WHS - Warehouse Group

[MauroNZ]

But you do have to ask yourself " who is more likely to still be around after Costco and Amazon set up"

that's true.

[bottomfeeder]

Based on past performance, why does the shareprice go up. More competition, yet no new ideas or strategies. The old adage, give a sliver of good news and the crowds flock.

[Brain]

Best to stay away from a company that has no growth prospects and increasing competition no matter what the dividend is.

[Joshuatree]

WHS down, how low will they go before it is starting to look like a BUY.

Hope you ignored the noise on here bf, your instincts were on to it. From $2.02 to $2.29 and now $2.23(profit taking?) would be a great trade for you at at least one other smart investor i know.

[bottomfeeder]

Just looked too risky, even for me. Now $1-80 may have enticed me. Good Luck.

[artemis]

Couple of weeks back NBR had a long article comparing financials with 'woke' WHS and 'what's woke?" Briscoes.

From memory, between WHS 2013 when eg living wage got under way and these days, share price has halved.

Nice that WHS has such a social conscience, and that will attract some shareholders. Others not so much.

[Joshuatree]

Some questions are just not answerable https://invst.ly/b0f35 here's a monthly chart going back to July 2004, what do you see, apart from massive sustained capital destruction? Maybe a floor in the SP back to 2017? Is there any reason why that support will hold this time like it has for a couple of years? Who knows.

Sometime it's best just to avoid a wealth destruction machine, maybe reconsider when or if it ever returns to an up trend? Personally I reckon WHS is seriously in trouble, the short term sell off coincides with the Cost Co. announcement. We haven't seen yet how IKEA and Amazon shipping from Australia will work out.

Anyway, back to that chart.

Much healthier chart now BaaBaa? Above the 50 and 200 DMA on my primitive chart. $2.02 then $2.30 today re a 14% gain, Congrats to you know who for swinging a trade here.Most of the gain after this update.

The Warehouse Group - Update on Guidance YE 28 July 2019

[winner69]

MO’D’s review of The Market

https://www.stuff.co.nz/business/opi...he-future-feel

[bottomfeeder]

Have to agree, just another online store, nothing new. About 5 years too late. Can see it swallowing funds, once started, they will be in so deep they wont be able to stop. A financial tiger by the tail. It will take years and years to break even. I would like to see them rather work on fine tuning their existing operations. I subscribe to one day deals but there are so many, I dont even bother to look anymore. Also twice a day, why not three or four times, too many thats why.

[SBQ]

Best to stay away from a company that has no growth prospects and increasing competition no matter what the dividend is.

Agree. The history of The Warehouse share price has been really sad since inception. I've never understood the concept of a 'dividend policy' as it goes against returning real shareholder value (particularly from a tax point of view). Fully imputed or not, TWG has been reckless in on their balance sheet just to meet this dividend payment plan. ie issue more shares to meet dividends, borrow more loans to pay dividends. Where is the sense and logic to these actions? So the end result is clear, you get a stock price that IPOs at $2/share and in about 40 years time, it will end up a $2 stock which is worse when you factor inflation. The shareholders suck the company out dry and IRD will stay happy collecting the taxes.

Competition will be on the online front and what The Warehouse is trying to do has failed abroad. Just take a walk in the Warehouse and see what's for sale. I'd be lucky to spend more than $50 a year there and to my wife, she would say that is way too much. She growls at me for buying cheap because it never pays. I recall 25+ years ago the term parallel importing was an often used term by they company. For eg. they use to bring in European AEG appliances just so the local NZ AEG distributor would keep their prices fair. When you walk into The Warehouse today, what brands do you see? Rubbish and the only way WHG gets around this is through acquiring other retailers like Noel Lemming that have pre-existing contracts with more well known supply chains. However, their product line is failing and customers aren't buying much there and it's natural for the NZ distribution suppliers to lock up their supply chain to protect their clients such as Harvey Norman. Just last week I went into Noel Lemming and while the sales lady was very kind, she was not able to deliver the right price and right product we were looking for. When we walked into Harvey Norman, it was clear they not only had the mass selections and brands but also had much lower pricing than Noel Lemming.

Uncertain how Costco will do in Auckland because they too will be under the same environment as WHG. UNLESS they bring back the term "Parallel Importing". But for a small population of NZ, it may not be economical and Amazon seems to do very well with their low price contracts in shipping and logistics. From I last recall, the only deal Costco in Auckland may do is offer lower fuel prices, lower price services for eye care, and that's about it. I don't believe that is enough to attract the high disposable income customers like they do in N. America. What I see is The Warehouse is a low budget version of Walmart and the latter only attracts low income customers.