WHS - Warehouse Group

[Lawt]

Economists argue about the wage-price spiral back and forth and you could spend years debating it....thats not the point here. The point is that by paying someone more you create an environment where workers feels "loved" and valued and appreciated as you will no doubt recognise when you yourself got a raise. This makes for a more productive, happier employee which in turn should encourage a better work place environment which should boost sales and profitability. The employer also gets a "feel good" factor which also encourages positive work. So the worst case scenario is, as you suggest, a "no financial advantage" but happier employer/employee/workplace. Sometimes the perception is more effective than the reality. Also as the employee sees themself being valued the possibility arises that they see their future in a more positive fashion and improve their skills and employability thereby moving up the evolutionary employment ladder.

Sure their are differences of opinion on it, but it should also be noted that the lower income groups will be the ones to "benefit" from a govt mandated living wage, but are also the ones most likely to have to suffer from the price spiral - should economist ever agree on such an event. It's highly unlikely to affect the price of Moet, Mercedes and dining at fine resturants one jot.
But to be sure I'm NOT advocating against their approach, I think it's great, companies should in my view pay what they see as good value - not however what the govt mandates as good value.

[000831]

strongly agree,in a bull market, anything is possible. Let's enjoy the bubble time.

[bull....]

strongly agree,in a bull market, anything is possible. Let's enjoy the bubble time.

hardly your typical bull market as not all stocks are going up , this is being driven by yield stocks and whs has a good yield which i believe will get better driven by company fundamentals

[000831]

Dilligent, XRO BUBBLE, disgusting EPS, but STILL GO UP. RYM overvalued but beautiful. WHS has a great trading trend on graph.

[BIRMANBOY]

Would have been better buying at a lower price...but god bless your enthusiasm. Without people like yourself the trend would die and no-one wants that!
Dilligent, XRO BUBBLE, disgusting EPS, but STILL GO UP. RYM overvalued but beautiful. WHS has a great trading trend on graph.

[000831]

now it is still relative cheap. if PE = 17, then SP shoud be 7.90. g = ? %

[000831]

anyway, let's stand above 5 within three weeks first

[BIRMANBOY]

Taxi drivers, barbers and shoe shine boys.

[000831]

Taxi drivers, barbers and shoe shine boys.

not yet, not yet,

normally comes in Oct right. hardly see people take the marginal lending to trade at moment. Not crazy yet. As NZX reaches 5000 above......

[bull....]

looking for 20% growth in profits once cap invest finished so $6 would not surprise me if they keep on the right path

[amalgam]

Visited a new WHS store at Silverdale today--a big change from the old red sheds. The merchandise seems to be a higher standard and is certainly presented much better. They were stocking the shelves with Sony products--even the cloths looked much better [not the old hospice feel of the past, although not up to the standard of Country Road or Rodd & Gunn]
The store was busy and the staff polite
Over all I was pleased I didnt get rid of my WHS shares last year & with a Yield of 7.2 & PE 9.55 there seems to me to be no reason why a price of $5 shouldn't be reached--with buyers seeking out high yielding shares on the NZX.

[000831]

WHS - Third Quarter Sales Update8:30am, 10 May 2013 | QUARTER
THE WAREHOUSE GROUP LIMITED
Third Quarter Sales Update
Auckland, 10 May 2013 - The Directors of The Warehouse Group Limited reported sales from continuing operations for the third quarter ended 28 April 2013 of $557.1 million, and $1,650.8 million for the year to date. Sales for the quarter excluding Noel Leeming Group and Torpedo7 Group were $418.7 million, up 6.2% on the prior comparable period. Year to date sales excluding Noel Leeming Group and Torpedo7 Group were $1,397.2 million, up 5.1% on the prior comparable period.
The Warehouse (Red Sheds) third quarter sales were $355.6 million, up 5.1% compared to the third quarter last yearSame store sales for the third quarter were up 2.0%. Year to date sales were $1,222.2 million, up 4.1%
In relation to The Warehouse (Red Sheds), Group Chief Executive Mark Powell noted that the apparel business had performed well during the summer season with less clearance activity required and as a result better margins than last year, consistent with our H1 FY13 results update. The Home category had also performed well and Technology sales were strong, in part due to the digital TV switchover in the South Island. Our apparel winter sell through is on track however with the continuing mild weather in the North Island this is being monitored closely.
Seven more stores were refitted and relaunched late in the quarter as part of our strategic store rejuvenation program
Warehouse Stationery (Blue Sheds) third quarter sales were $63.1 million, up 13.1% compared to the third quarter last yearSame store sales for the third quarter were up 1.9%Year to date sales were $175.0 million, up 12.3%
The strong Warehouse Stationery sales performance resulted from a successful Back-to-School campaign and solid Technology salesTwo stores were relocated during the quarter (Albany and Whangarei) and a new store opened in Matamata bringing the total number of Warehouse Stationery stores to 60.
Noel Leeming Group continued its good start under Warehouse Group ownership, with sales for continuing stores for the quarter of $133.1 million, and same store sales up 5.8% on the previous corresponding periodThe Bond + Bond retail brand merger into Noel Leeming was completed successfully, with both sales and margin meeting expectations during the promotional activity associated with the brand merger.
During its first month as part of the Group, Torpedo7 Group had sales of $5.3 million, in line with expectations.
As previously announced, the Group sold the Silverdale Centre during the quarter for gross proceeds of $78 million, with completion due to occur on 1 July 2013.
Chairman Graham Evans said that the long term strategy outlined eighteen months ago is starting to deliver improved results for shareholdersIt is pleasing to see that our product brand optimisation strategy has already resulted in the ranging of major brands such as Sony, Acer, Hoover and Kambrook in The Warehouse stores, with further brands to be introduced during the year.
Guidance is unchanged and, subject to any material change in anticipated trading conditions, the Directors continue to expect Warehouse Group adjusted net profit after tax for the full year to be between $73.0 million and $76.0 million.
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 92 Warehouse stores, 75 Noel Leeming stores and 60 Warehouse Stationery stores in New ZealandThe company had a turnover of $1.7 billion in F12 and employs over 10,000 people.
Investors and AnalystsMedia
Stephen Small
Chief Financial Officer
Cellphone64 21 714 159
Mark Powell, Group CEO
to be contacted via Gayle Theunissen on
Phone649489 8900 extension 96333
Cellphone6421742784

[000831]

better margin, sales up, have Noel Leeming Group and bond + bond, brand improved. however, the share price is still lower than 2007 peak.

How do you think?

[BIRMANBOY]

I think you should buy some more:)
better margin, sales up, have Noel Leeming Group and bond + bond, brand improved. however, the share price is still lower than 2007 peak.

How do you think?

[000831]

I think you should buy some more:)


all in. no cash

[kiwitrev]

SP savaged in recent days down from $4.40 to $4.16. Is this a case of having travelled too far too fast or
are there other elements at play here. Looking at yesterday's trading 58,781 shares traded (much lower than
usual), about 130 trades averaging 448 shares per trade. It just doesn't look right. Some form of shorting
going on? I don't know. What do others think.

[Halebop]

What do others think.

That price rises prompt profit taking. Nothing more sinister.

[CJ]

That price rises prompt profit taking. Nothing more sinister.Agree - if you are looking to get in, this creates a window. If you are a long term holder, I dont think a sell signal has been triggered

[000831]

Agree - if you are looking to get in, this creates a window. If you are a long term holder, I dont think a sell signal has been triggered

u r right, short term speculators like me gone.

[Banksie]

Read a recommendation this morning to reduce with a target price of 3.60. The gist of the report was that although the company was performing as expected that the current price was too high. I guess those that believe the report will be reducing. If I can get some cash together I certainly would like to buy into this share sub $4.

[000831]

Read a recommendation this morning to reduce with a target price of 3.60. The gist of the report was that although the company was performing as expected that the current price was too high. I guess those that believe the report will be reducing. If I can get some cash together I certainly would like to buy into this share sub $4.

safe to buy in around the MA30, yes 4.00

[CJ]

Read a recommendation this morning to reduce with a target price of 3.60. I'd be interested if it got to 3.6 though my pick is if it gets that low, the good signs they have been showing recently would have gone away.

[kiwitrev]

Banksie
That report - Morningside - In fact their valuation is raised from $3 to the $3.60 you referred. The $3 valuation had been published some months ago prior to the big run up, so in my opinion the current $3.60
valuation is not responsible for the sell off.

[BIRMANBOY]

So WHS is driving me nuts...every time I buy ..it goes up. And I end up with profit sitting in there telling me...take me I'm yours and I want your hot little hands caresssing my Ed Hillarys..first temptation at good profit, then at very good profit, now its into "spectacular profit"...but every time I almost give in it comes back and goes into the next climb. So who's to say that isnt going to happen again??? Four times I almost did it..developing a thick skin but an interesting experience examining the psychology (well mine anyway) of share ownership.

[BIRMANBOY]

I know that Moosie but thank you.....issue is how much "HAPPY" is in a continuum.. happy at $5 (as an arbitary figure..nothing to do with WHS) , happier at $10 but that shifts the relevence of $5 doesnt it? Why would you settle for $5 worth of happiness when you could have $10 worth. As I said the Goal posts kept shifting and where they end up is the continuum.
Trend is your friend. Buy the dips, hold on at the tops. Find a range you are more than happy to depart with your shares at and set and forget. My instinct says $5 may be tops on this one...

[BIRMANBOY]

YES I CAN!!!! Ooh yee of little faith.

http://graphicdesignhero.com/obamaformessiah/wp-content/uploads/2008/07/obama-messiah.jpg

$5 is realistic, like gold falling to $1300 near term. $10 is unrealistic, like Jesus falling from the sky and anointing you the new messiah.

Don't get too greedy ;)

[000831]

seems good position to buy in again, :t_up:

[BIRMANBOY]

GO you beauty...he's in .....he's out he puts it all about...do the hokey pokey and put your big foot out.
seems good position to buy in again, :t_up:

[Minerbarejet]

yikes - what happened to all the buyers - a yawning chasm has appeared! Down ten today a buyer at 3,.99 and next stop 3.50. caramba!

[Lawt]

yikes - what happened to all the buyers - a yawning chasm has appeared! Down ten today a buyer at 3,.99 and next stop 3.50. caramba!

It appears from anecdotal observation that the price of WHS is very dependant on the NZ exchange rate with the US.
As you will note the US just strenghtened.
Seems counter intuitive to me - unless of course The Warehouse is sourcing much of it's stock from the US these days.

[macduffy]

It appears from anecdotal observation that the price of WHS is very dependant on the NZ exchange rate with the US.
As you will note the US just strenghtened.
Seems counter intuitive to me - unless of course The Warehouse is sourcing much of it's stock from the US these days.

Not necessarily sourcing stock from the USA but a lot of trade is either priced in USD or in currencies with a (specific or informal) link to the USD.

[bull....]

It appears from anecdotal observation that the price of WHS is very dependant on the NZ exchange rate with the US.
As you will note the US just strenghtened.
Seems counter intuitive to me - unless of course The Warehouse is sourcing much of it's stock from the US these days.

probably to do with this , but they do have hedging so probably only partly , overbrought short term , jitters on market all these thing dont help

[kiwitrev]

Definitely some form of shorting today. At or near $4 all day, then close to close $4.09, then at close $3.85 on double volume all day's sales

[ENP]

Not necessarily sourcing stock from the USA but a lot of trade is either priced in USD or in currencies with a (specific or informal) link to the USD.

Everything that comes out of China or the rest of Asia is priced in USD.

[Slowlearna]

seems good position to buy in again, :t_up:
:confused:
How good now?

[kiwitrev]

Slowlearner
Do I detect a hint of sarcasm in your post, as if you are pleased to see a sell off? If so most posters will not appreciate the tone. As in all markets there will always be fluctuations in price and it is a matter of timing entry and exit points.

[Dr S]

Everything that comes out of China or the rest of Asia is priced in USD.

But not for much longer. Japan since last year, and Aus since April have begun directly converting currency with China, side-stepping the USD.

NZ is in talks with China to do the same. Which will be interesting for WHS - better margins, but risks if NZ dollar sinks against Yuan.

[CJ]

Behind the paywall at NBR but a quick look at companies office shows that WHS has bought 50% of Shop HQ - the new ventuyre for Shane Bradley who brought Grabone to NZ (with APN's funding).

http://www.nbr.co.nz/stayconnected?return=142298

I think the first portal is pet.co.nz. Interesting development given their recent purchase of Torpedo.

[kiwitrev]

Very interesting all these moves into on-line space, protecting their position and looking for growth, not just bricks and mortar reatilers-the way of the future. They have the $muscle to make this work. On another note and one which could work to WHS and other high dividend paying stocks advantage is the fact that this month over $500m worth of bonds that are not being renewed in the market are maturing. Typically bond investors look for yield so this could be a good thing.

[bull....]

pet sales would be a new potentially large category for sales

[POSSUM THE CAT]

Bull they have had pet department for years & the only time you go near them is when they are having a clearance of basically ageing Stock. They would possibly better to do away with the pet department

[bull....]

Bull they have had pet department for years & the only time you go near them is when they are having a clearance of basically ageing Stock. They would possibly better to do away with the pet department

agree your right , but more looking at the new proposition and the way it will be delivered , will way out perform what they had and will properly send shivers up the stand alone brick an mortar pet stores.

[bull....]

Also you need to take in what all these online purchase of businesses mean for sales it open way more potential customers on top of an exsisting customer base.
what you get is all those people who would never go and shop at a warehouse for what ever reason potentially becoming customers thru online that why i like the new multi channel strategy opens up new markets.

[POSSUM THE CAT]

Turmeric why would that site be any better than any other pet web site. I have only found one that is worth looking at & only for one product that they do freight free. It seems just like there foray into Crazy Clarks. One walk through a store with your eyes open should have told management that it was A DOG

[bull....]

http://www.petsmart.com/ is the top pet supply site in the US so probably should benchmark pet.co.nz against this

[bull....]

Looking good after bouncing of trendline at 4.45 up 6% and trending back up hopefully back to our highs

[kiwitrev]

And above 50, 100 and 200 SMA. Looks to be on another run-up prior to year end results (although we know largely it to be in line with previous guidance). What will be interesting in y/e, comments impact of on-line businesses and NL purchase. I think the market will pay particular attention to this aspect of the business.

[Slowlearna]

A Flash Survey of business online responses to the recent earthquakes in New Zealand.


http://business.scoop.co.nz/2013/07/24/shake-rattle-and-corporate-social-responsibility/


Who were the Good Business Eggs?


The Warehouse: “Safety is our top concern at The Warehouse” and “Please make sure that you stay safe and only leave your home if necessary, team members of closed stores please stay home until contacted by your Store Manager. If you require urgent medical assistance please contact the proper authorities.”

followed by

Westpac:

Chorus:

Farmers

[kiwitrev]

Price manipulation today. At time of posting 408 trades for total of 118k shares. Lots and lots of tiny parcels. I guess we can expect a bounce when manipulator agenda completed and keeping in mind annual result not too far away.

[winner69]

Quite impressed how the store layout and ranging has improved over the last year or so.

Even the online sales part I very efficient ... Quick delivery and all that

Can see an improved shareprice over the next few years

[bull....]

RESHAPED WAREHOUSE GROUP REPORTS DOUBLE DIGIT PROFIT GROWTH
Total Group sales for the full year up 29.3% to $2.24 billion
Adjusted NPAT up 13.1% to $73.7 million
Reported NPAT up 61.1% to $144.7 million
Final Dividend of 5.5 cents per share


great result seem on track for a much brighter future

[winner69]

Agree .... current management team seem to have a clear strategy going forward and it seems to be working

Eps 24 cents so growth factored into current shareprice ....a pe of 16

But yield will keep Birman happy

[BIRMANBOY]

PURRRRRRRRR. BRRRRRRR.
http://lh3.ggpht.com/_LlfXWxcpJyU/S5K7zsYynBI/AAAAAAAAavM/y_CAZ9ZLlqQ/s400/cats%20purr.jpg



Agree .... current management team seem to have a clear strategy going forward and it seems to be working

Eps 24 cents so growth factored into current shareprice ....a pe of 16

But yield will keep Birman happy

[percy]

RESHAPED WAREHOUSE GROUP REPORTS DOUBLE DIGIT PROFIT GROWTH
Total Group sales for the full year up 29.3% to $2.24 billion
Adjusted NPAT up 13.1% to $73.7 million
Reported NPAT up 61.1% to $144.7 million
Final Dividend of 5.5 cents per share


great result seem on track for a much brighter future


Well done WHS.
A splendid result.

[macduffy]

Yes, a good result in what are still difficult times for retail. The raw numbers are distorted by the inclusion of Noel Leeming/Bond and Bond for a full year but there is no doubt that the addition of new major brands has been very beneficial to the overall group.

The brightest note for me was "gross margins highest in several years" - the sobering bits were "Red sheds same store growth 1.9%" in the latest half: and "(increased) profit primarily due to gains on the disposal of property".

[Silverlight]

Just to be a bit contrary in the mix, the new stores look really really good. They feel bright, and the new environment has a positive impact on staff.

The online store is very easy to use and well designed, if I want to compare items at bunnings, their website doesn't tell me prices, and their beat by 15% only works if items are the same brand/ model.

Glad those who could see the wood from the trees, stayed the course, I love the sharetrader forum, because the sentiment flowing through these threads is usually wrong. Nothing but pages of negative comments back in early 2012, with a few sprinklings of positive notes from Birmanboy, yet that was the bottom.

Isn't it funny, this sites creation, should see more in-depth analysis, yet a lot of very articulate, analytical, and rational posters, succumb to the same greed and fear, and instead become the barometer for the contrarian investor.

[kiwitrev]

I've been a believer in the turnaround story for quite a while now. Today's result confirms what was already known at half year plus consolidating all the newer initiatives. It seems to me that we are still in the early phase of the turnaround and that momentum will increasing over the next year or so. When this occurs and profits continue on upward path, capital expenditure on new initiatives come to an end, we are likely to see a return to "special dividends" a not uncommon practice in the past. What is puzzling today is the fact the market has not bought into the story with any conviction (as yet).

[born2invest]

articulate, analytical, and rational posters, succumb to the same greed and fear

If you were articulate, analytical and rational, why would you need the approval of others on an online forum before you make an investment decision?

[born2invest]

What is puzzling today is the fact the market has not bought into the story with any conviction (as yet).

Not puzzling when all your growth in profits has come from:

a) selling the Silverdale complex
b) selling the NIDC
c) buying companies (NLG, multi-channel, etc)

If you buy any company that provides a return greater than what you were earning in interest in a bank account or the interest on the loan if you buy with debt it increases your profit and EPS.

If you look at the core business of the "Red Sheds" as Mark Powell calls it, then 1.9% growth after several years of negative growth isn't particularly great.

[percy]

Glad those who could see the wood from the trees, stayed the course, I love the sharetrader forum, because the sentiment flowing through these threads is usually wrong. Nothing but pages of negative comments back in early 2012, with a few sprinklings of positive notes from Birmanboy, yet that was the bottom.

Isn't it funny, this sites creation, should see more in-depth analysis, yet a lot of very articulate, analytical, and rational posters, succumb to the same greed and fear, and instead become the barometer for the contrarian investor.

I retain my belief that retail is very difficult place to be,both here and Aussie.I prefer not to have any retailers in my portfolio.
I do hold www.estaronline.com who do the successful retailers JBH,BGR,Ezibuy,Ballantynes,Rebel sports and others web pages.
I still think the WHS is a dreadful place to shop at.

[kiwitrev]

Born2Invest
We must be reading different reports. You say core sales plus 1.9% but I am reading plus 4.4% for core Red Shed sales with 2% plus for same store sales. If the business is as bad as you seem to think how is it they can rake in 2.2 billion for the year and pay gross dividend over 8%. Mat not be a stock for traders so perhaps not suited to your investment style.

[born2invest]

Born2Invest
We must be reading different reports. You say core sales plus 1.9% but I am reading plus 4.4% for core Red Shed sales with 2% plus for same store sales. If the business is as bad as you seem to think how is it they can rake in 2.2 billion for the year and pay gross dividend over 8%. Mat not be a stock for traders so perhaps not suited to your investment style.

Apologies, I was referring to "Red Shed" profits of 1.9% growth.

[bull....]

capital expenditure on new initiatives come to an end, we are likely to see a return to "special dividends" a not uncommon practice in the past.

yes looking forward to the day , they will be a cash cow again

[macduffy]

Apologies, I was referring to "Red Shed" profits of 1.9% growth.





I don't think the company broke the profit down by division, did they?

The 1.9% growth was in "Red Shed" same store sales in the latest period.

[kiwitrev]

Big wrap today by Craigs Inv Ptrs on TVNZ midday news for WHS.

[winner69]

Big wrap today by Craigs Inv Ptrs on TVNZ midday news for WHS.

Forbar disappointed in result ...REDUCE REDUCE REDUCE

Think they saying red sheds not making the returns they should after the silos of capital spent on them ....but then that's the cost of staying in the game though.

[winner69]

I don't think the company broke the profit down by division, did they?

The 1.9% growth was in "Red Shed" same store sales in the latest period.

In their presentations they have Operating Profit .....essentially EBIT .... for each business

[kiwitrev]

If Forbar are saying that then I think they are giving bad advice. It was a pretty good result with many sectors of the business showing a positive trend. Rome wasn't built in a day so for Forbar to say result not up to expectation considering amount of capital injected has to be a "novice" error. Retail hasn't always been everyone's cup of tea which is possibly the only thing holding SP back. This will change when WHS traction firmly in place, just a matter of being patient (as always) in my opinion.

[winner69]

http://www.stuff.co.nz/business/industries/9170604/Warehouse-result-disappoints-analyst

[kiwitrev]

Who has the better track record when recommending stocks Forbar or Craigs?

[Slowlearna]

http://www.stuff.co.nz/business/industries/9170604/Warehouse-result-disappoints-analyst

Craigs seem to like the result
Midday Markets: September 16 (1:18) (http://tvnz.co.nz/business-news/midday-markets-september-16-video-5585147)

[macduffy]

In their presentations they have Operating Profit .....essentially EBIT .... for each business

Thanks, winner.

I'd read the announcement but somehow missed the full presentation. Red Sheds" Operating Profit is shown there as +5.3%. A pretty good result given current retail conditions.

[kiwitrev]

On reading Forbar statement a bit more thoroughly my take is as follows:
Forbar have grossly overestimated 2013 profit. They are not advising to sell but reduce but in the next breath expect 2014 result to come in at increase of 12% to $85m. In my book this is confusing as the headline would give a false impression. By any measure a 12% bottom line gain following a 13% gain in retail let alone other business category would be welcome. If you were of a mind to accept their 2014 projection surely this would be bullish for the SP.

[bull....]

all these bad press didnt really affect the price most people must be happy

[percy]

Store visit today.
Store Northlands Mall.
Objective,To buy a photo frame and loo paper,which was also on special at Countdown.
Could not find photo frames in stationery section.Asked.Down the back corner.Selection not bad.20% off said the sign.
Loo paper did not appear to be on special,yet thought we saw it in last night's mailer.
Brought the photo frame but not given the 20% discount.
Counter staff a sow cow.
Store lay out ,hopeless.Brought loo paper at Countdown. Overall result 3 out of ten,made up by a 2 for staff member who directed me,and a 1 for having something near to what I wanted.Proves to me WHS is still a dreadful place to shop.
Then went to Bunnings at Tower Junction.
Met by a friendly staff member at the entrance,and directed to where I would find the Lamp Capsule I wanted.
Found what I wanted.Excellent store layout.
Wished a nice day by the friendly check out staff member. Overall result 10 out of 10.

[born2invest]

Store visit today.
Store Northlands Mall.
Objective,To buy a photo frame and loo paper,which was also on special at Countdown.
Could not find photo frames in stationery section.Asked.Down the back corner.Selection not bad.20% off said the sign.
Loo paper did not appear to be on special,yet thought we saw it in last night's mailer.
Brought the photo frame but not given the 20% discount.
Counter staff a sow cow.
Store lay out ,hopeless.Brought loo paper at Countdown. Overall result 3 out of ten,made up by a 2 for staff member who directed me,and a 1 for having something near to what I wanted.Proves to me WHS is still a dreadful place to shop.
Then went to Bunnings at Tower Junction.
Met by a friendly staff member at the entrance,and directed to where I would find the Lamp Capsule I wanted.
Found what I wanted.Excellent store layout.
Wished a nice day by the friendly check out staff member. Overall result 10 out of 10.

Funny you mention Bunnings because I work at the Warehouse and prefer to shop at Bunnings too.

The staff there are so much friendlier and more knowledgable.

[percy]

Funny you mention Bunnings because I work at the Warehouse and prefer to shop at Bunnings too.

The staff there are so much friendlier and more knowledgable.

Your post pleasantly surprised me, just as I was surprised at the difference in stores this morning.
Thought I may have been in for a war of words.

[winner69]

Funny you mention Bunnings because I work at the Warehouse and prefer to shop at Bunnings too.

The staff there are so much friendlier and more knowledgable.

OMG - that's treason. I can envisage the IT dept tracking you down ....hope you didn't post that from a work computer

So the much touted "Love Your Customer" program not working?

[kiwitrev]

And I was surprised to see you state that you are amongst the less friendly and knowledgable

[CJ]

Funny you mention Bunnings because I work at the Warehouse and prefer to shop at Bunnings too.

The staff there are so much friendlier and more knowledgable.do you think the "living wage" plan will address this or is it just money to the bitter old long term employees?

[garfy]

I am surprised that there is a comparison of WHS to Bunnings..... Surely the comparison should be between Bunnings and Mitre10. WHS is a different completely different store.

I accept that WHS has some 'rougher edges' compared to the upmarket trade, but keep in mind that WHS is "WHS/Noel Leeming", and the latter is certainly more 'refined'.

Having said that, I state that I am essentially a NZophile... I try to shop at NZ owned enterprises, and mostly avoid AUS businesses.... The Aussies are literally bleeding this country - banks!!, supermarkets!, airlines!, and more... And of course, all my portfolio is NZ, so I am biased, but happily so.

And I can't finish without a "Go TNZ"!!

[macduffy]

The concept of a "living wage" sounds like a good idea but how, exactly, does it work?

Is it a living wage for a single person? At home with parents? One with 1,2,3,4 or more dependents? Living in Auckland? Tokoroa? Christchurch? Oamaru?

Does it cater for these different circumstances or is it a single number?

A lot of questions, someone must have the answer/s.

Apologies for cluttering the WHS thread but WHS subscribes to the idea.

:)

[kiwitrev]

Garfy, you are quite correct in your comparison statement. I think what the WHS knockers forget to acknowledge is that WHS carry 50,000 SKU's and makes no attempt to be similar in fabric to others. I would be interested to know what SKU's other big box retailers carry. Sure WHS have carried a previous image of being cheap and nasty but that is gradually being eroded with significant progress in that area. Just like humans the best investment one can make is in themselves and WHS are doing just that. Anyone can have a bad shopping experience anywhere and the 'living wage' process will go some way to addressing those issues. Staff who don't shape up will not achieve that status, will not obtain a higher income, probably become aggrieved at falling behind their workmates and look elsewhere for emloyment. Possibly part of management plan.

[percy]

I look at retail which has different types of retailers,I am comparing a bad retail experience to an excellent one.
I went to two retailers this morning.One I marked at 3 out of 10.The other I marked 10 out of 10.
Big difference.One the staff were happy,pleasant and helpful.One had a well laid out store which flowed.The other had no direction.Stationery items are front of the store,while photo frames in back corner says to me poor layout. WHS appeared under staffed to me.
Kiwi verses Aussie retailers.Both stores today had NZ staff.WHS staff were not happy.

[winner69]

Bunnings have 45000 to 50000 SKUs

It was the Bunnings and Mega big box rollout that really started whs down the track of needing to change. Bunnings and mega started encroaching on many of the warehouse categories after they had killed of the tools/car care etc categories in whs.

There is an lot of overlap between the whs and Bunnings - Bunnings see whs as a competitor and no doubt the warehouse sees Bunnings as a competitor.

It's the warehouse that is being forced to be different, at least in their main categories.

Bunnings going into pizza ovens soon .....ones under 1000 bucks for the keen nz outdoor living man.

[baller18]

Bunnings have 45000 to 50000 SKUs

It was the Bunnings and Mega big box rollout that really started whs down the track of needing to change. Bunnings and mega started encroaching on many of the warehouse categories after they had killed of the tools/car care etc categories in whs.

There is an lot of overlap between the whs and Bunnings - Bunnings see whs as a competitor and no doubt the warehouse sees Bunnings as a competitor.

It's the warehouse that is being forced to be different, at least in their main categories.

Bunnings going into pizza ovens soon .....ones under 1000 bucks for the keen nz outdoor living man.
Gotta get myself one of those pizza ovens!! I love pizza!!!!!

[macduffy]

Bunnings going into pizza ovens soon .....ones under 1000 bucks for the keen nz outdoor living man.

Yeah!

Tramping over the Tararuas with one of them on your back!

:D

[winner69]

Yeah!

Tramping over the Tararuas with one of them on your back!

:D

Sadly not that many do that sort of stuff now .... the great trek is from the lounge to the deck/courtyard to show off the pizza oven

[born2invest]

And I was surprised to see you state that you are amongst the less friendly and knowledgable

I'm not customer facing. I'm at our DC.

[born2invest]

So the much touted "Love Your Customer" program not working?

I'm not sure. I don't deal with the Love Your Customer side of the business.

[born2invest]

do you think the "living wage" plan will address this or is it just money to the bitter old long term employees?

Once again, I don't really deal with the customer facing side of things. I deal with trucks and containers coming in and pallets and trucks going out and making this process as quick and cheap as possible.

[born2invest]

I try to shop at NZ owned enterprises, and mostly avoid AUS

Why?

If something is better quality or a cheaper price I couldn't give a toss where it comes from or who owns the company.

[winner69]

Why?

If something is better quality or a cheaper price I couldn't give a toss where it comes from or who owns the company.

I'd buy my Masport Motor Mower from Mitre 10 rather than Bunnings


But then I don't need a Masport Motor Mower but replaced the Husqvarna line trimmer from the local mower specialist (still surviving even with he big boxes) ....Husqvarna are NZ made aren't they ... whoops

[born2invest]

I'd buy my Masport Motor Mower from Mitre 10 rather than Bunnings


Once again...

Why?

[winner69]

Once again...

Why?

Masport keeping NZ in jobs and at least Mitre 10 profits stays in NZ unlike Bunnings ..... what then Bunnings make stuff all profit in NZ ... but they keep quite a few in a job so that's good

[Lawt]

Why?

If something is better quality or a cheaper price I couldn't give a toss where it comes from or who owns the company.

Yet you claim to value customer service. Does this factor into your purchase decision?
It factors into mine.
So now I have Quality, price and service on my list and I also consider follow up service. I'd rather buy say Masport from my local lawn mower shop than whatever Kmart are offering today no matter what the cost as if I want to have it serviced or have questions about it I can actually get answers from knowledgable people.

I also add choice. If we lose say Masport they won't be coming back and your choice will eventually be zhongchen. If on the other hand we lose zhongchen there will be someone to replace them in a jiffy.
Then there are skills, NZ has many talented people, do you wish to support and develop them or encourage them to go off shore for work. There's only so many people can unload trucks and pack shelves.

To be sure, not all elements are present in every purchase but are often worth considering.

[kiwitrev]

Performance Rights issued today 1.3m shares to executives of WHS. The target is over a three year period Oct 2013-Oct. 2016 for total SH return $1.26 (equiv. 42c per year). Total SH return is described as capital gain plus dividends. If target is to be met, just using current dividend (22c) equates to 66c and 3 years of capital gain each at 20c to meet minimum performance target. Should dividends however be greater or less over the period the capital gain would need to adjust accordingly. However in the event dividends are increased over the period this in itself will accelerate the SP. So based on the exercise of the current dividend for next 3 years the SP by Oct. 2016 would need to be $4.30 based on todays SP $3.70. Could this be a factor in why the SP has recently been unexciting (and keeping in mind SP quickly rose to $4.40 earler in year).

[JohnnyTheHorse]

Trade Alert:

WHS has broken out of its 6 month downtrend. Has also broken back through the 200dma and has also broken out of a Bollinger squeeze. MACD is about to break through the zero line and all other indicators are looking good. Given the current market environment and an upcoming dividend, I'm quietly confident that we will reach the 440 highs again.

Disc: In for the trade.

[bull....]

Trade Alert:

WHS has broken out of its 6 month downtrend. Has also broken back through the 200dma and has also broken out of a Bollinger squeeze. MACD is about to break through the zero line and all other indicators are looking good. Given the current market environment and an upcoming dividend, I'm quietly confident that we will reach the 440 highs again.

Disc: In for the trade.

spot on im in your camp

[JohnnyTheHorse]

Pretty chart for those who are interested. Educational purposes only, as always DYOR and make your own decisions.

4989

[Newman]

The directors asked for a 20% increase in their fees. Probably they have some positive things to announce at AGM to convince shareholders they deserve the increase.

[bull....]

The directors asked for a 20% increase in their fees. Probably they have some positive things to announce at AGM to convince shareholders they deserve the increase.

For such a big pay rise you would expect a better performance to come than that which has been provided the last 5yrs

[CJ]

The directors asked for a 20% increase in their fees. Probably they have some positive things to announce at AGM to convince shareholders they deserve the increase.Is that for an extra director or just a payrise? If the later, to be paid immediately of just so they dont have to ask for approval each year?

[JohnnyTheHorse]

Had a retest of 380 on Friday close, but has bounced back quite strongly, so hopefully it continues on to do what I'm expecting. If it can get through the next couple of resistance points then I will be doubling down for the ride up to $4.40.

Disc: holding for a trade.

[bull....]

needs to close above 3.95, anyway those retail figures are looking good at the moment im predicting a big xmas spendup

[JohnnyTheHorse]

needs to close above 3.95, anyway those retail figures are looking good at the moment im predicting a big xmas spendup

I heard that Craigs have just upgraded it to 'BUY' based on the latest figures. Can anyone confirm and know the target price?

[bull....]

i dont know what craigs say but consensus of analysts forecast suggest near flat profits ahead but rising revenues which say they getting market share which still fits in with my view of bigger profits and divs once cap exp finished:)

[percy]

I heard that Craigs have just upgraded it to 'BUY' based on the latest figures. Can anyone confirm and know the target price?

Target price is $4.15.

[BIRMANBOY]

in the last 5 years it has gone to 4.40 twice but has had a very, very short shelf life. I am holding regardless but if you are trading it could be a nail biter.

[JohnnyTheHorse]

in the last 5 years it has gone to 4.40 twice but has had a very, very short shelf life. I am holding regardless but if you are trading it could be a nail biter.

$4.40 is my target exit, and I will be watching very closely for a fail at that point, but will be happy to keep holding if it can break through. So far things are playing out perfectly, it has broken out of the downtrend, the $3.80 resistance and now the $3.95 resistance. I'm picking $4.40 will be hit late next week or early the week after, right before it goes ex-dividend... Here's hoping anyway!

[BIRMANBOY]

Your pick is looking very possible here Johnny. Whenever it gets into this area...I start getting these urges to sell out but when I do the math its not so clearcut.. I am getting a 11% gross dividend yield on this year in and out and its not so easy finding something to replace it with...recurring dilemma. Replace it with a 7% somewhere else and take the profit or leave it alone. If I was a gambling man I'd take the proceeds and stick it all in CNU but I would be bucking my instincts for conservative investing. Hope it makes your goal though.:)


$4.40 is my target exit, and I will be watching very closely for a fail at that point, but will be happy to keep holding if it can break through. So far things are playing out perfectly, it has broken out of the downtrend, the $3.80 resistance and now the $3.95 resistance. I'm picking $4.40 will be hit late next week or early the week after, right before it goes ex-dividend... Here's hoping anyway!

[mattwanz]

One thing I'm curious about is where did all the closed Bond & Bond stores sales go?

Would have expected same store sales for Noels division to be above the rest of the groups performance given they closed them, however sales didn't reflect any positive impact comparitively.

[winner69]

Was that a bit of a profit downgrade at the ASM today?

[winner69]

Johnny - the market not like the comments at the ASM

Your 440 looks a long way off .......change of strategy or just going to double up?

[JohnnyTheHorse]

Johnny - the market not like the comments at the ASM

Your 440 looks a long way off .......change of strategy or just going to double up?

Yup, 440 not going to happen. I followed my strategy and got out for a reasonable profit the other day when my signals showed it was running out of steam. Doubling up to average down and hope are two strategies that I do not follow, although some people only follow those strategies eh? :p

[winner69]

Down 11 cents on higher than recent volumes yesterday prior to the meeting and then down another 21 cents today. Yesterday's action a bit odd relative to trading in the days previous

Down 8% in 2 days is a bit of correction .....and the 180ma line breached says the year long uptrend is broken as well

Interesting where they go from here for you traders ..... Birman wil still get his huge divie though. Sort of says that is what WHS is about ....sell heaps of stuff ......no growth but give most of the profits back. If that is case 440 may never happen again ...at least in the next year or two.

[kiwitrev]

Every player has their own strategy. If the strategy is to trade and take profits wherever, then if you wish to stay in the market have to find another stock you like. However not all stocks are good, solid dividend plays with low risk and potential in the longer term for S/P appreciation. WHS is in my opinion one of those stocks so to be able to buy today at plus 8% gross div. is great opportunity. Sure the market didn't like the profit for 1st half but full year guidance is to be as good as 2013. The div. would appear to be intact for 2014. Sales are good, just need to improve margins.

[bull....]

I still in for long term, margin pressure short term in my view gotta look at the big picture. I did sell a small amount at 4.1 though which ill buy back sometime to maintain my holding.

[Sideshow Bob]

Interesting buying R&R Sports. A lot of it is outdoor clothing, but wetsuits, skis, bikes etc, who have been building up their online presence in the last year or so. Investing in bricks & mortar, selling a lot of the same non-clothing items as Torpedo 7.

I'm sure the 'culture' of R&R will probably change over time with large corporate ownership.

[winner69]

Interesting buying R&R Sports. A lot of it is outdoor clothing, but wetsuits, skis, bikes etc, who have been building up their online presence in the last year or so. Investing in bricks & mortar, selling a lot of the same non-clothing items as Torpedo 7.

I'm sure the 'culture' of R&R will probably change over time with large corporate ownership.

That last comment .....good or bad?

[Sideshow Bob]

I would have thought bad Winner. R&R has evolved in recent years, but in many places they sponsor and support athletes and community events and trail building - which is really important. Depends whether this sort of thing continues with a more corporate environment.

Owners and staff have been bikers, racers, endurance athletes etc so live and breathe that sort of stuff. Ability to attract and retain that sort of staff may change. But who knows.

Would guess WHS would leave it standalone and try to work some synergies with Torpedo 7. I think a lot of their bike suppliers might be annoyed. Torpedo 7 isn't well liked by local importers/distributors/agents.

[winner69]

I would have thought bad Winner. R&R has evolved in recent years, but in many places they sponsor and support athletes and community events and trail building - which is really important. Depends whether this sort of thing continues with a more corporate environment.

Owners and staff have been bikers, racers, endurance athletes etc so live and breathe that sort of stuff. Ability to attract and retain that sort of staff may change. But who knows.

Would guess WHS would leave it standalone and try to work some synergies with Torpedo 7. I think a lot of their bike suppliers might be annoyed. Torpedo 7 isn't well liked by local importers/distributors/agents.

Good comments Sideshow

Hope they do leave them alone as obviously it is that culture that makes them successful.

A real challenge for corporate / old fashioned retailers as they come to grips with modern retailing, those businesses with high level of engaged staff engaging with the shoppers .... and the online way of doing things

[kiwitrev]

The Warehouse Group





Friday 29th November 2013

Text too small?


The Warehouse Group Limited (WHS) was established in 1982 by Sir Stephen Tindall, initially selling imported and manufactured clearance lines in Takapuna, Auckland. The Warehouse has subsequently grown to become one of New Zealand's largest general merchandise retailers. The group was listed in November 1994 following a public issue of 23.6 million ordinary shares at $2.50. In 2013, The Warehouse group announced the acquisition of all 92 stores of specialist Consumer Electronics and Home Appliance retailer Noel Leeming Group for $65 million NZD. This was followed by the announcement that WHS has signed an agreement to acquire 51% of the shares of Torpedo7 Limited, a leading New Zealand online retailer operating through the Torpedo7, 1-day and Urban Daddy websites in New Zealand and Australia.

The Warehouse Group reported Group sales for the year were $2,239.5 million, up 29.3% and adjusted net profit after tax increased 13.1% to $73.7 million. Reported net profit after tax was $144.7 million, an increase of 61.1% compared to $89.8 million last year, primarily due to gains on the disposal of property. The Directors declared a final dividend of 5.5 cents per share, representing 89.0% of adjusted earnings.

Over the past 12 months, WHS’s quarterly retail sales showed improving positive growth. The Chairman said in a statement “We believe we will see gradual ongoing improvements in consumer confidence and spending further supporting the recent retail sales growth trend. As our earnings are significantly influenced by Christmas trading performance it is too early to provide specific earnings guidance. The key elements of the Group’s strategic plan should ensure adjusted net profit after tax in FY14 is above that recorded in FY13.”

The Warehouse Group reported underlying net profit after tax, or NPAT, of NZD 73.7 million. However the 13.1% growth is due to the gains from its acquisition. The overall group’s operating margin reduced to 5.0% in 2013 from 5.6% in the previous year. The reduction in margin is attributed to the low margin of Noel Leeming Group (2.8%) and Torpedo7 (2.7%). Sales growth in the next five years is likely to grow due to the acquisition of Noel Leeming and The Group should gain increase in revenue from the online sales as the current trend of online shopping is growing and with some strategic acquisition The Warehouse should be able to use that to its advantage. WHS believes that the online sales will grow 3 times its current level in the next 5 years.

The Group’s dividend policy is to pay a dividend equal to 90% of adjusted net profit. The Board declares two dividends annually in respect of the half year (interim dividend) and full year results (final dividend). All dividends paid were fully imputed. Supplementary dividends of $0.595 million (2012: $0.601 million) were paid. Dividends are expected to increase at a steady pace in the future.

The shares have climbed 29 percent this year. The stock is rated an average 'hold' based on seven analyst recommendations compiled by Reuters, with a median target price of $3.75

[kiwitrev]

Endorsement for WHS on-line strategy today on stuff.co.nz. Having problem with cut/paste so go to stuff if interested.

[hilskin]

Thanks kiwitrev, here's the link for anyone interested.

http://www.stuff.co.nz/business/unlimited/9486473/Red-sheds-push-into-online

[percy]

I think WHS are doing all the right things .
The latest acquisition of School Tex brand from PPG will work well for them.
Also impressed with Noel Leeming and Torpedo7 acquisitions.
Pity it does not look too flash on charts,being on 200 day moving average.Will add it to a watch list.

[stoploss]

I think WHS are doing all the right things .
The latest acquisition of School Tex brand from PPG will work well for them.
Also impressed with Noel Leeming and Torpedo7 acquisitions.

I'm with you Percy , personally think this stock should be a lot higher... ( don't currently own ) When the world looks a bad place and I get out of many of my small caps I park it in the WHS..... Even when Aussie was hurting them they still made 50 odd million a year. Don't think you could get resource consent and build their footprint ( I know they have sold and leased back some ) for less than $ 5.00 a share ... Our two friendly supermarket chains are long 10 % each at prices North of 5.00 as well........

[macduffy]

Our two friendly supermarket chains are long 10 % each at prices North of 5.00 as well........

But they're only there to thwart each other's chances of taking the lot! Price meant very little to them when they bought so it's not a good guide to current values.

Nevertheless, I agree that WHS is a good hold at present in a market that to me doesn't offer a lot of better opportunities.

[stoploss]

But they're only there to thwart each other's chances of taking the lot! Price meant very little to them when they bought so it's not a good guide to current values.

Nevertheless, I agree that WHS is a good hold at present in a market that to me doesn't offer a lot of better opportunities.

It irks me somewhat that they were allowed to do this .... surely we want a competitive supermarket structure.... 3 chains would be better Aldi putting pressure on in Aussie... that move struck me as anti competitive.... then from memory the comm comm said that Countdown couldn't buy it anyway ....

[Harvey Specter]

PE ratio should be circa 10-15 and not sub 10!Net yeild is just under 6% (fully imputed?) where they pay out 90% of profits from memory. Hard to see the share price increase unless they can increase profits.

They are moving in the right direction. The Noel Leeming and Torpedo7 acquisitions should hopefully help their growth. The latest acquisition looks like it wont take effect till after school starts so no big benefit till next year.

As an aside: has anyone seen the Torpedo7 ad on TV. The best ad on TV at the moment in my opinion; it could almost be used as a tourism NZ ad!

[winner69]

discl: have been accumulating over the last few months ... :) ... Adding to the stake I bought about two years ago and sold some down when stops fired. ... Be quick Percy me ol' mate. ;) ... PE ratio should be circa 10-15 and not sub 10!

If you back out the $77m of gains made on on property sales last year PE is 15.5 last years normalised (trading) earnings. The 7.87 quoted in most places not really right is it Belg

Chairman did say he expected FY14 NPAT to be higher than FY13 ....that's good

[winner69]

This one? http://www.youtube.com/watch?v=aSzTmYAB-bo ... Inspirational!

One hopes that The Warehouse will allow Torpedo to continue to do their own thing and not try to 'corporatise' it

[NZSilver]

If you back out the $77m of gains made on on property sales last year PE is 15.5 last years normalised (trading) earnings. The 7.87 quoted in most places not really right is it Belg

Chairman did say he expected FY14 NPAT to be higher than FY13 ....that's good

Cheers winner, I thought something was a bit fishy when comparing to other retailers P/E ratios.

[winner69]

That sub 10 is my number based upon what I expect this year and does exclude abnormals. ... Maybe I'm being too optimistic??? But maybe I'm not ... ;)

So npat in excess of $120m. Even with a few months extra of Noel leeming and the new stuff a lot higher than the $70m plus a bit in 2013. Record over last 5 years is $85m

Q1 revenues up but 'this has not translated into higher margins' or something that

You could just be right .....might jump n the ship ...maybe not just yet

[kiwitrev]

All good constructive posts today, but for me what is encouraging is the discussions from new posters to this thread (at least in the past year) Stoploss, Harvey Specter, Belgarion and NZ Silver. I interpret this as renewed interest in WHS.

[Harvey Specter]

I interpret this as renewed interest in WHS.Yes. Still not invested but considering it as an option for the yeild part of the portfolio. I like that the recent acquisitions should help with future growth, especially the online ones. As well as NL and T7, they also went in with Shane Bradley on his latest online store didn't they.

[ratkin]

Slightly off topic .

Today while walking through Barrington park i spotted a woman with two young kids running through the park , she was shouting at them to hurry up. They were being chased by a man.
Turned out he was a store detective/Security guy from the warehouse , and the woman had stolen some shoes for the kiddies.

[Harvey Specter]

Slightly off topic .

Today while walking through Barrington park i spotted a woman with two young kids running through the park , she was shouting at them to hurry up. They were being chased by a man.
Turned out he was a store detective/Security guy from the warehouse , and the woman had stolen some shoes for the kiddies.Shocking - if you are going to steal shoes, at least steal some expensive ones!

[winner69]

npat before abnormals I take it was what you meant ...Wasn't it closer to 90m? Anyway ...

They've done this before and about the same point in the economic cycle ... circa 2005/6? Hot run of things running in their favour (and other retailer's) and similar now. They've been doing some good stuff behind the scenes with suppliers and their supply chain too. Big jump in operating revenue last year absorbing acquisitions but margins fell (probably due to distraction). This year margins should return to longer run averages and therefore about 2-4% better than last year.

So 90m to 120m plus may not be as outrageous as it sounds.

Before I get too carried away ... Hoop et al, the flat spot from July 2013 till now, is it accumulation or distribution?

edited: looks like slight distribution?
edited2: Nope. Think that's accumulation now. (Help!)

OBV steadily rising from Sept from ft.com charts ......that's accusation isn't it?

[ratkin]

Shocking - if you are going to steal shoes, at least steal some expensive ones!


From what i can gather , the warehouse is the shoplifters first target, seen as easy. Judging by the look of mny of their customers you have to wonder just how much stuff is actually lifted

[Guild]

[QUOTE=belgarion;454703]Concur. Next step will to make use of the "warehouses" thru a slick new re-engineered web site that brings the "click and collect" concept to fruition, i.e. buy through the web and pick up at the stores (and once you have them in the stores people will pick up a few extras along the way).

Exactly what I did before Christmas, it was easy quick and cheap. Option of home delivery or collecting from local store.

[ratkin]

Click and collect appears to be the high street retailers new weapon of choice in the battle for online custom. It no coincidence that in the UK this xmas , the outfits offering click and collect outperformed their rivals.;No damaged goods arriving by post (late) or missed courier calls

[kiwitrev]

Half yr result next Monday, 27th. Should be a bit of a litmus test for how things are going albeit not all recent puchases yet bedded in. Current SP suggests punters not sure to buy in but on other hand holder not wanting to sell.

[psychic]

I am probably not getting it Belgie but the announcement didn't seem too bad to me? There were two big sellers pre-open at discount, one dropped out prior to the bell. I couldn't help but think that the remaining package stuffed things up for the rest of us and the market has just followed?
Anyway, back in the drawer I suppose...

[percy]

Not being a holder I read the announcement as positive.They are doing all the right things,yet retail is still remains a very difficult sector to be in.

[Jay]

Anybody has at a guess what the Foodstuffs and the other crowd whose name escapes at present, will do with their holding, all bought around the $5 mark from memory, one will not jump without the other, just sit back (on the capital loss at present) and collect the dividend, or will Tindall but them both out, what ever happened to that talk, or wasit just that.

Discl: Not a holder but have been, have been known to shop there!

[percy]

While one is there the other will remain.No matter how long it takes.

[shonen knife]

Not being a holder I read the announcement as positive.They are doing all the right things,yet retail is still remains a very difficult sector to be in.

Yeah seems things have improved since Q1, so hopefully it will turnaround after today's initial jitters.

[waikare]

Yesterday I was in Noel Lemmings Tauranga mid-morning buying a digital camera, as a shareholder I was pleased to see the large number of customer both looking and buying, and the service was good too, it didn’t take too long before I was approached by a sales rep, and offered very good advise. I have yet to give my customer service feedback, and I could even win a phone…………. how good is that.

[winner69]

Least WHS didn't get punished like the 25% The Reject Shop suffered today when they said margins were down a bit

Maybe nzer's more forgiving

[percy]

Least WHS didn't get punished like the 25% The Reject Shop suffered today when they said margins were down a bit

Maybe nzer's more forgiving

Life is tough at the bottom!!

[noodles]

Least WHS didn't get punished like the 25% The Reject Shop suffered today when they said margins were down a bit

Maybe nzer's more forgiving

WHS was not trading at a ridiculous pe over 20.

[winner69]

WHS was not trading at a ridiculous pe over 20.

So right .... PE back to WHS levels now (or just about)

[noodles]

So right .... PE back to WHS levels now (or just about)
Even after today's massacre, it's sitting on a FY14 pe of 18.9.

There was a very weak close. It does not bode well for monday.

Unlike TRS, WHS does not have currency headwinds. For TRS, the imported stuff they sell is costing them a lot more to source.

[kiwitrev]

Trading Halt this morning pending a material ann. Must be significant.

[karen1]

Strategic move into financial services - http://research.iress.com.au/ids/old/NZCR/20140306/WHS000000-190519.pdf?uid=7DD05CAA25CA44CECA57604F5E81D72F290 00000E9A9C0EC095DE440F1AB000089400000&ppv=

[Harvey Specter]

Institutional placement for what. Cant open Karens link.

[stoploss]

Institutional placement for what. Cant open Karens link.



http://www.stuff.co.nz/business/industries/9797085/Warehouse-plans-financial-services-expansion

[psychic]

Capital Raise
In support of the Financial Services Strategy an equity raising is being undertaken to strengthen The Warehouse Group’s capital base. This consists of a $115M capital raising underwritten by Deutsche Craigs Ltd, comprising:

• A $100M institutional placement at $3.23 per share, a 5% discount to the ex dividend 5 day VWAP. The placement will be conducted on 6th March with settlement on 13th March. Placements shares will be issued ex Dividend
• A $15M Share Purchase Plan, available to eligible NZ resident Shareholders on the register at the record date of 18th March. Each eligible shareholder can apply for up to $15,000 new shares, with further details to be announced in due course

[kiwitrev]

And Tindall and the Tindall foundation are participating in the capital raise to maintain their level of SH.

[Joshuatree]

$3.23 Inst taking re 10% , S Tyndall re 5% re 1% for retail sh/holders ex 13 c div. Highly dilutive.

[Stranger_Danger]

Hahahaha, oh dear.

[kiwitrev]

Shorts will get out, LT holders will take this as an opportunity. I think retail investors have not fully understood the amount of time required to totally implement all the changes taking place at TWH. A total change in psychology and mantra by management.

[Harvey Specter]

hmm. They fail at Australia, they fail at Grocery, so now they try financial.

I thought their expansion into the broader retail (T7 and NL) made sense. Not so sure with financial. however, they have done lots of financial bits and pieces for a while so hopefully they have the market data correct.

[ratkin]

Not good that they admitting growth in the red shed will be limited.
Think i will steer clear

[Stranger_Danger]

Would you walk past a whole bunch of fat people buying discounted XXXL track pants in order to take out a mortgage, obtain investment advice, or ask about your KiwiSaver?

If you are a financial services company, would you want to lend money to and invest on behalf of the sort of person that would answer yes?

[Marilyn Munroe]

Would you walk past a whole bunch of fat people buying discounted XXXL track pants?
I think the object of this expansion into financial services is to in-house loans to people who want to buy fridges and televisions at Noel Leeming on tick.

Expect to see interest free promotions as part of their marketing.

Boop boop de do
Marilyn

[Harvey Specter]

I think the object of this expansion into financial services is to in-house loans to people who want to buy fridges and televisions at Noel Leeming on tick.That makes sense - why give those profits to GEMoney or F&P Finance - but do they really need $115m just to do that?

[Jaa]

I think you guys have the wrong idea of what they are planning. Think more consumer finance like Fisher & Paykel Finance and GE Money.

Have a look at the Noel Leeming apply for finance page (http://www.noelleeming.co.nz/finance) for a better idea. The 3 products offered are Interest Free via credit card (GE Money), Finance Now (SBS Bank) and Easy Lease (FlexiGroup).

They have also recently created a rewards/delayed payment card called BizRewards (https://www.bizrewards.co.nz) for business customers which gives you up to 55 days to pay. Look for them to create something similar to the Q Card by Fisher & Paykel Finance for consumers.

NZ is badly lacking in Credit Card competition compared to overseas so plenty of opportunity there as well. I was looking at credit card options yesterday and The Warehouse's current card (http://www.thewarehousemastercard.co.nz) compares pretty well with the lowest foreign currency transaction fees in the market. Not a big fan of Diner's which they have purchased but I guess it gives them the kickstart they were looking for. Hopefully they will continue to offer MasterCard cards as well.

Note Countdown in NZ have also recently released a branded credit card/onecard so the warehouse isn't the only one that has seen the opportunity.

The ultimate goal I imagine would be to build a business similar to that of Fisher Paykel Finance. When it was sold it had around $600m in receivables and $37.8m in operating profit. Like FPF after they establish the finance company they can apply to be a Non Bank Deposit take to sell debentures to the public and securitise their receivables. Both will help lower their cost of lending.

Successful examples of retailers bringing their finance offerings include Smith's City and Turner's Auctions. The Warehouse Group is bigger and more diverse so I think this move is overdue and likely to be very profitable. Maybe they could even get their finance products accepted in one or both of their shareholders, Woolworths and Foodstuffs.

[percy]

I agree with Jaa.Makes sense for them to clip the finance ticket.
I think WHS are doing all the right things.
However, the market may not be happy waiting for the results,which will take some time to achieve.

[kiwitrev]

Exactly Percy, which is why I will top up when that occurs and take up share of retail portion of placement.

[RTM]

I think they would be far better off to form a close relationship with Heartland.....

[percy]

I think they would be far better off to form a close relationship with Heartland.....

What a fantastic idea.! lol.

[janner]

What a fantastic idea.! lol.

Not really perc..

I see Heartland pursuing the niche markets.. Ones with profits and less worries..

Why would " We " The share holders .. Want them to enter the " I want " borrowers ... As against the " I need " Borrowers..

It would involve more paper work and more office space just for the .. Chase the defaulters staff..

[percy]

Not really perc..

I see Heartland pursuing the niche markets.. Ones with profits and less worries..

Why would " We " The share holders .. Want them to enter the " I want " borrowers ... As against the " I need " Borrowers..

It would involve more paper work and more office space just for the .. Chase the defaulters staff..

You are too clever for me to fool.!!!!
But I think you missed the lol at the end of my post!!!! lol.

[janner]

You are too clever for me to fool.!!!!
But I think you missed the lol at the end of my post!!!! lol.


Good to know that you are still keeping the faith perc ..

[winner69]

I take it that both Foodstuffs and Progressive were invited to take part in the capital raising to maintain their 10% holding

[Bobdn]

hold WHS but not a particularly knowledgable investor. I see it has dropped 5% today. Was this expected after the announcment or am missing somethign really obvious like xd?

[macduffy]

Probably a bit of arbitrage by the funds - buying in the placement and selling a few on market at a higher price. Retail investors are looking to top up at the SPP price so it all amounts to downward pressure on the shareprice.

[Bobdn]

Probably a bit of arbitrage by the funds - buying in the placement and selling a few on market at a higher price. Retail investors are looking to top up at the SPP price so it all amounts to downward pressure on the shareprice.

Thanks, that's useful, I could see how that would work.

[kiwitrev]

Bobdn
ex div date is 10th March.

[Bobdn]

Thanks kiwitrev. The WHS investor centre website needs a good update.

[Joshuatree]

And Dilution will need to be factored in.

[winner69]

Shareholders Association all miffed

http://www.stuff.co.nz/business/industries/9804706/Warehouse-criticised-for-unfair-treatment

And so they should be. The insiders (OK instos and sophistiticated investors) have just stolen 9% of the company. Small retail and unsophisticated / non professionals now only own 91% of what they had.

Most NZ companies don't give a stuff about small(er) investors. More of a burden than value I reckon. The Warehouse obviously is one.

What The Warehouse forgets is that those they pissing off are probably customers as well.

[voltage]

What a disappointment, share price down and diluted. No interest in the small investor. Will sell on Monday at a loss, will not hold companies that do this.

[iceman]

What a disappointment, share price down and diluted. No interest in the small investor. Will sell on Monday at a loss, will not hold companies that do this.

Yes its a bad look. I added WHS to my watchlist a couple of months ago with a view of buying. That desire has now vanished and so has WHS of my watchlist !

[macduffy]

Yes, disappointing but this seems to be the fashion for raising equity these days - a placement to instos followed by a modest SPP for "retail" shareholders. Of course, depending on the uptake for the SPP, a small shareholder could come out on the right side of the deal if enough shareholders are sufficiently p****d off to ignore the issue!

[zigzag]

Yes, disappointing but this seems to be the fashion for raising equity these days - a placement to instos followed by a modest SPP for "retail" shareholders. Of course, depending on the uptake for the SPP, a small shareholder could come out on the right side of the deal if enough shareholders are sufficiently p****d off to ignore the issue!

Isn't the problem that they can only raise a set amount by way of an SPP? Any more and they have to have a rights issue which is considerably more expensive. A quick placement to insto's and an SPP to keep the retail investors happy. The people who get diluted, who have most to complain about would be the larger private investors. I think the NZX is working on changes to the options for raising capital at the moment.

[Harvey Specter]

Isn't the problem that they can only raise a set amount by way of an SPP? Any more and they have to have a rights issue which is considerably more expensive. A quick placement to insto's and an SPP to keep the retail investors happy. The people who get diluted, who have most to complain about would be the larger private investors. I think the NZX is working on changes to the options for raising capital at the moment.The limit is $15k per shareholder. I dont think there is an overall limit.

It appears most companies set the SPP pool so small, they know they will hit their target (with large scaling) which I assume means they dont have to arrange an underrighter.

[Bobdn]

I'm going to put in an order for 1500 shares which I assume I will get.

I'm really pleased that they're bringing in a dividend reinvestment plan next year. I'll join up straight away as I always fritter my dividends away when I get cash.

[macduffy]

WHS has over 10,000 shareholders so $15m worth of shares at $3.23 won't go far if most of them apply. Something like 427 shares each! Of course, it all depends on how many do in fact apply but I would think that applications are highly likely to be scaled.

[Jim]

WHS has over 10,000 shareholders so $15m worth of shares at $3.23 won't go far if most of them apply. Something like 427 shares each! Of course, it all depends on how many do in fact apply but I would think that applications are highly likely to be scaled.
I will apply for the maximum dollars allocated to me

[BlackPeter]

Looks like WHS gets a beating today - already 13 cts down to $2.27 and hardly any buyers around. Wait another couple of hours and maybe we can purchase the shares cheaper on market than the institutions did in the placement last week?

Discl: holding and bought in too dear :angry: ... one to learn from!

[couta1]

Looks like WHS gets a beating today - already 13 cts down to $2.27 and hardly any buyers around. Wait another couple of hours and maybe we can purchase the shares cheaper on market than the institutions did in the placement last week?

Discl: holding and bought in too dear :angry: ... one to learn from! Ddon't forget it just shed a 13c dividend so not really down that much,I'm ready to buy a small parcel

[ratkin]

Ddon't forget it just shed a 13c dividend so not really down that much,I'm ready to buy a small parcel

Whats the rush to buy? , its not like they are going anywhere any time soon

[couta1]

Whats the rush to buy? , its not like they are going anywhere any time soon
I'm happy picking up a parcel at $3.26,having sold out last year at $3.80,cheers

[shonen knife]

Can someone explain what this actually means to the average investor? I bought a small amount of shares a few month back and have read all of the announcement, and I don't really understand how this affects me (apart from seeing the SP dive). Are they just selling off a whole lot of new shares at $3.23 and giving us first option to buy?

[ratkin]

Can someone explain what this actually means to the average investor? I bought a small amount of shares a few month back and have read all of the announcement, and I don't really understand how this affects me (apart from seeing the SP dive). Are they just selling off a whole lot of new shares at $3.23 and giving us first option to buy?

Thats about the size of it. Except your only getting second choice asthey already given the institutions first choice As the placement about the same price as the current price it will make no difference to you.

[couta1]

Can someone explain what this actually means to the average investor? I bought a small amount of shares a few month back and have read all of the announcement, and I don't really understand how this affects me (apart from seeing the SP dive). Are they just selling off a whole lot of new shares at $3.23 and giving us first option to buy?
You can only purchase up to 15k worth of shares max at $3.23 about 4600 odd shares at current price so if you want to take up the offer you could do what I did today and bought 15k worth at $3.22 which works out slightly better than the offer even allowing for brokerage(With DB online anyway) and no paperwork to fill out of course if you can pick then up even cheaper then even better in your favour

[shonen knife]

Thats about the size of it. Except your only getting second choice asthey already given the institutions first choice As the placement about the same price as the current price it will make no difference to you.

Yeah, still sucks that they decided that $3.23 was good price. A long road back to the price I paid.



You can only purchase up to 15k worth of shares max at $3.23 about 4600 odd shares at current price so if you want to take up the offer you could do what I did today and bought 15k worth at $3.22 which works out slightly better than the offer even allowing for brokerage(With DB online anyway) and no paperwork to fill out of course if you can pick then up even cheaper then even better in your favour

It does seem like a good price to buy at, but I am just a small time player who is trading for a bit of fun and can't be droppin' $15k. Especially since the NZD is getting stronger every day and killing me when I send money back. So $3.23 NZD = $3.50271 SGD (worse than that if you factor in the international transfer fee and the actual exchange rate that I will get), normally the exchange rate is ~1:1, so a bad time for me at the moment to be buying.

[couta1]

Sorry SK didn't see the Singapore location

[kiwitrev]

Well, the issue price of the SPP is not yet decided. Quoting from memory but the price to be calculated from the average closing price for the 5 working days prior to the relevant days in April. Check today's announcment.

[couta1]

Well, the issue price of the SPP is not yet decided. Quoting from memory but the price to be calculated from the average closing price for the 5 working days prior to the relevant days in April. Check today's announcment.
The lowest of $3.23 or the average closing price over that 5 day period in April,I'm picking $3.23 as the lowest of the two as the recent $100 mill equity raising was set at $3.23 so can't see the average over the five days being below that but you never know

[winner69]

Goodness gracious - Rod Oram writing something positive

In that respect this is a glowing endorsement of WHS strategy ...A GROWTH STRATEGY

http://www.stuff.co.nz/business/opinion-analysis/9828864/Red-Shed-on-the-upswing

[percy]

Goodness gracious - Rod Oram writing something positive

In that respect this is a glowing endorsement of WHS strategy ...A GROWTH STRATEGY

http://www.stuff.co.nz/business/opinion-analysis/9828864/Red-Shed-on-the-upswing
The last paragraph.;"If The Wharehouse pulls it off,it will be another notable chapter in its history".
Sounds to me as though Rod is having a bob each way.!!
ps Would you please post the Wellington Drive article on Wellington Drive thread.

[BlackPeter]

opportunity to question Sir Stephen Tindall about the Warehouse strategy (and anything else you want to know from him): Wednesday pm on NBR - bring it on!

http://www.nbr.co.nz/ask-sir-stephen

[Schrodinger]

Lots of unlocked potential in WHS. Im not into retail but this could be a good investment. Good to see them cleaning up their stores and investing in the NZ market. Recent experience tells me they dont understand retail outside of NZ so long term investment potential might be risky. Not sure if they can improve their margins but if they gain exclusive supply agreements that dont translate well into online retail they may be able to work on it. Still its a high risk industry for investment.

[biker]

Lots of unlocked potential in WHS. Im not into retail but this could be a good investment. Good to see them cleaning up their stores and investing in the NZ market. Recent experience tells me they dont understand retail outside of NZ so long term investment potential might be risky. Not sure if they can improve their margins but if they gain exclusive supply agreements that dont translate well into online retail they may be able to work on it. Still its a high risk industry for investment.

Haven't seen the numbers but their real estate (store sites) must have huge value. Not sure how much of it they actually own but is that adequately reflected in the share price at the moment?

[macduffy]

Haven't seen the numbers but their real estate (store sites) must have huge value. Not sure how much of it they actually own but is that adequately reflected in the share price at the moment?

In the financial year to July 2013 WHS sold a big chunk of their land and buildings, netting sale proceeds of $194.1m and booking pre-tax profits of $77.3m. Directors' assessment of fair value for the remaining land and buildings dropped from $284.8m to $183.8m. Still a big chunk there but clearly the company sees the value better employed in the business than tied up in property. Whether the remaining property value is reflected in the SP and/or whether the divestment process continues ...?

[Schrodinger]

Didnt a few well known Australian retailers spin their property assets out to "better reflect the underlying business". I remember reading about this. Was it Woolies or Harvey Norman? I think it was to unlock value of the property that can get lost in an under performing retailer.

[macduffy]

Yes, it was Woolies who floated the rather grandly titled "Shopping Centres Australasia Property Group". Now listed on the ASX - SCP.

Gerry Harvey has argued in the past that his company's properties value isn't fairly reflected in the company's shareprice. The counter argument is that changes in the retail scene may cause purpose-built retail properties to lose value in future.

[Jay]

Yes along the lines I was going to say macduffy.
Unless the property can be converted relatively cheaply to something else say warehousing/storage or housing area, as shopping moves to internet based what use is a large number of actual brick & mortar shops

[kiwitrev]

Will be interesting to observe market behaviour from 2-8th April as I would not be surprised to see some sort of tactics employed to get the average CLOSING price of WHS down, as it's guaranteed that the max. SPP price is $3.23.

[couta1]

Will be interesting to observe market behaviour from 2-8th April as I would not be surprised to see some sort of tactics employed to get the average CLOSING price of WHS down, as it's guaranteed that the max. SPP price is $3.23.
Its been trading consistently under max SPP price this week so probably no tactics needed just keep the status quo going next week

[BIRMANBOY]

I think I have a solution...if you sell some at an asking price of $2.85 or so I'd be happy to buy them for you to help reduce the average price.....its a sacrifice I know but for the greater good I am prepared to help out.

[kiwitrev]

Yes it would be a tricky game to play as it is only the CLOSING price of each day that is of importance.

[Billy Boy]

I think I have a solution...if you sell some at an asking price of $2.85 or so I'd be happy to buy them for you to help reduce the average price.....its a sacrifice I know but for the greater good I am prepared to help out.
FOR or FROM ??
BB
:D

[BIRMANBOY]

For would be excessively generous even for my charitable nature..so allow me to clarify.....FROMMMMMMMMM.:)
FOR or FROM ??
BB
:D

[Billy Boy]

for would be excessively generous even for my charitable nature..so allow me to clarify.....frommmmmmmmm.:)
.
Bugger !!!
Bb:)

[BlackPeter]

Will be interesting to observe market behaviour from 2-8th April as I would not be surprised to see some sort of tactics employed to get the average CLOSING price of WHS down, as it's guaranteed that the max. SPP price is $3.23.

Not sure I understand - what would be the point in playing games with the share price? If it goes below the SPP price, than people don't need to wait for SPP, but can just buy the cheaper shares on market anyway. Who would gain by artificially depressing the SP?:confused:

[macduffy]

I agree, BlackPeter. Much more likely that the SP would be supported over the pricing period to maximise proceeds from the SPP. Not that I'm suggesting that this will happen here.

[BIRMANBOY]

I was trying to boost my own interests by offering to buy at 2.85 and also assist other owners by attempting to drag down the SP...all prompted by my altruistic desire to make the world a better place.:p
Not sure I understand - what would be the point in playing games with the share price? If it goes below the SPP price, than people don't need to wait for SPP, but can just buy the cheaper shares on market anyway. Who would gain by artificially depressing the SP?:confused:

[BlackPeter]

I was trying to boost my own interests by offering to buy at 2.85 and also assist other owners by attempting to drag down the SP...all prompted by my altruistic desire to make the world a better place.:p

and I thought you are just interested in dividends? Sounds like some part of you is trader as well?:p

[BIRMANBOY]

Everyone in the stockmarket is a trader..its just the frequency of trades that varies. To get the best dividend yield you need to buy at the lowest possible price...my avg buy in price with WHS is 2.84 so not so many opportunities to buy more come up. Buying at the "special" price on offer is not particularly enticing!!!
and I thought you are just interested in dividends? Sounds like some part of you is trader as well?:p

[kiwitrev]

Non qualifying for SPP are taking up the opportunity to grab what they can at current capped price. So far today 70 trades avg over 15,000 each, over 1m traded. Will be interesting to see how the market reacts once SPP completed.

[macduffy]

Non qualifying for SPP are taking up the opportunity to grab what they can at current capped price. So far today 70 trades avg over 15,000 each, over 1m traded. Will be interesting to see how the market reacts once SPP completed.

Equally, some one - or ones - are taking the opportunity to sell at the current price. Clearly, they're not intending to replace them via the SPP!

[kiwitrev]

Hi Mac
As someone once said there are more reasons to buy than to sell.

[kiwitrev]

Just to complete the picture for today, total of 97 trades, 1,730,856 shares avg 17,843 ea. trade. The last 8 trades accounted for 356,453 at an avg of 44,555 ea. trade. This is not your avg mum + dad trading and abnormal trading in this stock, so one is led to believe instos and financials in play here.

[BlackPeter]

positive article on stuff:

http://www.stuff.co.nz/business/industries/9933532/Warehouse-digests-new-businesses?cid=edm:stuff:dailyheadlines

[BlackPeter]

At least they are in the news:
http://www.nbr.co.nz/article/can-warehouse-boss-powell-deliver-profits-new-investments-bd-154717

Nothing exciting - really, but an analysts summary (and a quite substantial article) talking about plans for improved product quality, better staff training and increasing customer satisfaction. I guess, time will tell, whether the investment pays off.

[BlackPeter]

Looks like somebody discovered WHS as a good investment - quite high volume this morning (1.34M @ avg 3.201) - and SP rising (now 3.24). Not that I understand anything about TA, but given the quite slim Bollinger channel: if it goes another cent or so higher, than it looks like a breakout ...

[glennj]

Looks like somebody discovered WHS as a good investment - quite high volume this morning (1.34M @ avg 3.201) - and SP rising (now 3.24). Not that I understand anything about TA, but given the quite slim Bollinger channel: if it goes another cent or so higher, than it looks like a breakout ...

I tend to regard most TA as being for amusement only but I do have some regard for volume and relative strength. What's encouraging to me about this is the good volume & the current price being $3.24
This is a 4 cent rise on the only just completed SPP placements. Some want in or more shares even after the recent top up opportunities. My guess is that some think the recently outlined new strategies will work and are accumulating now to take advantage of this early on. Finance arms can be very lucrative!

[winner69]

At least WHS are doing things ... and not just moaning about the ever changing world

Good on them

[BlackPeter]

gosh, their PR manager must be in overdrive ... another article about the Warehouse story: quite extensive report about Mark Powell and how he is changing the Warehouse culture - worthwhile reading:

http://www.stuff.co.nz/business/industries/9956756/Warehouse-goes-more-than-simply-red?cid=edm:stuff:dailyheadlines

[winner69]

and that article about the CEO saying he is paid an insane amount of money for being the boss .... may have mentioned the word embarrassed

Never mind that's a consequence of how the world has turned out

[BlackPeter]

upgraded to "buy" and 12 month target $3.64.

http://www.nbr.co.nz/article/warehouse-shares-jump-six-week-high-after-craigs-upgrades-recommendation-buy-bd-155078

The price target ($3.64) is in itself not really news. ft.com lists the mean 12 month target since February hovering between 3.64 and 3.70, but news is that Craigs has it now realised as well. Seems to make quite a difference for the share price.

Discl: holding (and bought too dear ...)

[Snow Leopard]

I am a bit annoyed at Craigs - they could have waited a day.

I decided to diversify into WHS and come this morning the price has jumped a bit.

So anyway I bought a few thousand shares.

I am working on the assumption that the recent lows of $3.19/ closes at $3.20 provides good baseline support and thus the possible downside risk is low to match the fact that the upside reward in the near time is not epic [surprise me please!].

I seem to be buying more boring stuff at the moment - odd!

Best Wishes
Paper Tiger

[iceman]

I seem to be buying more boring stuff at the moment - odd!

Best Wishes
Paper Tiger

Same here. Put the GNE refund into WHS.

[BIRMANBOY]

What...too much excitement on the other threads is it?:p Belgarion, priest slayer and the personification of the Anti-Christ gets boring...ha de ha ha ha!
You're not alone ... Boring with high liquidity are two things quite important to me at this time. ;)

[Huskeez]

Whats peoples thoughts on a Fair value for WHS? , I believe at current prices this stock is a steal based on EPS,Revenue and Equity growth?

[BlackPeter]

Whats peoples thoughts on a Fair value for WHS? , I believe at current prices this stock is a steal based on EPS,Revenue and Equity growth?

Depends on your definition of "steal". Analysts predict a 12 months target between 3.25 and 3.81. P/E based on EPS over the past 4 years looks quite good (11.2), but is inflated by one off property sales. Predicted P/E for this financial year (15.1) is o.k.-ish, but does not look like a steal in my books.

Obviously - its up to anybody's best guess how the move into consumer finance works out. Personally I would think that they have a good chance, and yes, if they do it properly, this would increase their value. If we remember good old FPA days, than the attached finance company added sometimes more value than the rest of the firm.

As well - the ongoing upgrade of stores and the (claimed) refocus on quality and customer satisfaction can only be good.

For my feeling the medium 12 month analysts prediction (mid of 3.60's) is not too bad. If finance works out however, than WHS might get a nice push upwards, but I guess this will take longer than the next 12 months.

In my view at current prices still worthwhile to buy and long term hold (and I am holding), but I wouldn't expect the trees to grow into the sky ...

DYOR.

[percy]

Yes I agree with everything WHS are doing,yet I think it will take a very long time to see results.We will have to wait to see whether the capital has earnt returns or just been spent standing still.
I still think retail is a very difficult sector to be in.
Not holding.Still watching.

[shonen knife]

Good announcement today https://www.nzx.com/companies/WHS/announcements/250198


THE RESHAPED WAREHOUSE GROUP REPORTS CONTINUED GROWTH
Group Sales for Q3 of $604.8 million
The Warehouse (Red Sheds) Same Store Sales up 3.0%
Warehouse Stationery (Blue Sheds) Same Store Sales up 6.1%
Noel Leeming Same Store Sales up 10.9%


No movement on the SP though :t_down:, still happy to be on board though.

[BlackCross]

Good announcement today https://www.nzx.com/companies/WHS/announcements/250198


No movement on the SP though :t_down:, still happy to be on board though.

I thought so too but the market commentator on the radio last night was pretty neutral on them. Personally I liked the chairman's comment regarding the near future "... a period of consolidation, where the emphasis will be more on leveraging returns from the base we have built..." Might buy a few myself.

[BlackPeter]

Confirming the uptrend with the recent break-through the MA100? Or bouncing back on the top band of the Bollinger channel? TA can be confusing :confused:. Where will it go?

Looking at fundamentals I would think that the up potential is at that stage limited (btw - Financial Times downgraded the TP slightly to $3.45 - that's where we are now), but than - if the recent earning season shapes out well, who knows what's going to happen?
Discl: sitting on the fence ... but still holding

[bull....]

it needs to break above 3.60 to break the recent downtrend, but is uptrending short term

[kiwitrev]

No news to discuss but thought it worthy to mention today a single trade 150k @ $3.40. Not your average everyday trade. Someone likes the Red Sheds.

[couta1]

The WHS charts are going to look like someone jumped off a cliff tonight bought some at $3.27 but closed at $3.24 and could possibly go lower looking at depth,hopefully she'll bounce though.

[stoploss]

The WHS charts are going to look like someone jumped off a cliff tonight bought some at $3.27 but closed at $3.24 and could possibly go lower looking at depth,hopefully she'll bounce though.

Couta ,hope you not bringing the couta kiss of death to the WHS, I reckon you should go long bear.asx should be about right for you :)
,

[percy]

The WHS charts are going to look like someone jumped off a cliff tonight bought some at $3.27 but closed at $3.24 and could possibly go lower looking at depth,hopefully she'll bounce though.

Why? Why? Why? Why?Why did you buy? Are you a Lemming? Not a good idea.! Leave the jumping off cliffs to others.!