WHS - Warehouse Group

[winner69]

I bought for income just like I did with HLG...you should stick around mate, you might be very surprised with how the market reacts when its realises WHS can consistently pay 10%+ income. See BNZ term deposit rates here https://www.bnz.co.nz/personal-banki...rates-and-fees
Which is safer, trading banks or WHS ?

You’ve caught on to my plan

Hope there’s a run by punters wanting big returns compared to risky banks,

Jeez 22 cents divie at 5% yield (heaps more than the banks) could see WHS at $4.40

Jeez that’s more than double my money ...who cares about INCOME when big gains are better

[Biscuit]

I get it that some people have been really disappointed with WHS in years gone by. But is it time for another look, that's the question ?



Above is from 2019 annual report, five year summary of annual dividends. I posted current term deposit rates at the BNZ earlier.

People need income to live, this is a fact that is not in dispute. If not WHS at 10.8%, what do those who hold a negative view on WHS say is better ?

According to a five year share price graph in Direct Broking, WHS share price has gone from just over $2.80 to about $2.10 in that period. So along with your 16c per share per annum dividend, you would have lost 12c per share capital per annum. I'm tempted to look at them more closely on the strength of your interest, Beagle, as you are pretty shrewd. But I cannot bring myself to do it! Also, I just hate companies that are "transforming" themselves. Great companies don't need to transform. Good companies should think twice before transforming, and bad companies rarely transform into anything good.

[Beagle]

You’ve caught on to my plan

Hope there’s a run by punters wanting big returns compared to risky banks,

Jeez 22 cents divie at 5% yield (heaps more than the banks) could see WHS at $4.40

Jeez that’s more than double my money ...who cares about INCOME when big gains are better

LOL - Worked an absolute treat when we both piled into HLG at $2.70 in late 2016 eh. HLG was a real dog then with no growth and heaps of new apparel retailers coming to N.Z. Most people thought we were nuts and told us so many times over lol
History never repeats with more than doubling your money on HLG like we did, must have been a fluke, what would we know ?, or maybe history does repeat

[winner69]

Biscuit - Warehouse transformations / restructures are needed just to stay in the game......stop the slip sliding away, not to grow profits

Stay in the game ...maintain divie ,,,,,Tindall Foundation happy ...Beagle happy

[Beagle]

According to a five year share price graph in Direct Broking, WHS share price has gone from just over $2.80 to about $2.10 in that period. So along with your 16c per share per annum dividend, you would have lost 12c per share capital per annum. I'm tempted to look at them more closely on the strength of your interest, Beagle, as you are pretty shrewd. But I cannot bring myself to do it! Also, I just hate companies that are "transforming" themselves. Great companies don't need to transform. Good companies should think twice before transforming, and bad companies rarely transform into anything good.

Fair enough, one bitten twice shy, I can certainly understand that. Fact remains though, the share price has built a bottom for over 3 years at just over $2, (Covid 19 period excluded) and dividends speak for themselves as do current term deposit rates. Fact also is nobody has told me where else I am highly likely and can reasonably safely earn a 10.8% gross dividend yield that I can earn with WHS. If they do, (I'm not holding my breath), I'll be keen to have a look.

Old brands have to reinvent themselves periodically to stay relevant. Restaurant Brands a good example of that. Many years ago almost everyone thought they were stuffed but cunning old Winner got aboard that tired old brand and make squillions...unfortunately I was one of the doubters with that one.

[winner69]

Beagle - WHS reinvent themselves to be relevant you say .....trouble is they will reinvent themselves to be what was relevant three to four years ago.

Did you note that online Red Sheds sales down 10% in H1 .....thats a sign of how good they are reinventing themselves.

Main thing is they stay in the game ....keep that divie up

[Beagle]

Gives me a bit of comfort you're on board for the ride mate...not that I need it, my Beagle nose is telling me there's a pretty good feed here and its seldom wrong.

[bottomfeeder]

Yes very dangerous predicting the success of a stock based on historical results. Interim dividend cancelled. Cancelled for a reason. Laying staff off. Since the last full Annual Report, there has been a lot of competition entered into the market. Lets see what your dividend yield will be at the next Annual Report.

[Beagle]

Cancelling dividends has been a widespread issue on the NZX and many companies did this purely as a precautionary measure.
That they are looking to drive new efficiencies is something I applaud, they are right to do this, "never waste a good crisis" even though many companies are doing exactly that.
Yes this year's annual report will show a lower dividend paid because they cancelled the interim one, like so many other companies but this is not unusual and the market has already shown it is prepared to look through mediocre annual results because of Covid 19 costs, RYM last week a good example.

Its the sustainable income going forward that I am focused on and others will be focused on when their term deposits come up for renewal and they are offered 1.5% to renew them. I see no reason why they can't go back to paying 16-17 cps per annum on a sustainable basis going forward.

Plenty of people told me HLG was stuffed because of new entrants to the market in 2016 and time proved all the naysayers wrong. WHS is a solid brand and Cindy and Grant are throwing money around like its water coming from a dam outside of Auckland. Just this morning she was talking about making sure people earning the minimum wage could afford to live a decent life. Mark my words, this is code speak for even more increases in the minimum wage and significant increases in benefit rates. The socialism hasn't even got into top gear yet, just wait until she can govern alone without the Greens or N.Z. First !

I foresee that we are about to enter a new era when Cindy and Grant make sure the WHS demographic has heaps of money for consumer staples and with a WHS in almost every part of N.Z. they are well placed to meet consumers demands for staple items.

I'll take a break from talking now...and do some more buying.

[winner69]

Stephen will ensure he himself and Tindall Foundation get a decent dividend

tindall Foundation gave away $10m last year and have committed another $12m ......lots of organisations will be in real need if these donations are cut back

Company will see them right