REH Reece....eat my chart

[h2so4]

Not that I know anything about charts, but this one looks good?

Chart or no chart REH ticks all the boxes for me, and is worthy of my money.

I'm unsure of one thing though and that is the shareholding. REH 20 top shareholders own 90% of the issued capital, (top 4 own 60%) which leaves just 10m shares for the other shareholders, no wonder so few are traded. Directors own many more but I think that must be unissued capital?

Is having a 90% shareholding in the top 20 a good thing for the other shareholders?

Dividend is low <2% but I'm fine with that as I can see all profits are reinvested in the companies expansion. In 2001 they had 160 stores, now in 2010 they are now trading from 439 stores with 12 opened in the last 6 months, obviously no recession in plumbing supplies.

Company has no debt and directors have been buying.

[Skol]

Too illiquid for my liking, hope it's a winner for you though.

[winner69]

Reeceis a fantastic company that's been doing what it's good at for nearly 100 years

Core ingredient of it's success is that the customer comes first and that essentially all staff are empowered (and expected to) to engage with customers to ensure the company understands and meets their needs .... ie solutions more so than just the product at a price sort of mentality

All that leads to their high segment share and pretty high margins for the type of business they are in

Reece will sprobably still be around in another 100 years and doing the same sort of stuff ... well

As such as a great solid long term investment but no doubt the shareprice will have its up and downs due to market sentiment ... but then thats what trading prices (as opposed to investing) is all about

[winner69]

Total shareholder returns over the last 10 years have been 24%pa .... not too bad eh

[h2so4]

Yup.... increasing sales, higher profits, increasing equity. Whichever way you slice it REH is excellent.

[winner69]

But don't forget the REH is not immune to changes in market sentiment .... even though profits etc were still growoing it's shareprice did fall from $28 to $15 in recent times as well

Thats what trading prices is all about

[h2so4]

But don't forget the REH is not immune to changes in market sentiment .... even though profits etc were still growoing it's shareprice did fall from $28 to $15 in recent times as well

Thats what trading prices is all about

At $15 I should have put all my money into it.:(

[h2so4]

Excellent Reece.

13 new stores. Expect 13 more in 2011.

Debt reduced by $39m

18% increase in profit. Sales flat.

$122m cash.

Boring stuff I know.:D

[Joshuatree]

Excellent Reece, i agree h2so4 are you still in prob doubled your money by now?.A transformational and careful move into the USA after studying their mkt for 10 years and talking to MORSCO for 2 . The CEO and family putting $300 million into this cap raise. Will be applying for shares.

http://webcache.googleusercontent.c...inc-20180506-h0zprv &cd=2&hl=en&ct=clnk&gl=au (https://webcache.googleusercontent.com/search?q=cache:U6wpDASlvHEJ:www.afr.com/business/retail/appliances/reece-group-in-19b-purchase-of-us-firm-morsco-inc-20180506-h0zprv+&cd=2&hl=en&ct=clnk&gl=au)



Reece is also raising $560 million in fresh capital through a placement and an accelerated non-renounceable entitlement offer to help pay for the acquisition. The equity raising is being done at an offer price of $9.30, a 13.5 per cent discount to Friday's last trade of $10.75.

[Joshuatree]

WooHoo , a great response to this Completion of Placement and Institutional Entitlement Offer (https://hotcopper.com.au/threads/4180291/) mkt up $1.68 so far today to $12.43. massive vote of confidence and support.