My Daughter-in-law works at jewellery store in Canterbury and since covid lockdown they have been busy and at the present time they are doing the best in years, some expensive purchases happening even top range.
My Daughter-in-law works at jewellery store in Canterbury and since covid lockdown they have been busy and at the present time they are doing the best in years, some expensive purchases happening even top range.
Interesting, the one in South City chch closed down, just an empty store now. Obviously was not doing that well.
MHJ have been closing these non performing stores for awhile now. Good! Their website is impressive + loyalty scheme = 110% online sales growth on previous corresponding period. Cost base much much lower when selling online VS a store = 200bp margin growth on previous corresponding period. COVID stops travel, travel money going to some jewelry purchases maybe? Their last update: "it is currentlyanticipated the Company is likely to deliver an EBIT result for FY21H1 materially exceeding the prior year half one result(FY20H1: $31.6m), before taking into account the favorable impact of wage subsidies and AASB 16 Leases."
Rob Fyfe purchased $450k worth of shares in Sep, on market. Jacqueline Naylor purchased $50k. I brought when I saw them buying and have MHJ as one of my top 5 picks for 2021 $1+ isn't unreasonable. Start of an uptrend?
MHJ sp has continued on its march, currently at $0.74. Would be good to see it clear $0.75 and then continue on to $0.80. I have a value on them of $1.06 when playing around with a spreadsheet. Based on 15% growth in EBITDA for FH21 and revenue in line with last year (due to the store closures). The model assumes a very conservative 3% growth rate for 10 years which they seem to do, with ease, on a same store level. I'm just not sure how many non performing stores are yet to be closed with the transition to online- huge YoY online sales growth expected to continue- which of course has far better margins.
Gosh I love MHJ. Such a simple business to understand and people have been buying precious metals/stones to wear for thousands of years so I can't see it changing. I see them as a brand sitting above Pascoe's and I guess just below Walker and Hall. A nice mainstream spot in the market.
There is no reason they can't pay a 6cent divvy this year- 8% gross in this low yield environment!! Low/no debt. I do like. Just as long as they don't do another big expansion like the failed USA acquisition post GFC. Stick to NZ/AUS/Canada which has ample growth opportunities ahead.
First purchased at $0.33. 9% of my portfolio. Looking forward to Feb FH21 update. DYOR
Originally Posted by Beau
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$1+ isn't unreasonable. Start of an uptrend?
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