This spin off from ORI showing some strength since being listed in its own right
A demerger that actually generated shareholder wealth - $1 billion worth - the sum of the parts were more than the whole as ORI shareprice back to where it was on the day of the demerger
Still vlaued pretty reasonably and maybe a takeover on the cards should underpin the price
DLX closed at 269 which is post demerger high. The demerger from ORI has proved the sum of the parts was more than the whole.
Still reasonably valued - good dividends will come over time as they say 70% of earnings to be paid out and seeing that they have been stand alone for a month they wouldn't dare miss earnings expectations for the year to Sept.
Earnings grown staedily over many years - repeat that this year and into 2011 will put 10% on the share price and with a 5%-6% dividend yield thats a pretty good return over the next year .... and with the possibility of a bit of rerating lokely
I see Perpetual have taken a fair chunk of DLX .... increased their stake post demerger so they msut like the story
Also note that it was reported that Nippon paint has been thrown out of Bunnings (only put in less than 2 years ago) which will leave more space on the shelves for Dulux paint eh
Just a reminder to myself that DLX should benefit from WES announcement re 30 new Bunnings warehouses in NSW in addition to the stores already planned
Guess is, by looking at how much Dulux stuff in a Bunnings stores, and doing some quick sume filling up 30 big boxes is prob worth at least $5m profit for DLX ... and then there is the ongoing sales
Wonder if that is what is behind the increase in the DLX shareprice this morning
Still holding the one I got from ORI .... doesn't seem to be any reason to sell either
Just a note to myself that DLX reached a new clsoing hgh of 279 on Friday
Share price performance not too bad from this ORI spinoff .... essentailly free shares as ORI not far from the pre spinoff price
Been solid support this week so obviously people think that this is good buy at the mo. One day this week volume was over 7 mill shares ... 10 times recent daily average
Chart still looking good so i still holding .... hopefully for years
Hi winner, I wonder what proportion of profit comes from retail sales versus trade. (Does DLX include the 'dulux/orica' powdercoating business?).
[you will no doubt be aware that the trade part of the paint industry includes 'ordinary' painting of buildings, specialist protective coatings (eg steel), powder coatings etc]
And,
now that Valspar (american giant) have taken over Wattyl (incl NZ & Aus etc), I wonder whether there will be any competitive/aggressive business strategy change on either the part of DLX or Valspar that might have an impact going forward.
I see that over the last 6 months, DLX, NPX and the ASX All Ords have all finished up about the same at +9% ...
However over the last 3 months NPX +8% CF DLX and All Ords +3%
WOW entering the hardware space, floods, GFC recovery offer opportunity in following QTRs ...
Hi winner, I wonder what proportion of profit comes from retail sales versus trade. (Does DLX include the 'dulux/orica' powdercoating business?).
[you will no doubt be aware that the trade part of the paint industry includes 'ordinary' painting of buildings, specialist protective coatings (eg steel), powder coatings etc]
And,
now that Valspar (american giant) have taken over Wattyl (incl NZ & Aus etc), I wonder whether there will be any competitive/aggressive business strategy change on either the part of DLX or Valspar that might have an impact going forward.
The presentations DLX do make the point that a greater proportion of their business is homeowner/maintenance driven rather than the new constrution/industrial side segment. Rememeber that DLX is more than paint - at also has the Selleys and yates business
Probably a lot of the homeowner painting work is actually performed by tradesman - the point they make is that the homeowner is the influencer in the whole process
They say because of this they have maintained steady profit growth for some time and are somewhat insulated from the ups and downs of the building cycle
It appears that the old Orica powder coatings is part of DLX
In their annual report they seem quite comfortable with Valspar taking over Wattyl ... acknowledging Wattyl will improve but point out that they have grown share over the last few years in spite the coming and going of Nippon and other rationalisation in the maint market
WOW entry into hardware also looks good for DLX .... Dulux, Selleys and Yates products are likely to be stocked. Apparently each big box needs about $400k-$500k of DLX stock which is about $200k-$250k margin. Cant rememeber how many stores WOW plan but 200 plus odd sticks in my mind so thats heap of additional profit for DLX just stocking the stores up.
Got these DLX shares essentially for free when ORI spun them off .... first price in July was 250 so ahead of the game and there has been a part year dividend as well .... if the chart keeps looking healthy may be holding for some time
Aussie people need to know that DLX is the only major Australian owned paint company left .... (Valspar and PPG from USA own the other major brands) .... so Aussies neeed to buy Dulux eh
Interesting point about Dulux now being the Ausi-owned brand in Ausi.
Dynamic is slightly different in NZ (with Resene being here) but I think Kiwi homeowners loyalty is spread between Dulux (fluffy dog adverts, which seem to have gone, in favour of the sandfly point ads) Resene (marketed to homeowners as "professional" [not!] to justify higher price) and Wattyl, Taubmans (kiwi blokes don't care about loyalty, just want a cheap paint that is technical good, actually as good as any).
Yes, Yates and Selleys also have that same characteristic of retail and trade but with a pretty big retail presence.
Not sure about Aus, but I think Orica powdercoatings have a pretty big presence in NZ.
DLX - Dulux Group
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Originally Posted by tobo
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