MHJ - Michael Hill International.

[Silverlight]

Two trades, fior 6.1m & 5.6m, seems like there was a middle man on the deal and only 6m shares have changed hands.

The 5% SSH threshold is 20m for disclosure, unless it was Hill selling some, or ACC buying (which could push them over the 5% margin from their current 13.9m shares), we won't be able to see who it was for another two weeks, when registry details update.

[K1W1G0LD]

It looks like things are at last improving for MHI. Trading definitely improving .



MONTHLY: MHI: 6 months trading update to 31 December 2009 08:32a.m.
MHI
08/01/2010
MONTHLY

REL: 0833 HRS Michael Hill International Limited

MONTHLY: MHI: 6 months trading update to 31 December 2009

Michael Hill International Limited
6 months sales to 31 December 2009

Note that these figures represent 5 months accounting adjusted sales results
plus December preliminary sales figures prior to final accounting adjustments
and are unaudited.

The following figures are in NZ Dollars Last Year
This Year % Var

Australia same stores 144,276,823
153,294,030 6.2%
NZ same stores 49,048,168
51,685,207 5.4 %
Canada same stores 18,544,168
16,212,847 -12.6%
Total same stores $211,869,159
$221,192,084 4.4%

Australia all stores
150,199,307 163,402,243 8.8%
NZ all stores 49,584,508
52,322,875 5.5%
Canada all stores 19,666,677
21,051,118 7.0%
USA all stores
6,999,318 7,487,850 7.0%
Total all stores $226,449,809
$244,264,086 7.9%

Exchange rates used for the 6 months:
Australia 0.83
0.81
Canada 0.71
0.77
USA 0.58
0.72

The following figures are in local currency Last Year
This Year % Var

Australia same stores AUD 120,100,614
124,423,041 3.6%
NZ same stores NZD 49,048,168
51,685,207 5.4%
Canada same stores CAD 13,175,001
12,528,868 -4.9%

Australia all stores AUD
125,067,591 132,620,181 6.0%
NZ all stores NZD 49,584,508
52,322,875 5.5%
Canada all stores CAD
13,965,554 16,280,176 16.6%
USA all stores USD 4,091,302
5,357,415 30.9%

Comments
Improved trading conditions during the key Christmas trading period helped
the group lift "same store" sales from being flat by the end of the first
quarter to 4.4% up by the end of the second quarter. All countries performed
well and improved their "same store" trading performance from the first
quarter. Retail conditions are still difficult in North America although we
have seen some encouraging trends emerging in the second quarter.

The full half year operating results are due to be released to NZX on the
18th February, 2010.

R.M. Hill 7/01/10
Chairman

All inquiries should be made to Mike Parsell CEO phone +61 403 246655
End CA:00190006 For:MHI Type:MONTHLY Time:2010-01-08:08:32:59

[bull....]

Positive announcement today.

Chart technicals going forward trend up after higher low confirmed at 60c , minor resistance at 70c heavier resistance at pivot high of last move 76c which was also fib 38% retracement resistance , a break of 76c would lead to a move to 90c.

[K1W1G0LD]

73 cents at the close .A rise of 10% in a day. Thats a bit special

[blackcap]

I am still curious as to the identity of the buyer/seller of those lots at 63.5 cents. Someone had a good deal

[winner69]

Amazing how long that 70 cents mark seems a hurdle for MHI .... goes over it for a short while and then falls back into the 60's again ... amazing

[cheksta]

What am I missing here?

MHI just released a half year profit $22.3m. Its highest ever FULL year profit excluding one-off items was $25.2m for the year to June 2008.

Its half year EPS were around 5.8 cents. If it can perform reasonably well in the 2nd half it should have a full year EPS of at least 10 cents, right?

At a PE ratio of 10 the share price should be at least $1.

Is MHI 50% undervalued? Or have I missed something blatantly obvious?

[macduffy]

I don't follow MHI but is it something to do with them earning the bulk of their profits in the first half ie before Christmas?

[forest]

I think you are on to it Macduffy. By my calculation its typical for MHI to have 75% of its profit in the 1H.

[cheksta]

Ok that makes some sense.

If 2nd half earnings are only 1/3 that of the first half then full year EPS should be around 7.5 cents per share.

Still seems undervalued but not extremely so.

Although MHI's average annual PE ratio hasn't been below 12 in the last 10 years.

If it can produce an annual result with EPS in the 7-8 region I see MHI priced in the 85 -95 region before year end.