Hmm...Scamper...Hard to pinpoint the reason why MHI hasn't fired....maybe it's off most of the peoples radar. Must admit until I read these posts I thought MHI had a bad result thanks to that investment into the US marketplace. I completely forgot about last year's one off tax credit of $50M and I read the headlines
Michael Hill profits plunge 60% in the NZ Herald skim read the first bit..then thought that's enough and moved on. No mention in the first bit I read about the last years one off tax credits so no reason to pursue it any further by going to look at it in the shareholder announcements for more detail....so for me... maybe bad media press headlines is partially to blame.
TA wise.... some indicators started firing on "Black Friday" so the TA picture up until yesterdays FY result although not fanastic it wasn't that bad either.. so it was possible one or two speculative techies would've be "in" before the FY result....
The MHI chart is a strange one.. as it is hard to draw many valid trendline(3 points) on a meandering price line which also has no obvious formations. ..So have to rely more on other more complex TA indicators such as OBV Williams% RSI etc..so... maybe ...to the
"quick eye over of the MHI chart" people, they see a meandering downward action of shareprice and decide to move on as well.
The fall of 3 cents (-4.3%) after the FY result seems harsh..
FA wise.....Back of the envelope calculations from Net profit after tax of $26.5M ( operational profit up 60%) Earnings/share 6.9c PE 9.6 Dividend 4.0c/s Yield 6%.... seems good to me.
TA is only a barometer of investment behaviour... So the question really is.. where were the FA and the dividend hunters yesterday?...Obviously, the small number who sold expected a lot more to be delivered from MHI.