All 1,032 pages eh - truely an encyclopedia
Printable View
Thanks, the book looks interesting, I've always wondered if people were just making up the numbers or had done actual testing to find the numbers. I think I'll have to get hold of a copy of it.
I like the company and think it's well run but I'm not convinced it's a breakout. For the last 6 months the share price has been in a range between 86-94c, and for most of that time 87-93c. This recent rise just puts it back into the middle of the range and there doesn't appear to be any significant trades in the past few days. The report is good news and shows that the company is doing really well in Canada, almost breaking even now but the market as a whole appears to be trending down taking MHI with it. If the price breaks above 94 then it would be more interesting.
DISC sold a few days back.
It thought last year the final div was 2.5c this year 3c. I would have thought a similar 2.5c div was priced in so only the extra 0.5c was unexpected. Thus only pushing up the price by 0.5c potentially. Although the price has started to rise so maybe it will breach the 94c resistance level in the near future.
Another business I wouldn't go near for the simple reason that over the last few years inventory turns have been consistently falling. Happy to wait for the next growth phase.
I don't know belg old chum. You might be right. My thinking is that if you are manufacturing to retail yourself, then in todays retail and manufacturing world, you are making business that much harder for yourself. When retail spending declines where do you turn? Do you keep on opening more and more shops?
Arn't Billabong in this very position?
Have you guys looked into their Professional Care Plans (PCP) at all?
An excerpt from the 3 month update in October:
Given the revenue (not recognised in the income statement as yet...) for the September quarter was $5.4m, it looks like a significant contributor already even though it was only launched in October 2010. I'll be interested in the half year results to see the costs of sales - I imagine it will be quite good.Quote:
The figures stated above do not include revenue collected from the sale of Professional Care Plans (PCP), an initiative launched in October 2010. The revenue from these plans is carried on the balance sheet as deferred revenue and will be brought to income over the life of the plans (3 Year and Life Time).
The PCP programme has the potential to contribute materially to income. Initially, the rate at which this revenue is brought to income will be largely based on our research of similar programmes in North America. As we gain a better understanding of the Company’s actual experience, we will progressively refine the rate at which this income is recognised.
Because the PCP programme has been in place for less than a year the company is not in a position presently to accurately estimate the amount likely to be brought to income for the period covered by this trading update. The amount that will be brought to income at the half year and full year will be estimated at those times, and will be based on that overseas research and the data collected over the period in relation to use of the plans by our customers.
Quite impressive growth in the PCP front....almost $10m in the final 3 months. Still looking forward to seeing the margin they have worked out on that revenue stream through their model.
It does look like they are suffering quite a lot in other areas though...esp Aussie (relative to prior periods...still handsome profits I'm sure!). USA looks better. Market didn't like it much though...depth fallen away?