What are your favourite 3 NZX Stocks and Why?

[ENP]

Title says it all.

What are your top 3 NZX stocks. Please dicuss why you like them, if you currently hold them and a bit of info as to how you approach investing in themm.

[ENP]

I'll start...

RYM- Ryman Healthcare

I like this company because it has the shareholders interests at heart. It is growing at a steady rate around 10-15% per year. It is in an industry that is in high demand and the predictions of this growing are very promising. It also returns 14-16% on equity. The management has holdings and is increasing holdings in the company. It is expanding into Australia. I bought 6k of shares in 2010 and then sold them weeks afterwards for fear of sharemarket collapse (what was I thinking?) and now hold roughly 4k worth of shares, bought about 7 months ago.

SKT- Sky Television

I like this company and it's monopoly status. It's been a solid performer over the past decade, growing its revenues and profits. It also has a very strong foothold in NZ households and does quite well in recessionary times. It's return on equity isn't as good as I'd like, only being around 7-8% I also uneasy about the amount of money the need to upkeep and upgrade their technology. I don't hold any of the company and would only if they become very cheap.

POT- Port of Tauranga

The biggest and best port in NZ. I work in the shipping, import/export industry and Tauranga seems so more efficient and just gets on with the job compared to the other ports. The large volume going through the place is also an advantage. It's a sure and steady grower and is likely to continue. Once again return or equity isn't as high as I'd like, only being 6-7%. I don't hold any as the P/E always seems to be astronomical compared to other NZX stocks.

So there is my 3. Next please!

[troyvdh]

....I know why you ask the question....investing is a strange game.....short term....long term....if we all thought the same way ...there would not be a market....thats why we have sharetrader.....for example I hate SKY...and love Ryman....I love CEN...and PFI....I am comfortable holding same....rational/irrational....and ive been investing for 30 years plus....in a perfect world we would all pick "winners" and "performers".....either for the div,potential of div or SP gain...because "the MKT hasnt waken to this little beauty"....The market will recover....folk who got burnt in the mid 80's will forget....the bloke over the fence bought this.....a mate at work told me this.....

...thankyou for asking the question......cheers troy

[elZorro]

I like FPA, because when it collapsed a couple of years back I couldn't believe it would disappear, and bought in when it was on its knees. Made a few thou gain, which for me is highly unusual.

I also like OGC once it gets into a good run, and it might be doing that now. My timing on this one has been very poor, TA knowlege required.

I don't buy shares for dividends, I'm looking for capital gain. GEL is the share I've invested most research into, because I can see a good expected return. After being wrong for several years, I'll be only mildly surprised if it does what I expect it to, before I need to invest more carefully.

[garfy]

A novice of 6 months, and have enjoyed very much the various threads and opinions, all of which have helped me make decisions, for better or worse. My favourite 3 NZX stocks, chosen in ignorance, and under the influence of ShareTrader Forum...

1. FPA - chosen for sentimental nationalistic reasons, and it seemed a rather cheap entry in Feby 2012. The F&P appliances we have purchased over the years have performed with distinction. An innovative company, and to my laymans opinion a very well managed company.

2. SUM - Chosen because it seemed to me to be a growth industry, and the entry price was more affordable than RYM. A good stable field to invest in for a start.

3. HNZ - Under the influence of Sharetrader Forum, as well as being very nationalistic, the prospect of being able to become a shareholder in a NZ owned company that may become a fully fledged bank became an irresistable choice, and also a good entry price.

I have invested with Capital Gain, rather than Dividends, in mind, and these companies have (so far) exceeded my expectations. I really enjoy this Forum. Thanks oto all who contribute.

Cheers, Garfy

[Halebop]

Long Term (10+ Years): Michael Hill; 30 year growth pedigree, simple strategy of opening new stores, high return on capital, cash-flow from new PCP business is impressive, share price is moderate, good balance of investing for growth and sharing profits via dividends

Medium Term (3-5 Years): Diligent; Operating leverage improving rapidly on the back of rapid sales growth, number 1 globally, very strong cash flow, high return on tangible assets, fraction of addressable market tapped

Short Term (1-2 Years): Abano; Not very profitable due to heavy investment in dental consolidation strategy and expansion of Bay International however showing signs of technical break out after multi year down trend. Would shift them to a longer category if all the activity more clearly translated to earnings

[CJ]

This is at the moment:

Ryman: great growth model and will keep growing year on year with steady cashflows and a great business model. Have considered buying Somerset to diversify individual stock risk while maintaining sector investment as the retirement industry is booming but that doesn't mean an individual company wont falter along the way in the short term (same reason I have hold CEN & TPW and Xero & DIL).

Resturant Brands: Great dividend stock and is showing great capital growth at the moment as the economy improves. Will keep an eye on as didn't expect this much growth in the short term (only bought a few months ago. I considered Briscoes and Hallensteins when I bought and they all seemed similar. Bought RBD as it does just as well in a recession.

Diligent/Xero: Great growth stocks but very high risk. Need to keep an eye out for a stong competitor with a strong product (Xero currenlty has lots of strong competitors with crap products).

Having said that, the base of my portfolio is steady infrastructure stocks: IFT, TPW, CEN, AIA. I consider these my anchors (hold me back but provide stability in falling markets since I am a buy and hold investor) so I can look to higher risk shares to top up the gains and have some fun. I only invest in NZX stocks as I dont have the time to research further afield.

[Jay]

MHI - As Halebop says has been growing for years - seem to know what they are doing
DIL - A growth company with plenty of potential - have a head start I think - relatively recent acquisition
RYM - growing industry - steady gains in capital growth and regular dividend

These make up the bulk of the long term portfolio

[modandm]

Great thread! Here are mine.

AIR - Poorly understood, and highly volatile. Potential for very large profit swings. My personal research leads me to above concensus earnings estimates for FY13. Meanwhile even concensus earnings estimates see 30-40% upside. Not a long term industry to invest in, but I believe one of the few value stocks on the NZX that could return 50%+ over next 12 months. More info in the AIR thread - which I seem to be the only contributor too - as I say overlooked and out of favour.

IFTHA - not a stock but a perpetual bond. Yields over 7.5% and will go up in value when interest rates rise (eventually)... Not rated but IFT is reasonably low risk (IMHO) not very liquid.

I struggle to find any other good opportunites on the NZX that offer short term high gains - so for a long term stock

SKC: Very very high quality asset in AKL, long term grower at c.5% pa trades on 14-15x so not cheap but deserves rating. A good yield. Better than AIA which trades on a higher multiple and is a similar monopoly. Also potential gain with conference centre though not central to investment case.

[CJ]

AIR - Poorly understood, and highly volatile. Potential for very large profit swings. My personal research leads me to above concensus earnings estimates for FY13. Meanwhile even concensus earnings estimates see 30-40% upside. Not a long term industry to invest in, but I believe one of the few value stocks on the NZX that could return 50%+ over next 12 months. More info in the AIR thread - which I seem to be the only contributor too - as I say overlooked and out of favour.

I read your post but just dont comment. Am a long term holder and am waiting for a good exit point as have decided the industry really is a dog. However, like you, I think this share has room to grow in the short term but not a suitable entry for this list.