flow hedges in the accounts,whatever they are.?
Moving away from supplier rebates could be costly.
Still appears to me to be a not for profit retail operation, providing customers for their profitable finance company.
Offcourse the finance business would not survive without the retail customers.
Not owning any real property,I find it hard to see how the NTA could be realised.
Like other retailers SCY have to work extremely hard to make profit.

Thanks Percy,

Must do some more digging into those accounts and see what is up...

blackcap
30-01-2017, 09:17 AM
Some fun things in the interin report.

Roy has certainly upset the staff replacing loyal staff with his people.Now a them and us atmosphere.
.

Percy, could not find any of this in the interim report. Maybe you could elaborate? Because for me this is an important issue when investing.

percy
30-01-2017, 09:53 AM
Percy, could not find any of this in the interim report. Maybe you could elaborate? Because for me this is an important issue when investing.

You will not find it anywhere,as it came from someone who is mates with a number of SCY staff.I would point out he is a substantial shareholder who is concerned.

blackcap
30-01-2017, 02:33 PM
You will not find it anywhere,as it came from someone who is mates with a number of SCY staff.I would point out he is a substantial shareholder who is concerned.

Is he concerned enough to sell out? Good price to do so if he wants to.
Thanks Percy, such anecdotal insights are welcome and I do not ignore them. Will see how it plays out in the coming year. Interestingly enough though Sandon etc are interested in this company and Duncan Saville who is astute also took a stake a whole few years ago. I cannot complain since I purchased shareprice has gone up and consistent dividends. Yes retail is breaking even but its tough everywhere so if they can break even and thus support the finance company that is all that is really required for adequate return on capital.

percy
30-01-2017, 02:45 PM
Is he concerned enough to sell out? Good price to do so if he wants to.
Thanks Percy, such anecdotal insights are welcome and I do not ignore them. Will see how it plays out in the coming year. Interestingly enough though Sandon etc are interested in this company and Duncan Saville who is astute also took a stake a whole few years ago. I cannot complain since I purchased shareprice has gone up and consistent dividends. Yes retail is breaking even but its tough everywhere so if they can break even and thus support the finance company that is all that is really required for adequate return on capital.

No he has been a holder for a good number of years,and just unhappy about "club Roy".
As you may remember I was a big holder of SCY a number of years ago.Today only hold a few.
However all these changes,ie selling Power Stores,Alectra and Colombo St property should have been done years ago.So it falls back to very bad decissions at board level.Years wasted in the wilderness.!
Yes I agree Duncan Saville is astute.
Value? The only value I can see is if SCY were to franchise the business,as per Harvey Norman.

blackcap
31-01-2017, 11:25 AM
No he has been a holder for a good number of years,and just unhappy about "club Roy".
As you may remember I was a big holder of SCY a number of years ago.Today only hold a few.
However all these changes,ie selling Power Stores,Alectra and Colombo St property should have been done years ago.So it falls back to very bad decissions at board level.Years wasted in the wilderness.!
Yes I agree Duncan Saville is astute.
Value? The only value I can see is if SCY were to franchise the business,as per Harvey Norman.

Cheers Percy, yes I do remember and thanks for the PM conversation a while back. Cheers for getting back with my query. If "club Roy" is sowing seeds of discontent that is not a good thing. I will give them the benefit of the doubt for now.
Your reference to cash flow hedges got me doing some digging. Seems it is an accounting tool.....

http://www.accountingtools.com/cash-flow-hedge-definition

percy
02-06-2017, 05:55 PM
Soldiering on.
Tougher trading conditions.No surprises there .
$5.7mil to be returned to shareholders via a 3 in 20 shares buy back at 72cents is interesting.
So shareholders will own a bit bigger slice of the cake, and have some cash to enjoy,but still the cake does not look very appetizing to me.

dubya
11-10-2017, 02:57 PM
I bought some shares in Smiths City a couple of years ago when I read two companies connected with Sir Ron Brierley in Australia (Mercantile Investments and Sandon Capital) were accumulating them. They publicly advised at the time that the two companies would work together with their respective holdings, and they have now each accumulated 19.8% of the stock, so companies connected to Ron Brierley now control 40% of the company. As I understand it, they can not buy any more without launching a takeover bid.

Since they started buying, the share price has gone from 50c to the mid 70’s, and now after the buying from Australia has dried up, the price has inched back to mid to low 60’s. All on low volume.

The dividend at the current price is about 7.80% gross. Audited NAB of about 90c.
The company recently announced a 3:20 share buyback @ 72c. An extra-ordinary shareholders meeting is scheduled for November where share holder approval will be sought for this. The buyback is from insurance proceeds and a property sale, so as advised by the company will be a capital distribution. After the buy back (which is 15% of the total shares) the shares will be cancelled.

The company has just had it’s 99th year celebration, which they have reported was their most successful sales promotion yet. The finance company side of their business (78,000 active accounts on their books) continues to tick along, so I guess there is a good synergy whereby they sell the item and finance it themselves, so thereby getting two ‘bites of the cherry’.
They have recently expanded into Auckland and Northland.

I’m not aware of any NZ institutions or Kiwisaver providers with any relevant holdings.

Are there any other shareholders on this forum, or anyone actually, with a view as to what they think might happen going forward. The Ron Brierley of old is a well known corporate raider, and doesn’t buy stakes in companies for altruistic reasons.

There has to be an exit strategy for Brierley and the two companies. I have nothing to back this up, and it’s a bit of crystal ball gazing and fortune telling, but with the share price having been driven up when they were buying, and now drifting back down quite a lot after they stopped - maybe they wait for it to get as low as possible, then launch a takeover? At say a 10% premium to the then current share price. Everyone will think that’s really good considering where the price was before the takeover offer.

What they do after that is anyone’s guess, but they will certainly be trying to extract the 20-40c difference between share price and NAB.

Ideas anyone??

percy
11-10-2017, 04:39 PM
I bought some shares in Smiths City a couple of years ago when I read two companies connected with Sir Ron Brierley in Australia (Mercantile Investments and Sandon Capital) were accumulating them. They publicly advised at the time that the two companies would work together with their respective holdings, and they have now each accumulated 19.8% of the stock, so companies connected to Ron Brierley now control 40% of the company. As I understand it, they can not buy any more without launching a takeover bid.

Since they started buying, the share price has gone from 50c to the mid 70’s, and now after the buying from Australia has dried up, the price has inched back to mid to low 60’s. All on low volume.

The dividend at the current price is about 7.80% gross. Audited NAB of about 90c.
The company recently announced a 3:20 share buyback @ 72c. An extra-ordinary shareholders meeting is scheduled for November where share holder approval will be sought for this. The buyback is from insurance proceeds and a property sale, so as advised by the company will be a capital distribution. After the buy back (which is 15% of the total shares) the shares will be cancelled.

The company has just had it’s 99th year celebration, which they have reported was their most successful sales promotion yet. The finance company side of their business (78,000 active accounts on their books) continues to tick along, so I guess there is a good synergy whereby they sell the item and finance it themselves, so thereby getting two ‘bites of the cherry’.
They have recently expanded into Auckland and Northland.

I’m not aware of any NZ institutions or Kiwisaver providers with any relevant holdings.

Are there any other shareholders on this forum, or anyone actually, with a view as to what they think might happen going forward. The Ron Brierley of old is a well known corporate raider, and doesn’t buy stakes in companies for altruistic reasons.

There has to be an exit strategy for Brierley and the two companies. I have nothing to back this up, and it’s a bit of crystal ball gazing and fortune telling, but with the share price having been driven up when they were buying, and now drifting back down quite a lot after they stopped - maybe they wait for it to get as low as possible, then launch a takeover? At say a 10% premium to the then current share price. Everyone will think that’s really good considering where the price was before the takeover offer.

What they do after that is anyone’s guess, but they will certainly be trying to extract the 20-40c difference between share price and NAB.

Ideas anyone??

Brierley never had an exit plan with BIL or IEL,IEP,TKM,or Mt Charlotte..
Doudt he has one here.
NTA will quickly disappear should they show a loss,and with such slim margins the stock take,could result in either a profit or a loss.
The profitable finance company, depends on retail to supply the customers,so not a lot of value without retail.
Take care.

dubya
14-10-2017, 01:29 PM
Thanks for that Percy. I appreciate your comments. I thought a few more people on here might have been holders and had a view, but I guess it’s not a widely held stock. Time will tell I suppose. And btw, you were one of the people I referred to in my first post on this forum. Cheers.

blackcap
14-10-2017, 02:09 PM
Thanks for that Percy. I appreciate your comments. I thought a few more people on here might have been holders and had a view, but I guess it’s not a widely held stock. Time will tell I suppose. And btw, you were one of the people I referred to in my first post on this forum. Cheers.


Hi Dubya, I do hold a few of these as well. Happy with the 3.5 cents per annum dividend to date, but watching with a wary eye as to how the company keeps performing. Its a tough market out there. The icing on the cake is the finance division which pretty much makes all their profit. So retail is pretty much breaking even. So can go both ways here. Can get a margin of a % or 2 and really do well or make -2% margin and really start to suffer. What Brierly and Sandon are doing I am not sure, Sandon say they are activist investors but to date have not really seen any "activity" from them. Good luck.

percy
14-10-2017, 02:31 PM
There have been some huge changes made to SCY's business.They should have been made 10 years or more ago.
Alectra service division divested.Was a loss maker.
Power Stores.Closed.Another loss maker.
Colombo Street store .Sold and leased back.
Finance Company.Being more active,ie offering customers personal loans,other than loans on products sold by them.
These are big changes for a company SCY's size and all done over chairman Craig Boyce's dead body.!!
So plenty of activity.
The only way I could see SCY making money is to do a Harvey Norman, and franchise parts of the business.

winner69
26-10-2017, 07:59 AM
This doesn’t read like a very good announcement

Tough times

https://www.nzx.com/companies/SCY/announcements/309192

moka
26-10-2017, 09:52 AM
This doesn’t read like a very good announcement

Tough times

https://www.nzx.com/companies/SCY/announcements/309192

“Meanwhile, the rebranding of the former Furniture City store in Whangarei, is showing early signs of delivering on its promise. Indeed, in the period it has been operating under the Smiths City ‘live better’ brand, its weekly sales have been 26% ahead when compared to the same period last year before the rebrand.

The Whangarei store opened 4 September and it had opening specials so yes sales should have been up.
I went in one Saturday 2 weeks ago at 10am and I was the only person in the store. I wasn’t impressed and I would be unlikely to visit again just to browse.
I liked Furniture City, as it had a good range of quality furniture at reasonable prices and I was disappointed to see them close. I have bought quite a bit from them over the years.

percy
26-10-2017, 03:39 PM
This doesn’t read like a very good announcement

Tough times

https://www.nzx.com/companies/SCY/announcements/309192

No surprises there.!!

percy
22-12-2017, 01:14 PM
Does not get any easier.

winner69
22-12-2017, 03:02 PM
Does not get any easier.

Cautiously optimistic ....but not well positioned

blackcap
22-12-2017, 03:08 PM
Cautiously optimistic ....but not well positioned

Sold mine on the previous announcement at 60 cents. Quite surprised the SP has stayed this resilient. Will look to get back in when "things improve".

LAC
22-12-2017, 03:30 PM
Damn, that's a painful 6mth statement to read. Its just a tough business to be in

percy
22-12-2017, 03:58 PM
Cautiously optimistic ....but not well positioned

If you care to read the out look statement, in every SCY annual report since 1991,26 years, you will note they have been cautiously optimistic.
We must keep in mind the share price of SCY and EBO, were very close in, I think, 1995.
So 10,000 SCY then had market value of $5,900.Same today,
while 10,000 EBO is worth $183,000 today.

Now that must focus any long term SCY shareholder's attention.

winner69
22-12-2017, 04:23 PM
Actually well positioned - all those new houses Jacinda going to build will need stuff from Smiths City

Gerry Harvey said the best driver of sales was couples separating. ....ended up with 2 lots of most things. Maybe Smiths need more separations to happen.

percy
22-12-2017, 05:09 PM
Actually well positioned - all those new houses Jacinda going to build will need stuff from Smiths City

Gerry Harvey said the best driver of sales was couples separating. ....ended up with 2 lots of most things. Maybe Smiths need more separations to happen.

Maybe had SCY followed Gerry Harvey's "franchise" model, 20 years ago, they would be "well positioned" for anything today.
Certainly shareholders would have benefitted.

janner
02-01-2018, 10:34 PM
Noticed an Advert. From Smith City today ( In passing . Not looking ).

78% off RRP.. Really ???

Disc. Not a holder

percy
17-04-2018, 07:38 AM
Oh dear.!!!!!!!!!!!!!!!!!!!!!

Hectorplains
17-04-2018, 07:45 AM
Oh dear.!!!!!!!!!!!!!!!!!!!!!

The signs were there - massive discounting and 50 months interest free.

winner69
17-04-2018, 07:47 AM
Oh dear.!!!!!!!!!!!!!!!!!!!!!

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SCY/316845/277807.pdf

That’s a huge drop in revenues

Not big enough to be ‘big’ and will continue to struggle

Not surprised are we Percy

winner69
17-04-2018, 07:53 AM
Alan Martin will be turning in his grave that his beloved Ngauranga store has closed down.

percy
17-04-2018, 08:50 AM
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SCY/316845/277807.pdf

That’s a huge drop in revenues

Not big enough to be ‘big’ and will continue to struggle

Not surprised are we Percy

Unfortunately "no surprises there".
The long tail of lease commitments, for underperforming stores does not go away until their leases expire.Three years into a six year lease means another three years of pain.In SCY's case a $4.8mil store lease impairment provision is equal to about three years net profit.A very long time to work for nothing.
Then there will be store closures,with redundancies and other costs.?
Then landlords will find out the true rental value of their properties,knowing full well if Smiths City can not make the site work,who can?.
I see the number of empty retail stores around the country growing quickly over the next couple of years.

percy
17-04-2018, 08:58 AM
Alan Martin will be turning in his grave that his beloved Ngauranga store has closed down.

Craig Boyce would not be to happy either.
Never sell Colombo Street store.Core................Sold.
Must offer full service.Core....................Alectra sold/closed.
Gerry Harvey,JBHiFi,and I expect Leemings all face huge challenges.The amount of space they require for their stores means large rent commitments,the logistics of freighting large items,staffing,and advertising costs mean very slim margins.
Looking at their business models it is easy to understand why I love LOV.

percy
10-07-2018, 11:55 AM
The exit door for shareholders appears to be closing.

CD_CHCH
10-07-2018, 12:11 PM
The exit door for shareholders appears to be closing.

Why do you say the exit door is closing Percy? Is it due to the stagnant share price that is sitting at a record low or have I missed something else?