Forum Archive Index - May 2000

["nick" <acummin@es.co.nz>]

> Nick,Off the top of my head,I say the "big red" barn
> warner lamber

          Good try and indeed the warehouse is a qualifier.
 That was too easy, anyone have anymore?

Here are the stats.

1)  For the past five years earnings per share have been
      1999    1998    1997   1996  1995
      37.90  28.02  24.65  11.04  13.46
  We can see from  this that in four of the past five years
earnings per share have grown. Over the five years growth
has averaged around 30% (maths not strong point)

2)  Now for the PEG
                               PE=   18
                                        ----  = .6
              EPS growth =     30

      This shows that despite a reasonably high p/e the company
is still fairly cheap when you consider earnings growth. Any peg
under 1 indicates a company is good value and .6 would indicate
we would all get a bargain with the warehouse. Earning growth
could drop to around 15% per annum and the company would
still be good at the current price.

3) Yep chairman is optimistic, outlook is good and thinking of expanding
     into australia

4) Liquidity . borrowings and cash flow,  they stack up ok on this front,

5) Competitive advantage, they certainly enjoy that, everyone gets a bargain
      etc

        To sum up it has to be said the warehouse does meet the criteria
set out. The companies growth rate will probably slow as the company matures
but for the forseable future the company looks on the up and up. Heres what
datex
has to say on it

 Comment: The company was listed in November 1994 following a public issue
of 23.6m ordinary shares at $2.50. The Warehouse was established in 1982 by
Executive Chairman Stephen Tindall, initially selling imported and
manufactured clearance lines in Takapuna. The Warehouse has matured from a
small, low cost, clearance retailer to become New Zealand's second largest
general merchandise retailer, operating a chain of 69 stores representing
250,887 sq metres of retail space at 31/1/2000. The company also owns the
Warehouse Stationery chain, its base for expansion in the stationery
retailing sector. At 31/1/2000 Warehouse Stationery operated 23 stores
representing 26,657 sq metres of retail space. Progress of the group since
its establishment has been remarkable, although its post-listing performance
has been marred by a setback in 1995-96. New store openings in 1998-99
numbered 8 (4 in new locations and 4 replacements for existing stores),
while Warehouse Stationery opened a net 1 new store. For 1999-2000 The
Warehouse expects to open 10 new stores (6 at new locations and 4
replacement stores), and Warehouse Stationery is planning to open an
additional 7 stores. Looking further ahead, the group plans to increase its
retail selling area by a factor of some 40% over the next three years. The
group's systems have been improved and gross margins increased by a
combination of increased operating leverage and the benefits of continuous
improvements in supply chain and merchandise planning. The company now
operates from two primary distribution sites compared with nine at the
beginning of 1997. Property rationalisation in 1998-99 included sale and
lease-back of 5 properties for a total consideration of $23.2 million;
further property rationalisation has been undertaken in the first half of
1999-2000 involving four properties totalling some $25.7m. Continued sound
performance appears to be in prospect, with new opportunities evolving in
such areas as parallel importing, mobile telephones, banking services and
pharmacies, with further YTD sales progress reported in the third quarter of
1999-2000 - The Warehouse up 15.9%, Warehouse Stationery up 35.2%, and total
group sales up 16.8%
Latest Information: Interim profit up 30% to $48.7m. Interim dividend 17.0c.







----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.