-
27-07-2020, 03:27 PM
#3561
wow, was that article Beagle linked to written by Sylvester Cat. Awesome, well done , great article.
It does confirm the headwinds that the sector faces are likely permanent and the ongoing risk TWG faces is whether they can adapt or not so the bet is really whether management can keep up with that, and keep costs down.
There is good support under $2 of course so barring end of the world stuff there is little downside. Still worried about the real bite of the downturn though, and I have a couple of retail stocks already, so a bit meh about the whorehouse as I call it, for my portfolio.
For clarity, nothing I say is advice....
-
27-07-2020, 04:59 PM
#3562
Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
-
28-07-2020, 09:09 AM
#3563
Originally Posted by Beagle
Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.
Yes Oliver good at writing aimed at the general public rather than real investors. NZ Herald graphics could improve his charts though.
Oliver talked about the groups ‘share of wallet’
If he had delved deeper he would have concluded that the Red Sheds have become less relevant to kiwis over the years. Red Sheds share of wallet has steadily declined for 15 years and even online doesn’t seem to be relevant like in half year report online sales were down 10% in Red Sheds. Their battle to remain viable continues as NZers spend less of their money in the Red Sheds
Noel Leeming and Torpedo at least have some hope.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
-
28-07-2020, 09:27 AM
#3564
I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.
Last edited by percy; 28-07-2020 at 09:34 AM.
-
28-07-2020, 09:48 AM
#3565
Originally Posted by percy
I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.
A lot of that 17% is Nick and his off siders.
Nick gets about 40 times the median wage of all employers.
At least WHS don’t have Vice Presidents (recall our previous discussions about them) but they seem have quite a few General Managers or the like.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
-
28-07-2020, 10:06 AM
#3566
Originally Posted by winner69
A lot of that 17% is Nick and his off siders.
Nick gets about 40 times the median wage of all employers.
At least WHS don’t have Vice Presidents (recall our previous discussions about them) but they seem have quite a few General Managers or the like.
Whether it is Nick or who ever, it is out of control.
It is not sustainable.
Just a guess,but I would think some of those sale lease back deals, will now be proven to have been on too generous terms.Which means either leases are either renegotiated or not renewed.
Last edited by percy; 28-07-2020 at 10:47 AM.
-
28-07-2020, 10:46 AM
#3567
Originally Posted by winner69
A lot of that 17% is Nick and his off siders.
Over 600 on over $100k at WHS
You'd have to think Rod wouldn't have such a hierarchy.
-
28-07-2020, 10:49 AM
#3568
Originally Posted by Sideshow Bob
Over 600 on over $100k at WHS
You'd have to think Rod wouldn't have such a hierarchy.
That's incredible.
-
28-07-2020, 10:57 AM
#3569
Originally Posted by percy
I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.
Taking into account ancillary staffing costs, that percentage is likely much larger.
Staff can be difficult at the best of times and are increasing litigious.
-
28-07-2020, 11:17 AM
#3570
Originally Posted by percy
That's incredible.
Just had a look, Rod has 67. Much smaller company and WHS has various brands under its umbrella, but still....
Tags for this Thread
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks