SCY Chart

[percy]

Percy who in there right mind wants F&P appliances anyway. May be some of the reason for the split. They did not want to have to stock F&P appliances.

I really don't know more than I read.
I sold out my SCY shares a few years ago.
However F&P and SCY certainly had great respect for each other,F&P supported SCY through their receivership,so it is the ending of a very long successful partnership/business relationship.

[blackcap]

Its been a while since anyone posted on this stock. But their Annual Report is out today. THey had a what I thought was reasonable profit announcement a while back (one off items accounted for 5.5m) and operationally they reduced their profit but we all know its been a tough time esp for retailers. But I am excited about the restructuring of their funding for their Finance Division. They now borrow the money from the bank (to speak colloquially) and this will give them savings annually of $2.5m which will go straight to the bottom line. THis is in itself 5 cents per share. For a stock trading at 65 cents this is material. Even if operational profits remain flat at about $2m total profit will still be in the vicinity of 9 cents per share and that I believe is a pretty good buy. Any detractors out there please set me straight about all the caveats investing in retail or this stock in particular.

please dont get pedantic about my figures... they are very approximate but its the story im trying to tell not amaze you with my mathematical genius

[percy]

Its been a while since anyone posted on this stock. But their Annual Report is out today. THey had a what I thought was reasonable profit announcement a while back (one off items accounted for 5.5m) and operationally they reduced their profit but we all know its been a tough time esp for retailers. But I am excited about the restructuring of their funding for their Finance Division. They now borrow the money from the bank (to speak colloquially) and this will give them savings annually of $2.5m which will go straight to the bottom line. THis is in itself 5 cents per share. For a stock trading at 65 cents this is material. Even if operational profits remain flat at about $2m total profit will still be in the vicinity of 9 cents per share and that I believe is a pretty good buy. Any detractors out there please set me straight about all the caveats investing in retail or this stock in particular.

please dont get pedantic about my figures... they are very approximate but its the story im trying to tell not amaze you with my mathematical genius

In theory you are correct.
You just got to hope they don't give that extra profit away, by offering cheap finance deals to attract customers [as they did the last time they had a big interest saving]. The retail space they are in is madly competive.Harvey Norman often give very long interest free terms,which Smiths have to match to stay in business.Their margins are very slim.With price deflation,they have to sell more to stay where they are. You will note their turnover has decreased over the last few years.Fixed overheads remain very expensive.A large staff is a big liability.A large vehicle fleet is a big ongoing cost.

[winner69]

Radio advertising this morning some 'really good specials' and 40 MONTHS FREE CREDIT

Wouldn't know if his more than they normally do but from Percy's point tempting to do this sort of activity

[percy]

Radio advertising this morning some 'really good specials' and 40 MONTHS FREE CREDIT

Wouldn't know if his more than they normally do but from Percy's point tempting to do this sort of activity

You are excused from your native tree planting,so take advantage of those specials.I look forward to your Sunday morning rave telling us what wonderful products you brought.!!And the lovely 40 months free credit,!!
Money saved can be used to fly down to ChCh so you can take advantage of my offer to transport you to and from HNZ agm.

[winner69]

When I was in charge if the household duties when wife indisposed a few months ago blew up washing machine, drier, electric wok in. Week.

L v Martin got the business. Always bought everything from that shop back when it was a 100% outfit because of the service etc and price matching. Must say l v Martin do a good job as well ....all the purchase history still kept there and they say hey mr winner you good client we deliver and install free for you because we know you useless at putting things together and getting them to work.

So no need for anything today ....just heard the ad on the radio.

Do they normally do 40 months free credit ..maybe taking advantage of healer money

[percy]

When I was in charge if the household duties when wife indisposed a few months ago blew up washing machine, drier, electric wok in. Week.

L v Martin got the business. Always bought everything from that shop back when it was a 100% outfit because of the service etc and price matching. Must say l v Martin do a good job as well ....all the purchase history still kept there and they say hey mr winner you good client we deliver and install free for you because we know you useless at putting things together and getting them to work.

So no need for anything today ....just heard the ad on the radio.

Do they normally do 40 months free credit ..maybe taking advantage of healer money

Great that you support L.V.Martin.Great business,great reputation.Great that it is owned by SCY.
I don't know about the 40 months interest free.
You will laugh at me.Wife and I have not been able to agree on a new lounge suite.Saw one we agreed on at Smiths in Tauranga.Went into buy it here in ChCh.Well price just kept going up,yes the leather is lovely,yes that leather is a lot softer ,etc.Silly old me paid for it.!! Yes we will deliver free when it arrives in about 100 days.So most probably using my free money for the promotion.!! I would only have brought more HNZ shares with the money.!!! lol.

[Jay]

Not sure how these Interest Free offers work (from a retailer point of view)
They are financed thru a finance company and the FC give the retailer a commission?? or do SCY have their own fnance arm and does the retailer get the funds straight away??
The finance company bank on alot of people not paying off within the interest free terms and/or buying more stuff with the credit limit.

I read recently that a lot of these big retailers are wanting you to buy on credit/interest free as they make more money this way??

Disc: Not a holder at present

[winner69]

SCY have their own Finance Company .... about half the company profits come from Finance

So all inhouse - so even if 'Finace" gives 'Retailer' the cash or not when things are sold are not not really relevant

[percy]

Not sure how these Interest Free offers work (from a retailer point of view)
They are financed thru a finance company and the FC give the retailer a commission?? or do SCY have their own fnance arm and does the retailer get the funds straight away??
The finance company bank on alot of people not paying off within the interest free terms and/or buying more stuff with the credit limit.

I read recently that a lot of these big retailers are wanting you to buy on credit/interest free as they make more money this way??

Disc: Not a holder at present

The cost of finance comes off the retailer's margin.
The retailer must pay the say 40 months interest.The retailer offcourse pays a lot less interest than the customer would.
So the longer the interest free time is, the greater the cost to the retailer.It is a sales tool.
Same principal with cars.
However financing cars ,or furniture/appliances is very profitable,refer HNZ thread where we looked at UDC and FPF profits.
Smiths' Finance company borrows money from ANZ.ANZ will want their interest no matter if Smiths charge interest or not.
I take it Smiths charge booking fees and insurance,and if you have not paid the item off at the end of say the 40 months then you start paying the full [profitable] interest.
I note in this year's annual report they have approx. 64,500 active accounts.