Forum Archive Index - June 2003

["Shayne King" <shayne_king1@hotmail.com>]

SNOOPY,

-The WHS has had one profit downgrade ever and it was due to its struggling 
Australian operations. Could this be any more of an indication of the 
problems they are having across the ditch??
-"Personally I don't see the Aussie expansion as being that far off 
track"...Please read the above again but this time, very carefully!
-Please tell me what other "growth engines" the WHS has that are as capital 
intensive as its Australian operations??
-"Managements strengths" as an indicator of how great the WHS is?? Yeah 
right, the CEO just resigned and he was seen by the market as being amongst 
the top in NZ. Why did Muir leave again?? Hang on, it wasnt fully disclosed! 
Why would that be?
-I am a trend follower and study the fundamentals which therefore gives me 
an even greater perspective on how to veiw WHS shares. Why be one or the 
other when you can have the best of both worlds.
-Based on the fundamentals of WHS, too many question marks over 1) 
Australian Operations 2) resignation of CEO 3) who will be the new CEO 
(stability factors, growth factors etc).
-From a trend followers point of view, "what the???". A close of $5.30 on 
Friday and for what reason other than supply and demand?
-Put the two together and you have..."wouldnt touch WHS with a ten foot 
pole....at least!!!"
-And with regards to your last comment SNOOPY:

"So your strategy will be to wait until WHS has sorted out its Australian 
operation and buy in at the higher price that reflects that?"

...you wouldnt catch me buying into WHS under any circumstances. This stock 
has been "infected" with the aussie bug, much like TEL was a couple of years 
ago. And with the luxury of hindsight, this infection is far from over!

Regards
Shayne


>From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] WHS shareprice recovery???
>Date: Sat, 21 Jun 2003 22:27:58 +1200
>
>Hi Shayne,
>
> >
> >I am a little confused at why the WHS shareprice has turned from
>$4.20
> >about two weeks ago to $5.30 on friday. I mean, what was the act that
> >was done in order for the market to perceive WHS shares as
> >undervalued hence making a recovery???
> >
>
>Nothing.    The earlier sell off from $7.20 to $5.30 reflected the lower
>medium term growth outlook for this share.   The further sell off to
>$4.20 or so was irrational.    To those who study the fundamentals of
>the share and appreciate the management's strengths this was
>obvious.   If however, you were simply a trend follower who didn't really
>know what the underlying value of the Warehouse was, you were
>always going to lose by selling out at $4.20 or so.
>
> >
> >
> >As the market is aware, WHS
> > has struggled with its Australian operations.
> >
> >
>
>The Australian operations were never going to be profitable
>immediately.    Personally I don't see the Aussie expansion as being
>that far off track.  And the Warehouse doesn't have Australia as its
>only growth engine..
>
> >
> >
> > I do believe that when WHS was trading at around $4.30
> > that this was a discount, however only a
> > discount on its future outlook when things become more certain and
> > WHS are able to iron out the creases they have in their Australian
> > operations. Based on Fridays shareprice, i wouldnt touch WHS with a
> > ten foot pole....at least!!!
> >
> >
>
>So your strategy will be to wait until WHS has sorted out its Australian
>operation and buy in at the higher price that reflects that?
>
>SNOOPY
>
>
>
>--
>Message sent by Snoopy
>on Pegasus Mail version 4.02
>----------------------------------
>"Stay on the upside of the downside,
>Anticipate the anticipation!"
>
>
>
>
>----------------------------------------------------------------------------
>To remove yourself from this list, please use the form at
>http://www.sharechat.co.nz/chat/forum/
>

_________________________________________________________________
Download MSN Messenger @  http://messenger.xtramsn.co.nz   - talk to family 
and friends overseas!


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/