WHS - Warehouse Group

[ratkin]

Only advice i would go with is dont choose tourism holdings

[ENP]

Only advice i would go with is dont choose tourism holdings

Reason being? And what are your thoughts on Telecom? Has the market over-reacted to make it now a decent deal?

[POSSUM THE CAT]

ENP at least split it in half Two lots of $2500.00 would suggest of those you have asked about ANZ & TEL diversification reduces the risk.

[ENP]

ENP at least split it in half Two lots of $2500.00 would suggest of those you have asked about ANZ & TEL diversification reduces the risk.

This is my first time investing in shares. I'm going to go through an online broker for $30. If I buy two shares, for example ANZ and TEL, will I have to pay $30 or $60? (sorry if this is a newbie silly question)

Thanks.

[POSSUM THE CAT]

ENP $29.90 per each purchase up to NZ$15000.00 per trade at Direct Broking. But you cut your risk for an extra $29.90 I started with $50 lots many years ago

[percy]

ENP
THL has a lot tied up in capital,hard to make good returns as always has to upgrade vans etc.I would go either bank as would give you an aussie share.WHS is better focused than TEL and is a possible takeover target.Remember NZ shares usually pay the tax on the divie while aussie shares you have to pay tax on the divie.makes a huge difference on nett yield.Good luck with your investments.Just take your time.

[beacon]

I've saved up $5000 and want to make the most of it. Any advice would be appreciated.

Without knowing your risk appetite and investment horizon, difficult to advise anything. I'd say, you'd double your money if you fold it in half, and keep it in your back pocket. Check back returns in a year. Pretty sure, the money in your back pocket will still be "secure".

[ENP]

With The Wharehouse and Vector giving dividends on 12% and 9% respectively, I don't see where you can go wrong?

[winner69]

12% dividend from a Whorehouse is pretty impressive .... is that why that ASB fraudster invested in whores?

Sorry ENP - your spelling of Warehouse makes me smile - you must be of Maori descent

[Snoopy]

With The Warehouse and Vector giving dividends on 12% and 9% respectively, I don't see where you can go wrong?

Your best bet ENP, with 5k or so to spend on NZ shares would be to put it in the index fund TENZ. TENZ takes a market proportional stake in the top ten shares by capitalisation. You can buy TENZ like a share on the market. That way you will get diversification at low cost with low ongoing fees, and a decent ongoing dividend stream as well.

If you try to pick winners off the bat one of two things will happen.

1/ You will get lucky and outperform the market. Your ego will then inflate beyond your ability and you will become more reckless with future investments and lose everything you have made.
2/ You will get unlucky and spend the rest of your life 'burned' by the market after you vow that all those corporate guys are crooks anyway. Then you will never return.

Your naievity with regards to the Warehouse for example, since that is the thread we are on, is breathtaking to me.

Did you know that the 12% yield you are quoting includes an historical special dividend that is not guaranteed to be repeated? The yield based on normal dividend policy you will find is much less.

Also why if we are coming out of a recession would people be more inclined to spend at a discounter for bargains? If we really are coming out of a recession, why wouldn't people use their increasing purchasing power to move away from the lower price/quality Warehouse stuff ?

When a share's earnings are not growing (as is WHS at the momnent) you would not expect any capital gain. In fact there is every chance that such a share may suffer 'price multiple deflation' which could see the WHS share price fall even when earnings do not. So what capital gain are you talking about? Perhaps you think WHS will be a takeover target? Perhaps it will, but guess what? This fact has been known by the market for *years* and is almost certainly already partially priced into the market.

WHS is better 'focussed' than Telecom? There is difficulty in comparing businesses across different sectors. But I would say recently regulatory changes and network problems have made Telecom management very focussed on getting stuff done. If anything, the relative underperformance of WHS verses the other retailers would suggest that it is Warehouse managment that are asleep at the wheel.

Despite what I have said above, long term, I think you would be onto a winner backing the Warehouse. But it may take time, lots of time. Perhaps the increased shop renewal program will show dividends? But I'm not convinced WHS is an obvious winner based on today's market prices.

SNOOPY

discl: Bought in at $4, sold out at $5 a few years ago when the Aussie expansion turned to custard.