MHJ - Michael Hill International.

**Rawz** · 12-04-2022, 09:26 AM

Gee MHJ is really a solid performer.
I guess recession or no recession people still get married, there are still birthdays for loved ones, anniversary's etc

More reliable than HLG and trading on a much lower multiple.

For W69- With the massive war chest of $75m odd the world is it's oyster. It could be time to give CEO/CFO a bit of credit and assume they will allocate that cash in a smart way that provides growth into new markets for the next decade+ ahead. MHJ has better growth prospects than HLG, BGP & WHS and is trading on a meager 10-11 fwd p/e (without backing out the cash)

Putting away the baked beans

but now thinking i dont hold enough MHJ shares

**Waltzing** · 12-04-2022, 09:26 AM

The man in the wheel house (or flight deck) RF hopefully will keep them from getting bling in their eyes and they dont go off and do anything silly like buy up some useless bankrupt jewellery chain.

Choppy next 24 months coming; but Carter Worth has said the 10YR might not go much higher.

But nothing in the short term will put more money in people pockets unless wages go up and that means stagflation starts to leak out.

It not a time to go all over weight on retail?

Without RF there would not have touched this stock.

The big easy gains from investing in this stock have been made from the lows.

Still worth having some.

**Rawz** · 12-04-2022, 09:36 AM

Originally Posted by Waltzing

The man in the wheel house (or flight deck) RF hopefully will keep them from getting bling in their eyes and they dont go off and do anything silly like buy up some useless bankrupt jewellery chain.

Choppy next 24 months coming; but Carter Worth has said the 10YR might not go much higher.

But nothing in the short term will put more money in people pockets unless wages go up and that means stagflation starts to leak out.

It not a time to go all over weight on retail?

No- still caution required on retail but wow MHJ could be the one if you were going to take a slice of the retail pie.

MHJ have closed 47 stores since 2017. I remember listening to a earnings call last year and the CEO noted that the CFO had a passion for drilling down into the store specific numbers. As if he had figured out the science behind it.
I am now starting to think management need more credit in how they allocate the cash. It certainly isnt priced into the SP. Its priced in like they are going to blow it. Not sure that is fair based on results through very tough trading conditions when everyone else (bar BGP) have seen sales fall

**winner69** · 12-04-2022, 09:39 AM

Hey Rawz ....closed 1 store in NZ

Must be heaps more due to close ..... Michael Hill a train wreck in NZ ..... Pascoes and others gradually whittling away at their market share I reckon

Yep - got to think of MHJ as a global company eh

**Waltzing** · 12-04-2022, 09:44 AM

did a store profit just before we took out 3 portfolio positions back in early 2021.

not hard even with the limited data they publish in the FA YTD.

They will have detailed data one supposes.

It a bit like fashion design. If you have the talent in that industry you can make it but it much harder industry one would think then just selling the stuff HLG sells.

You have to have a mix of artistic craft people mixing it with the likes of RF management types.

A bit of a high wire balancing act.

" Its priced in like they are going to blow it"

well its been a business that in the past has blown it!!! But now they are back on the high wire for sure.

Even Telsa looked like it would go under a while back and Musk recently commented "Production is the hard part".

Always believed that there was a reason the celts produced the arts and crafts they did and that is alive and well today in societies around the world.

**Rawz** · 12-04-2022, 10:01 AM

Originally Posted by winner69

Hey Rawz ....closed 1 store in NZ

Must be heaps more due to close ..... Michael Hill a train wreck in NZ ..... Pascoes and others gradually whittling away at their market share I reckon

Yep - got to think of MHJ as a global company eh

Close one store. Sell 3% more goods via improved online offering and at 200bp higher margin. This is their story, W69.

Pascoes and co can carry on with their gimmicky promotions, massive brick n mortar store footprint battling away with rising labour costs and rents tracking inflation. Meanwhile MHJ is operating in the future and laughing all the way to the bank