WHS - Warehouse Group

[BIRMANBOY]

You may be right however we (or I anyway) should be grateful for traders...it drives SP to places they would never go if just holders were in the market. I love their optimism and resilience. Been trading any Swiss francs recently?
IMO losses will swamp winnings for traders who try to pick and trade short term (days / weeks) moves, especially moves against the trend.
The trading costs, slippage and trend will kill you. Especially with shares, as opposed to currencies and futures.

[Stranger_Danger]

Deka was the old McKenzies

The Warehouse killed Deka

wiki says several Deka stores were rebranded Farmers, including 6 in the South Island

http://en.m.wikipedia.org/wiki/DEKA_(New_Zealand)

If you walk into most Whitcoulls stores currently, you'll see a big stash of "Farmers" books, a written history of the business, in the bargain bin for $10 each. I bought one and found it interesting, but it doesn't sound like there are many other takers.

I suspect those Farmers books will be the only books left in Whitcoulls soon - it is fast ceasing to be a book shop.

[Baa_Baa]

Huh? Tide comes in and goes out last time I checked. Just like the SP..goes up and goes down... and the reason ....market sentiment combined with emotion and an occasional smattering of facts.

Tide does go in and out, you're right of course. Depending on time frame though, some companies look like the bath plug has been pulled out of their SP (oh, another metaphor!), hence my original metaphor of the tide keeps going out year after year. Though, if you prefer precise, it's gone out 10 of the past 15 years and is so far going out at the moment as well. I'm just eyeing up this company because it came up on my scan of stocks that still seem to be good businesses but their SP has been savaged and is around an all time low.

6689
6690

[BFG]

IMO losses will swamp winnings for traders who try to pick and trade short term (days / weeks) moves, especially moves against the trend.
The trading costs, slippage and trend will kill you. Especially with shares, as opposed to currencies and futures.

Heard it all many, many, many, MANY times before bunter. Guess I'm just plain stupid. Or actually make some dosh from it eh? ;)

[couta1]

Heard it all many, many, many, MANY times before bunter. Guess I'm just plain stupid. Or actually make some dosh from it eh? ;)
Not stupid BFG some just want to have fun aye , although long term holds are generally a better way to go trading can be an enjoyable challenge and can be treated like any sport and approached with much enthusiasm for certain personality types who arent content sitting on their hands:cool:

[BIRMANBOY]

So you're saying that the water is a result of excited anticipation as opposed to just 'tearing up" from the horror of it all? Yes WHS has "enjoyed" a downward journey but along the way has provided some excellent entry points, has shown some strong growth periods and kept pumping out dividends. If you had bought at strategic times and kept your average buy price reasonable..your gross dividend yield will have been and still is in double figures. So now the SP is at a very low point and as you say its "caught your eye". There are some who see that as a disaster and others who view it as an opportunity. All up to the individual and as always only time will tell. Personally I have been holding since 2011 and bought periodically in 2011 and 2012 but nothing since then and have been waiting to begin accumulating again. The last week or so and also the coming weeks are in my opinion that time. Wish I could look ahead 3/4 years and check it out but that, as you would say, doesn't hold any water.
Tide does go in and out, you're right of course. Depending on time frame though, some companies look like the bath plug has been pulled out of their SP (oh, another metaphor!), hence my original metaphor of the tide keeps going out year after year. Though, if you prefer precise, it's gone out 10 of the past 15 years and is so far going out at the moment as well. I'm just eyeing up this company because it came up on my scan of stocks that still seem to be good businesses but their SP has been savaged and is around an all time low.

6689
6690

[bunter]

Heard it all many, many, many, MANY times before bunter. Guess I'm just plain stupid. Or actually make some dosh from it eh? ;)

Well good luck with the knife-catching. As BB says, knife-catchers are needed. I needed one the other day selling WHS at 2.89.

I read about one sucessful one in Market Wizards. He had tiny trading costs, and the guy said it was really difficult and stressful. Lots of false entries.

So DO you actually make money from this type of trade?

And was it you or some other Canadian who got kiwis saying 'aye'?

[percy]

Keep talking it down boys.....I'd be unloading at any price if I was you.....backing the truck up now:)

Posted 07-01-2015.
Would n't the truck start?
Starter motor proplems.? lol.

[BFG]

Well good luck with the knife-catching. As BB says, knife-catchers are needed. I needed one the other day selling WHS at 2.89.

I read about one sucessful one in Market Wizards. He had tiny trading costs, and the guy said it was really difficult and stressful. Lots of false entries.

So DO you actually make money from this type of trade?

And was it you or some other Canadian who got kiwis saying 'aye'?

I'm just having a bit of fun with WHS playing around with spare money right now so no, it's not a full time job, but yes, it is stressful (although the stress has decreased markedly over the years). I usually go for full disclosure on my trades as well so that others can learn on here as well. By no means do I get it right all the time (just look at AVB.ASX - ANGRY at management!!!).

I wish it was myself who could say they got all you Kiwis saying eh (note the spelling!), but alas, I am not that important or influential!

See where she goes today. I see $2.60 as support and $2.75-$2.80 as 50% retracement target. Anything above that is great imho. :)

[BFG]

Still haven't sold. Volume is good and buyers are supporting price well. At this rate I expect a full blue candle at days end (ie traded out to the days high) with follow on buying tomorrow. ECB anniuncing QE soon so I expect markets to stay positive near term. Lower oil and very low inflation also bolster WHS. Will reassess situation later. One day at a time :)

[BlackPeter]

If you keep going that way, you might turn from trader to investor :p

[BFG]

If you keep going that way, you might turn from trader to investor :p

Don't you swear at me young man!!!

[noodles]

Still haven't sold. Volume is good and buyers are supporting price well. At this rate I expect a full blue candle at days end (ie traded out to the days high) with follow on buying tomorrow. ECB anniuncing QE soon so I expect markets to stay positive near term. Lower oil and very low inflation also bolster WHS. Will reassess situation later. One day at a time :)

You would want to sell before the half year result and probable dividend cut is made.

Don't you think QE is already priced in and it will be a "sell the news" scenario?

[BFG]

You would want to sell before the half year result and probable dividend cut is made.

Don't you think QE is already priced in and it will be a "sell the news" scenario?
Trust me, I ain't holding it THAT long! QE seems an inevitability so could be. Charts looking much better today, volume doing nicely :)

[Bobdn]

Good work BFG, ride the wave. I've got a lot of ground to make up on WHS, fortunately SPK is easing my pain.

WHS has been having some crazy sales of late. I read an article recently that said retailers are cutting margins to the bone so while there are a huge amount of transactions, there's often not a lot of money being made. This ring has been on the WHS website since later November for $8000 and is now $2349. In one day it has come down $5650. At the other extreme, yesterday it was selling charcoal BBQs for...$7. I mean seriously - how are they making money on these things?

http://www.thewarehouse.co.nz/red/catalog/product/1-Carat-Diamond-Solitaire-18ct-Gold-Diamond-Ring?SKU=1784413

[percy]

Posted 07-01-2015.
Would n't the truck start?
Starter motor proplems.? lol.

Looks as though the Normans borrowed BIRMANBOY's truck for their own use?????

[bull....]

Looks as though the Normans borrowed BIRMANBOY's truck for their own use?????

they like buying dinosaurs

[kiwitrev]

And they (Norman's) still at it-increased holding by a further 1%

[tga_trader]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11390204

James Pascoe acquired 305,000 shares for a total of $817,000 million yesterday
I think they got ripped off :/.
I do wonder if the NZHerald ever proof read their stories. I guess that's the downside of instantaneous 'news'.

Still holding...for now.

[BFG]

I was in for a good time, not a long time. Short term indicators topped out so I took my 9% profit. See chart as to why.

6698

Good luck to all shareholders :)

[bunter]

I was in for a good time, not a long time. Short term indicators topped out so I took my 9% profit. See chart as to why.

6698

Good luck to all shareholders :)

I took an 18% loss on the same stock, after two years.

Bottom-picking Canadians 1 Trend followers 0

[BIRMANBOY]

I think there is an old schoolboy joke about bottom picking which I wont repeat.....but I/m sure that sweet smell of maple syrup and the gentle rustling of banknotes is dominating so lets all enjoy Moosies happiness (and the Normans). Don't you just LOVE?HATE?CANNOT UNDERSTAND? (choose the most appropriate please) sharemarket?
I took an 18% loss on the same stock, after two years.

Bottom-picking Canadians 1 Trend followers 0

[BIRMANBOY]

So I bought at 2.89, 2.76 and 2.62 and still have cash so hoping for a reverse Doberman dip to cancel out the feline flip.

[noodles]

I was in for a good time, not a long time. Short term indicators topped out so I took my 9% profit. See chart as to why.

6698

Good luck to all shareholders :)
Nice trade. Well done!
On your way to be the first TA Billionaire.

[BIRMANBOY]

Don't give him a big head....can it be coincidence that those initials match another institutional infrastructure the TAB.....and we know how that works don't we;)
Nice trade. Well done!
On your way to be the first TA Billionaire.

[BFG]

Don't give him a big head....can it be coincidence that those initials match another institutional infrastructure the TAB.....and we know how that works don't we;)

I got a bit lucky with ACC & Pascoes buying in at the same time as well.

BFG can stand for anything you like it to. I usually use Big Friendly G(M)oose, but there are others you can use incorporating expletives :)

My head needs to be big for all the brains (and antlers) :D

[Hoop]

I think there is an old schoolboy joke about bottom picking which I wont repeat.....but I/m sure that sweet smell of maple syrup and the gentle rustling of banknotes is dominating so lets all enjoy Moosies happiness (and the Normans). Don't you just LOVE?HATE?CANNOT UNDERSTAND? (choose the most appropriate please) sharemarket?

BFW...Do you lick your fingers when counting those newly acquired banknotes?

[BFG]

BFW...Do you lick your fingers when counting those newly acquired banknotes?

I make sure I thoroughly jump through all hygenic Hoops before eating my BFW ;)

[ratkin]

So what do you peeps reckon the Normans are up to, what is their cunning plan?

[percy]

Only reasons I can see are muscle.
Muscle with suppliers,and muscle with Landlords.
WHS pay a lot less rent than Farmers,who pay less rent than Whitcoulls,who pay a lot less rent than Pascoes.
Then can use the same warehouses and distribution systems,IT,payroll etc.

[kiwitrev]

Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

[ratkin]

Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

Thats what i dont follow, they cant even get a seat on the board

[percy]

From small acorns large oak trees grow.!!!
Maybe the Normans see themselves as no threat to the supermarket shareholders?

[BIRMANBOY]

What you (we) are missing is real hard facts from the horses mouth. So obviously they (the Normans) will be holding that info closely. They have reportedly said that they are treating the purchase of WHS shares as an investment. Ok but an investment for what purpose, and to what direction. If I was in their Gucci loafers I may be thinking...lets buy into WHS and use position as leverage to replace WHS existing jewellery stock/kiosks with existing Pascoes staff (better trained) and stock. Close down existing Pascoes stores...38 in number so save on high main street overheads etc, shift staff and stock to 92 WHS stores after negotiating much smaller overhead costs etc. Its a win win...WHS ups the quality and training of the jewellery component, gets additional new income from space they already pay for and no longer has to worry about buying and controlling something they don't really understand. The Normans can use WHS to fold in existing Whitcoulls stock (and staff), Farmers..the same. WHS also gets rid of competitors. Of course that's all cloud based speculation and I have NO facts to support that. However stranger things have happened and let get real ...The Normans are up to something...and they ain't dumb by all accounts. Whether real or speculative the interest can only drive the SP in one direction ultimately.
Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

[bunter]

IMHO... retail isn't dead or dying and the internet isn't going to kill it off.

There'll always be a need for shops.

Retail's going through a period of adjustment.
We had too many shops.

Shops, whole chains are closing down. Food shops seem to be becoming more numerous.

When the dust settles, there'll be a smaller number of well-managed shops left - the ones that adapted to the web, are well managed, had a bit of luck, are in the right sectors.

I think WHS, BGR (provided Rod Duke lives forever) and HLG will survive, and flourish again.

[winner69]

Some calling for heads to roll
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11391064

Shareholder activism in WHS hard to get going methinks. Too many shares closely held and rest spread amongst instos, nobody really to push the issue except the Normans

Need to get mr tindall to see things are not going right

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11391064

[Bobdn]

Some calling for heads to roll
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11391064

Shareholder activism in WHS hard to get going methinks. Too many shares closely held and rest spread amongst instos, nobody really to push the issue except the Normans

Need to get mr tindall to see things are not going right

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11391064


"Rickey Ward, NZ equity manager at investment firm JBWere, said calls for board and chief executive changes were "a little bit harsh".
Ward said challenges such as online competition had caused disruption in the retail industry.
"I don't think you can put that down to the CEO or the board," he said. "I think they're doing what they need to do and that is diversify."

I side with Ward and I'd leave the CE where he is at this stage. Business on the online site has grown 30% and the stores have a good vibe. I'll see how things look in 12 months.

[percy]

The board and CEO have been making all the right decisions.
For the business to survive they needed Noel Leeming's suppliers,they needed Torpedo online business,and they need a finance division.
Just a fact of life they needed to spend a lot of money staying where they are,and securing their future.
Failure to do so will have speed up WHS demise.
Salt and Milford show no long term interest in WHS's future.
People who do not understand the long term problems retailers face,should not offer short term advice.

[Beagle]

Salt's managers and Gaynor probably know the WHS is well past the point of market saturation and the business as it stands is on a hiding to nothing. Come on... how many braches are there, far too many is the answer !!
Halve the number of branches, halve the staff, transform the remaining braches so that the shopping experience feels a lot less down-market, make sure all the major brands are represented in each store, slash corporate over-head e.t.c. Unless something truly transformational happens like I've outlined then its probably more of the same woeful under-performance. I'm with Salt and Gaynor, time for some truly revolutionary thinking.
Extremely tired brand that's desperately calling for a real transformation. Those professional investors know Tindall would never go for that so quite frankly they see better opportunities elsewhere and I can't say I blame them as they're quite obviously tasked with getting the best return for their clients money. Good on them for speaking out I say. My 2 cents.

[percy]

Yes I agree.
Those are pretty much the reasons I would not invest in it.
However I would think Tindall and other long term stakeholders,staff and suppliers would disagree with us.

[bunter]

Future could be a small number of branches doubling as showrooms and processing centres for online shoppers.

I'm wondering if the Normans have thoughts of participating in a rationalisation involving their shops and the Warehouse's.

Suspect The Warehouse would be the surviving brand.

[Bobdn]

Salt's managers and Gaynor probably know the WHS is well past the point of market saturation and the business as it stands is on a hiding to nothing. Come on... how many braches are there, far too many is the answer !!
Halve the number of branches, halve the staff, transform the remaining braches so that the shopping experience feels a lot less down-market, make sure all the major brands are represented in each store, slash corporate over-head e.t.c. Unless something truly transformational happens like I've outlined then its probably more of the same woeful under-performance. I'm with Salt and Gaynor, time for some truly revolutionary thinking.
Extremely tired brand that's desperately calling for a real transformation. Those professional investors know Tindall would never go for that so quite frankly they see better opportunities elsewhere and I can't say I blame them as they're quite obviously tasked with getting the best return for their clients money. Good on them for speaking out I say. My 2 cents.

Roger, if you added up your "2 cents" on this "tired old brand", you'd easily be able to buy a quality gift from The Warehouse, something like this perhaps: http://www.thewarehouse.co.nz/red/catalog/product/Mickey-Mouse-Disney-Watch?SKU=1879876 It's the genuine article and at 50% off! Come on, you know you want it and it would help me and Birdman out.

[mikeybycrikey]

Halve the number of branches, halve the staff, transform the remaining braches so that the shopping experience feels a lot less down-market, make sure all the major brands are represented in each store, slash corporate over-head e.t.c.

You've written quite a few posts here complaining about the down-market feel of the Warehouse. It doesn't really do it for me either but the Warehouse is a down-market brand. It was born as a down-market brand, you're never going to transform it into Farmers or Smith and Caughey and it wouldn't be right to.

If you bring it up-market, then it stops being "where everyone gets a bargain".

I travelled around a few Warehouse stores during the week. They actually seemed nicer than I expected. Although, there does seem to be a lot of the stores devoted to DVDs and books, both of which are dying products.

[Beagle]

Roger, if you added up your "2 cents" on this "tired old brand", you'd easily be able to buy a quality gift from The Warehouse, something like this perhaps: http://www.thewarehouse.co.nz/red/catalog/product/Mickey-Mouse-Disney-Watch?SKU=1879876 It's the genuine article and at 50% off! Come on, you know you want it and it would help me and Birdman out.

Trust a mickey mouse brand made in China to keep time for me ? or stick with my 25 year old Seiko that I know keeps perfect time, oh I don't know...decisions, decisions...:)

[Bobdn]

Hey, I'm wearing my Warehouse bought $499 g-shock aviation watch as we speak :)

[winner69]

Hey, I'm wearing my Warehouse bought $499 g-shock aviation watch as we speak :)

What does g-shock do that Mickey can't

[Beagle]

You've written quite a few posts here complaining about the down-market feel of the Warehouse. It doesn't really do it for me either but the Warehouse is a down-market brand. It was born as a down-market brand, you're never going to transform it into Farmers or Smith and Caughey and it wouldn't be right to.

If you bring it up-market, then it stops being "where everyone gets a bargain".

I travelled around a few Warehouse stores during the week. They actually seemed nicer than I expected. Although, there does seem to be a lot of the stores devoted to DVDs and books, both of which are dying products.

I should add for some balance that I find the Noel Leeming stores well laid out and a pleasant place to shop. Warehouse Stationery also seems well situated. What I'm suggesting is its time to move the Red Sheds closer to the mainstream because clearly what they're currently doing isn't working from an EPS perspective but here's a potentially scary thought for shareholders. Maybe Mr Tindall with all his altruistic and philanthropic tendencies doesn't really care about whether this works from a EPS growth perspective and just wants to be able to serve New Zealanders at the lower end of the socio economic ladder ? He views success by many other means than simple EPS. Employment opportunities for young Kiwi's being paid a "liveable" wage being one of his many other objectives. Maybe he should finally move to take it back to full private ownership..wasn't he rumoured to be looking at this some time back ?

[Bobdn]

What does g-shock do that Mickey can't

Very good question. My g-shock is solar powered and has a host of other features but, like Mickey, its primary purpose is time-telling. It was one of those "treat myself" purchases. I love it!

[BIRMANBOY]

I remember a long time ago my partner telling me how good the g-shock was and how much women liked their men to know how to use it properly. So I said "honey, I just don't have the time to do it myself, why don't you just get one working for yourself"? She left me soon afterwards.:p
Very good question. My g-shock is solar powered and has a host of other features but, like Mickey, its primary purpose is time-telling. It was one of those "treat myself" purchases. I love it!

[Bobdn]

Fantastic, I'll do what I can to learn the ins and outs of it.

[winner69]

Fantastic, I'll do what I can to learn the ins and outs of it.

Get Mickey to help out

[BIRMANBOY]

The Normans now up to 7.4 % or so and been buying into the weakness...glad to see I'm not the only one averaging down....I'd love to know what's on the agenda. :confused:

[Bobdn]

I wish I could join you with some averaging down but I'm skint now, having bought some TTK.

[BIRMANBOY]

LOL remember the Mainland cheese ad...some things take time. And to get in ahead of any "stinky cheese" comments from the cheap seats....I feel a lot more confident with WHS than TTK...however..one must have some faith eh?:) PS please don't (re) mortgage the house, car or children.
I wish I could join you with some averaging down but I'm skint now, having bought some TTK.

[tim23]

You also wonder why foodstuffs are bothering holding on now?

[Bobdn]

No, good advice, no more borrowing for me.

[macduffy]

You also wonder why foodstuffs are bothering holding on now?

It's probably just a bit of insurance, in case someone else decides to try and turn WHS into a serious groceries retailer. That big retail footprint might just tempt someone, someday!

[Balance]

The Normans now up to 7.4 % or so and been buying into the weakness...glad to see I'm not the only one averaging down....I'd love to know what's on the agenda. :confused:

Ask Rod Duke of Briscoe. He was buying Pumpkin Patch and has nothing but losses to show so far.

[percy]

i wish they would hurry up and sort out noel leemings, have been in there a few times since they took over and have almost left without buying what i went in due to lack of service, only being a shareholder has me continue waiting, have seen others put goods back and leave because after standing at the counter for 5 minutes with 7 people behind it and only 2 people to be served not being acknowledged or looked after (manukau ciry store) has happened three times i have been in there , also they need to look at what the competition do well a friend brought a washing machine was told it would be ready to pick up the tuesday went in and they had sold to someone else.
that is why i buy my big items from harvey norman , i can take away with me on purchase dont have the hassle of waiting for a delivery truck to show up organise time off to be there.
on a postive note the new store for torpedo 7 at Mt wellington is great, lot better than ponsonby, friendly helpful staff ,more to pick from, not all jammed in and heaps of parking (underneath building)
Just the sort of information a CEO looks forward to receiving!!
I think Mark Powell is waiting for your call,phone via Kim Russell [09] 489 700 or 021 488 3285 .
Look forward to hearing what Mark/Kim has to say!

[BIRMANBOY]

Move down to Wellington...I went into Noel Leeming couple of days back and was impressed by service, knowledge and helpful attitude. My partner went in few days prior to do some preliminary filtering and said same thing. Walked out with a $600 camera with a sale price of $400. So shame about your less than ideal experience but its not necessarily an accurate portrayal of Noel leeming or WHS. Like any service/retail operation its a continual battle to get optimal performance. As a shareholder you should make your views known to the local manager ...mentioning you are a shareholder. That should focus some attention.
i wish they would hurry up and sort out noel leemings, have been in there a few times since they took over and have almost left without buying what i went in due to lack of service, only being a shareholder has me continue waiting, have seen others put goods back and leave because after standing at the counter for 5 minutes with 7 people behind it and only 2 people to be served not being acknowledged or looked after (manukau ciry store) has happened three times i have been in there , also they need to look at what the competition do well a friend brought a washing machine was told it would be ready to pick up the tuesday went in and they had sold to someone else.
that is why i buy my big items from harvey norman , i can take away with me on purchase dont have the hassle of waiting for a delivery truck to show up organise time off to be there.
on a postive note the new store for torpedo 7 at Mt wellington is great, lot better than ponsonby, friendly helpful staff ,more to pick from, not all jammed in and heaps of parking (underneath building)

[percy]

Local manager could be the problem.
Always ring the CEO.

[tga_trader]

Walked out with a $600 camera with a sale price of $400.
Not holding anymore but when I was it was quite disheartening being offered big discounts off products without actually asking / pushing for them. It's a world now where there's always someone having a sale, I can't even remember the last time I paid full price on...well anything (excluding necessities). I bought an appliance from a competitor on the weekend and found out it was 3% below cost, what kind of business model is that?
Noel Leeming Tauranga is hit and miss with service because they're always quite busy. Mt Maunganui store has quite good service but 80% of the time I've been in there the staff out number the customers at least 2:1 (I once went in and there were 7 staff that I could see, and I was the only customer).
Torpedo 7 has been 100% perfect in my experience, I just wish they had a physical store here.

[Balance]

Just the sort of information a CEO looks forward to receiving!!
I think Mark Powell is waiting for your call,phone via Kim Russell [09] 489 700 or 021 488 3285 .
Look forward to hearing what Mark/Kim has to say!

He will be trying to figure out why the heck they bought Noel Leeming for $65m - EBIT for half year forecast to be $2.6m. Forecast was for $6m. Ouch!

[percy]

Comparable Service:
Briscoes.Brought a Zip kettle on special down from $99.99 to $39.99. On button would not stay down.Briscoes replaced it,for the same problem to happen again.Took it back on Thursday,and asked whether I could buy a different brand.No problem.Brought a Russell Hobbs reduced from $159 to $95.Credited my return and I paid by using a voucher and VISA card.GOOD SERVICE.
Smiths City,Bush Inn.Our old TV lost colour.To get Ascot to look at it $135. Happened to be at Bush Inn Cente on Wednesday afternoon.Had a quick look at TVs.Got home and wife said buy a new one.Rung Robert at Smiths and asked whether I could buy over the phone.No trouble,$65 delivery and instillation,which was carried out late the next morning.GOOD SERVICE.
So why shop at a store that does not want your custom ?I don't.

[BIRMANBOY]

Pascoe's now up to 16.44% of WHS..purchased General Distributors lot at $2.85 per share 30.5 million shares off market. Gotta be good buying.....if they had tried to buy on market would have pushed price up much further than that. C'mon David and Anne...what ya got cookin?

[bull....]

if they wernt buying im sure the price would be lower, results are Friday be interesting to say the least

[BIRMANBOY]

Got nothing to do with results.....they are buying with an AGENDA...unknown to everybody but you can guarantee with a 16.33 stake their dividend check will be fricking solid gold. They are setting themselves up for a win either way......big dividend yield with their "spare cash" or with the aim of exerting control at some point. Time will tell but glad I got in last week for a top up.
if they wernt buying im sure the price would be lower, results are Friday be interesting to say the least

[Bobdn]

6 per cent increase over the last couple of hours, exciting times.

[kiwitrev]

In a press release NZH Normans say do not intend to make a bid to takeover WHS.

[BIRMANBOY]

I can categorically state "I did not have sex with that woman".
In a press release NZH Normans say do not intend to make a bid to takeover WHS.

[kiwitrev]

I believe you BB

[macduffy]

In a press release NZH Normans say do not intend to make a bid to takeover WHS.

Not much point in a bid if they haven't lined up the Tindall stake first, I'd have thought. But whatever, it adds a bit of interest to the stock.

[kiwitrev]

Two quick thoughts. 1) That's a lot of moolah to pick up WW stake-leveraged? and 2) What will F/Stuffs reaction be now that WW not holding a blocking stake. I would think they possibly looking to also exit and obviously only likely to be one realistic buyer.

[percy]

All I can see is a huge mountain of leveraged debt and liabilities.
The Normans do not own any premises.
Pascoes,Farmers,Stevens,and Whitcoulls are all in leased stores.
Most will be paying massive rents with long ongoing lease commitments.[and staff commitments]
Buying into WHS just adds to this burden.

[Harvey Specter]

Two quick thoughts. 1) That's a lot of moolah to pick up WW stake-leveraged? and 2) What will F/Stuffs reaction be now that WW not holding a blocking stake. I would think they possibly looking to also exit and obviously only likely to be one realistic buyer.he can only go up to 20% without triggering a takeover so would also need insto's help.

Or maybe a combined Tindall/Norman/management takeover?

[Harvey Specter]

if they wernt buying im sure the price would be lower, results are Friday be interesting to say the leastthey must have been a buyer, rather than woollies trying to offload or else it would have been sold at a discount. Definitely have something in mind.

[ratkin]

Interesting times, has to be good news for us lot

[kiwitrev]

Or just to be a contrarian and arguing against my last post-Could JP already have an arrangement with F/Stuffs. Just loooking at all the angles. Can't see the Normans doing this larger buy-in with a long term view to just hold for divvies (albeit in a low interest environment) so on this basis there has to be MTC.

[tim23]

Percy - they are retailers, what does it matter if they own premises they own good businesses, I bet Trademe or Xero don't own theirs either.

[axe]

My hunch is saying more "shop within a shop" model
Warehouse jewellery offering is sub par. I imagine it is not giving a good return in $$$ for its space.
Pascoes stores are leased in prime retail spots resulting in a high lease as a % of sales

Pascoes moves into warehouse spots - gives warehouse a slice of the cake.
The cake slice will be a better return than what warehouse is currently getting from it's jewellery offering , but lower cost than leasing a prime retail site.

Thats my hunch anyway.....

[percy]

Percy - they are retailers, what does it matter if they own premises they own good businesses, I bet Trademe or Xero don't own theirs either.

Huge on going liability.Five,seven years leases, whether you are profitable or not.Landlords do mind whether you occupy the premises or not,so long as you pay the rent.A retailer like Farmers,Whitcolls,Stevens or Warehouse need big stores.Big store,big on going liability,not just this year,but next year,the year after etc.Malls will not build the space for Warehouse or Farmers unless they have a cast iron lease. Trade Me and or Xero would most probably be paying up to 2% of their turnover in rent,while Pascoes,Farmers ,Stevens and Whitcoulls are most probably paying between 8% to 18% of turnover.You could run Trade Mall or Xero from near anywhere, while Whitcoulls,Steven,Pascoes and Farmers are in very expensive retail space.

[golden city]

very skitical about the moves.., could fetch a full takeover

[Hoop]

The retail market is caught up in this Industrial Revolution so innovative change is spelling the end to traditional retailing practices...Hmmm so why does a big player want "in" ???...That the question we investors must ask ourselves...A takeover?? not necessarily,,,

Personally, I think the answer is somewhere in between the lines of disruptive marketing/business strategies..Its the beginning of a fight back from the old tranditionists to keep market share and then try to gain market share especially from the very fragmented innovating micro disruptors (e.g the multitude of online sellers) that have be nibbling away. The traditional retailer has now realised they have to change and also disrupt the marketplace using the basis of what customers now want or yearn to have....

The disruptive marketing/business strategies are many, maybe the Normans have found a set of strategies that will work......maybe one strategy could be to reduce duplication costs .. add overall synergy by gaining partial control so to gain access and use the collective alliances various systems ...or another strategy could be to gain control over supplier contracts..eg Sell better brand products.(Warehouse reason to buy out Noel Leeming)

Soon to be deleted

[macduffy]

I wonder about the Normans having " a set of strategies" to rejuvenate retailing. As the owners of the Farmers department stores, are they showing any signs of this? Or is it a matter of looking to use the combined buying power of a Farmers/Warehouse bloc in sourcing product, negotiating rents, insurances etc? A formal takeover wouldn't be necessary for this to happen.

[stoploss]

Foodstuffs in Wellington been cashing up property they purchased to stuff up Countdown chain of late . ( at a massive loss ) So maybe they will exit there 10 % share in this at a $ 2 odd discount , then things might start to happen ....


Ended up , Countdown jumped first and a $ 3.65 discount ........
I owe an apology to Foodstuffs as I previously stated on here that they purchased a 10 % stake to block Countdown . From reading today it states that Foodstuffs purchased first then Countdown took the blocking stake ......Oh well only cost them $ 110 Million
Makes some of my trading of late look good ......
http://www.stuff.co.nz/business/industries/66913234/woolworths-cops-110m--loss-as-it-sells-out-of-the-warehouse

[Jay]

Read the other day Online sales are only 6% of total sales currently - So retail shops are not dead yet - click and collect is good option - no delivery fee and/or wait - entices the customer into the shop and they may then buy something else.
So what will Foodstuffs do now Woolworths have sold out - sell down as well - both lost a lot one for real and the other on paper (so far)- have had the divies to offset it a bit.
Will it be taken private again with the help of the Normans as mentioned ??

[Balance]

Read the other day Online sales are only 6% of total sales currently - So retail shops are not dead yet - click and collect is good option - no delivery fee and/or wait - entices the customer into the shop and they may then buy something else.
So what will Foodstuffs do now Woolworths have sold out - sell down as well - both lost a lot one for real and the other on paper (so far)- have had the divies to offset it a bit.
Will it be taken private again with the help of the Normans as mentioned ??

Foodstuffs will sell if there's a full bid now for WHS.

Wait the space.

[Jaa]

Anyone think Woolworths will now enter the NZ discount market under their own steam with Big W?

Or will the Norman's secure a near monopoly in department store sales?

[macduffy]

Anyone think Woolworths will now enter the NZ discount market under their own steam with Big W?

Or will the Norman's secure a near monopoly in department store sales?

No, I think that WOW has too many problems in the Aust general merchandise division to want to expand that part of the business to NZ. Return on average funds employed in the Dec half year was down to 9.98% and EBIT a loss of $38.5m after making provisions for the "transformation" of the BigW business.

But perhaps an expansion of the Ezibuy business?

[kiwitrev]

Out of curiosity I googled James Pascoe and was surprised to learn on the Wikipedia link just how massive this coy is. Having trouble posting the link but easy to find.

[Harvey Specter]

Out of curiosity I googled James Pascoe and was surprised to learn on the Wikipedia link just how massive this coy is. Having trouble posting the link but easy to find.http://en.wikipedia.org/wiki/James_Pascoe_Group

Larger than Warehouse and Michael Hill combined?

[Jim]

http://en.wikipedia.org/wiki/James_Pascoe_Group

Larger than Warehouse and Michael Hill combined?

Thanks for that link

[Balance]

http://en.wikipedia.org/wiki/James_Pascoe_Group

Larger than Warehouse and Michael Hill combined?

Thanks indeed, HS!

Did not know they own Stevens as well.

They certainly can teach the Warehouse a thing or two about acquisitions and how to make the acquisitions work!

[bull....]

http://www.stuff.co.nz/business/money/67020425/buyers-move-to-top-brands

Is this bad news or what? - anyway be interesting to see if this shows in there results

[bull....]

A shocker of a result cemented by the lowering of the dividend to 16c for the full yr, infact the interim div has been on a decline for 3 yrs now not a good sign also the metrics now like pe, eps all make whs look extremely expensive compared to others say like Briscoe.

wonder if the nomans will be supporting the price again - get it anyway maybe a coffee with rod ddukes might help

[Balance]

Results in line with update issued in January by WHS.

Game is now not just on results but what is happening behind the scenes with Pascoe, Tindall & Foodstuffs.

16cps dividend (fully imputed) still means 7.6% gross yield - well above what Pascoe or Foodtsuffs borrow money at!

[bull....]

whs market probably wont collapse yes telegraphed and normans are supporting price but you are paying expensive price based on current metrics and remember sales look like they only going up because they discounting so you get more sales so no profit because of this and there costs are going up across the board so enjoy your expensive div why it last

[bull....]

look at the future earnings multiples you are paying for your 7.6% yield, remember just cause it is 7.6% doesn't mean it wont be 10% next yr

[ratkin]

A shocker as expected. Yes its already factored in, but will still see some price pressure
Recent trend has seen flling price, inreupted by buying from Norman sending it higher, before drifting again
Let it drift then buy low and wait is the plan

[ratkin]

Very very happy to take a 7.6% yield in this blue chip stock.....better than 4.7% from the bank.
Its not a bluechip and yield will fall unless they do something

[benjitara]

I agree that the Warehouse do need to improve their performance. All very well saying the yield is great but if the way in which they have been turning profits have has been changed by their own doing then profits going forward may remain in this region for some time. Briscoes is all over them like a cheap suit in terms of how to run a business... Seems to me that the warehouse's scale and market share is now their biggest liability...

[Antipodean]

It shouldn't be surprising report is not as good as last year. One off costs of rebranding T7 and NL, asset selling etc. There are long term positive signs including WH increasing online sales, T7 taking off. I will continue to hold for the long term and take the dividend, happy they reduced it rather than load debt.

Holding, may top up.

[Balance]

Seems to me that the warehouse's scale and market share is now their biggest liability...

And potentially their greatest asset if they know how to leverage off that retail footprint.

Agree btw that BGR shows what an inert bunch of directors and management the WHS has got.

[kiwitrev]

Comments posted today and the SP tanking are indicative how confused the market is. Nothing has changed in financial reporting (as forecast by WHS last year) from previous period so what were people expecting from this report to sell it down today? Sure the James Pascoe foray has supported the SP recently but fact remains they still in play. Remember WHS said at the outset of the capital spending/acquistion programme it would take a few years to complete turnround. Retail is going thru a transformation, WHS are addressing this issue, capital spending will be slowing. The calls from some members for WHS to do something seems to not recognise they are doing plenty-sowing the seed.

[Balance]

Comments posted today and the SP tanking are indicative how confused the market is. Nothing has changed in financial reporting (as forecast by WHS last year) from previous period so what were people expecting from this report to sell it down today? Sure the James Pascoe foray has supported the SP recently but fact remains they still in play. Remember WHS said at the outset of the capital spending/acquistion programme it would take a few years to complete turnround. Retail is going thru a transformation, WHS are addressing this issue, capital spending will be slowing. The calls from some members for WHS to do something seems to not recognise they are doing plenty-sowing the seed.

Agree with you but problem for WHS is that the seeds are germinating on either infertile ground and/or barren grounds!

Sp is down on small volume - when the real volume sp is $2.85 paid by Pascoe.

[Beagle]

Warehouse eyes costs, better products as it targets earnings growth
Friday 6th March 2015
Text too small?

Warehouse Group is turning its focus to reducing costs and improving its products and productivity as it seeks to get a return from its increased spending on the business.

The Auckland based company today lowered its forecast for annual profit after first half earnings fell, prompting it to renege on its dividend pledge. The company's shares dropped 4.8 percent to $2.77, making the stock the biggest decliner on the benchmark NZX 50 Index today.

Warehouse shares are rated an average 'sell' and have shed 23 percent of their value over the past year as analysts and investors say they want the company to start producing profit growth after spending hundreds of millions of dollars overhauling stores and buying new businesses the past few years. Chief executive Mark Powell, who has led the spending programme after taking over almost four years ago, previously expected annual profit growth to resume this financial year.

"We have done a lot of investment, we have changed the shape of the group considerably and we have got a base there now to deliver, but we do need to deliver that profitable growth and that's well understood," Powell said on a conference call today. "We fully understand that the translation into profit growth needs to come."

Warehouse, which gets the bulk of its earnings from its 'red shed' general merchandise stores, bought 11 businesses over 18 months as part of a plan to grow the 'non-red' side of the business to be as large as the red sheds. That saw it add technology and appliance retailer Noel Leeming, sports chains Torpedo7 and R&R Sports and finance company Diners Club NZ.

It also stepped up investment in its 92 'red sheds' stores, embarking on a plan of store refits, staff training and improving the quality of its products.

"We started that journey when we had had seven years of ongoing sales decline and ultimately if you projected that forward in the sales and profit decline, you would have ended up projecting forward a profit of about half of what it is now, we just wouldn't have been able to cut costs quick enough on an ongoing basis to combat that ongoing 2 percent decline," Powell said.

Still returns from the investment hadn't met expectations, with average sales growth of about 2 percent lagging behind estimates of 3-4 percent and weighing on earnings, he said.

"We certainly have got a higher profit level than we would have had if we had carried on on that path but it has not delivered the growth we would have wanted," Powell said. "As we enter a phase now where we come off that investment we have to adjust our cost base and expectations to those lower sales numbers."

Powell has been phasing out "cheap and nasty" private label brands for better quality products without raising prices after some products had a 20 percent return rate, damaging the Warehouse brand. Under the new regime, products are pulled from the shelves if they have a return rate of 5 percent.

Warehouse will continue to focus on product quality as it seeks to improve sales, he said today.

"The quality image doesn't change overnight, there's still a lot of customers out there who are suspicious of Warehouse quality."Warehouse today posted a 19 percent drop in adjusted first-half profit to $37.2 million, and said annual earnings on the same measure, which excludes one-time items and is the basis for dividend payments, will be between $52 million and $56 million, down from $60.7 million a year earlier.

Chairman Ted van Arkel reiterated on the conference call that the company is targeting improved profits.

"We continue to focus on sales growth, however a major priority is also to deliver profit growth and the board and management are very very clearly focused on that", van Arkel said. "The board remains confident in the long-term strategy."

The company will pay a first half dividend of 11 cents per share on April 16, representing 102.5 percent of adjusted net profit. It lowered its fullyear dividend forecast to 16 cents per share, down from its previous forecast of 19 cents, which it paid last year.

In order to invest in its business to drive future earnings, the company last year cut its dividend payout ratio to between 75-85 percent of adjusted profit, from a previous policy of 90 percent of adjusted profit. To provide certainty for shareholders, it said the policy would be phased in over two years when a minimum dividend of 19 cents per share would be paid.

Warehouse today said the dividend policy for future periods will be reviewed against its business plan for the 2016 financial year and announced with its full year results.

Arguably their biggest problem. The biggest queue on boxing day is always the return line with all the stuff that didn't even work or last one day !!!!

[ratkin]

Arguably their biggest problem. The biggest queue on boxing day is always the return line with all the stuff that didn't even work or last one day !!!!

Funny you should say that, my wife had a day off today, and went to the warehouse to buy a DVD to watch. Feet up on the couch, box of chocolatees at the ready, puts the DVD in and it wont work, something about parallel import and DVD region

[ratkin]

Reality is that if the Pascoe bunch had not started buying the price would be much lower now. I suspect many bought in recently, expecting that today there would be some kind of announcement.

[bull....]

[QUOTE=ratkin;563022]Reality is that if the Pascoe bunch had not started buying the price would be much lower now.[QUOTE]

How true

[bull....]

As an example Its not surprising to see the entertainment division down in sales you only need to look at some of there pricing on say xbox games etc then go to jbhifi etc and check theres and your see why nobody goes to the warehouse for this stuff it diffenately is not a bargain.

[emearg]

Very very happy to take a 7.6% yield in this blue chip stock.....better than 4.7% from the bank.

I agree regarding the yield if the dollar invested is still worth a dollar like it would be in a bank. Even better if it is worth more because the share price increases but what about when it goes down? Then the bank is better isn't it?

[macduffy]

I agree regarding the yield if the dollar invested is still worth a dollar like it would be in a bank. Even better if it is worth more because the share price increases but what about when it goes down? Then the bank is better isn't it?

Yes, we need to look past the current yield, even if we are investing for income, as I imagine most WHS shareholders are. After all, at a shareprice of $1 and an annual dividend of 7.6cps, the yield would still be 7.6%. Not that I'm suggesting that scenario as a likely outcome and yes, the company has announced that the minimum dividend for the next two years will be 19cps. But to focus on the yield is to miss the doughnut for the hole!

[Beagle]

Funny you should say that, my wife had a day off today, and went to the warehouse to buy a DVD to watch. Feet up on the couch, box of chocolatees at the ready, puts the DVD in and it wont work, something about parallel import and DVD region

Frustrating isn't it !! Its all very well to get a refund but when you factor in the time / travel required to purchase it in the first place plus the time / travel to return the item any wonder people shop elsewhere...

[Balance]

Frustrating isn't it !! Its all very well to get a refund but when you factor in the time / travel required to purchase it in the first place plus the time / travel to return the item any wonder people shop elsewhere...

With the Warehouse purchasing power, it is actually an easy problem to fix.

Hence the need to bring in fresh blood to management and director level.

[Antipodean]

Funny you should say that, my wife had a day off today, and went to the warehouse to buy a DVD to watch. Feet up on the couch, box of chocolatees at the ready, puts the DVD in and it wont work, something about parallel import and DVD region

Hate to be picky, but unless your wife asked about the region and was given incorrect information from a WHS staffer - does not the blame rest a little with the customer here for not checking the merchandise would work with the hardware at home? Like buying apple software for a windows computer?

If I bought a wrong region DVD I wouldn't blame the company for my poor choice. They are after all on the case of the DVD. It would be good customer service for the company to refund/exchange this if advised however.

[Balance]

Funny you should say that, my wife had a day off today, and went to the warehouse to buy a DVD to watch. Feet up on the couch, box of chocolatees at the ready, puts the DVD in and it wont work, something about parallel import and DVD region

Something definitely wrong there as I recently bought a Sony blu-ray DVD from the Warehouse.

All the DVDs stocked at the Warehouse are either Region 4 (for NZ, Australia etc) or 0 (all regions).

http://www.thewarehouse.co.nz/red/catalog/electronics/visual/dvd-vcr;pgid=LrBaGULBkrNSR0.BCtHQKwLZ00001JkQy0GY;sid= _b3bNC064frfNHnD_XDEPj2WkbkXY0E-Meo=

Out of interest, what brand was it?

[ratkin]

Something definitely wrong there as I recently bought a Sony blu-ray DVD from the Warehouse.

All the DVDs stocked at the Warehouse are either Region 4 (for NZ, Australia etc) or 0 (all regions).

http://www.thewarehouse.co.nz/red/catalog/electronics/visual/dvd-vcr;pgid=LrBaGULBkrNSR0.BCtHQKwLZ00001JkQy0GY;sid= _b3bNC064frfNHnD_XDEPj2WkbkXY0E-Meo=

Out of interest, what brand was it?

Optical home entertainment. It does have a red sticker on it saying multi zone player may be required, so it probably my wifes fault

[Balance]

Optical home entertainment. It does have a red sticker on it saying multi zone player may be required, so it probably my wifes fault

Happened to me before - DVDs given to me by a nice visitor from Japan. Bugger of a thing!

[Snow Leopard]

The last DVD player I bought was in New Zealand about 10 years ago and at that time it was actually illegal to sell a DVD player that was not capable of playing any regions DVD.

Out of the box it would only play Region 0 & 4 BUT there was an unlock code available on the manufacturers website.

Might be worth a look?

That DVD player is still going strong despite moving countries several times and happily plays every DVD we own (from zones 1,2,3,& 4) except for one movie - Cloud Atlas.


Best Wishes
Paper Tiger

So back to Warehouse the company and future outlook...

[sideline]

................ yes, the company has announced that the minimum dividend for the next two years will be 19cps............

Are you sure that statement is still valid? I noticed that this issue was omitted in the newspaper articles about WHS, but the last paragraph of todays company announcement states:

The FY15 dividend is targeted to be 16 cents per share, comprising an interim
dividend of 11 cents per share and a final dividend of 5 cents per share.
This is a reduction from the previously indicated 19 cents per share. Given
the decline in profit outlook resulting from the first half, the Directors
consider it prudent to reduce the targeted FY15 dividend to 16 cents per
share. This recognises the Directors' intention to deliver on long term
undertakings made during the capital raising last year, and their confidence
in the fundamentals of the Group strategy. However, this is balanced with
the need to prudently manage the business in a highly competitive trading
environment.

[kiwitrev]

Sideline
When they made that statement, 19c div. it was with the caveat unless future profit materially affected, so you are right any reference to 19c not valid.

[BIRMANBOY]

With the dividend you will be able to buy a few full stops..... but here's a few free ones just to keep you going......... ...... ..:p
whs market probably wont collapse yes telegraphed and normans are supporting price but you are paying expensive price based on current metrics and remember sales look like they only going up because they discounting so you get more sales so no profit because of this and there costs are going up across the board so enjoy your expensive div why it last

[bull....]

lol yes I practice maybe on the weekend

[Tomtom]

http://www.stuff.co.nz/business/industries/67071124/revamp-rising-sales-fail-to-stop-warehouse-profit-fall

$90 million revamp... Really? I've lived in New Zealand for...over a decade now and walking into a Warehouse store has remained exactly the same experience.

[Grimy]

http://www.stuff.co.nz/business/industries/67071124/revamp-rising-sales-fail-to-stop-warehouse-profit-fall
Really? I've lived in New Zealand for...over a decade now and walking into a Warehouse store has remained exactly the same experience.
I think that's a big part of the problem. The stores have certainly had a spruce up-money has been spent on trying to make them lighter and more modern. But, the experience is the same as before.......

[tim23]

I reckon they need to tell customers they are a superior payer to their staff than most comparable retailers, why not boast about it?

[percy]

I reckon they need to tell customers they are a superior payer to their staff than most comparable retailers, why not boast about it?

Because they would be laughed at.!!!!
Tell me one retailer where the service is worse.!!!

[BlackPeter]

I reckon they need to tell customers they are a superior payer to their staff than most comparable retailers, why not boast about it?

I guess this is an excellent example showing that paying staff more than they deserve is not just a waste of good money - it actually can reduce your overall staff performance. If you pay staff too much, than you entrap the group of always unhappy whingers and underperformers which any large organisation inevitably hires from time to time. In other organisations these people normally leave after some time because they feel unloved. However - if you pay them too much, than they are basically forced to stay - nobody else would give them that money. The result: higher wages give you more and more low performers on your payroll impacting on your overall organisational performance.

[Grimy]

Maybe not quite as clear-cut as you make it sound ( I know you said "can reduce") BP. But I do agree with you.
Not talking about WHS staff here (as I don't know pay rates, etc. But I have certainly seen businesses where they would have been better off paying some a little less to help move them on, and some a little more to keep the good ones. Seems to be difficult for some bosses to make this call in such a PC world (and I guess collective agreements, etc.).
I definitely know of people staying in a job that they badmouth simply because it's not worth their while moving.
Everyone loses.......

[BIRMANBOY]

Thankfully most people have a more optimistic way of looking at the world. This would recognise that a vast majority of employees do have a brain and realize that employers who pay more are saying "thanks we do value your contribution". This in most cases will prompt positive behaviour. If however, you cannot change the few negative attitudes then its time to "manage them out to a more suitable place of employment". Employers who pay more/offer better conditions will always have superior leverage when it comes to staff issues.
Maybe not quite as clear-cut as you make it sound ( I know you said "can reduce") BP. But I do agree with you.
Not talking about WHS staff here (as I don't know pay rates, etc. But I have certainly seen businesses where they would have been better off paying some a little less to help move them on, and some a little more to keep the good ones. Seems to be difficult for some bosses to make this call in such a PC world (and I guess collective agreements, etc.).
I definitely know of people staying in a job that they badmouth simply because it's not worth their while moving.
Everyone loses.......

[Antipodean]

Paying a higher base wage so that people can live will take time to show it's rewards. It has been less than a year since WHS adopted the living wage so wouldn't expect huge difference as of yet - also good to note overall staff expenditure has not increased as drastically as opponents of the living wage would have you believe.

Over time the malcontents will be weeded out as they always are, because even those people that don't like the job but stay for the wage will eventually stumble and be cut loose. However increased demand for new staff wanting to work for a higher wage will allow WHS to be more selective in hiring better workers in the future.

Not to mention the workers on the higher base wage who will be more productive knowing that if they do slip up they are not likely to achieve a comparable wage in the next employment.

[tim23]

T\I think you miss my point Percy - it might appeal to peoples sense of fair play, living wage etc

[Grimy]

Over time the malcontents will be weeded out as they always are, because even those people that don't like the job but stay for the wage will eventually stumble and be cut loose. However increased demand for new staff wanting to work for a higher wage will allow WHS to be more selective in hiring better workers in the future.

Unfortunately I must live in a slightly different world. I've seen "malcontents" not get weeded out after more than 20 years of not giving a s**t about the quality of their work, or their bosses & co-workers. I don't necessarily blame them-they are allowed to get away with it. I blame bosses without the guts to say this is what is expected, and when it doesn't happen to take some action.
I take pride in my work and follow one of the best bits of advice my mum gave me when I first entered the workforce-"no matter what your job or position, always give your employer good value for their money". Often all I see is "take what you can get and if you can screw over the company at the same time it's a bonus".
Luckily these people are in the minority, but can be so disruptive to those around them. And the company as a whole when it's a small operation.
Don't want to get into a never-ending debate on it-just saying what I've seen.

[percy]

T\I think you miss my point Percy - it might appeal to peoples sense of fair play, living wage etc

Nice theory.
For some fun google ;showrooming.
Then you may wish to comment on fair play a little more.!!!

[BlackPeter]

Mark Powell this morning on National radio. Pretty uninspiring:

http://www.radionz.co.nz/national/programmes/businessnews/audio/20170068/the-warehouse-ceo-admits-strategy-isn't-working-as-expected

Sounded for me like ... not sure, whether the current strategy works, but if we don't see a change over the next 12 to 18 months, than we might change it ...

Glad I sold out (still well above the $3 mark ...)

[BIRMANBOY]

What's the point of trying to draw an analogy with your "experience" when it has very little to do with WHS. WHS is definitely NOT a small company so forget that. Now managers are mostly well trained and have the resources of a large HR Dept. to sort out "malcontents" without it being forgotten or ignored for 20 years. Its got nothing to do with guts..its having an employment contract that protects companies from having to put up with disruptive employees and its about protecting employees rights....the world has moved on from the experience you have detailed...at least with large corporations. As you say its still visible in small operations with family fiefdoms but not with large companies.
Unfortunately I must live in a slightly different world. I've seen "malcontents" not get weeded out after more than 20 years of not giving a s**t about the quality of their work, or their bosses & co-workers. I don't necessarily blame them-they are allowed to get away with it. I blame bosses without the guts to say this is what is expected, and when it doesn't happen to take some action.
I take pride in my work and follow one of the best bits of advice my mum gave me when I first entered the workforce-"no matter what your job or position, always give your employer good value for their money". Often all I see is "take what you can get and if you can screw over the company at the same time it's a bonus".
Luckily these people are in the minority, but can be so disruptive to those around them. And the company as a whole when it's a small operation.
Don't want to get into a never-ending debate on it-just saying what I've seen.

[kiwitrev]

For what it's worth Morningstar have raised their recommendation to accumulate with a price target of $3.40 (maintaing previous price target).

[kiwitrev]

THE WAREHOUSE GROUP LIMITED
("Company")
DISCLOSURE TO SHAREHOLDERS OF FINANCIAL ASSISTANCE
(Pursuant to sections 78(5) and 79 of the Companies Act 1993)
To // All shareholders of the Company
Introduction
This document ("Disclosure Document") is sent to you pursuant to sections 78(5) and 79 of the Companies Act 1993
which require the Company to disclose to you certain information relating to any proposal by the Company to provide
financial assistance to any person.
Proposed Financial Assistance
The Directors have authorised the Company to provide financial assistance to The Warehouse Management Trustee
Company No.2 Limited ("Trustee"), the trustee of The Warehouse Group Limited Executive Share Scheme ("Scheme"),
by way of an advance of $8,500,000 under the loan agreement between the Company and the Trustee dated 26
September 2005 (as amended) ("Loan Agreement").
The text of the Resolution of Directors is disclosed on the reverse of this document. The advance will be used by the
Trustee to purchase ordinary shares ("Shares") in the Company in accordance with the terms of the Scheme.
Explanatory Statement
The shareholders of the Company approved the establishment of the Scheme at the annual meeting of the Company on
26 November 2004. Pursuant to the Scheme, selected executive employees ("Executive Employees") of the Company
or of any subsidiary of the Company, who have been nominated as participants of the Scheme are issued rights to be
allocated and transferred Shares upon the satisfaction of certain conditions ("Conditional Rights").
The Directors have determined that a maximum of $8,500,000 will be advanced to the Trustee in respect of the purchase
of Shares in connection with the issue of Conditional Rights in the 2014/2015 financial year of the Company.
The Loan Agreement sets out the terms of the advances by the Company to the Trustee, the substantive terms of which
are as follows:
(a) each advance will be interest-free and repayable on demand by the Company;
(b) on transfer of Shares to an Executive Employee, the Company will reimburse the Trustee for the original
purchase price of the transferred Shares. The Trustee must use the reimbursement proceeds to repay each
relevant advance from the Company; and
(c) the recourse of the Company under each relevant advance will be limited to the Shares held by the Trustee,
as well as the proceeds of any accumulated dividends and other income derived by the Trustee on the Shares
that it holds or has previously held.
Ted van Arkel // Chairman
9 March 2015
The Warehouse Group Limited
26 The Warehouse Way
Northcote, Auckland
PO Box 33470 Takapuna
Auckland, New Zealand
Phone +64 9 489 7000
fax +64 9 489 7444
web www.thewarehousegroup.co.nzTHE WAREHOUSE GROUP LIMITED
EXTRACT from the Minutes of a Meeting of the Board of Directors of The Warehouse Group Limi

[alistar_mid]

For what it's worth Morningstar have raised their recommendation to accumulate with a price target of $3.40 (maintaing previous price target).


doesn't that mean run from it then?

as far as I know craigs doesn't have a very positive view on WHS

[Beagle]

Consensus analyst view among the respected analysts is SELL. Follow Moaningstar at your financial peril :eek2:

[ratkin]

For what it's worth Morningstar have raised their recommendation to accumulate with a price target of $3.40 (maintaing previous price target).

They just keep the same price, so all stocks that have gone up ( the good ones) are downgraded, while those that have gone down (the bad ones) are upgraded.

The price targets themselves are often completely unrealistic, and totally out of line with common sense.as an asb securities customer i find it annoying that they are the chosen soirce for company research

[ratkin]

just wondering how you measure this to see if its working.
The Warehouse move to pay staff a "career retailer wage" has not paid off yet, but the retailer says the early signs are promising.
The company rolled out the policy last year which boosted the wage of trained staff, who had logged enough hours at work, to between $18 and $20 an hour.
Warehouse chief executive Mark Powell said said the higher wages cost the company $6 million a year, with 63 per cent of permanent staff now earning at least $18 an hour - well above the legal minimum of $14.25.

In an ideal world all the low paid workers in NZ would respond by doing all their shopping at the warehouse, thus putting pressure on other employers to follow suit. Of course in the fragmented world we now live in there is no longer any solidarity between low paid groups

[BlackPeter]

just wondering how you measure this to see if its working.
The Warehouse move to pay staff a "career retailer wage" has not paid off yet, but the retailer says the early signs are promising.
The company rolled out the policy last year which boosted the wage of trained staff, who had logged enough hours at work, to between $18 and $20 an hour.
Warehouse chief executive Mark Powell said said the higher wages cost the company $6 million a year, with 63 per cent of permanent staff now earning at least $18 an hour - well above the legal minimum of $14.25.

Obviously difficult to separate the pay rises from other factors, but here are some ideas how the warehouse could monitor the effectiveness of their payroll policies:
1) Customer satisfaction: Take 3 monthly surveys (using e.g. NPS methodology) - are there any statistically relevant improvements following the pay rises?
2) Staff satisfaction surveys: Is staff engagement rising and staff turnover dropping?
3) Operational measurements: Is net profit per staff member increasing?

Number 3 is easy to measure - just look into the latest annual report and do the numbers (I didn't, but the numbers can't be good, given the annual result).
Not sure about number 2 (they may or may not do that).
Re number 1: I know from personal experience that they do customer satisfaction surveys, however not sure who advised them to use the method they do. The surveys are not random, but require customers to contact them (based on info on the receipt) . They are as well quite time consuming and becoming quite early very intrusive (particularly if you agree they may come back to you). I am pretty sure that most people just won't bother, which means that the statistical value of these surveys is unfortunately quite questionable. Great example for how you can pile up huge heaps of absolutely irrelevant data.

[winner69]

So Mr Powell leaving this year. Job done he says

Do I sense another strategic change when another globally recognised retail guru comes on board?

[bull....]

10mths to find someone, means easily 2 yrs in limbo

[winner69]

'There will always be speculation but I am leaving on my terms'

Mark hasn't done to bad ......shareprice was 363 when he took over and as Birman will remind us divies would have even more then the capital loss (just)

But 10 months to go

[percy]

Funny how life works out.
NZ was full of high price retail stores with big overheads.
Along came The Warehouse with low cost premises,small staff numbers,low cost distribution,offering NZders the opportunity to buy reasonably priced merchandise.Today The Warehouse has loaded it self up with all the high overheads it can.
Leaves the door open for a low cost online competitor?

[Biscuit]

Funny how life works out.

Leaves the door open for a low cost online competitor?

I think that is already part of their problem. Aren't they already caught between Trademe at the bottom end and retailers without the WHS budget brand baggage above them?

[BIRMANBOY]

w69....I know you are a follower of the James Bond posting theory...stirred not shaken, but any self-respecting WHS shareholder will have seen the SP go up and down and would therefore be a "mug" to consider selling when the SP was low. BUY-BUY would be a good thing to consider now. Strong consistent dividend deliverer and buying at low points like today will enhance your yield over the years. I can see a few sitting well in the W69 portfolio..:)
'There will always be speculation but I am leaving on my terms'

Mark hasn't done to bad ......shareprice was 363 when he took over and as Birman will remind us divies would have even more then the capital loss (just)

But 10 months to go

[BIRMANBOY]

Pardon me but what planet are you from Sir? What would lead you to believe that any change of leadership will create lethargy? Usually a new leader means a big drive forward with new "improved" policies and the leadership imperative of making yourself appear to be the newfound messiah.... Limbo very doubtful.
10mths to find someone, means easily 2 yrs in limbo

[Biscuit]

Pardon me but what planet are you from Sir? What would lead you to believe that any change of leadership will create lethargy? Usually a new leader means a big drive forward with new "improved" policies and the leadership imperative of making yourself appear to be the newfound messiah.... Limbo very doubtful.

Didn't they just have a "big drive forward" ? Or at least a lot of restructuring. And aren't they still in limbo?

[BIRMANBOY]

LOL only an ulterior motive visible here Satan....limbo indeed. "Driving forward" is constant...restructuring is constant..what counts is money in the bank. In other words just let them get on with it.
Didn't they just have a "big drive forward" ? Or at least a lot of restructuring. And aren't they still in limbo?

[Biscuit]

LOL only an ulterior motive visible here Satan....limbo indeed. "Driving forward" is constant...restructuring is constant..what counts is money in the bank. In other words just let them get on with it.

Money in the bank is important, but a believable strategy is more important. The captain has frantically adjusted the sails, turned the rudder back and forth and is now busy jumping overboard. I suspect anyone buying in now is going to spend quite some time in purgatory Birmanboy.

[dodgy]

Money in the bank is important, but a believable strategy is more important. The captain has frantically adjusted the sails, turned the rudder back and forth and is now busy jumping overboard. I suspect anyone buying in now is going to spend quite some time in purgatory Birmanboy.

Hi all
My experience in a recent WHS AGM was the CEO berating and taking a shareholder to task. Poor showing, so I sold that day. History of this share price has proven my assessment right - most companies that treat owner/shareholders in this way don't deserve support i.e a CEO who can't be questioned without losing his rag. One has to ask if the turn around is so good why would the CEO jump rather than stay and enjoy the cudos and benefits of his genius. Add to that a rather bland discounted offering and semi-enthusiastic staff, with better online competition and my investment dollars will stay in the pocket - for now. Similar fate for Walmart upon which this was modeled.
-dodgy Prior owner/shareholder.
-dodgy

[bull....]

Pardon me but what planet are you from Sir? What would lead you to believe that any change of leadership will create lethargy? Usually a new leader means a big drive forward with new "improved" policies and the leadership imperative of making yourself appear to be the newfound messiah.... Limbo very doubtful.

whats there plan a monkey to carry on the fine work of the current ceo or a new dude to inspire us with his grand plans to lift the ware house from the doldrums - option 1 no limbo then option 2 limbo for 2yrs

either way the price should head lower to reflect the overvalued nature of the company and the declining div prospects

[Beagle]

Hi all
My experience in a recent WHS AGM was the CEO berating and taking a shareholder to task. Poor showing, so I sold that day. History of this share price has proven my assessment right - most companies that treat owner/shareholders in this way don't deserve support i.e a CEO who can't be questioned without losing his rag. One has to ask if the turn around is so good why would the CEO jump rather than stay and enjoy the cudos and benefits of his genius. Add to that a rather bland discounted offering and semi-enthusiastic staff, with better online competition and my investment dollars will stay in the pocket - for now. Similar fate for Walmart upon which this was modeled.
-dodgy Prior owner/shareholder.
-dodgy
Amazing that someone in his position can't hold his **** together for the one meeting in which he has to deal with the public. I think the company is probably better off without him. I suspect he was pushed as Job done is simply not a plausible story...what job done?, the job of making the company earn less money ?

[winner69]

Amazing that someone in his position can't hold his **** together for the one meeting in which he has to deal with the public. I think the company is probably better off without him. I suspect he was pushed as Job done is simply not a plausible story...what job done?, the job of making the company earn less money ?

but he says evenless money if they hadn't done the new strategy

Probably a truer word never said - therein lies the problem. Strategies to survive methinks and hopefully make some money even if less than the year before.

[winner69]

A lot said on this thread re WHS performance over the last few years and its trials and tribulations in this ever changing retail world.

Through Norrice's term and now Powell's plenty of tinkering and strategic reviews and lots of money spent.

AS somebody pointed out on this thread sales are not really growing but margins are shrinking and costs are rising. In other words profits are falling

And the share price is actually only following the earnings (surprise eh)

Over 10 years of declining profits with all this talk of growth. Something wrong?

At best all I can see is a business under pressure but somehow maintaining a reasonable revenue base and in good years making about $50m in profits. Not too bad a return on capital and if paid out in divies a rrasonable return to shareholders

See what I mean re earnings and profits. A PE of about 15/16 most of the time so earnings yield of 6% odd. Hope interest rates stay at low levels.

[percy]

Winner69.
Bit of fun for you.
Look at Metcash MTS asx chart, and see if you can see when Norrice took over as CEO.!!!! lol.

[Beagle]

A lot said on this thread re WHS performance over the last few years and its trials and tribulations in this ever changing retail world.

Through Norrice's term and now Powell's plenty of tinkering and strategic reviews and lots of money spent.

AS somebody pointed out on this thread sales are not really growing but margins are shrinking and costs are rising. In other words profits are falling

And the share price is actually only following the earnings (surprise eh)

Over 10 years of declining profits with all this talk of growth. Something wrong?

At best all I can see is a business under pressure but somehow maintaining a reasonable revenue base and in good years making about $50m in profits. Not too bad a return on capital and if paid out in divies a rrasonable return to shareholders

See what I mean re earnings and profits. A PE of about 15/16 most of the time so earnings yield of 6% odd. Hope interest rates stay at low levels.

Wow what a close correlation, remarkable graph, thanks mate.

What I can't understand is why anyone would ascribe a PE of 15-16 to a retail stock in the current environment with their history of EPS declines when you've got stocks like HLG with a far better history, far brighter outlook and much higher dividend yield on a forward PE of only 11, go figure ?

[bull....]

nice chart winner, sums it up nicely.

see analyst target price is 2.48 with 5 out of 6 reco's as sell

anyway I was in a store last night had to laugh at there ticketing on the easter eggs I brought - a 4pk of crème eggs was advertised as 6 bucks odd and a couple of shelves down you could buy the same single eggs at 90c each - go figure guess this is one way to get your margins up lol

anyway ticketing issues looked wide spread on observation probably a head office thing instead of a store issue I would think

[winner69]

Winner69.
Bit of fun for you.
Look at Metcash MTS asx chart, and see if you can see when Norrice took over as CEO.!!!! lol.

That's naughty Percy

One thing I have noticed is that The Warehouse always seem to talk funny - like not kiwi

And they think that retailing experience in Britain is a pre-requisite.

[couta1]

You guys really are pushing your bandwagons aye and your all non holders-Lol.

[percy]

That's naughty Percy

One thing I have noticed is that The Warehouse always seem to talk funny - like not kiwi

And they think that retailing experience in Britain is a pre-requisite.


Yes experience of the class system helps to build layers of hierarchy! lol.

[percy]

You guys really are pushing your bandwagons aye and your all non holders-Lol.

And enjoying ourselves.!!!! lol.
I think not holding helps us see life clearer?

[noodles]

And enjoying ourselves.!!!! lol.
I think not holding helps us see life clearer?
I think even holders can see the obvious from the winner69 chart.

Perhaps it is a reflection on management and online competition or maybe a reflection on the widening divide in NZ. Clearly lower income NZ'ers are more likely to shop at the warehouse and these are the same people who have NOT benefited from NZ's economic recovery. I don't mean to start a political debate, just a theory of why WHS under-performs.

[samdaman]

I think even holders can see the obvious from the winner69 chart.

Perhaps it is a reflection on management and online competition or maybe a reflection on the widening divide in NZ. Clearly lower income NZ'ers are more likely to shop at the warehouse and these are the same people who have NOT benefited from NZ's economic recovery. I don't mean to start a political debate, just a theory of why WHS under-performs.

I think the real reason buckles down to internet shopping versing getting out of your chair. Personally I hate shopping, I hate sifting trivially through aisles looking at junk I don't need or even want (this appeals really highly to my girlfriend however). I'd much prefer to sift through the search results of aliexpress and pay a cheaper amount than I would at the WHS. Aliexpress had the springform cake tin I wanted in the right diameter and cheaper than the WHS, briscoes, stevens and cake shops I went to. The main problem was no one stocked 6 inch tins so it was only obvious to buy the cheaper tin in the size I wanted, all I had to do was wait a couple weeks for it to arrive at my door. I think this is the mindset that is gradually coming to be a norm. May it be because people are lazy or that you can target a wider range of specific products rather than wasting your time checking aisles for ones you don't need.

The cake tin was for a cheese press if anyone was wondering. :)

[Biscuit]

The cake tin was for a cheese press if anyone was wondering. :)

Cool, I made some blue vein cheese a few months back. Didn't properly control the temp and humidity unfortunately so it ended up a bit "hairy"! Online retail is growing but its international online that is really taking off. That could change if the Govt can get a grip on the international tax issues.

[BIRMANBOY]

If you follow that rationale...does that mean everything you hold is questionable? The only person alive without bias is Percy...now that's certainly clearer.
And enjoying ourselves.!!!! lol.
I think not holding helps us see life clearer?

[BIRMANBOY]

The theory doesn't hold water ...why....what are you comparing WHS to? Underperforms in comparison to what else in its sector? Kathmandu, Briscoes, all the other retailers? I would argue that it outperforms most other of its competitors. There is absolutely no sense in comparing apples with oranges. Online shopping is utilized by middle and upper income earners mostly because they have easier access to internet, broadband, time and opportunity. My guess is none of the posters on this forum would go into WHS willingly because we think they are "beneath my position". Its like new car owners making disparaging remarks about the performance and reliability of some old "banger" going too slow on the motorway. All retail is suffering...so what...doesn't mean you cant still extract a good return out of WHS. Diversification means you should have a piece of assorted industries and sectors. Show me a better performer in retail over the long term than WHS.
I think even holders can see the obvious from the winner69 chart.

Perhaps it is a reflection on management and online competition or maybe a reflection on the widening divide in NZ. Clearly lower income NZ'ers are more likely to shop at the warehouse and these are the same people who have NOT benefited from NZ's economic recovery. I don't mean to start a political debate, just a theory of why WHS under-performs.

[noodles]

The theory doesn't hold water ...why....what are you comparing WHS to? Underperforms in comparison to what else in its sector? Kathmandu, Briscoes, all the other retailers? I would argue that it outperforms most other of its competitors. There is absolutely no sense in comparing apples with oranges. Online shopping is utilized by middle and upper income earners mostly because they have easier access to internet, broadband, time and opportunity. My guess is none of the posters on this forum would go into WHS willingly because we think they are "beneath my position". Its like new car owners making disparaging remarks about the performance and reliability of some old "banger" going too slow on the motorway. All retail is suffering...so what...doesn't mean you cant still extract a good return out of WHS. Diversification means you should have a piece of assorted industries and sectors. Show me a better performer in retail over the long term than WHS.
Take your points.
Surely BGR is better than WHS over any term.
I do think it is important to position yourself in the right sectors. Clearly retail has been suffering as it has headwinds are long term. Much like newspapers and traditional media, wouldn't you wish to avoid them altogether? Maybe another thread for this discussion?

[Biscuit]

I have WHS in my "have a bit of everything, passive portfolio" because who really knows. But its not a stock you would pick as a winner for the obvious reasons stated here. I'd buy in again for my speculative portfolio if there was a believable strategy formulated. But I can't see it, what is the strategy to get themselves out of the hole of declining profitability?

[bull....]

wouldn't surprise me if the price is still being supported?

[couta1]

Actually the WHS is one shop I do like looking around with all the variety and plenty of man stuff like fishing and automotive etc compared to HLG and BRG which I find quite boring as a guy, I also purchase online through Torpedo 7.

[winner69]

You guys really are pushing your bandwagons aye and your all non holders-Lol.

Watch closely .... just waiting for it to become a BUY .... just don't when that will be mate

[percy]

Watch closely .... just waiting for it to become a BUY .... just don't when that will be mate

Classic.!!!! ??????????? lol.

[winner69]

Classic.!!!! ??????????? lol.

I forgot to say 'patiently waiting'

[couta1]

I forgot to say 'patiently waiting'
I'm the opposite to you winner I patiently wait for my stocks to come back to purchase price but in the mean time most of them are still paying some form of a divvy so all good aye.

[BIRMANBOY]

BGR is returning 4.66 WHS is 6.6 on my gross dividend yield website. Here are the retail options...quite a few are struggling. Personally I don't like BRG for a number of reasons. WHS has performed very well for me and I will continue to buy in weakness. AS I have said before .."she may not be the prettiest girl in the room but she loves me".
Retail


Company Name
(Click on name to
go to their website)
Share Symbol
Dividend
Re-
investment
Program
Type of Business
Dividend History
Dividends
per share
last year
in NZD
Dividend
yield
%
Share
Price
History
Current
Share
Price
NZD
Important
Notes


Briscoe Group (http://www.briscoegroup.co.nz/)
BGR
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=BGR)
0.135
4.660
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=BGR)
2.900
Details... (http://www.dividendyield.co.nz/typeofbusiness.php#)


Colonial Motor (http://www.colmotor.co.nz/)
CMO
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=CMO)
0.350
5.560
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=CMO)
6.300
None


Hallenstein Glasson (http://www.hallensteinglasson.co.nz/investment-centre)
HLG
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=HLG)
0.285
8.770
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=HLG)
3.250
None


Kathmandu Holdings (http://www.kathmanduholdings.com/)
KMD
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=KMD)
0.120
8.330
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=KMD)
1.440
Details... (http://www.dividendyield.co.nz/typeofbusiness.php#)


Kirkcaldie & Stains (http://kirkcaldies.co.nz/about-us/investors/)
KRK
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=KRK)
0.000
0.000
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=KRK)
1.680
None


Metro Performance Glass (http://www.metroglasstech.co.nz/investors.aspx)
MPG

Retail
None
0.000
0.000
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=MPG)
1.790
Details... (http://www.dividendyield.co.nz/typeofbusiness.php#)


Michael Hill Intl (http://investor.michaelhill.com/phoenix.zhtml?c=170266&p=irol-IRHome)
MHI
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=MHI)
0.065
5.420
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=MHI)
1.200
None


Pumpkin Patch (http://www.pumpkinpatch.biz/)
PPL
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=PPL)
0.000
0.000
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=PPL)
0.280
None


Retva Ltd. (http://www.ppgl.co.nz/index.php?option=com_wrapper&view=wrapper&Itemid=70)
PPG
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=PPG)
0.000
0.000
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=PPG)
0.000
Details... (http://www.dividendyield.co.nz/typeofbusiness.php#)


Smiths City (http://www.smithscitygroup.co.nz/)
SCY
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=SCY)
0.035
6.480
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=SCY)
0.540
None


Veritas Investments (http://www.veritasinvestments.co.nz/)
VIL
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=VIL)
0.082
7.770
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=VIL)
1.050
None


Warehouse Group (http://www.thewarehouse.co.nz/red/menucontent/homepage/investor-centre)
WHS
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=WHS)
0.190
6.600
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=WHS)
2.880
None


Z Energy Ltd. (http://z.co.nz/investor-centre/)
ZEL
No
Retail
Details... (http://www.dividendyield.co.nz/viewdetails.php?loc=ZEL)
0.220
4.410
Details... (http://www.dividendyield.co.nz/viewhistory.php?sharesymbol=ZEL)
4.990
Details... (http://www.dividendyield.co.nz/typeofbusiness.php#)





Take your points.
Surely BGR is better than WHS over any term.
I do think it is important to position yourself in the right sectors. Clearly retail has been suffering as it has headwinds are long term. Much like newspapers and traditional media, wouldn't you wish to avoid them altogether? Maybe another thread for this discussion?

[percy]

Can I quote this when I'm explaining the difference between trading and investing couta…… but agree, better to be collecting income off a stock that is in the red…..than collecting nothing off a stock that is in the red.

Not saying one strategy is better than the other, just saying which I prefer…….not saying I never have an red to contemplate by the way?

Have you every considered investing in a stock that is growing earnings and dividends,which keeps driving the sp upwards?

[bull....]

when you compare relative performance of the retail stocks in nz last 4yrs bgr is actually the best stock to have owned followed by mhi , whs is second to last
performance would include divs + cap gain

[percy]

Absolutely, and I hear what you are saying, and very valid advice…..lot's of people should listen too it.

I was commenting on the fact Couta seemed to be in the red on such investments, in a nice way and having a bit of fun with my trading preference, we all have different approaches. I have read many times about Birmaboy and his average buy price of certain stocks over the years and the dividends he receives, with his average well below market…..so no problem with people value investing.

I am sure you are one that has lot's of those scenario's, and trust me I read everything you guy's are saying from a fundamental perspective, just saying my accumulations are for a different purpose. I am just a newbie and would like to keep posting?

Welcome aboard Wallace D.
Nice to have a newbie to fill the space left by our dearly departed banned friend BFG,formally known as Moosie,who often posted on the same threads as you.!

[tim23]

Thanks Birmanboy - useful tables, I hold WHS, HLG & KMD I kind of also include TME in my retail holdings.

[Bobdn]

Thanks Birmanboy - useful tables, I hold WHS, HLG & KMD I kind of also include TME in my retail holdings.

Yes good table/website Birman. Tim, I own WHS and TME and think of TME as retail as well.

[BIRMANBOY]

In my opinion TME is not a retailer, it is providing a platform and service/facilitating sellers and buyers getting together as opposed to directly selling to buyers. So bit of a jump to refer to them as retailers. However not really that important so don't let me stop your classification. The important thing is are you happy with its performance:)
Yes good table/website Birman. Tim, I own WHS and TME and think of TME as retail as well.

[BIRMANBOY]

Just thought I would share my dividend check with you......that's right $6,000,000 (give or take a few dollars) and that's after tax.... oh wait sorry...they must have sent me the Pascoes check by mistake.....:p Now that's a dividend..... Still happy with mine but suffering badly from "mines not as big as yours" syndrome.

[percy]

Just thought I would share my dividend check with you......that's right $6,000,000 (give or take a few dollars) and that's after tax.... oh wait sorry...they must have sent me the Pascoes check by mistake.....:p Now that's a dividend..... Still happy with mine but suffering badly from "mines not as big as yours" syndrome.

You do not know the Norman's debt,so the size of their net divie may be a lot less than your's.!!!

[Sideshow Bob]

Just received an email regarding WHS bond issue, replacing the $100m they have on issue at present, maturing 15/6/15. No mention of yield as going through a 'bookbuild' process, and will giving maturing holders the ability to roll them over. Over-subscriptions up to $125m

Last traded based on a 6% yield (with only just over a month left on them), but coupon of 7.37%. Expect this time around that would be a bit less these days....depending on appetite.....

[Tomtom]

anyway ticketing issues looked wide spread on observation probably a head office thing instead of a store issue I would think If you could quickly and accurately ascertain the price of an item by glancing at it you might want to purchase it which could lead to all sorts of supply chain, staffing and stocking issues. Being charged prices that in no way relates to the ticketed prices or any promotional offer, finding stock out of place and reluctant staff who are daydreaming about the end of their shift is all part of the warehouses unique charm. Remove those quirks and it would just be some sort of industrial building lots of people regularly frequent to purchase things.

[bull....]

its a common problem found in a lot of retail so is not a unique issue, I wouldn't consider it good retail

[BIRMANBOY]

For those customers such as yourself who expect "champagne and caviar" service on a beer budget...you could shop online and save yourself the indignity;)
If you could quickly and accurately ascertain the price of an item by glancing at it you might want to purchase it which could lead to all sorts of supply chain, staffing and stocking issues. Being charged prices that in no way relates to the ticketed prices or any promotional offer, finding stock out of place and reluctant staff who are daydreaming about the end of their shift is all part of the warehouses unique charm. Remove those quirks and it would just be some sort of industrial building lots of people regularly frequent to purchase things.

[Onion]

Being charged prices that in no way relates to the ticketed prices or any promotional offer, finding stock out of place and reluctant staff who are daydreaming about the end of their shift is all part of the warehouses unique charm.

Mrs Onion is a fine bargain hunter and she frequently reports that discounted purchases at the Warehouse are EVEN CHEAPER than the discounted ticket price when the goods are rung up at the till.

[Tomtom]

For those customers such as yourself who expect "champagne and caviar" service on a beer budget...you could shop online and save yourself the indignity;) You can buy the same items on sites like Aliexpress and at lower cost but I think The Warehouse should have an advantage in feel good factor being that I can walk out with my sticky little mitts on an item.

As I'm not a shareholder I'm not that bothered in a way. Perhaps they opt to resolve long-running problems or maybe they opt to continue their approach to retailing. They can keep going for a long time but inevitably, one way or another, they will be forced to make a move at some point.

[BIRMANBOY]

I was referring to buying online with WHS...I've used their online shopping facility a couple of times and its fine. If you were a shareholder you would have been receiving a healthy dividend for your investment. Since you are not its all a bit hypothetical. All business's will have problems at times especially retail...WHS is a good performer when you start comparing it to others in that field. "They have been going for a long time"..yes correct..."they will be forced to make a move at some point" ...that's not very illuminating.....and unfortunately informs us of nothing. If you buy shares in WHS you are investing in an iconic retailer with a huge footprint in the market..92 stores and over 9000 employees plus many NZ SME business's that supply to WHS. In todays world all retail is changing/shrinking/transforming. WHS is holding its own which to my mind is a sign of a strong brand. My suggestion is next time you need something in a budget range get your "sticky little mitts" down to the WHS. Why? Because collectively we need to support NZ business as much as possible. What was that old saying..."the job you save may be your own". The signs are visible everywhere and in every country. As small business gets priced out by overseas competition there needs to be a long transition period to gradually change the educational/training throughput of working people. It is important that we give ourselves as much time as possible to successfully carry out that transition. Otherwise we 'll end up like Greece etc where un-employment is rife, small business employing many people and families has dried up and the workforce hasn't moved forward. So next time you buy something from Aliexpress think about that
You can buy the same items on sites like Aliexpress and at lower cost but I think The Warehouse should have an advantage in feel good factor being that I can walk out with my sticky little mitts on an item.

As I'm not a shareholder I'm not that bothered in a way. Perhaps they opt to resolve long-running problems or maybe they opt to continue their approach to retailing. They can keep going for a long time but inevitably, one way or another, they will be forced to make a move at some point.

[couta1]

Well said BB unfortunately the knockers keep on a knocking, see at least the WHS show loyalty to NZ by using an online search engine in SLI systems.

[biker]

If you could quickly and accurately ascertain the price of an item by glancing at it you might want to purchase it which could lead to all sorts of supply chain, staffing and stocking issues. Being charged prices that in no way relates to the ticketed prices or any promotional offer, finding stock out of place and reluctant staff who are daydreaming about the end of their shift is all part of the warehouses unique charm. Remove those quirks and it would just be some sort of industrial building lots of people regularly frequent to purchase things.

Very droll!! Well put. If the Warehouse really get their act together, I think they have great share price gain potential ( not to mention dividend) Certainly haven't got that good shopping experience bit sorted yet. Being charged a price at the checkout that in no way resembles the ticket price or any promotional offer happens almost every time I buy something there.
Maybe it's a 'nice surprise' marketing plan.

Disc. Shareholder

[Bjauck]

...and reluctant staff who are daydreaming about the end of their shift....
I don't think that is a phenomenon found just at WHS.

If you restore income relativity so that the directors and managers are not paid proportionately ever greater amounts than the junior staff, you may get a greater sense of commitment from the juniors. Introduce a wide share purchase/option scheme for more junior staff. Introduce greater job security...etc. If you treat junior staff as commodities, then they will reciprocate. Commodotising staff has been a trend in NZ since the mid-1980's. I think the trend in NZ's income gini coefficient has played its part too...with the result of less social cohesion and commitment from those at the less well-paid end!

Disc: Not a shareholder

[tim23]

I often shop at hallensteins and mention I'm a shareholder and the staff often look at me like I'm speaking Latin do they not teach young people about owning shares?

[kiwitrev]

Just received an email regarding WHS bond issue, replacing the $100m they have on issue at present, maturing 15/6/15. No mention of yield as going through a 'bookbuild' process, and will giving maturing holders the ability to roll them over. Over-subscriptions up to $125m

Last traded based on a 6% yield (with only just over a month left on them), but coupon of 7.37%. Expect this time around that would be a bit less these days....depending on appetite.....

Interesting situation for those holding the current bond and for all in general. If one was considering applying for the new bond at yield 5.3% to 5.5% I think it is quoted at, why would you not buy the share instead at a much higher rate of return? The risk for each is slightly different but it is the same company and some of these risks are likely to have a similar effect should WHS business continue to stuggle.

[winner69]

Interesting situation for those holding the current bond and for all in general. If one was considering applying for the new bond at yield 5.3% to 5.5% I think it is quoted at, why would you not buy the share instead at a much higher rate of return? The risk for each is slightly different but it is the same company and some of these risks are likely to have a similar effect should WHS business continue to stuggle.

Good point trev

Getting 6.1% post tax (dividends) is a lot better than 3.8% post tax (notes) eh .... almost 60% more

Maybe they worried that if the WHS share price falls by 6 cents a year that wipes out the difference ..... meaning taking the safer more secure option could be far better. And some probably think that that 17 cent dividend is not that certain either.

Then again the share price could zoom ahead and they don't share in the capital gains (and probably in this case increased dividends)

Think sums right about that 6 cents ..... not really that much leeway is there?

[kiwitrev]

Good point trev

Getting 6.1% post tax (dividends) is a lot better than 3.8% post tax (notes) eh .... almost 60% more

Maybe they worried that if the WHS share price falls by 6 cents a year that wipes out the difference ..... meaning taking the safer more secure option could be far better. And some probably think that that 17 cent dividend is not that certain either.

Then again the share price could zoom ahead and they don't share in the capital gains (and probably in this case increased dividends)

Think sums right about that 6 cents ..... not really that much leeway is there?

Well none of us has that crystal ball(wouldn't that be great) but for myself ,universal catastrophe's aside, WHS would seem to be at the bottom of this cycle. They continue to gain sales which would indicate some degree of customer loyalty/satisfaction so I'm looking for a positive outlook as they come out of the capex programme. Would be interested to hear from any current bond holders re their intention to continue to hold.

[winner69]

Well none of us has that crystal ball(wouldn't that be great) but for myself ,universal catastrophe's aside, WHS would seem to be at the bottom of this cycle. They continue to gain sales which would indicate some degree of customer loyalty/satisfaction so I'm looking for a positive outlook as they come out of the capex programme. Would be interested to hear from any current bond holders re their intention to continue to hold.

The problem I see is that they are cycling lower and lower, earnings wise anyway.

Not good for a shareprice that is already on a PE of 17 when the market is pricing in interest rate hikes next year.

But this time it is different I am told.

[Tomtom]

If the Warehouse really get their act together, I think they have great share price gain potential ( not to mention dividend) Certainly haven't got that good shopping experience bit sorted yet. That's probably a fair assessment, they're in as gooder position as any big retailer to change.

I don't think that is a phenomenon found just at WHS. If you restore income relativity so that the directors and managers are not paid proportionately ever greater amounts than the junior staff, you may get a greater sense of commitment from the juniors...
I think the trend in NZ's income gini coefficient has played its part too...with the result of less social cohesion and commitment from those at the less well-paid end! Some things are out of their hands.

[BIRMANBOY]

Someone waited to drop the hammer....one seller of 480,000 at 2.75...just about cleared out all the buyers....(other than the hopeful lurkers). Maybe something afoot. Seems a little out of the ordinary activity.

[winner69]

Someone waited to drop the hammer....one seller of 480,000 at 2.75...just about cleared out all the buyers....(other than the hopeful lurkers). Maybe something afoot. Seems a little out of the ordinary activity.

Birman, not like you to worry about a bit of noise in the market

[BIRMANBOY]

What...me worry? (courtesy Mad Magazine of course) W there's a "bit", a byte and a bet....and I bet that's more than a bit...but the bytes will be advising us soon would be my bet.
Birman, not like you to worry about a bit of noise in the market

[winner69]

Spose the big shareholder is happy with this

http://www.stuff.co.nz/business/industries/69807118/the-warehouse-compares-prices-with-farmers-in-toy-catalogue

But then again Farmers mightn't sell much Lego anyway and this is smoke and mirrors

[bull....]

heading to test multi yr lows at 2.50 very bearish not surprising with an outlook of declining divs and poor margins

[couta1]

heading to test multi yr lows at 2.50 very bearish not surprising with an outlook of declining divs and poor margins
Everything's bearish at the moment but at least they don't sell Greek Salads:cool:

[Balance]

Share price bouncing around one year's low. Watching and wondering if Pascoe ready to make their next move. Could be 40 cents upside if they decide to go for 50%?

[BIRMANBOY]

As Clint would say "are you feeling lucky punk"... could do anything (and probably will do? Looking at 5 year chart looks like good time to be buying but what about all the other variables... As you say Pascoes, NZ dollar drops making imports more expensive, flattish sales etc. However keeps giving a nice dividend(even nicer buying now). If I had any loose change I would be adding a few but portfolio is full and pockets are empty.


WHS.NZX - The Warehouse Group Limited Ordinary Shares







https://www.anzsecurities.co.nz/DirectTrade/images/spacer.gif
Chart period:
1 Month 3 Months 6 Months 1 Year 2 Years 3 Years 5 Years Adjusted







https://www.anzsecurities.co.nz/DirectTrade/dynamic/chart.aspx?key=TWSxQ9LamJIT%2f5yO01oRvuzGWiwBC9Iat EhSa2mQHIVV75Lb%2fkG4IAtwGenMKF5UL3t3D2FwtP%2fAc16 xBNS0Dabs%2fpFQ8UrdMyquLowJMQ0NpkN2mZafBp7Iz3LQv3a 3AmEWNzdN9qyp05YLhKv7fbPjyuuB%2bOoKA%2bry3CRnJ6bVp 3wbLV7kOpE9aSkGepJxVd7m%2bO4BQzo2KV%2fsp%2fzp4NKyE YHptuLrazCIRbiSVwq41l3nuzd371D5n3Fi%2bnw42XAXpVOTI RsQLyTSssxfaquYA48wmI6IcG9V1OrkAAo08hYBG4tKcjWTMgy p6ToDKUQqPYfA0KM%3d




Share price bouncing around one year's low. Watching and wondering if Pascoe ready to make their next move. Could be 40 cents upside if they decide to go for 50%?

[winner69]

new CEO with wow credentials

https://www.nzx.com/files/attachments/223422.pdf


Hope he does better than previous 2 foreigners (mind you one was almost qualified as a local)

Shareholders saw a decent drop in WHS shareprice during both of these gentlemen's tenure

This time is different though

[Beagle]

Looks he looks like he has the talent and experience. Some creative licence taken here in my opinion.
Chairman Ted van Arkel said that Nick is a highly qualified retailer with extensive international experience and the skills required to drive profitable growth for TWG from the strong foundations that have been built.

Disc - not a holder..only time will tell if this tired old brand can be successfully reinvigorated. New broom to sweep out some tired old products and ways of doing things...restructuring costs anyone ?

Edit, opps no sorry, I see they have had a $100m refresh programme so we're all good on the freshness of the brand, gee giving things a lick of fresh paint isn't cheap anymore is it ?

[BIRMANBOY]

W. , Confucius (he's also a foreigner) say SP is merely transitory and no self respecting long term investor will measure worth on shifting sands...true value is measured in return to shareholders in the form of dividends. Only prerequisite is to be able to outlive average wave length of SP cycle. Sears is an American icon. However Kmart bought out Sears in 2005 so he would have had good experience in a discounting/volume environment. Below is 5 year chart for Sears Holdings and underneath WHS...so a similar trajectory. Even a trader could make money here!!!! AND as a dividend its returning me over 10% gross. Secret is (IMHO) buy when its low and accumulate....but then I would say that wouldn't I.

http://charting.nasdaq.com/ext/charts.dll?2-1-14-0-0-560-03NA000000SHLD-&SF:1|5-BG=FFFFFF-BT=0-WD=635-HT=395-



WHS.NZX - The Warehouse Group Limited Ordinary Shares







https://www.anzsecurities.co.nz/DirectTrade/images/spacer.gif
Chart period:
1 Month 3 Months 6 Months 1 Year 2 Years 3 Years 5 Years Adjusted







https://www.anzsecurities.co.nz/DirectTrade/dynamic/chart.aspx?key=TWSxQ9LamJIT%2f5yO01oRvuzGWiwBC9Iat EhSa2mQHIVV75Lb%2fkG4IAtwGenMKF5UL3t3D2FwtP%2fAc16 xBNS0Dabs%2fpFQ8UrdIw4XXE0WT%2b3mkbmZ4Gx7NCJX%2fVd NAx5S0FTKbbah46CG8M34EWHV2WFbbzoDKbR0iG3rsHE7Gk0VZ MRDg2Yfzo0JFsx%2bXSUH%2fO%2b6pORuENfqardKjbMcLWX7% 2btXLn4fbRp3y%2b4CmBw9s3UAOMtfHlziGimuHdDotpm4QOs7 DPLtubklZg74lgXvT4pXIZCJ9FIyG51Prwqw8G4nYES7Uc%2f0 9jLBh7uFtCKx26rnQAUM%3d









new CEO with wow credentials

https://www.nzx.com/files/attachments/223422.pdf


Hope he does better than previous 2 foreigners (mind you one was almost qualified as a local)

Shareholders saw a decent drop in WHS shareprice during both of these gentlemen's tenure

This time is different though

[Biscuit]

. Secret is (IMHO) buy when its low and accumulate....but then I would say that wouldn't I.









In my view: buy when you believe the story and sell when you don't. I just don't think the "turn-around" story is really believable anymore.

[BIRMANBOY]

You don't have to be a believer to make money in the sharemarket...in fact I would argue that actually inhibits success. When we examine our results that's the real measure of whether something has been worthwhile. I've believed in many things over the years such as GFF being a sure bet with food products as a staple... )oh well). I also don't believe in shopping at the WHS much but it sure has been a consistent producer of dividends. However everyone has their own methods so live and learn.
In my view: buy when you believe the story and sell when you don't. I just don't think the "turn-around" story is really believable anymore.

[Biscuit]

You don't have to be a believer to make money in the sharemarket...in fact I would argue that actually inhibits success. When we examine our results that's the real measure of whether something has been worthwhile. I've believed in many things over the years such as GFF being a sure bet with food products as a staple... )oh well). I also don't believe in shopping at the WHS much but it sure has been a consistent producer of dividends. However everyone has their own methods so live and learn.

I agree, everyone has their own methods, and what works for one doesn't necessarily work for other people. You can buy share price "trends", or you can buy "dividends" but neither means anything in my view without "growth". Where is WHS growth going to come from?

[BIRMANBOY]

Ok, so what you want is a Ryman with dividends? Bit limiting in my opinion however I'm sure they are waiting to be found. Mature business quite often run out of growth prospects so return good dividends to compensate. Very difficult to grow mature, large business without some risk and I would rather see WHS going about its business gradually and responsibly. Doesn't matter whether you make money out of growth or dividends..just comes down to philosophy and life circumstances. Dismissing any company as being "unworthy" is a bit simplistic. Your view is just as valid as mine but needs to be recognised as being what it is...yours and as such is framed in and around your circumstances. Other views work in the same fashion. Many investors spend thousands of man hours trying to find the "perfect investment" which returns dividends, shows good growth and consistently rising SP. IN the meantime there are many companies ,such as WHS, doing the job and paying the bills. Expecting a mature business to find "growth" is a bit optimistic so I can see why some would not consider it as a good investment. Important to recognise it what it is as opposed to what you believe it should be.
I agree, everyone has their own methods, and what works for one doesn't necessarily work for other people. You can buy share price "trends", or you can buy "dividends" but neither means anything in my view without "growth". Where is WHS growth going to come from?

[Biscuit]

Ok, so what you want is a Ryman with dividends?

Hmmmmm... I hesitate to suggest AIR?

[BIRMANBOY]

Yes I would hesitate as well :)..........however suggest anything you want...it needs to stand up to scrutiny however. AIR cal yr ended 2014 dividend was 20cents giving good current yield %...previous 6/7years dividend never got over 8.5 cents. Fuel goes up, passengers down, div goes back to 3%? One year of good results is promising..but show me 8 years worth of solid high yield divs and I'll consider it. As I said depends on your circumstances and not for me but for you maybe its the holy grail. At the risk of repeating myself WHS is unsexy but reliable.
Hmmmmm... I hesitate to suggest AIR?

[winner69]

For what's it worth ASB have annual TSR for the last few years as

2010 -4%
2011 +8%
2012 -21%
2013. +60%
2014 -14%
2015. -14%
Current year is negative

Based on WHS reporting years and with dividends reinvested.

So 1 boomer year and 4 bad years in the last 6. The boomer year doesn't offset the bad years.

But yes timing purchases and buy at real low points and holding probably can give you 10% pa.

[Biscuit]

Yes I would hesitate as well :)..........however suggest anything you want...it needs to stand up to scrutiny however. AIR cal yr ended 2014 dividend was 20cents giving good current yield %...previous 6/7years dividend never got over 8.5 cents. Fuel goes up, passengers down, div goes back to 3%? One year of good results is promising..but show me 8 years worth of solid high yield divs and I'll consider it. As I said depends on your circumstances and not for me but for you maybe its the holy grail. At the risk of repeating myself WHS is unsexy but reliable.

Two very different bets I think: one you are gambling you'll get out with your shirt before the wheels come off; the other you are gambling they'll eventually figure out how to get the wheels back on.

[BIRMANBOY]

I don't bet and I don't gamble but I see your analogy (as flawed as it is;))....however yes the share market is not far removed from the casino....but the alternative is a term deposit at 3.5%. I did an analysis a while back to see whether I would have been better off putting capital into a TD and over a 6 year period the shares (all div producers) outperformed TD by average of 100%. Getting out of a few bad eggs with a few capital loss's is figured into those returns. What the future hold 20 years ahead I have no idea but I expect a similar if not growing return. WHS is a cornerstone of my portfolio and is added to in moments of SP weakness ....all based on experience which is continually being evaluated. Mr. Buffett doesn't like airlines and I respect his results. Check back in 20 years and we can compare notes.:)
Two very different bets I think: one you are gambling you'll get out with your shirt before the wheels come off; the other you are gambling they'll eventually figure out how to get the wheels back on.

[James108]

I agree, everyone has their own methods, and what works for one doesn't necessarily work for other people. You can buy share price "trends", or you can buy "dividends" but neither means anything in my view without "growth". Where is WHS growth going to come from?

That is stupid. You can find value even in bankrupt companies if the price is right.

[Biscuit]

That is stupid. You can find value even in bankrupt companies if the price is right.

You are very blunt, James. Yes, value is relative and if you can get it cheap enough, a company that does not grow could be a good short term investment, but it most likely won't be in my experience.

[Crackity]

You are very blunt, James.

LOL - good music joke Mr Biscuit! :)

[Leftfield]

That is stupid. You can find value even in bankrupt companies if the price is right.

Pretty harsh to say Biscuit is 'stupid' for considering 'Growth' prospects are important IMHO.

The recent growth in AIR and TIL and others may be attributed to fundamentals or trends however the reality is that their potential double or triple digit GROWTH prospects are a key to the SP rising. I would say it is stupid not to consider growth prospects in looking to invest in any company, and in relation to WHS the struggling growth prospects of retailers are well recorded. Even Buffet is struggling with Wal Mart.

[winner69]

Best describe Birman as a trader - a trader of bonds

He buys WHS shares for the 17 cents dividend (tax free). So look at from the perspective of the share being a 'bond' whose face value goes up and down according to the sentiment if investors.

Birman has been astute enough to buy these 'bonds' when they cheap thus increasing his yield. Well done

Birman not a gambler - birman a bond trader

WHS share better return than the WHS020 real bonds - coupon 5.3% currently yielding 4.3% (pre tax)

Quite a few companies like this on the nzx - profits pretty stable with not much growth but generating heaps of cash. Don't always need growth.

[couta1]

Nothing wrong with holding some WHS shares, its a NZ institution and ain't going away anytime soon and it is actually growing by acquisition and so patience required, but in the meantime just keep collecting those divvies.

[Biscuit]

Best describe Birman as a trader - a trader of bonds

Birman has been astute enough to buy these 'bonds' when they cheap thus increasing his yield.

Fair enough, and he has been more astute than me. I bought WHS a while ago thinking they might be cheap if the new strategy could turn things around, but I got tired of waiting. I think the dividend has almost cancelled out the capital loss. Think you would have to be pretty astute to make on the deal long term unless they start getting traction somewhere.

[tim23]

Best close in a while, you would be feeling good Biscuit, not sure if the charties picked this movement up, might be CEO appointment lift?

[percy]

Today the share price was $2.80.It has moved up through the 50 day EMA $2.62,the 100 day EMA $2.65, and the 200 day EMA $2.74,so it is looking positive for shareholders.
Enjoy it.!

[Biscuit]

Best close in a while, you would be feeling good Biscuit, not sure if the charties picked this movement up, might be CEO appointment lift?

I do occasionally check the share price of WHS since selling. It is interesting that, although logically it makes no financial difference to me what happens to the price since I no longer hold, I still quietly hope the share price tanks. I must admit that emotionally I would prefer the company fails now that I have given up on it, in order to justify my decision.

[BIRMANBOY]

LOL refreshing to see an honest self-evaluation. These moments of illuminating introspection always useful for adding to ones share market reservoir of experience. However its early days and the share market has a habit of fooling some people all of the time, most people a lot of the time, and some people too much of the time:p. Good luck on the journey.
I do occasionally check the share price of WHS since selling. It is interesting that, although logically it makes no financial difference to me what happens to the price since I no longer hold, I still quietly hope the share price tanks. I must admit that emotionally I would prefer the company fails now that I have given up on it, in order to justify my decision.

[Biscuit]

Good luck on the journey.

Thanks, you too. I reckon half the journey is coming to better understand the psychology.

[winner69]

That's a very positive sales update from the Warehouse this morning

Note that margins are up

This could well be one of their better years,the first of many.

[kiwitrev]

Buiding momentum. What's important is that improvement is not limited to any particular business in the group but across all sectors which tells me the strategy is starting to pay dividends.
That's a very positive sales update from the Warehouse this morning

Note that margins are up

This could well be one of their better years,the first of many.

[Biscuit]

Buiding momentum. What's important is that improvement is not limited to any particular business in the group but across all sectors which tells me the strategy is starting to pay dividends.




Commenting on The Warehouse (Red Sheds) result Group Chief Executive Officer



Mark Powell said "To achieve 15 consecutive quarters of same store sales


growth is particularly pleasing ......



.....This year's growth was achieved with



much lower levels of clearance activity, resulting in improved gross



margins."




That was comment on Q1 last year, so I'll wait to see if the "momentum" really means the strategy is working

[GuessX]

Warehouse Mobile is a new prepay mobile offering, which is available exclusively through The Warehouse (stores and online) from November 23rd, 2015. Warehouse Mobile aims to provide the simplest and most flexible prepaid offering in the market, ultimately connecting Kiwis for less.

https://www.warehousemobile.co.nz/pre-register/

http://www.geekzone.co.nz/forums.asp?forumid=42&topicid=184008

[Bobdn]

https://www.youtube.com/watch?v=CYCcv6B772A

Gee, this Warehouse video is popular, 70,000 views already. WHS seems to have a well put together channel.

[ratkin]

Surprise on the upside
As far as excuses go this one is a classic.... "the impact of the 53rd week in FY15, "

[BIRMANBOY]

Posted in November.....so did you follow through Winner? Your crystal ball was humming....
That's a very positive sales update from the Warehouse this morning

Note that margins are up

This could well be one of their better years,the first of many.

[winner69]

Posted in November.....so did you follow through Winner? Your crystal ball was humming....

No I didn't Birman. No worries though as share price is still a tad lower than it was at the time of that Nov announcement.

Bit worried when Chairman Ted said, “?...We now expect that full year profit to be up on last year, although not to the same extent as these first half results ....."

Hmm H2 not very good then ...hmm

Never mind birman - no matter what you'll get your dividend eh.

[BIRMANBOY]

All those Dick Smith customers will be looking for somewhere to spend their money one might hope.
No I didn't Birman. No worries though as share price is still a tad lower than it was at the time of that Nov announcement.

Bit worried when Chairman Ted said, “?...We now expect that full year profit to be up on last year, although not to the same extent as these first half results ....."

Hmm H2 not very good then ...hmm

Never mind birman - no matter what you'll get your dividend eh.

[waikare]

With Dick Smith being on the block, the WHS could be interested at having a look at their books.



All those Dick Smith customers will be looking for somewhere to spend their money one might hope.

[Bobdn]

I kind of hope not. Warehouse, NL, Torpedo 7, Whs Stationary and a huge online machine, not to mention Finance and Phones. Time to get down to business with what they have.

[ratkin]

I kind of hope not. Warehouse, NL, Torpedo 7, Whs Stationary and a huge online machine, not to mention Finance and Phones. Time to get down to business with what they have.

Torpedo 7 a pretty good shop, one at tower junction always packed out, sell some decent running and hiking gear. Suspect Noel Leemings is the weak link

[BIRMANBOY]

Well with DS out of action that should help NL.. and hopefully WHS will stay well away form doing anything with DS.
Torpedo 7 a pretty good shop, one at tower junction always packed out, sell some decent running and hiking gear. Suspect Noel Leemings is the weak link

[Balance]

Well with DS out of action that should help NL.. and hopefully WHS will stay well away form doing anything with DS.

Retailing industry going through classic consolidation through mergers, acquisitions and plain closures.

Not necessarily a bad thing for WHS to buy Dick Smith, if it can be obtained real cheap.

Farmers getting ready to make its move and Briscoes is ripe for some real competition in its product range, given Warehouse/Farmers combined purchasing power.

Interesting times ahead.

[LAC]

Dicksmith have good store locations IMO, I think that is somewhat of a positive if they can buy it for peanuts:)