MHJ - Michael Hill International.

[Lease]

Not so.Margin reducing ,huge staff back pay.Millions.

I focus on sales. We don't know margin yet until annual report released. Staff pay back is one-off cost. MHJ valuation has been down to multi-year low should be a good buy.

[percy]

I focus on sales. We don't know margin yet until annual report released. Staff pay back is one-off cost. MHJ valuation has been down to multi-year low should be a good buy.

They have stated margin contraction.
That means margin contraction.
That means to get the same profit, you need to "greatly" improve sales.That is not happening.
11 store closures come at a cost.
10 new stores will take years to recover their fit out costs.
In plain language it is a disaster.
Only positive is increase in online sales.But comes off an extremely low base and now only accounts for approx 3% of sales.

[Balance]

The pain continues.

Sigh - tough space to be in - bricks & mortar retailing of a semi-luxury discretionary product in today's retailing environment.

Very painful indeed.

[carrom74]

I remember rob fyfe bought huge lots of MHJ after getting into this trainwreck for 70 cents...

This goes to show that not all director purchases should be viewed as positive...(at least momentarily)

[clearasmud]

The Hill family must have most of their wealth invested in this business.
They won't want to see that destroyed.

[Jim]

The Hill family must have most of their wealth invested in this business.
They won't want to see that destroyed.

The Hill family own nearly 50% of MHI

[percy]

The Hill family must have most of their wealth invested in this business.
They won't want to see that destroyed.

Share price has halved in the past year.
So like us. they can see it being destroyed on a daily basis.
Not good for any shareholder,large or small.

[Lease]

No doubt MHJ operate in a tough industry, and they haven't done well in the past a few years. But the Company have no going concern issues. For half year ended 31/12/2018, the company have $7.7m cash on hand and over $220m inventory, with only $28m bank loans. Assets very easily cover liabilities. With net tangible asset backing of 0.49 AUD per share. The Company is extremely safe and largely undervalued. Shareholders only need patience to wait share price rise from current level.

[percy]

No doubt MHJ operate in a tough industry, and they haven't done well in the past a few years. But the Company have no going concern issues. For half year ended 31/12/2018, the company have $7.7m cash on hand and over $220m inventory, with only $28m bank loans. Assets very easily cover liabilities. With net tangible asset backing of 0.49 AUD per share. The Company is extremely safe and largely undervalued. Shareholders only need patience to wait share price rise from current level.

Consider their huge ongoing lease commitments.They are liabilities.
Mall rentals are savage.Only way out is at renewal, or at the end of the lease.
So huge liabilties to be funded from a broken business model.?
Stock valuations .Take extreme care. Depends on a lot of variables.
When a business is under pressure, stock loses value very quickly.
Fixtures and fiitings become near worthless.

[Lease]

Consider their huge ongoing lease commitments.They are liabilities.
Mall rentals are savage.Only way out is at renewal, or at the end of the lease.
So huge liabilties to be funded from a broken business model.?
Stock valuations .Take extreme care. Depends on a lot of variables.
When a business is under pressure, stock loses value very quickly.
Fixtures and fiitings become near worthless.

Their performance actually has improved. The Q4 same store sales up 0.1%, reverse the last three quarters downward trend.