KMD - Kathmandu

[percy]

So Kathmandu drops 11% yesterday on ... no news? Can someone enlighten me as to what happened?

cheers
Greg

Daily Share Chat a few days ago;The Reserve bank of Australia is likely to raise interest rates in November,which will create headwinds for retailers heading into the key christmas period.

[gregrday]

Thanks Percy, seems a bit extreme, but thems the markets!

cheers
Greg

[JayPe]

Kathmandu drops its prices 50% every other week. Maybe it is related?

Nice one CJ!

[winner69]

So KMD is along with Infratil the most popular stock picked by analysts for 2011 (NZ Herald)

Must have caught on to those high margins and that the market over reacted to slightly missing the prospectus gross percentage

Just remember bear markets start shortly after when consumer spending growth rates peak ... and conversely end when consumer spending starts to pick up again.

In spite of what you read in the papers NZ retail sales reached their nadir in the September 2009 quarter and have slowly got better each quarter since .... and on an annual basis are now 2.5% ahead of last year with a definite uptrend in place

Where the retail spend cycle is current is a signal for better times for the NZ economy ... and shares ... and probably retail shares

Again the headlines in Oz are all gloom and doom but retail growth remains positive

So maybe the 3 guru stockpickers have it right ... and my belief is that KMD is still the best NZ listed retailer to bet on .... with punters benefiting from not only an upturn in market conditions but from the store expansion program underway

[percy]

Figures from Paymark show nationally there was a 6.7% decline in the number of transactions,compared with Boxing Day last year.
Total value of transactions also declined 2.8%.
No region recorded an increase this year.
With the increase in GST sales would need to be up 2.5% to be the same as last year.So retail sales remain poor.

[winner69]

Figures from Paymark show nationally there was a 6.7% decline in the number of transactions,compared with Boxing Day last year.
Total value of transactions also declined 2.8%.
No region recorded an increase this year.
With the increase in GST sales would need to be up 2.5% to be the same as last year.So retail sales remain poor.

Is one day indicative of what the real story is. The same people said before Xmas that sales were up for the first 21 days of December

Weren't there more Boxing Day Sales happening before Xmas as well ..... and one shop owner I talked to said gift vouchers were becoming very popular so punters may have been using those on Boxing Day

Stats NZ made this comment in the October sales release Sales trend - The sales trend for total retail has been rising since February 2009, up 6.6 percent since then. The trend is at its highest level since the series began in May 1995. The monthly rate of increase has been steady, averaging 0.2 percent over the past year.

I agree times are tough out there for retailers at the moment ... after all we are essentially in the middle of a 5 year recession ..... but things are getting better according to the data .... sales wise at least .... it's just that deflation is hurting them a bit and many haven't managed to get costs down to the new norm

I'll stick to my story in that retail stocks leveraged for growth with a store expansion program on the go is a good bet in this environment

[percy]

[url]www.theaustralian.com.au colorado at risk of defaulting loans.
"the retail apparel industry in particular has experienced declining margins and market size."
I do not expect Colorado are alone, although I think it is the big ticket retailers who are suffering the most.

[winner69]

[url]www.theaustralian.com.au colorado at risk of defaulting loans.
"the retail apparel industry in particular has experienced declining margins and market size."
I do not expect Colorado are alone, although I think it is the big ticket retailers who are suffering the most.

Thanks for that percy .... on one hand good to see private equity losing money because of high levels of debt but sad to that such greed impacts the day to day operations of a profitable well run business

Looks like punters won't be sucked into providing cash to these greedy predators in 2012 now ... IPO off the table I would say

[percy]

Looks like punters won't be sucked into providing cash to these greedy predators in 2012 now ... IPO off the table I would say[/QUOTE]

They are not alone.Redgroup who own Whitcoulls and Borders are in the same "leaky" boat. !!!

[winner69]

Looks like punters won't be sucked into providing cash to these greedy predators in 2012 now ... IPO off the table I would say

They are not alone.Redgroup who own Whitcoulls and Borders are in the same "leaky" boat. !!![/QUOTE]

Anybody who borrows more than they can afford deserve what they get eh ... as well as the greedy suppliers of that dosh ..... they deserve to lose as well

The worlds gone mad with debt and now we (all) are suffering ..... the world needs to stop borrowing as much and get back to old fashioned values