WHS - Warehouse Group

**BlackPeter** · 09-11-2018, 09:11 AM

Originally Posted by winner69

Sales ahead of last year ...that’s good

https://www.nzx.com/announcements/326581

Hmm yes, though the percentages are not really exciting, aren't they? Particularly given that they started with a quite low bar.

Group Sales in Q1 of $668.3 million (up 3.6% compared to Q1 FY18) 1,2
The Warehouse (Red Sheds) Same Store Sales up 2.7% 1
Warehouse Stationery (Blue Sheds) Same Store Sales up 4.1% 1
Noel Leeming Same Store Sales up 3.2% 1
Torpedo7 Group Same Store Sales down 2.7% 1

And didn't they mention in their annual report that the "eveyday low price policy" did cut into their margins? So wondering, what these low revenue increases (together with margin drops) make to the bottom line?

Particularly disappointing is obviously Torpedo 7 - replaced the Warehouse stationary as the least productive chain ... just wondering how they managed to do so much worse than e.g. Kathmandu? Ah yes - and looking into the meagre rise of the online sales - how many centuries will they need to grow with this pace to catch amazon?

But anyway - you are right - could have been so much worse.

**Beagle** · 09-11-2018, 09:19 AM

Originally Posted by winner69

Got it on special at Sears before he came to NZ ......put a bit beef on since coming to NZ

Should have gone to spec savers before the photo shoot lol

**percy** · 09-11-2018, 09:43 AM

I think if I were a shareholder I would be reasonably pleased with the result.

**BlackPeter** · 09-11-2018, 09:50 AM

Originally Posted by percy

I think if I were a shareholder I would be reasonably pleased with the result.

I wouldn't know. They reported on the top line, but it is the bottom line which counts.

**BlackPeter** · 21-11-2018, 02:16 PM

Originally Posted by percy

I think if I were a shareholder I would be reasonably pleased with the result.

Well, It certainly looks like the market is pleased. SP hovering well above MA50 and MA200, golden cross passed some weeks ago, higher highs and all these things. Who would have thought that the Warehouse can be a safe haven in these troubling times

;

**winner69** · 21-11-2018, 03:11 PM

Originally Posted by BlackPeter

Well, It certainly looks like the market is pleased. SP hovering well above MA50 and MA200, golden cross passed some weeks ago, higher highs and all these things. Who would have thought that the Warehouse can be a safe haven in these troubling times

;

In the US Golden Crosses are good short term but often Death Crosses have better returns than Golden Crosses

————————————————————————————————-

Interesting ...Death Crosses are good -

On average, for the time horizons tested, golden crosses show positive returns over the short term for most sectors. When comparing golden cross and death cross returns over the two different time horizons we see some interesting results. Our expectation of golden cross positive performance holds mostly true for our longer time horizon back to 1998. However, counterintuitively, it appears that death crosses also have positive returns and even outperform golden crosses in our current bull market. Rather than giving a signal to sell or short a stock, the death cross has been an indication to buy at a low price (and be rewarded with a stock price turnaround).

https://insight.factset.com/are-gold..._hsmi=64046482

**BlackPeter** · 21-11-2018, 04:05 PM

Originally Posted by winner69

In the US Golden Crosses are good short term but often Death Crosses have better returns than Golden Crosses

————————————————————————————————-

Interesting ...Death Crosses are good -

On average, for the time horizons tested, golden crosses show positive returns over the short term for most sectors. When comparing golden cross and death cross returns over the two different time horizons we see some interesting results. Our expectation of golden cross positive performance holds mostly true for our longer time horizon back to 1998. However, counterintuitively, it appears that death crosses also have positive returns and even outperform golden crosses in our current bull market. Rather than giving a signal to sell or short a stock, the death cross has been an indication to buy at a low price (and be rewarded with a stock price turnaround).

https://insight.factset.com/are-gold..._hsmi=64046482

Makes a lot of sense for non-fatal cases in a bull market. Only question is - are we still in a bull market? I would very much question the validity of above thesis during a bear ...

On the other hand - I agree that it might not be a good idea to buy The Warehouse in the current phase ... it sort of feels that at least midterm the down risks might weigh heavier than the up-opportunities.