WHS - Warehouse Group

[winner69]

Not sure why WHS don't just turn a portion of their stores into a costco/gilmores type operation.

Buy 5kg of milo cheap
Buy 50kg washing powder cheap
Buy 2kg corn flakes cheap.

Don't worry about perishables or short life goods. Who wants to buy their milk and broccoli from the WHS? Not me but I would buy 5kg of baked beans in a tin.

There’s a Uncle Bills next door to a Red Shed in Lyall Bay

Got pack of 40 bags Twining Tea for $3.98 the other day

Countdown price 20 bags for $6.70

So rawz your model works ……without the cost of having everything

[winner69]

Love these government ‘inspired’ enquiries

Like we are not being fleeced at the petrol pumps by the likes of Z any more

[winner69]

Interesting thought I came across today - Competitive forces are also absent in our democracy. Effectively because of the 5% threshold for MMP we have little more than a monopoly.

Better have an enquiry I reckon

[BlackPeter]

Interesting thought I came across today - Competitive forces are also absent in our democracy. Effectively because of the 5% threshold for MMP we have little more than a monopoly.

Better have an enquiry I reckon

Hmm - not sure - I do see at least a duopoly. I think the problem with politics here is not lack of competition, but lack of relevant abilities, a lack of delivery of whatever was promised :): combined with a lack of transparency and a strong ineptitude to select decent candidates.

However - I must admit - I can think about many other countries where the lack of these attributes is ways worse than here in NZ :):

[winner69]

Only a Comcom ‘expert’ could suggest direct government sponsorship of entry into the market

What a weird world it is these days

[LaserEyeKiwi]

Only a Comcom ‘expert’ could suggest direct government sponsorship of entry into the market

What a weird world it is these days

That’s just one option. The more obvious immediate moves are things such as implementing a code of conduct (like they have in Australia and UK). At present the duopoly threatens suppliers with banishment from their shelves, or harsh cutbacks, if they dare to contemplate a serious effort to supply a new entrant. That is out an out abuse of market power and definitely warrants government action. The duopoly players did this to themselves, even while KNOWING that the com com was investigating the market they were stupid enough to continue doing it.

The exact same thing is happening in the building supplies industry - but from the opposite end. Building supplies are also a duopoly, but this time from suppliers, and hardware retailers & house builders are threatened with negative consequences if they seek a new third supplier either locally or internationally.

[winner69]

It’s a bugger WHS share price hasn’t really moved for a few weeks

The so called ‘overhang’ from Foodstuffs sell down must be gone by now?

Hope market not believing the story this year is a one off and things will revert to more normal levels of profit next year and beyond.

[oldtech]

It’s a bugger WHS share price hasn’t really moved for a few weeks

I don't mind ... gives me a chance to save my pennies and buy a few more :t_up:

[Beagle]

It’s a bugger WHS share price hasn’t really moved for a few weeks

The so called ‘overhang’ from Foodstuffs sell down must be gone by now?

Hope market not believing the story this year is a one off and things will revert to more normal levels of profit next year and beyond.

Just expanding on this a bit and you already know my view about the demand push being a multi year thing but the key point to me is that if this one off tailwind was indeed just a one -off then you could make the same argument for almost all the retailers so Briscoes on a PE of 17 and WHS on a PE of 6.6 becomes a bit of a no brainer decision especially given Rod Duke already has his business running like a well oiled Swiss watch and there's plenty of efficiencies to come from WHS's enhancement program.

Disc: Bought even more yesterday.

[winner69]

Just expanding on this a bit and you already know my view about the demand push being a multi year thing but the key point to me is that if this one off tailwind was indeed just a one -off then you could make the same argument for almost all the retailers so Briscoes on a PE of 17 and WHS on a PE of 6.6 becomes a bit of a no brainer decision especially given Rod Duke already has his business running like a well oiled Swiss watch and there's plenty of efficiencies to come from WHS's enhancement program.

Disc: Bought even more yesterday.

OMG …..WHS share price at PE of 17 is close to $9.00

[Beagle]

I trust you are like me and to coin one of Percy's favorite sayings, are "well positioned" :)

[Old mate]

https://www.stuff.co.nz/business/prosper/125887870/june-was-the-strongest-month-for-small-businesses-since-level-4-lockdown-last-year-xero-reports
June strongest month for small business since level four.

[percy]

https://www.stuff.co.nz/business/prosper/125887870/june-was-the-strongest-month-for-small-businesses-since-level-4-lockdown-last-year-xero-reports
June strongest month for small business since level four.

Well looks as though retail is boooooooooooooooming.
Went to Westfield Riccarton at 11.30 this morning.
Even Michael Hill had customers.!!.

[nztx]

^
||
||


Major hint for our friend - 'James' in the 2 postings above :)

Special Note to James: these are not advice or opinion, but fact ;)

[Zaphod]

On the other side of this, products are still difficult to source, with long shipping delays and much higher costs. General business costs overheads are continuing to rise as well. Will we see another min wage rise in April? What about the implications of the fair pay act? What will the effect of a more open border, or higher interest rates on already maxed out mortgages be?

[LaserEyeKiwi]

Rising interest rates will primarily impact the small minority of home owners for are first home owners who purchased in the last few years. The rest of the country’s homeowners (the vast majority) are sitting on huge gains creating a massive “wealth effect” that a small rise in interest rates (which are still well below long term average) will have little impact on. And of course the half of the country who rent also won’t be impacted.

I really think the massive impact of the paper wealth created over the last few years has yet to be appreciated by hardly anyone. And for those that have identified it, it’s probably judged to be a topic not for public discussion given the flip side of the situation (housing crisis). The number of millionaires created is absolutely unprecedented though.

[Waltzing]

On line shopping is here to stay and that means the browser is not really the device that lets you shop in VR.

These on line platforms will be lucky to last the decade. They will need a whole new technology platform to deliver the experience desired. Luckily the money is with the generation who grew up with the browser and companies can use there on line platforms for a while yet.

IT investments by these retailers will push them use global platforms that deliver the technologies they need to compete with each other.

It will be a case of sprinting just to stay still in the next decade to come.

Are you going to even want to go to crowd places such as sports events or concerts if you know your going to get a dose of the virus.

The whole game has changed and VR shopping could be the next big thing and who want to type on a keyboard to do it...

Want to walk down around crowed places?

Back to WHS and does it have a cost efficient delivery system with robot EV's? The next 20 years will bring huge change and the companies that start to embrace that change are the ones you can invest in for a decade.

MR B moves quickly and it may be a lesson that buy and hold is now a very difficult thing to do for many sectors. Defensives must surely start to make up a good portion of balanced portfolio's.

WHS does it have the track record? Yes it does but will it be able to compete with the competition that will come to NZ.

[alokdhir]

On line shopping is here to stay and that means the browser is not really the device that lets you shop in VR.

These on line platforms will be lucky to last the decade. They will need a whole new technology platform to deliver the experience desired. Luckily the money is with the generation who grew up with the browser and companies can use there on line platforms for a while yet.

IT investments by these retailers will push them use global platforms that deliver the technologies they need to compete with each other.

It will be a case of sprinting just to stay still in the next decade to come.

Are you going to even want to go to crowd places such as sports events or concerts if you know your going to get a dose of the virus.

The whole game has changed and VR shopping could be the next big thing and who want to type on a keyboard to do it...

Want to walk down around crowed places?

Back to WHS and does it have a cost efficient delivery system with robot EV's? The next 20 years will bring huge change and the companies that start to embrace that change are the ones you can invest in for a decade.

MR B moves quickly and it may be a lesson that buy and hold is now a very difficult thing to do.

WHS does it have the track record? Yes it does but will it be able to compete with the competition that will come to NZ.

Buy and hold still works for MFT and FPH kind of stocks not for cyclicals like WHS and HLG ...unless they get the advantage over others by much advanced in technology and delivery systems . I will not bet on WHS to adapt so quickly with their ancient thinking and ways of doing things ...Briscoes maybe better bet but only time will tell .

[Waltzing]

next 5 years WHS is looking very stable and a BUY... MR B knows how to pick them.

With Labour under the pump and the lipstick smeared there is real pressure to keep the economy on its feet..

MIQ lacking to meet demand to put the economy back into action the economy could be running hot but it not at full revs.

Capital markets in NZ need attention with teeth to the FMA , tech R&D required. If the film industry treatment had been handed to manufacturing and tech we might have seen a bigger NZX.

[Beagle]

Buy and hold still works for MFT and FPH kind of stocks not for cyclicals like WHS and HLG ...unless they get the advantage over others by much advanced in technology and delivery systems . I will not bet on WHS to adapt so quickly with their ancient thinking and ways of doing things ...Briscoes maybe better bet but only time will tell .

Nobody is disputing Rod Duke's retail expertise however on a trailing PE of 17 and with the same procurement and logistical challenges as other retailers I feel Briscoes is fully priced in the circumstances.

WHS is a classic turnaround story. They've stripped a lot of cost out of the business (700 staff last year) and talk of a flatter management structure. Overhaling their inventory management systems, store within a store with Warehouse Stationary, possible retail footprint rationalization, (WALT of stores is just 4 years) and a range of other initiatives some of which will hopefully be eps accretive.

I would rather invest in a turnaround story on a current year PE of around 6.5 than pay up handsomely for perfection. Benefits have increased and many other Kiwi's will be doing it tougher in the years ahead with rising interest rates and that will drive them to make value buying decisions.

I think international travel is unlikely to revert to 2019 levels for many many years and people will spend that money here instead.

[alokdhir]

Nobody is disputing Rod Duke's retail expertise however on a trailing PE of 17 and with the same procurement and logistical challenges as other retailers I feel Briscoes is fully priced in the circumstances.

WHS is a classic turnaround story. They've stripped a lot of cost out of the business (700 staff last year) and talk of a flatter management structure. Overhaling their inventory management systems, store within a store with Warehouse Stationary, possible retail footprint rationalization, (WALT of stores is just 4 years) and a range of other initiatives some of which will hopefully be eps accretive.

I would rather invest in a turnaround story on a current year PE of around 6.5 than pay up handsomely for perfection. Benefits have increased and many other Kiwi's will be doing it tougher in the years ahead with rising interest rates and that will drive them to make value buying decisions.

I think international travel is unlikely to revert to 2019 levels for many many years and people will spend that money here instead.

Fully agree with your logic that its much lesser risk to invest in retail with WHS then other mature companies in the sector ...It can go to $ 5 much quicker then anything else . Bought some more today as anticipating breakout over $ 3.50 soon ...will add more after breakout too .

[JohnnyTheHorse]

Added more this morning to hit my maximum portfolio allocation.

Technical analysis update to come this evening.

[LaserEyeKiwi]

Buy and hold still works for MFT and FPH kind of stocks not for cyclicals like WHS and HLG ...unless they get the advantage over others by much advanced in technology and delivery systems . I will not bet on WHS to adapt so quickly with their ancient thinking and ways of doing things ...Briscoes maybe better bet but only time will tell .

I suggest you go and read the last investor day presentation. WHS group have already started a vast head to toe transition of their entire stack and are successfully integrating all 5 current brands (redsheds, WS, NL, T7, The market) into unified logistics, fulfilment, customer management platforms that will have significant operational efficiencies on top of those already achieved recently. It also means any new brands started or acquired will be significantly more profitable to run with the advantages of the large scale integrated WHS infrastructure supporting it.

12801

[Beagle]

Recent investor day presentation:- http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/371579/345273.pdf

[Waltzing]

WHS moved up about the time of MR B's last post.....

[winner69]

WHS moved up about the time of MR B's last post.....

Mr B the market mover ….

[Beagle]

I'm sure it was just a coincidence. Today's close is however a nice break up through the 100 day moving average so that gives technical analysis encouragement to those of us that have been buying on such compelling fundamental's.

[JohnnyTheHorse]

Let's see how the technicals are developing after my previous post...

I'll let my charts do most of the talking this time. We have had one major development of a weekly higher low being set since we last checked in, and we are on the verge of the combination of confirming a weekly uptrend and confirming a monthly higher low. If this confirms ($3.50 break), this will be a very bullish scenario and provide very favourable odds that a monthly bull flag is playing out. About 1/3rd of the placement has been traded in the last few months so it's possible we may see some further churn before breaking out if there's still overhang, however it does look like the balance between buyers and sellers has changed. Institutional buying can now be seen at higher and higher prices.

12802
12803

[peat]

Let's see how the technicals are developing after my previous post...

I'll let my charts do most of the talking this time. We have had one major development of a weekly higher low being set since we last checked in, and we are on the verge of the combination of confirming a weekly uptrend and confirming a monthly higher low


thanks for identifying the medium and longer term TA -
I have not seen much upward pressure myself in the shorter time frames tho yesterdays candle is good and there are quite a few long low wicks

[BlackPeter]

Hmm - interesting.

12 month analyst consensus according to (https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/consensus/) is at $3.83 and Share clarities 10yr - DCF value is $3.22 - i.e. according to the collective wisdom of our best analysts this would be at best a "Hold" ...

On the other hand - official analyst recommendation is 8.33/10 - which would be between "Outperform" and "Buy". Just wondering whether these are the same analysts?

Good thing is - as we know, analysts are as often wrong as they are right - i.e. it doesn't matter anyway.

Discl: Hold a medium sized parcel.

[JohnnyTheHorse]

thanks for identifying the medium and longer term TA -
I have not seen much upward pressure myself in the shorter time frames tho yesterdays candle is good and there are quite a few long low wicks

Yes daily and intraday charts have been a choppy mess and haven't provided any clarity. Always like to keep increasing timeframes until I get a really clear picture of what's playing out.

Weekly uptrend and monthly higher low has now been confirmed. Want to see a close above $3.50.

[Beagle]

https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/consensus/

I for one ignore share clarity as they provide none. The 3 professional analysts covering WHS have an average price target of $3.83, two BUY's and one hold and as noted before their future profit expectations look extremely conservative to me.

Disc: Bought more this morning and WHS is my #1 High conviction position.

[winner69]

https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/consensus/

I for one ignore share clarity as they provide none. The 3 professional analysts covering WHS have an average price target of $3.83, two BUY's and one hold and as noted before their future profit expectations look extremely conservative to me.

Disc: Bought more this morning and WHS is my #1 High conviction position.

Good on you …..average cost must be approaching $3 now

Big announcement coming up

[BlackPeter]

Good on you …..average cost must be approaching $3 now

Big announcement coming up

Hopefully this big announcement you are predicting for the Warehouse works out better than it did for Plexure :scared:? What do you think?

[LaserEyeKiwi]

Good on you …..average cost must be approaching $3 now

Big announcement coming up

What announcement are you referring to? you mean the mid-September earnings?

[winner69]

What announcement are you referring to? you mean the mid-September earnings?

Yep, financial year ended last week.

They will know the full year result soon and it will ‘exceed $160m’ by a big margin ……and Nick won’t be able to contain himself so will make the big announcement in next week or two

[alokdhir]

Yep, financial year ended last week.

They will know the full year result soon and it will ‘exceed $160m’ by a big margin ……and Nick won’t be able to contain himself so will make the big announcement in next week or two

U have not disclosed your interest in WHS like Mr B did ...Biggest holding or u just an analyst ...lol :p

[winner69]

Yes daily and intraday charts have been a choppy mess and haven't provided any clarity. Always like to keep increasing timeframes until I get a really clear picture of what's playing out.

Weekly uptrend and monthly higher low has now been confirmed. Want to see a close above $3.50.

We (you) going to get that close above 350 today

All set to move on to that recent high of 386 and then well over 400 come results time (and that big divie)

[Waltzing]

"Disc: Bought more this morning and WHS is my #1 High conviction position."

That is why the SP jumped.....

[Beagle]

"Disc: Bought more this morning and WHS is my #1 High conviction position."

That is why the SP jumped.....

The greedy Beagle keeps "hounding" the sellers ;)

[winner69]

"Disc: Bought more this morning and WHS is my #1 High conviction position."

That is why the SP jumped.....

You really keen Waltzingman .....full marks for being a beagle follower....is that being a beagie

[Waltzing]

"full marks for being a beagle follower"

our portfolio's were HLG investors and traders decades ago....

Stock often outperform and then slow there growth. KPG may perform again in 3 to 5 years or when a new CEO is appointed.

We are numbers followers and MR B goes by the numbers...

Later this year the historical database will come on line and then we will be swapped by numbers..

Will need to get multiple wide screen game monitors but you cant pack them up and travel..

If its any good will have to let MR B go on line from his super suite overlooking the Gulf...

With the RBNZ likely to raise rates this month it may be time to do some re balancing.

WHS could be a likely recipient.

[winner69]

Recent investor day presentation:- http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/371579/345273.pdf

That is one heck of a slide deck Beagle

Every slide tells a great story with plenty of colour.

We need more people to go through it and start investing in this turn around

[850man]

From the HLG thread - https://www.bloomberg.com/news/artic...rice-increases (https://www.bloomberg.com/news/articles/2021-04-12/higher-shipping-costs-are-here-to-stay-sparking-price-increases) thoughts on shipping costs impacting WHS margins?

[winner69]

From the HLG thread - https://www.bloomberg.com/news/artic...rice-increases (https://www.bloomberg.com/news/articles/2021-04-12/higher-shipping-costs-are-here-to-stay-sparking-price-increases) thoughts on shipping costs impacting WHS margins?

They will just increase selling prices ……no worries here

If shipping a problem impact more likely to be on stock availability ….man on radio the other day said some retailers were fretting about their Xmas stock

[Waltzing]

a UK game importer from china basically said shipping costs had gone sky high.

now exactly what impact it has on NPAT who knows as they were small time.

but it should abate later next year? China is a mess. Jack Ma sent back to the paddy field and his empire being disassembled. They are making it up on the fly as a new man takes them fast forward to the past.

Company bond defaults on the rise they arnt going to care how much they charge the world for freighting and shipping.

We will just have to wait for the numbers to see how bad it gets.

Mean while with OCR heading up rebalancing is now the time.

[Beagle]

That is one heck of a slide deck Beagle

Every slide tells a great story with plenty of colour.

We need more people to go through it and start investing in this turn around

Yeah we need more institutional buy in to this one. I am certainly doing my bit and well and truly putting my money where my mouth is. According to the 2020 annual report only 90 holders, (many will be institutions but sadly not enough of them), own more than 100,000 shares. http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/371579/345273.pdf
Believe the story, its happening.

[Waltzing]

definitely a stock to whatch and accumulate.

"only 90 holders"

if the numbers come in, the orders to sell at this price will dry up fast....

[Waltzing]

360 coming up ...train starting to leave the station... quick quick

[JohnnyTheHorse]

360 coming up ...train starting to leave the station... quick quick

Institutional crossing at 361. Always good to confirm a breakout when big money is crossing well above VWAP.

[jg8512]

re: shipping costs
just listened to the NCK.asx conference call. they import and retail furniture mostly from SE Asia (ie, bulky goods) and shipping costs has crimped their gross margins esp. in 2H vs 1H (but still grew NPAT 100% YoY). NCK CEO&MD said he felt shipping costs couldn't really go higher, and they would need to move prices if they did (they hadn't moved prices to date for higher shipping). based on those comments, I'm not too worried about shipping costs for WHS ... it can't be a positive, but I don't think higher shipping costs can do much harm to the otherwise very favourable tailwinds the retail sector is enjoying (and the specific improvements WHS is making to its business)

[winner69]

360 coming up ...train starting to leave the station... quick quick

370 coming up

go you beauty

[Waltzing]

"370 coming up"

gosh who would have thought.

[winner69]

"370 coming up"



gosh who would have thought.

Was in 380s not long ago

So nothing new

400 one gets excited

[Waltzing]

"Was in 380s not long ago"

april ... delta turned up since then, a life time ago...

4.0! well what would drive that one wonders...surely MR B cant be right again!

[Beagle]

Not sure how much longer the share price will start with a "3". Once the cat is out of the bag with how well they're trading, good luck finding any decent number for sale under $4.

[Waltzing]

Well if investors havnt got their portfolios rebalanced with some WHS then with the DOS attacks starting again good luck find some if MR B is on the money yet again...

[nztx]

The Warehouses's DINERS CLUB (NZ) now officially stuffed


https://www.stuff.co.nz/business/125978450/diners-club-nz-put-into-liquidation-by-the-warehouse-group



The once-proud Diners Club (NZ) has been put into liquidation.

Its ultimate owner was The Warehouse, which bought it for $3 million in 2014 in a bid to launch a financial services operation.

But in 2018, the NZX-listed retailer pulled the plug, sending letters to cardholders explaining that Diners Club (NZ) would stop issuing cards and membership would be discontinued from the end of December that year.

The letters asked cardholders to pay off any debts they owned on their cards, or contact the company to arrange repayment plans.


Spose it had it's uses & own niche in it's better days, but maybe as hinted at - at the prescribed cost of an arm & three legs for the privilege .. ;)

God only knows how WHS thought DINERS would fit into any part of their works & brandings when acquired .. ;)

more at link..

[Sideshow Bob]

"370 coming up"

gosh who would have thought.

The Beagle Effect!!

[Waltzing]

"The Beagle Effect!!"

well hes starting to look like that young NZ paddler ... always on the money... anyone bet on that NZ paddler!

NZTX, did you really have to post that or did you want the share price to back up to 3.45 again... dont think it will work although ...correction on the DOW predicted.. as always..

[LaserEyeKiwi]

The Warehouses's DINERS CLUB (NZ) now officially stuffed


https://www.stuff.co.nz/business/125978450/diners-club-nz-put-into-liquidation-by-the-warehouse-group





Spose it had it's uses & own niche in it's better days, but maybe as hinted at - at the prescribed cost of an arm & three legs for the privilege .. ;)

God only knows how WHS thought DINERS would fit into any part of their works & brandings when acquired .. ;)

more at link..

on a slightly related note - I wonder if/when WHS will start supporting a buy now pay later service like AfterPay (or even create their own)

[Dlownz]

on a slightly related note - I wonder if/when WHS will start supporting a buy now pay later service like AfterPay (or even create their own)

Concidering they have the market power to do it I'm surprised they havent
On another note I wish they would drop flybuys and bring in airpoints. Espe ially since Harvey Norman dropped air points

On another another note.
Will we see a trading update within the next week just to keep bumping the share price along

[alokdhir]

Hopefully WHS will start from where NZX failure stopped it abruptly . Today 3.75 !!! :t_up:

[STr]

The irony. Diners was a good business decision executed poorly (and at too much expense). The ability to leverage the acquisition and build a financing capability to support retail (eg an AfterPay function, data mining of customer spend and behavior, finance deals, a reward program etc) was lost when the CFO at the time (Stephen Small) died suddenly. Without his vision it was left to the the current CEO and his carefully selected mgmt to support the changes needed. From what I heard, this never happened and became the elephant in the portfolio.

[LaserEyeKiwi]

Ok, a bit lazy on my part, The Warehouse already offers a buy now pay later service using Zip.

also, there is a warehouse money visa credit card (looks like it’s an SBS product), which offers 5% off when using st the warehouse (might have to get me one of those, but I’m not sure they are still offered?)

Also they seem to use Finance Now financial services (which is also a SBS product) across the group as well for financing deals.

this follows after Warehouse sold its financial arm to SBS in 2017.

[Beagle]

Briscoes sales update today gives further encouragement to shareholders in the retail space. Clear breakout up through the 100 day moving average so technically this provides considerable encouragement to those who have been buying on the compelling fundamentals'. This is already my #1 investment position but its really tempting to load up even more.

[winner69]

Briscoes sales update today gives further encouragement to shareholders in the retail space. Clear breakout up through the 100 day moving average so technically this provides considerable encouragement to those who have been buying on the compelling fundamentals'. This is already my #1 investment position but its really tempting to load up even more.

Briscoes booming alright

You’d think TWG stores would be doing better

WHS share price over 4 bucks in next week or two …esp after momentum of yesterday

[winner69]

Jeez Briscoes make 46m on 358m ….profit margin an obscene 13% ….no wonder they trade at relatively high PEs

If TWG did that they’d be making 450m profit ….but different mix of business (esp with Noel Teeming) so their 5% profit margin respectable enough ……especially seeing it’s improving these days

[LaserEyeKiwi]

Got to think Briscoes would be hitting at least $100 million NPAT full year based on that half year figure. In that light they are sitting at only 13x PE.

[winner69]

From Briscoes' announcement -A more relevant period to compare against would be the first half of 2 years ago. Under this more normalised comparison, the Group’s half year sales increased by 18.30%, with the first quarter increasing by 14.94% and then strengthening to an increase of 21.61% for the second quarter.

TWG did this comparison on their last sales update .... sales only up about 10% on F19

Briscoes doing better than TWG .... can't be true

Good sign though is for Briscoes the last quarter growth was better than the previous one. Hope that's the case with TWG as well.

[jg8512]

From Briscoes' announcement -A more relevant period to compare against would be the first half of 2 years ago. Under this more normalised comparison, the Group’s half year sales increased by 18.30%, with the first quarter increasing by 14.94% and then strengthening to an increase of 21.61% for the second quarter.

TWG did this comparison on their last sales update .... sales only up about 10% on F19

Briscoes doing better than TWG .... can't be true

Good sign though is for Briscoes the last quarter growth was better than the previous one. Hope that's the case with TWG as well.

It is worth noting too that when BGP released its Q1 sales, it said Q2 wouldn't see as large an increase as Q1 did, and it had a big warning about how the boon times couldn't continue. TO quote Q1 release:

"Despite the Group's strong start to the year we are acutely aware of the
possible pressure on consumer spending with the gradual reopening of the
country's borders. It's widely recognised that some of the increased retail
spend experienced during the last twelve months has been a reallocation of
spend which would otherwise have been used for international travel. Whilst
we do not expect to deliver the same significant increase in sales for the
second quarter as achieved in this first quarter, we are confident that sales
for the half-year will be comfortably ahead of the $292.4 million reported
for the first half of last year."

That conservative line wasn't repeated as strongly in the Q2 release - but BGP didn't release a forecast (yet).

Good retailers going very very very well for a bit yet it seems!

[winner69]

It is worth noting too that when BGP released its Q1 sales, it said Q2 wouldn't see as large an increase as Q1 did, and it had a big warning about how the boon times couldn't continue. TO quote Q1 release:

"Despite the Group's strong start to the year we are acutely aware of the
possible pressure on consumer spending with the gradual reopening of the
country's borders. It's widely recognised that some of the increased retail
spend experienced during the last twelve months has been a reallocation of
spend which would otherwise have been used for international travel. Whilst
we do not expect to deliver the same significant increase in sales for the
second quarter as achieved in this first quarter, we are confident that sales
for the half-year will be comfortably ahead of the $292.4 million reported
for the first half of last year."

That conservative line wasn't repeated as strongly in the Q2 release - but BGP didn't release a forecast (yet).

Good retailers going very very very well for a bit yet it seems!

And WHS said As a result of the strength of trading through to the end of Q3, and the expectation that Q4 FY21 Group sales will be similar to Q3 FY21,

If that eventuates Q4 growth would only be about 9% v F19 (v's Briscoes 21% for the same quarter)

Hope not the case

[LaserEyeKiwi]

And WHS said As a result of the strength of trading through to the end of Q3, and the expectation that Q4 FY21 Group sales will be similar to Q3 FY21,

If that eventuates Q4 growth would only be about 9% v F19 (v's Briscoes 21% for the same quarter)

Hope not the case

it’s not a like for like business comparison though. For instance a significant fraction of WHS sales are from WS, and though those sales are relatively flat on 2019 (dragging down group wide growth comparison), they are much more profitable due to the SWAS consolidation program (pulling up group wide profit comparison).

12809
12810

[Sideshow Bob]

Boom - $3.70!!

[winner69]

Boom - $3.70!!

Maybe later today Boom - $3.80

Told me mate at ACC to take that WHS preso seriously - maybe he did

[Dlownz]

Id say it will hover now around 3.60 to 3.70-80 till the trading update. Its had a great climb on no news just estimated

[winner69]

it’s not a like for like business comparison though. For instance a significant fraction of WHS sales are from WS, and though those sales are relatively flat on 2019 (dragging down group wide growth comparison), they are much more profitable due to the SWAS consolidation program (pulling up group wide profit comparison).

12809
12810


Yes LEK - WHS is really all about improved margins (and sales growth in NL and T7)

Red Sheds YTD sales only 4.7% higher than F19 isn't something you want to crow about

long may they improve margins

[Old mate]

3.70 close. Nice:)

[nztx]

Hope our mate in another thread is watching the facts opinions & past etc .. ;)

Today must have brought out some further good clues .. :)

Hope he's still about & awake .. ;)

[nztx]

3.70 close. Nice:)


Indeed

Sounds like Retail pushing off with it's 2021 announcements early .. got to be good :)

[Beagle]

Confirmed TA breakout and fundamentally still a VERY cheap stock. Trading update from Briscoes was very promising and showed accelerating growth in Q2 V Q1 on a like for like basis compared with 2019 sales which provides real encouragement that the retail sector has and is very strong. I see this as enduring for many years and if pressure is felt on consumers with rising interest rates the WHS will be the beneficiary as people shift to value purchases.

Very good chance of NZX50 inclusion in due course. Really looking forward to the trading update due out in the next week or two.

[Waltzing]

390 - 420 channel.

The MR B channel below ... right up there ...

[Beagle]

390 - 420 channel.

Sensible target in the very short term but I see this as probably a multi year rerate as:-

1. International travel stays well below 2019 level's for many years and most of that $10 Billion a year that would otherwise be spent overseas is spent here
2. WHS overhaul their procurement, logistics, distribution and stock policies
3. Store within a store efficiencies with integration of Warehouse Stationary stores within WHS stores
4. Rationalization of their store network with a weighted average lease term across N.Z. of only 4 years
5. Ongoing growth and critical mass efficiencies from Torpedo 7
6. Ongoing strong growth of Noel Leeming.
7. Attaining critical mass with the Online market
8 Growth of online shopping for WHS
9. Possible significant enhancement of their food and grocery lines

Plenty of room for improving their business model with super cheap metrics and an exceptional fully imputed dividend yield make this an exciting high yield opportunity with very strong capital gain prospects.

Holding heaps but the greedy Beagle wants even more :blush:

[alokdhir]

This time it will surely break above $ 4 after the trading update expected next week ....Briscoes beating them to it should irk them a bit !!

But after Briscoes update market has already got a whiff of whats coming from WHS ...update or not WHS should end next week around $ 3.85

[allfromacell]

​The Warehouse in Lower Hutt mall has cleared a big chunk of floor space. Gearing up for a proper grocery section maybe?

12813

[Dlownz]

Maybe a combined warehouse stationary more likely

[LaserEyeKiwi]

Maybe a combined warehouse stationary more likely

I hope so.

There is a warehouse stationary located just across the road from the mall where this Warehouse store is located (also a large Noel leeming which shares a car park with Warehouse stationary). If they combined the warehouse stationary into this warehouse, it would leave a good location available to open a torpedo7 store in the current stationary site, which is a brand that needs to grow in Wellington region (there is just one T7 store in Porirua City, with no presence at all in the wealthy area that is Wellington city and the Hutt)

12814

compare that to Rebel sport & Kathmandu:

12815
12816

[Dlownz]

I hope so.

There is a warehouse stationary located just across the road from the mall where this Warehouse store is located (also a large Noel leeming which shares a car park with Warehouse stationary). If they combined the warehouse stationary into this warehouse, it would leave a good location available to open a torpedo7 store in the current stationary site, which is a brand that needs to grow in Wellington region (there is just one T7 store in Porirua City, with no presence at all in the wealthy area that is Wellington city and the Hutt)

12814

compare that to Rebel sport & Kathmandu:

12815
12816
Then you could be on the money. Sounds perfect to move warehouse stationary and open up a torpedo 7 in the old spot

[winner69]

If TWG sales momentum is maintained in Q3 (even at a much lower growth rate than Briscoes) and if they maintain profit margin around 6% full year 'adjusted earnings' will be about $200m

Anything less means sales growth is slowing and/or margins have not been maintained

I'll settle for $190m adjsuted earnings

[Beagle]

$200m earnings on 346.8m shares = 57.7 cps !!! PE of only 6.4, that's nuts.
Payout 75% of that, (new minimum is 70%) = 43.3 cps in annual dividends. Oh my goodness :blush:
43.3 cps fully imputed = 60 cps gross = 16.2% gross yield at $3.70.

These metrics are truly mind boggling and we have a clear TA breakout to provide additional encouragement...not that we need it with the fundamentals being so truly compelling.
NZX inclusion in the not too distant future too. Hmmm.

Risks are shipping costs, stock procurement challenges and Covid. Super good looking risk reward ratio in my opinion.

[alokdhir]

$200m earnings on 346.8m shares = 57.7 cps !!! PE of only 6.4, that's nuts.
Payout 75% of that, (new minimum is 70%) = 43.3 cps in annual dividends. Oh my goodness :blush:
43.3 cps fully imputed = 60 cps gross = 16.2% gross yield at $3.70.

These metrics are truly mind boggling and we have a clear TA breakout to provide additional encouragement...not that we need it with the fundamentals being so truly compelling.
NZX inclusion in the not too distant future too. Hmmm.

Risks are shipping costs, stock procurement challenges and Covid. Super good looking risk reward ratio in my opinion.

Normally market has never awarded very high P/E to WHS as its quality of earning is poor and consistency is low confidence

Still its going thru a purple patch due to dream scenario for retail .

I think if it can give visibility of next 2-3 years of $ 200 mil earnings and 40 cents divvy that should help it reach $ 5.50 in 6 months time !!!

[LaserEyeKiwi]

https://www.rnz.co.nz/news/business/448795/briscoes-and-aft-pharmaceuticals-stockpiled-inventory-ahead-of-supply-disruptions

This is only anecdotal, but while shopping on Sunday I did notice that Briscoes had significantly more stock on hand than the warehouse (this was comparing the two stores in the Lyall Bay retailer complex), in regards to comparing the homeware sections. in other areas I looked at (footwear, clothing, food) warehouse had well stocked shelves.

[Waltzing]

"16.2% gross yield at $3.70."

and the crowd goes wild....

[Old mate]

What's a 5% drop all about?

[winner69]

What's a 5% drop all about?

Profit taking by an astute punter ahead of an announcement that doesn’t meet market expectations - that’s how press would describe it

Bouncing around a bit though

[Waltzing]

Bounce down more please...

[LaserEyeKiwi]

Lol - some idiot made a large “market” order I’m guessing. Congrats to anyone who picked up the temporary bargain price.

[Old mate]

Yeah good work allright 3.58. I was to slow:(

[Waltzing]

Pitty did not last and that could be it im afraid unless someone else has a large stack of shares they arnt putting through an off market sale.

However anything under 3.80 might turn out to be a bargin if MR B is right ... yet again.

[Waltzing]

Nice price range at 3.67...and perhaps some below ..can you have enough of these?

[Beagle]

Nice price range at 3.67...and perhaps some below ..can you have enough of these?

See my latest HLG post.

[Waltzing]

tantrum ... buying dip possible but NZ probably wont respond much and price is right, right now......

[kiwico]

Bah humbug!

According to Warehouse Money I'm going to benefit from a Purple Visa card instead of my current Warehouse Money visa card. What this really means is they will be taking my 5% discount away and charging me $55 a year for the pleasure. And this is to "benefit" me.

I can't say I'm that surprised and it's been good while it lasted (especially in those days when there was shareholder discount and you could get a discount on a discount). But as I use the card only when at The Warehouse I won't have it much longer.

So bad for WM visa card holders but potentially good for WHS holders.

[Beagle]

I think they're headed down the everyday value path anyway so you'll get more value. Honestly I am really surprised how cheap stuff is in the Warehouse. The cheapest thing of all is the shares though :)

[alokdhir]

tantrum ... buying dip possible but NZ probably wont respond much and price is right, right now......

How much u will try to make people buy ? Big daddy keeps selling ...maybe daddy knows better then u !!!

[Waltzing]

"tantrum "

referring to up and coming QE slow down which could hit the market here if the DOW throws one.

WHS could be cheap for a while yet.

Its fairly valued at this time.

[alokdhir]

"tantrum "

referring to up and coming QE slow down in the which could hit the market here if the DOW throws one.

Dont worry NZ market is getting ready to breakout over 12800 sooner then latter ...your tantrums will come in US and European markets more ...

[Waltzing]

"Dont worry NZ market"

dont expecet the NZ market to react for more than a morning or 2 ..last chance buying for WHS although if WHS hit it out of the park these could be the last so called cheap buys..

hoping the selling continues..would like to see 3.50 and below..

[Beagle]

Maybe WHS with its target demographic, warehousing, distribution and retail network is the ideal J.V. partner for the Government with a possible new Kiwishop ?
https://www.stuff.co.nz/opinion/126066225/time-to-tackle-the-grocery-duopoly

Looking forward to a trading update soon.

[Rawz]

Apparently all 12,000 WHS employees are getting a $1,000 one off bonus this year.

They about to announce a HUGE profit I reckon.

[Waltzing]

With all those 1/4 properties in NZ towns and solar storage batteries coming WHS could start selling portable roof solar units and small portable racks.

A bit far fetched perhaps but there is scope for expanding business models in the future

I think MR B could be right if WHS already has warehousing technology an platforms.

They already have the experience.

The veritable vege garden making a come back?

[LaserEyeKiwi]

Apparently all 12,000 WHS employees are getting a $1,000 one off bonus this year.

They about to announce a HUGE profit I reckon.

Is that a rumor? or actually reported/announced?

That’s an extra $12 million payout, which equates to almost 0.50c per hour worked in a year for a full time employee.

Would be a reduction of around 9 million NPAT for WHS.

I don’t mind WHS paying bonuses, especially in the current tight employment market, but I hope they announce better than market expectations with results, as this bonus combined with the paying back of the wage subsidy are two awfully big “gestures” to have happen in one financial year.

[Waltzing]

one of the most anticipated earnings seasons ever. Interest website today predicts its the high point of this cycle which is a very short one, only 1 1/2 year long.

[winner69]

Is that a rumor? or actually reported/announced?

That’s an extra $12 million payout, which equates to almost 0.50c per hour worked in a year for a full time employee.

Would be a reduction of around 9 million NPAT for WHS.

I don’t mind WHS paying bonuses, especially in the current tight employment market, but I hope they announce better than market expectations with results, as this bonus combined with the paying back of the wage subsidy are two awfully big “gestures” to have happen in one financial year.

Total amount of 12m a bit less than what Nick and his mates get as a bonus

Makes them feel less guilty …. Even if they felt quilty in first place

And the underlings will appreciate it more

[Rawz]

Is that a rumor? or actually reported/announced?

That’s an extra $12 million payout, which equates to almost 0.50c per hour worked in a year for a full time employee.

Would be a reduction of around 9 million NPAT for WHS.

I don’t mind WHS paying bonuses, especially in the current tight employment market, but I hope they announce better than market expectations with results, as this bonus combined with the paying back of the wage subsidy are two awfully big “gestures” to have happen in one financial year.

It's real. One of the 12,000 told me. Will be reported in stuff soon probably. Its good PR. $1,000 isnt a lot at the end of the day.
Mass one off employee bonus always means BIG profit. We have all seen it before.

[Beagle]

Is that a rumor? or actually reported/announced?

That’s an extra $12 million payout, which equates to almost 0.50c per hour worked in a year for a full time employee.

Would be a reduction of around 9 million NPAT for WHS.

I don’t mind WHS paying bonuses, especially in the current tight employment market, but I hope they announce better than market expectations with results, as this bonus combined with the paying back of the wage subsidy are two awfully big “gestures” to have happen in one financial year.

Agree with your sentiment. I didn't agree with the repayment of the wage subsidy and they are already incredibly generous with other donations, e.g. $250,000 donated to Women's Refuge last month
https://www.thewarehousegroup.co.nz/news-updates/warehouse-donates-250000-womens-refuge

[winner69]

Agree with your sentiment. I didn't agree with the repayment of the wage subsidy and they are already incredibly generous with other donations, e.g. $250,000 donated to Women's Refuge last month
https://www.thewarehousegroup.co.nz/news-updates/warehouse-donates-250000-womens-refuge


All part of what YOUR company stands for — good on them

OUR PURPOSE

Helping Kiwis live better every day

Every day, we're living our purpose by transforming our business to exceed our customers' expectations and have a positive impact on our communities

[winner69]

From last years report

CEO fixed remuneration is 33.22 times median Team Members rem

Median hourly rate of all Team Members is $21.15 per hour.

They deserve the bonus

[Rawz]

I agree W69.

Plus everyone goes to work to earn money at the end of the day. For WHS employees it's probably the main reason by some margin. There is nothing worse than seeing your company report huge profits and not get a slice of it, after all your hard work.

If you get a slice you are more engaged and maintain high productivity levels. It's very important to get staff motivated and cold hard cash is the best- always. No matter how many 'pizza shouts' a company does it wont match cash in the bank.

[Beagle]

If this bonus happens it'll be worthy of further debate as they've already paid a ~ $60m social dividend this year.

[peat]

There is nothing worse than seeing your company report huge profits and not get a slice of it, after all your hard work.

If you get a slice you are more engaged and maintain high productivity levels. It's very important to get staff motivated and cold hard cash is the best- always. No matter how many 'pizza shouts' a company does it wont match cash in the bank.

Risk is not taken by employees without equity so they should only have the fixed returns as per their contract.
Engage employees with staff share schemes , not helicopter money.

[Rawz]

It's two different things, Beagle. Can't lump them together.

Beagle, you are going to ignite another ST wage subsidy debate lol

[Rawz]

Risk is not taken by employees without equity so they should only have the fixed returns as per their contract.
Engage employees with staff share schemes , not helicopter money.

Na, money in the bank works best.
Have been part of ANZ bank share schemes in the past. Have to wait 3 years to get it your hands on it. Nothing beats cash. Common feeling among employees.

[winner69]

Risk is not taken by employees without equity so they should only have the fixed returns as per their contract.
Engage employees with staff share schemes , not helicopter money.

Disagree with you peat

One of a persons biggest asset is their ability to earn an income - their intellectual capital

One can measure that capital - its the capitalised value of ones future income stream - you could this their equity (at risk)

WHS payroll about $550m at the moment - the employees return on the capitalised value of their IP which we could say is valued at $4,000m/$5,000m

WHS shareholders have put in $429m into the company and that's worth about $1,300m now

Therefore I contend employees have heaps more invested in WHS than shareholders do (Depending how you want to measure it 4 to 10 times as much)

And both are at 'risk'

[Beagle]

I have no problem with people being paid a bonus for service over and above what is expected of them. Whether the WHS staff who are not on any form of incentive program deserve a bonus will no doubt be the subject of hot debate (if it happens), but I for one will not waste any more of my time debating something on the basis of just a rumor.

I don't wish to start yet another round of the already vigorously debated wage subsidy argument other than to note that WHS have already done the right thing (as many described it. kowtowed to Cindy's bully boy behavior is how I would describe it), this financial year at substantial cost.

As an investor I look forward to hearing what other programs WHS have for streamlining their business model and taking cost out of it.

[Rawz]

With all the streamlining and roles being disestablished wage bill probably still well below last years anyway, bonus included

[Waltzing]

3.55 didnt last long ....

what a range!

its being chased now.

who would have anticipated the quick extremes.

Hard to get these at 3.50.

[peat]

Disagree with you peat

One of a persons biggest asset is their ability to earn an income - their intellectual capital

One can measure that capital - its the capitalised value of ones future income stream - you could this their equity (at risk)

WHS payroll about $550m at the moment - the employees return on the capitalised value of their IP which we could say is valued at $4,000m/$5,000m

WHS shareholders have put in $429m into the company and that's worth about $1,300m now

Therefore I contend employees have heaps more invested in WHS than shareholders do (Depending how you want to measure it 4 to 10 times as much)

And both are at 'risk'

Their ability to earn future income is not depwndent on WHS tho, so what you are saying is rubbish!

[Ferg]

My take : happy staff = happy business. I work with a business where every employee (including the yard sweeper) gets a $250 bonus EVERY month we make budget. I set the budgets. We make budget regularly, so the owners are happy and the workers are happy. It's a (relatively) small price to pay to those who have your business in their hands on a daily basis. This sort of thing absolutely motivates staff to do the right thing for the business. Have you ever seen factory staff lean into a sales graph presentation? I do, every month. I don't have an issue with WHS doing this because I have seen it action, and it works.

[Gunner]

Agree, my company has not behaved well in regards to Covid, the wage subsidy and reducing salaries during this time And a wage freeze. They now make millions in profit and no bonus in sight or wage increase. The big cheese probably dont see it but it upsets people down the the chain and they dont go the extra mile. You can probably guess what company I mean. Earning coming up....expect good result.

[winner69]

Their ability to earn future income is not depwndent on WHS tho, so what you are saying is rubbish!

Shareholders ability to earn future income is not depwndent on WHS …they too have a choice

So not rubbish

[winner69]

With all the streamlining and roles being disestablished wage bill probably still well below last years anyway, bonus included

Employee Expenses

H120 286m
h220 273m
H121 287m


Not 'well below last year' by looks of it (so far)

[LaserEyeKiwi]

Employee Expenses

H120 286m
h220 273m
H121 287m


Not 'well below last year' by looks of it (so far)

from H1 earnings:


“Approximately 67% of employee expenses are related to stores, fulfilment centres and distribution centres which has all been managed well throughout a period of elevated sales.

In particular store labour has declined 1.5% compared to the prior half year period, driven by the efficiency gains from the labour operating model update in The Warehouse stores ensuring our stores are most staffed when our customer want to shop.”

So not a big reduction, but should be kept in context of a large increase in minimum wage and overall economy wide escalation in labour costs, and also the comparable sales for the periods are considerably larger in current year. So labour costs as a proportion of revenue have dropped considerably despite upwards pressure on wages economy wide. That’s a big win in my book.

[Beagle]

Shareholders ability to earn future income is not depwndent on WHS …they too have a choice

So not rubbish

With all due respect mate you came up with the same spurious argument with AIR employees and said their human capital invested was far greater than shareholders. All these staff are now arguably on the most generous state sponsored welfare system we've ever witnessed and probably very few of whom, if any, (despite many receiving lavish 6 figure salaries and in some cases seven figures) will dig into their own pockets to rescue that basket case of a company.

Front line retail workers can get a job in any other front line retail position, ostensibly they risk nothing, whereas I risk my capital.

Well said LaserEyeKiwi.

Hope we go back to $3.55, greedy Beagle is ready to deploy even more risk capital.

[allfromacell]

Did anyone hear further if the bonus was confirmed or still just a rumour? WHS Staff would be pretty happy with a $1k bonus and then a couple paid weeks off for another lockdown.

[Waltzing]

"3.55"

Mr B's lock down may soon appear and this price might just be the start if its level 4.

can risk any spread..Zero spread.

Likely to be a re run of wellington.

[ratkin]

Time for the Warehouse to tell us they are staying open during lockdown :-)

[Beagle]

Oh that's just being mean. You think they might have learned from last year ?

Frankly I am surprised we've got through 6 months without community transmission in N.Z. Many shares are already priced like it was only a matter of when, not if, there was another breakout and WHS has clearly been one of them.

I expect they'll go straight to level 4 at midnight tonight in Auckland, could be a national lockdown, and that's the correct response. Go hard and go early has worked before and might work again if we go hard enough and early enough. In the meantime there will be a lot more people keen to get vaccinated.

[LaserEyeKiwi]

"3.55"

Mr B's lock down may soon appear and this price might just be the start if its level 4.

can risk any spread..Zero spread.

Likely to be a re run of wellington.

wellington was only level 2, and that was because the chain of transmission was known (happened in Sydney) whereas if this has no clear chain of transmission from a known case then a level 3 or 4 lockdown is far more likely to be required for Auckland.

[Waltzing]

" level 2,"

forgot what level it was, actually hoping for level 4 although it will impact a lot of activities in auckland this weekend for us all..

hamilton might get a level 2 side swipe.

Mr B's 3.55 was touched not long ago.

not long now , clocks ticking, tempus fugit (time flies).

MR B might like to figure out the new opportunities in the market tomorrow.

[LaserEyeKiwi]

So does WHS apply for wage subsidy at all? I am guessing no. Everyone else who is forced to close will of course.

[Waltzing]

All CFO's will want to apply. Auckland might well be out of action for weeks..and weeks.

And who's to say this is the last instance of this and the last level 4 nation wide.

Many on this forum have warned of the likely hood of this and look how quickly it transpired.

Will let MR B and other's go over the theory of the balanced sector portfolio and cash reserves.

Adding to MR B's comment it may well be that an accounting standard for public companies should have been established by the Society and the IRD to administer the credit on the balance at the next balance date.

It may well be that it was deemed to difficult to do with the current rollout of the new IRD platform.

[Beagle]

All CFO's will want to apply. Auckland might well be out of action for weeks..and weeks.

They should apply and keep it this time. They pay their taxes and are entitled to support. Hope Cindy is kind to WHS this time and not a bully again. She shouldn't lower herself to being critical of any company that chooses to accept and keep the support her own Govt offered.

[RTM]

They should apply and keep it this time. They pay their taxes and are entitled to support. Hope Cindy is kind to WHS this time and not a bully again. She shouldn't lower herself to being critical of any company that chooses to accept and keep the support her own Govt offered.

Jeeze Beagle….haven’t we had enough of that ? Better things to talk about.

[nztx]

Is that our next Divie impacted again ? ;)

[Waltzing]

"Is that our next Divie impacted again"

... more buying opportunities.

Look on the bright side.

[nztx]

All CFO's will want to apply. Auckland might well be out of action for weeks..and weeks.

And who's to say this is the last instance of this and the last level 4 nation wide.

Many on this forum have warned of the likely hood of this and look how quickly it transpired.

Will let MR B and other's go over the theory of the balanced sector portfolio and cash reserves.

Adding to MR B's comment it may well be that an accounting standard for public companies should have been established by the Society and the IRD to administer the credit on the balance at the next balance date.

It may well be that it was deemed to difficult to do with the current rollout of the new IRD platform.



Hahaha .. think they're still busy fixing older bugs & glitches with the new (old new) flash billion $ system
that was supposed to slice & dice bread without supervision .. ;)

the exceptions & glitches list is probably longer than the extended arms of everyone collectively who have posted in this thread already .. ;)

[Waltzing]

Yes the move off Cobol can be ambitious.....

Reminds me of green screens and DG pascal days..

"The Hawk in the Bay" will be busy for the next week gliding over the terrain looking for some game.

[nztx]

Yes the move off Cobol can be ambitious.....

Reminds me of green screens and DG pascal days..

"The Hawk in the Bay" will be busy for the next week gliding over the terrain looking for some game.


yes - I remember those days too :)

I think there's already a new thread for newly rediscovered game .. ;)

[nztx]

"Is that our next Divie impacted again"

... more buying opportunities.

Look on the bright side.


yes indeed .. forfeiting the odd dividend or too is sometimes small price to pay .. for something better :)

[Waltzing]

Good hunting conditions for Hawk's...

[Old mate]

https://www.stuff.co.nz/business/126106404/the-warehouse-workers-worried-about-going-to-work-at-level-4

Warehouse getting bad press re level 4 again

[porkandpuha]

https://www.stuff.co.nz/business/126106404/the-warehouse-workers-worried-about-going-to-work-at-level-4

Warehouse getting bad press re level 4 again

For every article like this, there is another article saying how hard it gets for retail workers stuck with no work during a lock down. What do they want exactly? Their situation is no different to any other essential business that continues on with life.

Bet there are loads of other retail workers made to stay at home who would be happy to go pick and pack in a room of 4-5 people and continue getting a wage.

Edit to add: Being notified after 9pm is a direct result of this governments obsession with announcements after 5pm. Our essential business had staff waiting until 6:30pm in order to know what was happening so we could plan accordingly. Time to start doing lockdown announcements at 4pm.

[Dlownz]

Well there wasn't the bargain at the WHS I was looking for today. 😂

[Rawz]

Well there wasn't the bargain at the WHS I was looking for today. 

No surprise. So much cash on the sidelines waiting for this event. Too much.
Also, who exactly would panic sell? It's not like we haven't been here before.

[Waltzing]

isnt sub 3.60 a good price to buy at?

[allfromacell]

So just to clarify the bonus was for all permanent staff. If you usually work 20 hours or more they received $1000 and everyone else got $500. I cant see any media article's reporting on it though only lockdown controversy...

[LaserEyeKiwi]

With Z getting a formal takeover offer today - WHS must be in the mix to replace it as a NZX50 constituent?

any arguments for/against inclusion now that foodstuffs has sold down it’s stake?

[Beagle]

With Z getting a formal takeover offer today - WHS must be in the mix to replace it as a NZX50 constituent?

any arguments for/against inclusion now that foodstuffs has sold down it’s stake?

Yes, very good point ! (Also waiting for the Swedish owners of MET to try and takeover OCA)

[Waltzing]

"Swedish owners of MET to try and takeover OCA"

is there enough in it for them... raiders of opportunity by past history... farmers and sailors.

They going raiding for gold within easy reach.. OCA doesnt look like it got much loot sitting on the alter within easy reach yet. Net assets ratio's of the NZ population and percentage increase in retirement contracts would be where they are looking for gold. If they have already raided the easy gold, it's a big world.

[Beagle]

Huge synergies by combining two companies of OCA and MET's size.

Anyway back to WHS. Maybe a takeover prospect itself ?

[pierre]

Huge synergies by combining two companies of OCA and MET's size.

Anyway back to WHS. Maybe a takeover prospect itself ?

WHS needs something to kick it into gear - it certainly appears a bit unloved on a day when the market generally is heading north!

[Waltzing]

Retail doesnt seem to be in favour today..lockdowns having an effect? a Buy day then for those feeling bullish on retail.. MFT and EBO having a good day.

[macduffy]

Huge synergies by combining two companies of OCA and MET's size.

Anyway back to WHS. Maybe a takeover prospect itself ?

Where's that optimism gone, Beagle? Aren't we expecting an exciting profit announcement any day?

:)

[Rawz]

Retail the place to be invested. WHS shareholders will be rewarded soon.

[Beagle]

Where's that optimism gone, Beagle? Aren't we expecting an exciting profit announcement any day?

:)

I'm not sure any company would want to give a trading update at present unless there is a statutory obligation to do so. Scheduled report day for the full year is 29 September. Hope we're out of lockdown by then.
Hope they take the Govt's Covid support and keep it this time.

[cymonger]

Let's take a second and examine the conditions that made this such a compelling company this year.

1. People aren't traveling and are therefore spending their money on the Homefront.
2. The evidence from the last year suggests this means staggering numbers for local retailers.

Now ask yourself, have recent developments made it more likely or less likely that these conditions will continue?

I think we know the answer to that. Travel is off for a while. Maybe even a long while. Money will continue to flow aggressively inwards. Is this really in dispute?

Therefore, all recent drops in the shareprice are temporary. There WILL be a hit resulting from the recent lockdowns, no getting around that. But I would argue it's actually a positive thing for the stock. Perhaps one bad month followed by 11 exceptional months.

Screaming buy to me right now. Maybe not RIGHT this second, but who can actually time this stuff perfectly?

I'll look back with pleasure reading this in a year. I posted during the last lockdown about the incredible amounts of wealth that are built in these situations. This is one of those situations. Get in or get left behind.

[Beagle]

Let's take a second and examine the conditions that made this such a compelling company this year.

1. People aren't traveling and are therefore spending their money on the Homefront.
2. The evidence from the last year suggests this means staggering numbers for local retailers.

Now ask yourself, have recent developments made it more likely or less likely that these conditions will continue?

I think we know the answer to that. Travel is off for a while. Maybe even a long while. Money will continue to flow aggressively inwards. Is this really in dispute?

Therefore, all recent drops in the shareprice are temporary. There WILL be a hit resulting from the recent lockdowns, no getting around that. But I would argue it's actually a positive thing for the stock. Perhaps one bad month followed by 11 exceptional months.

Screaming buy to me right now. Maybe not RIGHT this second, but who can actually time this stuff perfectly?

I'll look back with pleasure reading this in a year. I posted during the last lockdown about the incredible amounts of wealth that are built in these situations. This is one of those situations. Get in or get left behind.

Well said, couldn't agree more.

[Rawz]

Let's take a second and examine the conditions that made this such a compelling company this year.

1. People aren't traveling and are therefore spending their money on the Homefront.
2. The evidence from the last year suggests this means staggering numbers for local retailers.

Now ask yourself, have recent developments made it more likely or less likely that these conditions will continue?

I think we know the answer to that. Travel is off for a while. Maybe even a long while. Money will continue to flow aggressively inwards. Is this really in dispute?

Therefore, all recent drops in the shareprice are temporary. There WILL be a hit resulting from the recent lockdowns, no getting around that. But I would argue it's actually a positive thing for the stock. Perhaps one bad month followed by 11 exceptional months.

Screaming buy to me right now. Maybe not RIGHT this second, but who can actually time this stuff perfectly?

I'll look back with pleasure reading this in a year. I posted during the last lockdown about the incredible amounts of wealth that are built in these situations. This is one of those situations. Get in or get left behind.

Spot on, 100% agree and well said. This could be copy pasted to the MHJ thread as well.

Retail stocks not loved in NZ? Has to be retirement or transport or power co's...

[porkandpuha]

I think we know the answer to that. Travel is off for a while. Maybe even a long while. Money will continue to flow aggressively inwards. Is this really in dispute?

While I agree with the overall sentiment of your post, I think travel will come on a lot sooner than some anticipate as the world vaccinates.

For example, at the end of July Air Canada were flying to Auckland/Australia 4 days per week as cargo only aircraft. At the start of August this service was reduced to two days per week as a result of the Canadian government opening up their borders to vaccinated passengers. The aircraft were economically better put to use flying USA to Canada and selling bums on seats rather than cargo in the boot, so NZ lost out. The pressure from NZ exporters/importers and tourists will start to pile on soon as we get left behind in a world trying to open for business.

[LaserEyeKiwi]

While I agree with the overall sentiment of your post, I think travel will come on a lot sooner than some anticipate as the world vaccinates.

For example, at the end of July Air Canada were flying to Auckland/Australia 4 days per week as cargo only aircraft. At the start of August this service was reduced to two days per week as a result of the Canadian government opening up their borders to vaccinated passengers. The aircraft were economically better put to use flying USA to Canada and selling bums on seats rather than cargo in the boot, so NZ lost out. The pressure from NZ exporters/importers and tourists will start to pile on soon as we get left behind in a world trying to open for business.

well there will be a mental difference between New Zealanders traveling overseas, and overseas travelers coming here. Once we open up (some point in early 2022 after close to full vaccination is done) plenty of people will be more than willing to come to NZ, but kiwis will be much more hesitant about traveling overseas (and travel insurance that includes emergency covid health care will likely be very expensive).

[nztx]

WHS bound to be on the receiving end of a darn good spending spree again at some stage

Covid Pt I probably encouraged a fair bit on inhouse tidying up ;)

Covid II they probably have the game plan for the duration all worked out & inplace
to execute all on one Control console .. ;)

[macduffy]

well there will be a mental difference between New Zealanders traveling overseas, and overseas travelers coming here. Once we open up (some point in early 2022 after close to full vaccination is done) plenty of people will be more than willing to come to NZ, but kiwis will be much more hesitant about traveling overseas (and travel insurance that includes emergency covid health care will likely be very expensive).

Would you mind expanding on why you think NZers will react differently from the rest of the world?

:confused:

[Waltzing]

going above 3.60 are we breaking back to an upward trend.. second last chance salon.

3.65 by day end? or above..

[LaserEyeKiwi]

Would you mind expanding on why you think NZers will react differently from the rest of the world?

:confused:

the rest of the world are used to living with covid in their local community so are comfortable going on holiday - whereas Kiwis are not used to “living with” covid and will be very hesitant to going on holiday to a country where covid is everywhere.

[macduffy]

the rest of the world are used to living with covid in their local community so are comfortable going on holiday - whereas Kiwis are not used to “living with” covid and will be very hesitant to going on holiday to a country where covid is everywhere.

I see. But perhaps we will have become accustomed to the beast by the time overseas travel is restored.

[dreamcatcher]

I see. But perhaps we will have become accustomed to the beast by the time overseas travel is restored.

Vaccination helps ........:t_up:

[bull....]

NZ retail sales data yesterday was very strong



Actual
Forecast
Previous





3.3%
2.4%
2.8%





WELLINGTON, Aug. 24 (Xinhua) -- New Zealand's total retail sales volume rose 3.3 percent in the June 2021 quarter, following a 2.8-percent rise in the March 2021 quarter, the country's statistics department Stats NZ said on Tuesday.
"Most retail industries saw increases in spending, with rises across all regions," Stats NZ said.

http://www.xinhuanet.com/english/asiapacific/2021-08/24/c_1310144998.htm

[Waltzing]

SP a long way from the bargain days of 3.50. Lockdown bets are clear skies ahead for retail NZ...

[Dlownz]

SP a long way from the bargain days of 3.50. Lockdown bets are clear skies ahead for retail NZ...
Its not far away in reality and it was only a few days it hit that mark. There's a wall at 3.75 so see how long it takes to break down.
Interesting times ahead with WHS and covid. They are performing very well and all the changes are bringing a huge changing point in there fortunes. Waiting for their trading update. Also there could be the possibility of them paying out a divi but not paying out the full amount as a covid buffer. Just have to wait and see I guess. I still think we won't be seeing this in the 3s for much longer. Onwards and upwards. Will get back to where it was years ago

[Beagle]

Its not far away in reality and it was only a few days it hit that mark. There's a wall at 3.75 so see how long it takes to break down.
Interesting times ahead with WHS and covid. They are performing very well and all the changes are bringing a huge changing point in there fortunes. Waiting for their trading update. Also there could be the possibility of them paying out a divi but not paying out the full amount as a covid buffer. Just have to wait and see I guess. I still think we won't be seeing this in the 3s for much longer. Onwards and upwards. Will get back to where it was years ago

Well said, I agree 100%.

[bull....]

NZ retail sales data yesterday was very strong



Actual
Forecast
Previous





3.3%
2.4%
2.8%





WELLINGTON, Aug. 24 (Xinhua) -- New Zealand's total retail sales volume rose 3.3 percent in the June 2021 quarter, following a 2.8-percent rise in the March 2021 quarter, the country's statistics department Stats NZ said on Tuesday.
"Most retail industries saw increases in spending, with rises across all regions," Stats NZ said.

http://www.xinhuanet.com/english/asiapacific/2021-08/24/c_1310144998.htm


just some more of the same data


A new Xero Business Insights Report, about the performance of small businesses in July, shows good growth in sales and jobs but not as strong as in June.
Xero’s small business index fell to 122 points from a record high of 127 in June 2021, but still well above the average, 100 points.
Usually the index compares data from one month with the same month the year before, but because July 2020 was impacted by the Covid-19 pandemic Xero is using annualised two-year growth to account for base effects.
Small business sales rose 6.6 per cent in July after a strong 11.9 per cent rise in June.
Retail was the strongest performing sector in July, the third month in a row, with sales growth of 11.5 per cent. Hospitality sales in July were 9.5 per cent higher, the fifth consecutive month of growth, the report said.

https://www.stuff.co.nz/business/prosper/126177146/building-company-warns-of-delays-and-worsening-materials-shortages-from-lockdown

[Greekwatchdog]

I know there is a discussion re WHS entering index. According to data from For batt not yet.
S&P/NZX Index Insights
Nothing Changes When in Lockdown

We pick that there will be no changes for the upcoming S&P/NZX September 2021 quarterly index review (headline
indices). Official outcomes of the review will be announced close of market Friday, 3 September 2021, with an effective
date, close of market Friday, 17 September 2021.
Figure 1. September 2021 Review: The Forsyth Barr Pick
Index Enter Exit Expected Weight (rank)
S&P/NZX 10 no changes expected n/a
S&P/NZX 20 no changes expected n/a
S&P/NZX 50 no changes expected n/a
S&P/NZX 50 Portfolio no changes expected n/a
Source: Forsyth Barr analysis
The current status
Figure 2 outlines the current rankings for inclusion/exclusion for the benchmark S&P/NZX 50 indices. At this stage we see no obvious
near term changes ahead.
The six-month average market cap automatic entry level to the benchmark index is currently above $455m with the exit level below
$265m. Currently, the lowest ranked index member is Sky Network TV (SKT) whilst the highest ranked non-member is The
Warehouse (WHS).
Figure 2. . Current Rankings for S&P/NZX 50 Index Inclusion/Exclusion
Ranking Code Current status 6-mth average price 6-mth average market cap
42 NZX S&P/NZX 50 Member $2.00
43 VGL S&P/NZX 50 Member $2.20 $502.73m
44 (entry level) FSF S&P/NZX 50 Member $4.24 $455.06m
45 RBD S&P/NZX 50 Member $13.92 $434.14m
46 SAN S&P/NZX 50 Member $4.78 $392.94m
47 WHS $3.48 $386.16m
48 ERD $5.46 $375.34m
49 HLG $7.32 $349.37m
50 SML S&P/NZX 50 Member $3.57 $320.31m
51 THL S&P/NZX 50 Member $2.48
52 NPH S&P/NZX 50 Member $3.39
53 SKT S&P/NZX 50 Member $0.17
54 BGP $5.74 $293.90m
55 MFB $1.46 $265.58m
56 (exit level) TRA $3.88 $252.52m
57 CVT $3.30 $177.95m

[Beagle]

Many thanks for sharing. Well worth noting that these companies that are both current constituents of the NZX 50 are in play. ZEL is highly likely to be subject to a takeover early in 2022 and SKT is "in play"

Apart from that WHS is currently 47th based on a share price of $3.48 but at $3.70 it would be $410.6m making it 46th and getting a lot closer to the $455m.

Further, I think WHS has tremendous capital gain potential and will likely make it into the NZX50 under its own steam in 2022 even in the very unlikely event that neither ZEL or SKT are taken over in 2022.

In summary I think there is a very strong probability WHS will get included in the NZX50 sometime before the end of 2022.

[LaserEyeKiwi]

Many thanks for sharing. Well worth noting that these companies that are both current constituents of the NZX 50 are in play. ZEL is highly likely to be subject to a takeover early in 2022 and SKT is "in play"

Apart from that WHS is currently 47th based on a share price of $3.48 but at $3.70 it would be $410.6m making it 46th and getting a lot closer to the $455m.

Further, I think WHS has tremendous capital gain potential and will likely make it into the NZX50 under its own steam in 2022 even in the very unlikely event that neither ZEL or SKT are taken over in 2022.

In summary I think there is a very strong probability WHS will get included in the NZX50 sometime before the end of 2022.

yes the elimination of ZEL (if the takeover is successful) was the impetus for raising the prospect of inclusion. That commentary below just confirms the most likely candidate is WHS. Also with SKY TV having absolutely consistently horrid share price performance being the lowest candidate for expulsion from the index, I think WHS has a pretty good shot. Sky has also signaled is is going to do a capital return to shareholders once it finalizes the sale of its Auckland studio campus, which will further impact its market cap to the lower side.

[Beagle]

yes the elimination of ZEL (if the takeover is successful) was the impetus for raising the prospect of inclusion. That commentary below just confirms the most likely candidate is WHS. Also with SKY TV having absolutely consistently horrid share price performance being the lowest candidate for expulsion from the index, I think WHS has a pretty good shot. Sky has also signaled is is going to do a capital return to shareholders once it finalizes the sale of its Auckland studio campus, which will further impact its market cap to the lower side.

Share consolidations like SKT are undertaking are usually unhelpful to market cap too.

All that said, I'm not investing for NZX50 inclusion, that would simply be a nice decorative item on top of a very fruity and well iced cake, so too speak. WHS shares are on compelling metrics and I think they have excellent capital gain potential.

[LaserEyeKiwi]

Can someone remind me again what the $386m next to WHS in that list represents?

in the real world WHS is worth $1.28 Billion market cap, which is exactly $1 Billion higher than SKT $280 million market cap.

[Beagle]

Can someone remind me again what the $386m next to WHS in that list represents?

in the real world WHS is worth $1.28 Billion market cap, which is exactly $1 Billion higher than SKT $280 million market cap.

Its what I believe they call the free market float. Takes out huge longstanding large shareholding positions like the Tindall foundation stake. Sorry mate I don't know the fine nuances of exactly how they determine what shares are free market and what aren't but I am sure someone else on here will be happy to provide further clarity.

[Balance]

delted deleted

[Dlownz]

Can someone remind me again what the $386m next to WHS in that list represents?

in the real world WHS is worth $1.28 Billion market cap, which is exactly $1 Billion higher than SKT $280 million market cap.

My guess is its what's actually tradeable on the nzx. Tindell and his trust locks away a lot of the WHS value

[bull....]

only matter of time for nzx inclusion , then all those institutions ( here and oversea's ) will have to pay up to get there shares. i can wait , in the mean time the 14% odd gross div yield i be receiving based on my analysis will keep me happy

[LaserEyeKiwi]

Its what I believe they call the free market float. Takes out huge longstanding large shareholding positions like the Tindall foundation stake. Sorry mate I don't know the fine nuances of exactly how they determine what shares are free market and what aren't but I am sure someone else on here will be happy to provide further clarity.

so I wonder if that’s been updated to reflect the foodstuffs selldown.

[Beagle]

so I wonder if that’s been updated to reflect the foodstuffs selldown.

Excellent question...from memory, I think Forbar have adjusted for that and commented on this before so its probably included in their latest analysis.

[JohnnyTheHorse]

Excellent question...from memory, I think Forbar have adjusted for that and commented on this before so its probably included in their latest analysis.

It's based on market cap of the previous 6 months, so will only be accounting for a portion of it so far. Inclusion will happen early next year.

[Greekwatchdog]

For Bars last WHS update was 17/05 so before Foodies sell down. Nothing since.

[Beagle]

Thanks guys for clarifying that, much appreciated.

[Balance]

only matter of time for nzx inclusion , then all those institutions ( here and oversea's ) will have to pay up to get there shares. i can wait , in the mean time the 14% odd gross div yield i be receiving based on my analysis will keep me happy

One thing to consider re the indexing is that the Foodstuffs selldown enabled the institutions to get set for an indexing.

The spike may not be as big as some are hoping.

You are rather quiet on ATM, bull - taken your gains?

[Dlownz]

Good point there Balance. If that's the case results will just have to speak. 😊

[bull....]

One thing to consider re the indexing is that the Foodstuffs selldown enabled the institutions to get set for an indexing.

The spike may not be as big as some are hoping.

You are rather quiet on ATM, bull - taken your gains?

a2 a distant memory again now the funds are continuing to move to whs , mention a long time back $4 as a short term target , the sell down temporary set that back but looks back on track now

[Greekwatchdog]

Cornerstone Shareholder in Zoom Health: https://www.nzx.com/announcements/378025

[Entrep]

The Warehouse Group invests in ZOOM Health

The Warehouse Group has become a cornerstone shareholder in ZOOM Health
Limited ("ZOOM"). ZOOM is a health technology company and shareholder in ZOOM
Care Limited, an online pharmacy delivering prescription medicine to
patients.

The Warehouse Group CEO Nick Grayston says that such a service is crucial for
New Zealanders, particularly in current times when it is hard to get out
physically to pick up prescriptions, but they can instead be delivered to a
patient's door.

"We believe that through this investment, we are helping make a difference to
New Zealanders' welfare in a way that provides convenience and
affordability".

"The Warehouse Group has been working on building a customer ecosystem that
leverages our brand strength, store network and customer base. We firmly
believe that the investment in such a promising digital health company
complements our existing offer and our expertise in online retail and
distribution. It also aligns well with our purpose of helping Kiwis live
better every day".

The investment will result in additional capital for ZOOM for dispensing
infrastructure, distribution centres, software development and further
investment in its people.


to save a click

[Joshuatree]

Great stuff thanks. Grow the warehouse OmniStore side as well, a bit slow but catching up to keep up with the trends and demands of shoppers.

[Waltzing]

Wonder what the eager investors of WHS think about this as no amounts are mentioned?

[Dlownz]

Up against some strong competion of chemist warehouse. But they did say they would use cash for acquisitions
Good movement today in the share price anyway .

[winner69]

Zoom been shopping around for money for a while

Talking of $150m revenue in 2025


https://www.snowballeffect.co.nz/offers/zoom-health-Jku1Zf1I7

[Beagle]

Zoom been shopping around for money for a while

Talking of $150m revenue in 2025


https://www.snowballeffect.co.nz/offers/zoom-health-Jku1Zf1I7

Thanks for the link mate. Its a growing issue, especially at the moment but also in the long run with an ageing population. People unable to get out to get their prescriptions. Maybe pre-cooked food deliveries is next ?

[Greekwatchdog]

They could put an offer for MFB for $1

[Beagle]

They could put an offer for MFB for $1

Just after MFB gets to 50 cents :D

[Greekwatchdog]

You bad dog, back to your kennel

[Waltzing]

Its look's a very small startup that perhaps WHS is hoping to help ramp up.

Not something that will add to the share price any time soon?

[allfromacell]

Marked as not price sensitive as well so obviously not a significant chunk of change.

[Dlownz]

Its look's a very small startup that perhaps WHS is hoping to help ramp up.

Not something that will add to the share price any time soon?

Look at torpedo 7. It started off slow but has slowly built up. I was hanging for a store in hawkesbay ages ago. Now we have one

[Waltzing]

Sorry should have been more specific.. Not moving the SP in the next 12 months? Being a bit short sighted.

[winner69]

Punters on regular medication love Zoom - pills arrive all neatly packed when needed. No need to go to pharmacy (and often not even a pysical trip to the doc)

Just a thing for Nick to play around with and give him warm fuzzies while he and his team spend time strategising how they can leverage things in an omnichannel world. It's the story/perception more than the substance I reckon.Hope they don't interfere too much, after all its only a cornerstone shareholder

Litttle change in this WHS financials

[Waltzing]

Would EBO have ever been interested in ZOOM?

[Greekwatchdog]

Zoom could then go buy GXH. That looks forever stuck in the low $1

[Waltzing]

not a good look. its got a broken web page in EDGE and Chrome.

[nztx]

Wonder what the eager investors of WHS think about this as no amounts are mentioned?


Will our Dividend in Dec be going Zoom Zoom out of this .. or not ? ;)

[Waltzing]

Best directed to MR B.. His knowledge of local DIV stocks is second to none.

[Beagle]

I think this new investment is a pretty modest one and they have plenty of cash on hand to look after shareholders.
All will be revealed on 29 September (annual reporting date). Given the current lockdown I now doubt we'll get a trading update before then.
Once we're out of lockdown I expect consumers will hits the shops with really serious determination.
In the meantime you can get essentials online at the Warehouse here https://www.thewarehouse.co.nz/
Noel Leeming here https://www.noelleeming.co.nz/ (one of my best mates had a new laptop delivered in 3 hours today)
The market.dot.com here https://themarket.com/nz/

[LaserEyeKiwi]

Amazon in the USA has recently been getting into the online pharmacy business - Warehouse borrowing the strategy seemingly and getting in first here.

[Watchful]

Ownership of Zoom Health from companies office includes the following, among others.

6923077 shares (26.02%)
The Warehouse Limited

2393403 shares (8.99%)
Snowball Nominees Limited

If we consider the Snowball funding round raised $2,660,064 - (looks like that was completed in February)

Followed with making the big assumption that The Warehouse entered at a similar valuation point - seems they may’ve invested around $7m, plus or minus.

[Southern Lad]

Watchful, if you open up the PDF document on the Companies Office titled Director Certificate you will see that the considerations for the issue of the new shares to WHS was $4,500,000, so maybe they got a bargain.

[Watchful]

Watchful, if you open up the PDF document on the Companies Office titled Director Certificate you will see that the considerations for the issue of the new shares to WHS was $4,500,000, so maybe they got a bargain.

Good spotting, thanks.

[Beagle]

Good work folks finding that. So on 346.8m shares on issue the net value per share of this new investment was $4.5m / 348.8m shares = ~ 1.3 cents per share and not material at all in terms of impairing their ability to pay a very handsome full year dividend in due course :)

[Joshuatree]

Bye the bye ,does anyone know who owns the chemist warehouse? As far as ive got is maybe American based in Virginia.

[LaserEyeKiwi]

Yes well done digging that up lads.

[Joshuatree]

Got it,Chemist Warehouse in Aus and NZ privately owned,shame.Sorry bout sidetrack.

[nztx]

Got it,Chemist Warehouse in Aus and NZ privately owned,shame.Sorry bout sidetrack.

Are WHS taking up a major stake in that for us as well ? ;)

[bull....]

good work folks digging up that info , with WHS muscle behind it it will grow pretty quick now. good investment by the whs

[percy]

The Chemist Warehouse,Bargain Chemist lead the way in the online chemist sector.
In the distribution of medical supplies Ebos leads the way in both Aussie and NZ.They have a contract to supply The Chemist Warehouse.
Interesting Ebos have a shareholding in Australian company MDR.Med Advisor.
MedAdvisor Limited is an Australia-based medication technology company. The Company is engaged in development and delivering software for personal medication management. The Company’s products include MedAdvisor App, PlusOne pharmacy platform and pharmaceutical health program. MedAdvisor App and its supporting software platform provides individuals and minders to manage all aspects of prescription medication use...
About MedAdvisor
MedAdvisor is a world-class medication management platform that empowers patients to more simply
manage their medication and improve adherence. MedAdvisor’s highly automated and intuitive software
system connects patients to tools and education materials from their preferred pharmacy. MedAdvisor
works with 25,000 pharmacies in the US to deliver programs to help patients take their medication safely
and effectively. In Australia, MedAdvisor has connected over 1.9 million patients through more than 65% of
Australian pharmacies. MedAdvisor has partnered with HMS in the US, Zuellig Pharma in Asia, and is on
track to become one of the largest players in the global digital adherence market. In 2018 and 2020,
MedAdvisor was recognised in the AFR Fast 100. Visit: mymedadvisor.com/investor.

PS.Those who know this sector will not be surprised to see the Zuellig name.They are shareholders in Ebos and GXH,[GXH is via Cape.]

[Dlownz]

Just been checking out ZOOM the app seems easy to use. It could be very handy especially in this current environment

[STr]

Looks like a strategic investment. I wonder if there are other advantages - the Zoom app is good - perhaps WHS have purchased "access" to IT resources to improve their omnichannel experience ? You only have to talk to any NZ recruitment company - WHS is not a sort after workplace and moral and project delivery is apparently not great. There have been some questionable exec appointments (does anyone know why the last CDO left so quickly without any explanation?), and their strategy and recent success is heavily reliant on replacing and improving their aging technology - the Investor day was heavily weighted towards this improvement and alignment. In a very tight skills market, perhaps this relationship provides some headroom.

[winner69]

Looks like a strategic investment. I wonder if there are other advantages - the Zoom app is good - perhaps WHS have purchased "access" to IT resources to improve their omnichannel experience ? You only have to talk to any NZ recruitment company - WHS is not a sort after workplace and morale and project delivery is apparently not great. There have been some questionable exec appointments (does anyone know why the last CDO left so quickly without any explanation?), and their strategy and recent success is heavily reliant on replacing and improving their aging technology - the Investor day was heavily weighted towards this improvement and alignment. In a very tight skills market, perhaps this relationship provides some headroom.

Interesting insights STr - thanks for bringing up

Supports the odd tit bits I’ve heard as well, which didn’t emanate from the IT dept

Maybe Nick working on it ….but I don’t see Nick as the sort of guy to manage that sort of change

[winner69]

STr mentioned sudden departure of COO Pejman Okhovat

I have no idea as to whether Pej packed a sad and left because he was unhappy at TWG or whether he was told he wasn’t really wanted.

Whatever he’s now MD of BIG W (part of Woolworths) in OZ and is in charge of a much bigger company (nearly $5 billion v TWG group $3.3 billion)

Maybe it is TWG group’s loss and WOW’s gain

[Waltzing]

if there is a big pull back in the next 2 months on markets there might be another chance to purchase some more of these at a good P/E. Records being set for new highs on the SP 500.

[Dlownz]

Has anyone done any calculations how much the lockdown has cost WHS in wages and lost income. Looks around 15mil in wages. Hopefully they are making it up in online orders

[allfromacell]

Has anyone done any calculations how much the lockdown has cost WHS in wages and lost income. Looks around 15mil in wages. Hopefully they are making it up in online orders

It doesn't really matter too much, lockdowns are net positive for retail, especially for companies who don't pay back the subsides.

[LaserEyeKiwi]

So all WHS stores south of Auckland will be open on Wednesday presumably as we move into level 3 operating environment. Only click and collect & deliveries at this stage. This might be obvious, but thought worth mentioning.

[STr]

Had'nt heard that about Pejman - but I am glad I invested heavily in WOW, but still hold WHS whilst retail has it's day. There have been a few C-Level exits without explanation - some in a hurry, some under clouds and some for personal reasons I am sure. Most of the time with no announcements, only for SH to find out through Investor days and Reports. Interesting culture in the business. Perfect storm with Covid and Retail - I will watch carefully when (if) the world rights itself though as to which businesses adapted to sustain.

[iceman]

It doesn't really matter too much, lockdowns are net positive for retail, especially for companies who don't pay back the subsides.

I'm not convinced that will be the case again this time. There are thousands of small businesses, their owners and employees, hammering very badly right now. The wage subsidy covers only a small part of that blow

[allfromacell]

I'm not convinced that will be the case again this time. There are thousands of small businesses, their owners and employees, hammering very badly right now. The wage subsidy covers only a small part of that blow

Undoubtedly a hard time for business owners but I reckon most employees will be doing just fine on mostly full wages and nothing to spend money on but food and limited online retail.

Once the lockdown is over the job market will remain tight, the government will splurge a bit more free money and the average consumer will have a massive urge to get out and spend.

After all retail is the best therapy these days.

[iceman]

Undoubtedly a hard time for business owners but I reckon most employees will be doing just fine on mostly full wages and nothing to spend money on but food and limited online retail.

Once the lockdown is over the job market will remain tight, the government will splurge a bit more free money and the average consumer will have a massive urge to get out and spend.

After all retail is the best therapy these days.

I spoke to a young owner of an electrical business yesterday. He has 20 employees. He told me they are all earning wage subsidy only ATM, $ 650 per week. Prior to lockdown, they were averaging $1,150 in the hand with lots of work. Big mortgages. He reckons the only place they will spend money in the next few weeks is the supermarkets and petrol stations. But then we have the large number of people on benefits and they'll probably be much less affected and can keep spending !

[Beagle]

Undoubtedly a hard time for business owners but I reckon most employees will be doing just fine on mostly full wages and nothing to spend money on but food and limited online retail.

Once the lockdown is over the job market will remain tight, the government will splurge a bit more free money and the average consumer will have a massive urge to get out and spend.

After all retail is the best therapy these days.

Agree 100%


I spoke to a young owner of an electrical business yesterday. He has 20 employees. He told me they are all earning wage subsidy only ATM, $ 650 per week. Prior to lockdown, they were averaging $1,150 in the hand with lots of work. Big mortgages. He reckons the only place they will spend money in the next few weeks is the supermarkets and petrol stations. But then we have the large number of people on benefits and they'll probably be much less affected and can keep spending !

As far as I am know, (and I am certainly not pretending to be an employment law expert so I could be wrong), employees have to be paid a minimum of 80% of their normal wages. Whilst in this situation the owner of the business may be either breaking the law or getting around it some other way, I don't think that's a widespread issue. For what its worth in my small practice no client has asked me if they are allowed to reduce the amount they pay their staff during lockdown so as far as I am aware all are paying the normal wages. Further, employees don't have the usual commuting and parking costs while in lockdown which for some in Auckland can be as much as $100 per week.

I'm with allfromacell on this one. Like many others I and am going to hit the shops with a real vengeance as soon as we got to level 1.
I think this time I get it, what the meaning of the term "revenge spending" really means. (Live for today for who knows what the heck tomorrow may bring !).

[allfromacell]

Hopefully any stock issues have been helped by a brief pause and the shelves are fully stocked ready for Beagles spending spree :p.

[Gunner]

Agree 100%



As far as I am know, (and I am certainly not pretending to be an employment law expert so I could be wrong), employees have to be paid a minimum of 80% of their normal wages. Whilst in this situation the owner of the business may be either breaking the law or getting around it some other way, I don't think that's a widespread issue. For what its worth in my small practice no client has asked me if they are allowed to reduce the amount they pay their staff during lockdown so as far as I am aware all are paying the normal wages. Further, employees don't have the usual commuting and parking costs while in lockdown which for some in Auckland can be as much as $100 per week.

I'm with allfromacell on this one. Like many others I and am going to hit the shops with a real vengeance as soon as we got to level 1.
I think this time I get it, what the meaning of the term "revenge spending" really means. (Live for today for who knows what the heck tomorrow may bring !).

Lots of companies paid less than 80% last year. Fletchers for example over the covid period paid 50% for a certain period.

[iceman]

Lots of companies paid less than 80% last year. Fletchers for example over the covid period paid 50% for a certain period.

Absolutely correct. Overtime etc completely gone.

[Beagle]

Lots of companies paid less than 80% last year. Fletchers for example over the covid period paid 50% for a certain period.

Thanks...finally got around to looking it up, (as mentioned above, no client has asked me about reducing pay rates for staff)
https://www.workandincome.govt.nz/covid-19/wage-subsidy/making-payments.html Excerpt
If you are receiving the COVID-19 Wage Subsidy August 2021, you must use your best endeavours to pay the employee named in your application at least 80% of their usual wages. If that isn't possible, you need to pay at least the subsidy rate (ie, full-time or part-time).
It would seem to be morally repugnant to pay people less than 80% of their normal wages unless the employer is under severe financial pressure.
I know a lot of employees sitting at home twiddling their thumbs on 100% of what they normally get. Maybe lots of employers have listened to Cindy's constant P.R. "Be Kind" statements ?

[Gunner]

Thanks...finally got around to looking it up, (as mentioned above, no client has asked me about reducing pay rates for staff)
https://www.workandincome.govt.nz/covid-19/wage-subsidy/making-payments.html Excerpt
If you are receiving the COVID-19 Wage Subsidy August 2021, you must use your best endeavours to pay the employee named in your application at least 80% of their usual wages. If that isn't possible, you need to pay at least the subsidy rate (ie, full-time or part-time).
It would seem to be morally repugnant to pay people less than 80% of their normal wages unless the employer is under severe financial pressure.
\I know a lot of employees sitting at home twiddling their thumbs on 100% of what they normally get.

Last year, the game they played was to "ask" you accept a reduced pay, therefore you have agreed to it and is a variation to the contract. If you didnt you'll be made redundant. Fletchers have said they'll pay 100% up until yesterday but will review after that. Will be interesting to see what they do with Auckland at level 4 for weeks. Guarantee itll be less than 80% normal pay.

[iceman]

Thanks...finally got around to looking it up, (as mentioned above, no client has asked me about reducing pay rates for staff)
https://www.workandincome.govt.nz/covid-19/wage-subsidy/making-payments.html Excerpt
If you are receiving the COVID-19 Wage Subsidy August 2021, you must use your best endeavours to pay the employee named in your application at least 80% of their usual wages. If that isn't possible, you need to pay at least the subsidy rate (ie, full-time or part-time).
It would seem to be morally repugnant to pay people less than 80% of their normal wages unless the employer is under severe financial pressure.
I know a lot of employees sitting at home twiddling their thumbs on 100% of what they normally get. Maybe lots of employers have listened to Cindy's constant P.R. "Be Kind" statements ?

Mate. Thousands of companies are exactly that now. Under severe financial pressure with zero income for weeks on end.