WHS - Warehouse Group

[Sky Tower]

no. enuf said.

[Halebop]

quote:Originally posted by Placebo

...WHS which has been so unfairly hammered down and must be due to rebound some time soon. There can only be an upside, surely...

Unfairly hammered down? No I think they have earned it. They are still too expensive.

[skinny]

Winner, great story.

The happy ending:
Sid returns from the bush 5 years later and his stock broker gives him the news the shares are worth $10. He enthuses about the excellent mangament decisions the WHS took over the past 5 years. It cut its losses in Australia in 2005 to concentrate on NZ operations, first by better managing margins and second by following Walmarts lead and entering into the hypermarket format. Its superior stock control systems and smart marketing allowed it to take considerble market share from the supermaket chains. Margins aren't high but they are stable and the WHS more than earns its cost of capital. Sid's pretty chuffed, he sells his shares to move into a comfortable kauri villa in Freeman's Bay.

The sad ending:
Sid returns and the shares are worth $2.50. The broker consoles him by saying that its still 50% more than what they were two years ago when the WHS finally sold off their loss making Australian operations and marginal New Zealand red sheds to focus on stores earning a superior return on equity. The broker tells him Foresooth Barred research suggests it will be worth $4.00 on the 2011 earnings outlook. Sid sighs and goes back to the bush for another 5 years.


Until I see management making the tough decisions I lean to the sad ending...

[Placebo]

Poor Sid. Hope he likes Huhu grubs

[winner69]

Tough weekend for Keith and Ian tossing around what they should be telling shareholders at the AGM this week.

Could be tough meeting seeing shareholders have seen their worth diminish by $720,000,000 since the last meeting

Keith agreed to do the nice warm fuzzy stuff saying that last year wasn't the best but things were on track and this year will probably be OK

Keith won't be able to give any guidance for the full year as Xmas sales have such a bearing on the result ... but trust me

Keith told Ian that he is the new leader so he can do the visionary thing ... like I have been in charge for a few months ... like what i see ... and once I change a few things ... build some new stores ... in a few years we will have a great company again

Anybody going to the AGM?

[winner69]

The tea lady (or the cleaner) at WHS HQ must have seen the slides the guys are going to use tomorrow

Must have been at lunch time because her friends certainly bailed out this afternoon .... and today was a good day on the NZX

WHS at 369 ... who would have believed that

Doesn't sound good .... I say some bad news hidden away in those presentations tomorrow

Anybody going to the AGM?

[whatsup]

FALLING--------- sub $3.50 today?

[cdt18]

Watch her drop. This is an interesting slope

[winner69]

So was 352 the low?

Looks like now is the time to buy

Ian saying he will reduce stock by 30% makes the $100M a year capital needs less daunting ... and WHS won't have to borrow to pay the dividend this year

Then again maybe Progressive is on the radar ... if you can't beat them buy them

[Sky Tower]

Looking more like a $2.00 stock every day !!!

D.