Monday, December 20, 2010

Michael Hill International: "Takeover" Undervalues the Company

The "takeover offer" being made to all shareholders in Micheal Hill International Ltd [MHI.NZX]by the Michael Hill Family Holding Company Durante Holdings Pty Limited (Durante), the holding company for the 47.63 per cent of the total shares in MHI owned by interests associated with Mr Michael Hill, is one that has appeared to get around the takeovers code by offering to buy 5% of current MHI shareholders in the company an offer to buy their shares at 90c each.

Typically any shareholding above 50% automatically kicks off what should be a full takeover for the target company but MHI seems to have found a loophole after abandoning an initial plan back in September after floating the idea initially in August.

Of course any shareholding above 50% gives the owner complete control of the company.

I labelled this a Claytons takeover in August and still consider this a blatant disregard for shareholder rights.

I will not be selling any of my shares for the above reasons and because the offer of 90c per share for effectively full control of the company is not enough premium for full control and undervalues the company and its long term potential.

I possibily risk a potential interview with Michael that I have been trying to organize for 2011 (I have his cell phone number but he doesn't always return his calls) by speaking out like this but I care about shareholders before the business owners.

If you are thinking of selling, please don't. Apart from the shenanigans associated with this power play the company is very well managed and has a great long term future and you would be undervaluing your investment in the company if you sold so cheaply.


Disc I own MHI shares in the Share Investor Portfolio


MHI Takeover

Full list of Related Documents

Michael Hill International @ Share Investor


Share Investor's 2011 Stock Picks
October 2010 Top Stock: Michael Hill International Ltd
Michael Hill International: Is Kim Kardashian the right fit?
Michael Hill International: Tall Tales & Rumours
Hill Family makes Claytons Takeover bid for Michael Hill International
Michael Hill International Ltd: 2010 Full Year Profit Analysis
Long Term View: Michael Hill International Ltd
Michael Hill International: 2010 half year profit commentary
Michael Hill Makeover kicks off
Michael Hill International: 2009 full year profit commentary
Toughen Up: What I have learned from the hard times
Stock of the Week: Michael Hill International
Michael Hill TV3 60 Minutes Interview
Long VS Short: Michael Hill International
Marketwatch: Michael Hill International
Michael Hill's profit shines
Michael Hill takes on the windy city
Why did you buy that stock? [Michael Hill International]
MHI has defined growth strategy
MHI profit sparkles

Discuss MHI @ Share Investor Forum
Download MHI Company Reports


Buy Toughen Up: What I've Learned About Surviving Tough Times

Toughen Up: What I've Learned About Surviving Tough Times

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c Share Investor 2010

Share Investor Portfolio: Value @ 20 December 2010

The Share Investor Portfolio had a good week last week and was up significantly on last weeks portfolio update. The portfolio was up by 2.24% or $6243.43. The main reason for the big rise was a 19c gain in the biggest part of the portfolio, Sky City. There were good rises in most other shares but the retail stocks in the portfolio were hit hard, especially The Warehouse which was down 19c and is the second largest part of the portfolio.

The total of unspent dividends in the bank from the 2010 earnings year is $16631.93 at close of reporting season for 2010. There are also approx $50000.00 in tax credits earned from the portfolio since it began in late 2002.


Share Investor Portfolio as at 17:30:00, Friday 17 December, 2010 (NZDT)

Stock
Quantity
Cost price
Total cost
Market price
Market value
Change
%
AIA

2,000 $1.700 $3,400.00 $2.140 $4,280.00 $880.00 25.88%
AIA

2,000 $1.510 $3,020.00 $2.140 $4,280.00 $1,260.00 41.72%
AIA

803 $2.150 $1,726.45 $2.140 $1,718.42 $8.03 0.47%
AIA

445 $0.000 $0.00 $2.140 $952.30 $952.30
AIA

64 $1.650 $105.60 $2.140 $136.96 $31.36 29.70%
ASBPB

2,946 $0.000 $0.00 $0.720 $2,121.12 $2,121.12
ASBPB

7,054 $1.000 $7,054.00 $0.720 $5,078.88 $1,975.12 28.00%
BGR

438 $0.000 $0.00 $1.400 $613.20 $613.20
BGR

2,562 $0.990 $2,536.38 $1.400 $3,586.80 $1,050.42 41.41%
FBU

266 $0.000 $0.00 $7.730 $2,056.18 $2,056.18
FBU

848 $9.750 $8,268.00 $7.730 $6,555.04 $1,712.96 20.72%
FPH

3,000 $2.350 $7,050.00 $3.090 $9,270.00 $2,220.00 31.49%
FPH

541 $0.000 $0.00 $3.090 $1,671.69 $1,671.69
FPH

1,459 $3.720 $5,427.48 $3.090 $4,508.31 $919.17 16.94%
FRE

1,882 $0.000 $0.00 $3.100 $5,834.20 $5,834.20
FRE

6,749 $3.630 $24,498.87 $3.100 $20,921.90 $3,576.97 14.60%
GFF

541 $0.000 $0.00 $1.820 $984.62 $984.62
GFF

1,459 $2.330 $3,399.47 $1.820 $2,655.38 $744.09 21.89%
HLG

244 $0.000 $0.00 $4.100 $1,000.40 $1,000.40
HLG

756 $2.530 $1,912.68 $4.100 $3,099.60 $1,186.92 62.06%
KIP

190 $0.000 $0.00 $0.980 $186.20 $186.20
KIP

810 $1.480 $1,198.80 $0.980 $793.80 $405.00 33.78%
MFT

1,000 $7.960 $7,960.00 $7.870 $7,870.00 $90.00 1.13%
MFT

1,838 $8.000 $14,704.00 $7.870 $14,465.06 $238.94 1.63%
MFT

657 $0.000 $0.00 $7.870 $5,170.59 $5,170.59
MFT

1,505 $4.200 $6,321.00 $7.870 $11,844.35 $5,523.35 87.38%
MHI

1,646 $0.860 $1,415.56 $0.850 $1,399.10 $16.46 1.16%
MHI

7,000 $0.630 $4,410.00 $0.850 $5,950.00 $1,540.00 34.92%
MHI

718 $0.000 $0.00 $0.850 $610.30 $610.30
MHI

636 $1.050 $667.80 $0.850 $540.60 $127.20 19.05%
PPG

31 $0.000 $0.00 $0.280 $8.68 $8.68
PPG

1,500 $0.440 $660.00 $0.280 $420.00 $240.00 36.36%
PPG

1,004 $0.800 $803.20 $0.280 $281.12 $522.08 65.00%
PPL

1,000 $3.090 $3,090.00 $1.630 $1,630.00 $1,460.00 47.25%
PPL

1,000 $2.870 $2,870.00 $1.630 $1,630.00 $1,240.00 43.21%
PPL

939 $4.200 $3,943.80 $1.630 $1,530.57 $2,413.23 61.19%
PPL

877 $0.000 $0.00 $1.630 $1,429.51 $1,429.51
PPL

1,184 $1.530 $1,811.52 $1.630 $1,929.92 $118.40 6.54%
RYM

459 $0.000 $0.00 $2.300 $1,055.70 $1,055.70
RYM

4,586 $1.970 $9,034.42 $2.300 $10,547.80 $1,513.38 16.75%
SKC

5,750 $7.430 $42,722.50 $3.320 $19,090.00 $23,632.50 55.32%
SKC

1,000 $7.600 $7,600.00 $3.320 $3,320.00 $4,280.00 56.32%
SKC

2,750 $7.700 $21,175.00 $3.320 $9,130.00 $12,045.00 56.88%
SKC

1,431 $8.750 $12,521.25 $3.320 $4,750.92 $7,770.33 62.06%
SKC

25,085 $0.000 $0.00 $3.320 $83,282.20 $83,282.20
SKC

899 $4.720 $4,243.28 $3.320 $2,984.68 $1,258.60 29.66%
STU

78 $0.000 $0.00 $2.150 $167.70 $167.70
STU

322 $4.740 $1,526.28 $2.150 $692.30 $833.98 54.64%
WHS

4,500 $3.730 $16,785.00 $3.560 $16,020.00 $765.00 4.56%
WHS

6,979 $6.000 $41,874.00 $3.560 $24,845.24 $17,028.76 40.67%
WHS

2,880 $0.000 $0.00 $3.560 $10,252.80 $10,252.80
WHS

641 $3.710 $2,378.11 $3.560 $2,281.96 $96.15 4.04%


17.73%


Total cost Market value Change

$278,114.45 $327,436.10 $49,321.65


Share Investor Portfolio @ Share Investor

Share Investor Portfolio: Value @ 13 December 2010
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Share Investor Portfolio: Value @ 8 November 2010
Share Investor Portfolio: Value @ 1 November 2010
Share Investor Portfolio: Value @ 25 October 2010
Share Investor Portfolio: Value @ 18 October 2010
Share Investor Portfolio: Value @ 11 October 2010
Share Investor Dividends

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Hubbard: A Biography of Allan Hubbard


c Share Investor 2010

Thursday, December 16, 2010

Stock of the Day: The Warehouse Group Ltd



The Warehouse Group Ltd [WHS.NZX] share price has been hammered over the last 6 weeks. From a high of nearly $4.05 back in late November closing down today on low volume at $3.52.

The stock has been a victim of constant media attention on Christmas shopping figures and official retail sales releases over the last few weeks. Pumpkin Patch Group Ltd [PPL.NZX], Hallenstein Glasson Holdings Ltd [HLG.NZX] and other retailers have been similarly affected.

To be sure the WHS Christmas shopping fortunes for the first half of the 2011 financial year are very important to the bottomline but there is only anecdotal news at the moment that they are being hit hard.

For the share price to be hit by around 12% in six weeks seems a little overdone and I will be watching for further weakness for an opportunity to buy more shares for as little as possible.


Disclosure: I own WHS shares in the Share Investor Portfolio


Warehouse Group Ltd: 2010 Full Year Profit Analysis
Share Investor Q & A: Questions to The Warehouse' Ian Morrice
Long Term View: The Warehouse Group Ltd
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Discuss WHS @ Share Investor Forum - Register free
Download WHS company reports

Shop online at The Warehouse


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A Perfect Gentleman: The Sir Wilson Whineray Story

A Perfect Gentleman: The Sir Wilson Whineray Story



c Share Investor 2010

Merry Christmas and Happy New Year from Share Investor

I have the 2011 Share Investor Stock Picks coming up over the next few days (my 4th one!) and that post is likely to be one of the last for 2010.

I wish all my loyal readers and to your families and loved ones a very Happy Christmas and a prosperous 2011 New Year.

It has been a pleasure writing on some my favourite subjects and I hope you have found some interesting tidbits to help you out in these very crazy financial times.

I hope you can all join me in 2011 where we can all do it again but this time with a smile and a wink!

To check out the holiday operating hours of the NZX and what is coming up please go here.

To those readers outside New Zealand the photo is of a Pohutakawa Tree, a Native coastal tree, the New Zealand "Christmas Tree".

Darren, Share Investor.


Share Investor's Annual Stock Picks

Share Investor's 2011 Stock Picks
- NEW
Share Investor's 2010 Stock Picks
Share Investor's 2009 Stock Picks
Share Investor's 2008 stock picks


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c Share Investor 2010 & 2011