Well they are in my picks and it looks like there are a few behind me in this years comp so let's see.
Printable View
Just like Dogs of the Dow the Dogs of the NZX sometimes a good strategy but more often than not tend to underperform (as a group). Losers often remain losers
Dogs of the NZX were in the bottom 10 in the 2017 competition
Both down nearly 30% this year .....couldn’t repeat that could they ...you never know
Vehicle retailers and manufactures generally speaking had their share prices brutalised in the GFC...people simply fix the vehicle they have as and when necessary in really tough times. The other thing is a lot more loans go bad so Turners cop it from both directions whereas at least with HGH more and more people borrow money even at higher interest rates in the hope of getting by so at least HGH get more business to help with their significantly increased loan delinquencies. Dog's can be dog's two years in a row, even three.
GE a classic example...that was a real dog of the DOW in 2017 (down from $31.60 to $17.45) and anyone who bought that at $17.45 as part of their dog's of the Dow strategy for 2018 was been well bitten with it now down to $6.92, a 60% loss in 2018 after nearly halving the year before ! Couldn't happen on the NZX though...or could it...
Financials and vehicle companies are not defensive sectors.
HGH's Marac downfall was property development loans.The rest of Marac's business traded well through GFC.
Turners had one bad year in 2008 and a huge profit in 2009.
Neither had any abnormal vehicle loan problems.
Both companies have strengthened their business model since GFC,and will trade well in any slowdown.
I expect HGH's REL business to keep going gangbusters.A matter of the right product at the right time.Pleasing they have secured funding for the next four years from CBA."Committed [think about the pig and the chicken.lol.]warehouse facility to 30th September 2022."
Couldn't find heartland in any of the big wig brokers picks
Perhaps more surprising, is I found AFT and ARV
$1.33 ... sheesh, this is now exactly at the level where I first bought into HBL just over three years ago. Sold out during October/November, I might just be tempted to get back in at these levels once the tide turns.
$1.32, crazy stuff... and I thought $1.50 was cheap... Gross dividend yield nearing 10% now
They need to come out with some sort of announcement reaffirming profit guidance, surely can't go below $1.30
A good few cents below that dog on the asx flexigroup - now that when you know its bad