sharetrader
Page 28 of 93 FirstFirst ... 182425262728293031323878 ... LastLast
Results 271 to 280 of 924
  1. #271
    Banned
    Join Date
    Sep 2008
    Posts
    476

    Default

    Quote Originally Posted by Patient Panda View Post
    This is my first post on this forum. I have been reading here religiously for at least 3 years and have tried to make an account several times but was always unable without access to an ISP email address. This is one reason I would suggest for the high viewership to poster number ratio.

    Disc: 25% of my listed portfolio is comprised of BGP.

    On to Briscoes.

    i have noticed on this forum often times the true golden companies are unsung heroes.


    I’m a huge fan of Briscoes and of Duke. Hes a value hound at heart, he didn’t chase KMD for a stupid price and they focus on doing the basics well instead of flashy inconsistent approaches I see all over the place.

    Briscoes is without a doubt some of the best value you can find currently on the NZX.

    Sitting currently on a P/ E ratio of 12.92

    it has an average 5 year return on equity of 28%! (According to reuters data). This is enough to be making Buffet and Munger salivate. The large increases in EPS are not being diluted to laughable levels

    The return on equity figure looks even more impressive considering they have low debt and are conservatively managed.

    They pay a fantastic increasing dividend.

    to the best of my knowledge over the past 10years its turned a profit 9 of those years. An enviable track record, even moreso in the retail industry and directly post GFC.


    looking forward to discusing BGP with you all in more detail and depth.
    I dont think they have any dept and quite a few million in cash. The shares are quite tightly held with only 15% available to the public which may account for the lack of interest in the forums.

  2. #272
    Member
    Join Date
    Oct 2017
    Posts
    104

    Default

    hi Panda
    I had a similar experience trying to join sharetrader - it took several attempts and literally months of waiting to join. For years I've become so used to being able to read posts, but not contribute, it's proving a very hard habit to break. Ie, Even now that I have write access I still read and don't contribute.

    excellent first post, BTW. Thanks. I too am a large Briscoe's holder - not many (any?) NZX stocks that are better value than BGP, IMHO.

    As dragonz notes, BGP also has a large cash balance ($78m at latest report according to my s/sheet) as well as that big holding in KMD (worth circa $95m according to my s/sheet). In valuing BGP, and calculating a PE for BGP, you really need to adjust for those investments, IMHO, as their value is not fully reflecting in current earnings. Doing so, and BGP is cheaper still, IMHO.

    the big risk, seems to be BGP's reliance on key brands which other parties like Amazon could sell at lower prices solely by internet. Will the consumer of tomorrow prefer an internet-only offer from eg Amazon or an offer from a retailer with internet sales, backed by a physical store network? In my view, the short answer is: time will tell, and will emerge gradually. Clearly internet will continue to take sales from physical sales - but BGP is active online too with strong internet sales growth, and I'm not at all convinced that Amazon et al will simply kill everyone else. Yet, the share price for BGP seems to assume that will happen, and happen relatively quickly. that seems very pessimistic, in my view.

    Happy to hold and accumulate more BGP.

  3. #273
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    What the challenge retailers face from the internet traders is "show rooming."
    This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
    I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!
    Last edited by percy; 19-06-2018 at 09:26 AM.

  4. #274
    Banned
    Join Date
    Sep 2008
    Posts
    476

    Default

    Quote Originally Posted by percy View Post
    What the challenge retailers face from the internet traders is "show rooming."
    This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
    I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!
    Its amazing the difference in quality for what looks like identical items. Normally people get what they paid for

  5. #275
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    Quote Originally Posted by dragonz View Post
    Its amazing the difference in quality for what looks like identical items. Normally people get what they paid for
    No difference when you scan the bar code.

  6. #276
    Member
    Join Date
    Jun 2018
    Posts
    178

    Default

    Quote Originally Posted by jg8512 View Post
    hi Panda
    I had a similar experience trying to join sharetrader - it took several attempts and literally months of waiting to join. For years I've become so used to being able to read posts, but not contribute, it's proving a very hard habit to break. Ie, Even now that I have write access I still read and don't contribute.

    excellent first post, BTW. Thanks. I too am a large Briscoe's holder - not many (any?) NZX stocks that are better value than BGP, IMHO.

    As dragonz notes, BGP also has a large cash balance ($78m at latest report according to my s/sheet) as well as that big holding in KMD (worth circa $95m according to my s/sheet). In valuing BGP, and calculating a PE for BGP, you really need to adjust for those investments, IMHO, as their value is not fully reflecting in current earnings. Doing so, and BGP is cheaper still, IMHO.

    the big risk, seems to be BGP's reliance on key brands which other parties like Amazon could sell at lower prices solely by internet. Will the consumer of tomorrow prefer an internet-only offer from eg Amazon or an offer from a retailer with internet sales, backed by a physical store network? In my view, the short answer is: time will tell, and will emerge gradually. Clearly internet will continue to take sales from physical sales - but BGP is active online too with strong internet sales growth, and I'm not at all convinced that Amazon et al will simply kill everyone else. Yet, the share price for BGP seems to assume that will happen, and happen relatively quickly. that seems very pessimistic, in my view.

    Happy to hold and accumulate more BGP.

    Thanks jg. Yes they’re always building their big war chest. Something I can never quite understand is how they achieve such phenomenal return on asset ratios of circa 19% when holding fairly large sums in cash accounts.

    Of course Amazon is an ever present godzilla waiting in the wings. Until they have a distribution warehouse in NZ I don’t think they will affect BGP in a material way. Whilst Amazon moves fast, it seems like they’re focusing on their 2nd aussie fulfillment centre and will probably try to improve their range and selection across the ditch because right now its still comparatively limited.


    The margins on the AMazon retail arm are so low its going to be a question of whether the rest of their business thats actually turning a profit like AWS subsidises and supports the retail arm long enough for it have a big effect in NZ, only time will tell.

  7. #277
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    Right team.
    Google Sunbeam carveasy electric knife;
    Smiths City $79.99
    BRISCOES $69.99
    Trade Me $55.15
    Appliance Shed.$42.00
    Harvey Norman $39.00.
    So Briscoes competition is close at hand.

  8. #278
    Member
    Join Date
    Jun 2018
    Posts
    178

    Default

    Quote Originally Posted by percy View Post
    What the challenge retailers face from the internet traders is "show rooming."
    This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
    I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!

    hi Percy! I’m very familiar with show rooming having done it many times myself.

    For example recently I bought a new Canon DSLR camera. Tried it out in a camera shop to make sure it was the right fit etc.. hopped on pricespy.co.nz and found the exact same model $300 cheaper. Now the guy in the camera store was extremely helpful and I would have been more than happy to be a 50$ premium as a service fee, maybe even 100 but I couldn’t justify such a big price difference.


    Whilst show rooming is a risk to BGP until their is a website like www.pricespy.co.nz for products briscoes sells the risk is present but vastly reduced. Shoppers must individually google the item and go through each individual website.


    i think the number of people in the general population doing it by barcode is miniscule. The vast majority of people are just going to use the brand and model name.

  9. #279
    Member
    Join Date
    Oct 2017
    Posts
    104

    Default

    Quote Originally Posted by percy View Post
    Right team.
    Google Sunbeam carveasy electric knife;
    Smiths City $79.99
    BRISCOES $69.99
    Trade Me $55.15
    Appliance Shed.$42.00
    Harvey Norman $39.00.
    So Briscoes competition is close at hand.
    Percy, that's Briscoe's normal price. nobody pays that price. you wait for the once in a lifetime sales, with discounts of 40-60%+ off, which happen every second weekend, to buy.

  10. #280
    Guru
    Join Date
    Jul 2004
    Location
    Bolivia.
    Posts
    4,854

    Default

    Quote Originally Posted by percy View Post
    Right team.
    Google Sunbeam carveasy electric knife;
    Smiths City $79.99
    BRISCOES $69.99
    Trade Me $55.15
    Appliance Shed.$42.00
    Harvey Norman $39.00.
    So Briscoes competition is close at hand.
    People don't realise how expensive Briscoes is outside of promotion - but often promotion is no better than elsewhere. But also selling smaller ticket items that many think aren't worth pricing around too far (and probably trust Briscoes pricing).

    Bit like Katmandu, their standard pricing is expensive and more expensive than more highly regarded brands. But wait, it's 40% off!! Only to come down to a more standard price.

    Poor old Smiths City.....but that's another thread!

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •