the king buys postie plus

[Nuts]

comment in chch press today re retailing in general . postie plus chief exec said there their year on year sales had increased considerably from nov thru to jan but did not believe this was mirrored in the wider retail industry .
encouraging eh ? notice the sp has inched up to 42 yesterday .

[percy]

Well done Postie Plus for giving the Salvation Army $50,000 of vouchers to give to needy people affected by the quake.

[Felix]

Yes it is a very nice gesture from Postie Plus, following on from the $5m of support that Fletcher Building has offered. It sets the precident for other companies to follow.

It'll be interesting to see if Postie provide guidance on their full year projections when they announce their half year result in late March. I suspect they will not provide much guidance given that they have so many stores in the Christchurch region. Hopefully the earthquake isn't a significant setback from the company.

[percy]

Yes it is a very nice gesture from Postie Plus, following on from the $5m of support that Fletcher Building has offered. It sets the precident for other companies to follow.

It'll be interesting to see if Postie provide guidance on their full year projections when they announce their half year result in late March. I suspect they will not provide much guidance given that they have so many stores in the Christchurch region. Hopefully the earthquake isn't a significant setback from the company.
With both the chairman and CFO leaving,{neither of whom impressed me] I would expect they are "finding the retail market challenging."

[percy]

I had $40 of Postie Plus vouchers from fly buys.I visited tower junction store,which still leaves me cold,could not find what I wanted.Went to Postie Plus store in Timaru.Could not work out if they had a mens section or not.Got out quick.!! gave vouchers to no.1 daughter. Brought the jersey I was after at the farmers. Thought it best to spend the vouchers while they still are accepting them.!!!!

[percy]

Today's announcement that CEO Ron Boskell will retire in January is interesting.Will PPG survive until January? Although he is a really nice guy, PPG performance under his guidance has seen millions of shareholders' wealth destroyed.Market cap now approx $8mil.
For PPG to stay in business they need both goodwill of their bankers and a CEO who is an experience clothing retailer [not an ex shoe retailer].PPG is at a final crossroad.

[Nuts]

maybe your being a bit tough on boskel percy, the board will be as much to blame . their sales are on a par with last year if you take baby city out of the equation , last year they paid 1 cent per share divy so
untill we get the profit figures we dont really know.
rgds

[percy]

maybe your being a bit tough on boskel percy, the board will be as much to blame . their sales are on a par with last year if you take baby city out of the equation , last year they paid 1 cent per share divy so
untill we get the profit figures we dont really know.
rgds

Yes I should have been just as hard on the board.
Always surprises me that they never embraced the internet,considering they were very big in mail order.I note Pumpkin Patch ,who were very strong on mail order, now putting a lot of effort into on line sales.
I would think Postie would do well to do the same.More stores will led to more problems.

[Nuts]

PLease note Percy, Postie has two web sights for Postie and schooltex. Have had for a number of years
Baby city also had one.
Doing ok from them by all accounts
rgds

[percy]

PLease note Percy, Postie has two web sights for Postie and schooltex. Have had for a number of years
Baby city also had one.
Doing ok from them by all accounts
rgds

Instead of being first onto the web they were about the last.From memory they went on the web about 4 years ago.
Postie site is not very good.Stating "on special in store only" puts off buyers,who can buy what is offered on other sites.think ezibuy.
As I have always stated they would be better off spending more time on their web sites than opening more stores.
While they are in breach of banking covenants I don't think you will see a divie.
Tried Barrington store for a man's nylon windbreaker.They do not stock them.

[Nuts]

Hi Percy, what ever is going on , the sp has risen from0.18 to 0.25 in recent week . i dont think this just because the CEO is standing down ?
rgds

[percy]

Hi Percy, what ever is going on , the sp has risen from0.18 to 0.25 in recent week . i dont think this just because the CEO is standing down ?
rgds

I better not say it is .!!!!!
Very much in a strong upward trend.
May be the very upbeat forecast on 31/08/2012 is being taken seriously by the market.?

[Felix]

We get the full year result announcement on Monday. You would think with flat sales and a continuation of keeping costs reigned in would mean the profit won't be materially different to last year.

Another small dividend and further discussion about the material acquisition they've been talking about for several months would be good too.

[Nuts]

I tend to agree Felix , we shall see.

[Felix]

According to their 31 August announcement PPG "is due to report its full year results on September 24". So, where are the results - they're now two days overdue. Are there some banking covenant issues they are trying to resolve behind the scenes before releasing the result? Getting a little nervous...

[percy]

According to their 31 August announcement PPG "is due to report its full year results on September 24". So, where are the results - they're now two days overdue. Are there some banking covenant issues they are trying to resolve behind the scenes before releasing the result? Getting a little nervous...

You will notice I have been too polite to say anything,Thought of ringing Ron,but decided it must be just one of those silly things;week of the 24th or maybe the month beginning the 24th,??!!!
But then thought to my self "no surprises there"!!!!!!!!!!!!!!!!!!! Not a good impression.
Ron's phone number is 027 2217561.

[Nuts]

you and me both Felix

[Nuts]

Rang Ron myself just now , everything is ok ,should of said announcement week of 24th . due out Thursday.

[percy]

Rang Ron myself just now , everything is ok ,should of said announcement week of 24th . due out Thursday.

Good work Nuts.

[Nuts]

results out this morning , as forecast , 1c per share divvy.
Making ground i think.

[percy]

results out this morning , as forecast , 1c per share divvy.
Making ground i think.

Yes.
The coming year is going to be very important for Postie.No Arbuckles or Baby City to distract them.Back to where they were before they listed.New MD in January,same challenging retail enviroment. Dividend surprised me.

[Felix]

An alright result. Keeping their head above water and continuing to control costs. Yes the dividend was good and it shows a level of confidence in the future and in their financial position. I suspect the share price would have taken a hit had there been no dividend announced.

Agree with you Percy that the coming year is important. Either the company will make a smart purchase that compliments their Postie brand and get the company's scale up to a level where they can generate some good profits, or they will flounder as a small retail company that makes a profit close to breakeven.

[Nuts]

right on the nose Felix.They do certainly seem to be making ground so its hopeful.

[percy]

I have been reading articles on Pumpkim Patch,Hallensteins Glasson,and Dick Smith Electronics.The surprise was Pumpkin Patch's success with on line sales being 10% of revenue.Dick Smith's are about 1% and they are targeting 10%.
What a difference 10% of turnover would make to Postie.Considering they were a mail order firm,the last 10 years have been wasted.It makes the selection of new MD just so important.There are growth opportunites there for Postie.I see them on line, rather than more shops that have huge overheads and long term liabilities with staff and leases.[I have heard that Westfield are pushing fashion retailers rents up to 30% of their turnover] Madness.!!!!
I have often wondered why Hallensteins have not taken them over. HGL would have all the system in place,head office,buyers,advertising dept,and would know how to properly run distribution.At market cap of under $10mil HGL would be able to pay for it with 6 months profit.Get rid of Postie's dead wood,and turn a profit.The only reason s I can see is ; why bother,or lease/staff liabilities .
Should they attract some one like Mary Devine,ex Ezi Buy and at present MD at Ballantynes then the fun should start at Postie.

[CJ]

What a difference 10% of turnover would make to Postie.Considering they were a mail order firm,the last 10 years have been wasted.Huge waste. Could easily have run the mail order and online as complementary.

[winner69]

I have been reading articles on Pumpkim Patch,Hallensteins Glasson,and Dick Smith Electronics.The surprise was Pumpkin Patch's success with on line sales being 10% of revenue.Dick Smith's are about 1% and they are targeting 10%.
What a difference 10% of turnover would make to Postie.Considering they were a mail order firm,the last 10 years have been wasted.It makes the selection of new MD just so important.There are growth opportunites there for Postie.I see them on line, rather than more shops that have huge overheads and long term liabilities with staff and leases.[I have heard that Westfield are pushing fashion retailers rents up to 30% of their turnover] Madness.!!!!
I have often wondered why Hallensteins have not taken them over. HGL would have all the system in place,head office,buyers,advertising dept,and would know how to properly run distribution.At market cap of under $10mil HGL would be able to pay for it with 6 months profit.Get rid of Postie's dead wood,and turn a profit.The only reason s I can see is ; why bother,or lease/staff liabilities .
Should they attract some one like Mary Devine,ex Ezi Buy and at present MD at Ballantynes then the fun should start at Postie.

Good stuff percy

You say I have often wondered why Hallensteins have not taken them over. Jeez HLG are too switched on to take a dog like PPG on. HLG wouldn't loss any sleep over PPG and probably have them in the irrelevant category

I would say PPG beyond redemption ... at best they will sell $100m and make no money .... even if in 5 years they were totally online ..... but then I would say they have the missed the boat to make that radical change anyway. Anybody with those sort of aspirations would do it by themselves anyway ... methinks no value in using Postie Plus for that platform

Should have stuck with the Postie concept eh percy .... even if the paper catalogue would have replaced with a nice glossy website .... but still the Courier Post man would still deliver eh

[winner69]

right on the nose Felix.They do certainly seem to be making ground so its hopeful.

I think hopeful is an overstatement ..... admire your guys confidence ... and hope .... but rememeber hope is not a strategy

[percy]

Good stuff percy

You say I have often wondered why Hallensteins have not taken them over. Jeez HLG are too switched on to take a dog like PPG on. HLG wouldn't loss any sleep over PPG and probably have them in the irrelevant category

I would say PPG beyond redemption ... at best they will sell $100m and make no money .... even if in 5 years they were totally online ..... but then I would say they have the missed the boat to make that radical change anyway. Anybody with those sort of aspirations would do it by themselves anyway ... methinks no value in using Postie Plus for that platform

Should have stuck with the Postie concept eh percy .... even if the paper catalogue would have replaced with a nice glossy website .... but still the Courier Post man would still deliver eh

I have to agree with you,but in the back of my mind I think some one really switched on could have developed the mail order to online and the store roll out would have followed.
You will have noticed I mentioned rents,and this is a real problem for Postie who will be paying 4 or more times the rent than their competitor The Warehouse.
Lost opportunities by not doing as CJ pointed out mail order and online.
Buying Arbuckles and Baby City lost PPG millions.I trust new MD will concentrate on what they have.

[POSSUM THE CAT]

Percy absolute no use going online until they sort out there sizing system. Clothes have different sizing ranges for their different sub brands. I buy some of there clothing & unless I try it on before buying it would cost a fortune returning there clothing. To me this as investment I rate this company lower than a Dog. Possibly this is why they veered away from Mail Order.

[winner69]

To me this as investment I rate this company lower than a Dog.

So when do we shoot it then possum

[POSSUM THE CAT]

Winner 69 The sooner the better nobody will miss it

[Nuts]

i wouldnt be too quick to write them off.

[percy]

I would have thought there would be some young hot shot who has been very successful in the fashion trade, either here or Aussie who could come up with $6mil or so,take control of Postie and set it on fire.Use internet for Aussie, ie Aunty Flow's Bargain Clothing for the whole family, on line only at these prices.
NB They wear same sort of Woolie Pullies in Aussie as I do.!!!!!!!!!!!!![need to have them in stock to sell them,and correct sizes fo Possum]

[percy]

Trouble at mill.
Big trouble.

[percy]

Well no one can be surprised that Postie Plus needs to raise capital.With a market cap of $6mil @15cents and a seller at 14.9cents the challenge will getting it away.

[stoploss]

Percy, I went into the shop recently in Kilbirnie. They had some well priced stuff in particular toiletries. Had some good mini shampoos etc great for traveling.Not sure how long this branch has been open...they used to be there then shut up shop when the rent went up too much. As an aside the whole street has been "upgarded" by the WCC, only problem it took 11 months to do 500m of road..... I know the chemist shop over the road has suffered, with turnover down 50 % over this time.....So Postie are likely to have suffered as well.

[Nuts]

Hi , does any one know much regarding their new ceo ?? is he likely to be a winner ?

[blackcap]

Looks like a few people are bailing today... a lot of sellers at 14.1