StockTalk

XRO appears to be well out of favour at the moment. Any thoughts on why the SP has dropped so much over recent months?

QuoteThe bank begins engaging with customers almost immediately after they fall behind on their loan repayments, contacting them by text and email. Five days after non-payment they will begin calling the customer, which continues through to day 45.

At this point the vehicle may be seized by two companies that contract to Heartland. The customer has a further 14 days following repossession to redeem the vehicle by paying the arrears or by engaging with the bank to find a solution.

Since February 2025.  Hmmm.  This is the sort of policy that makes sense and that they should have been doing ever since they started lending on motor vehicles.

Quote from: Shareguy on Today at 10:22 AM.....A soft result but broadly expected and the outlook statement points to some improvement in 2H.  Im picking we have seen the bottom and upwards and onwards from here.  Quality well run company.

Disc: Recently become a holder again

I've always liked MFT and am watching from the sidelines as a non-holder.

However I won't be buying at these levels.

TA  not looking auspicious IMO.

Ferg sums up the FA nicely...

"Last year's profit was $274m, last 3 half years were $115m -> $159m -> $93m.

It is the labour & all the 'other' costs impacting NPAT, but not transport costs which have improved. BOTFP suggests labour costs will be up $100m in FY26 with the other line items roughly cancelling each other out, for a NPAT impact of -$72m....assuming sales are roughly flat.

If we take the latest HY of $93m and double it to a generous $200m (which is a fall of $74m), that is ~$2 EPS. At $60 that is P/E of around 30.

With labour costs on the rise, it won't be easy to get back to $274m in FY26 or FY27.

High P/E stocks react a lot worse to earnings targets misses than low P/E stocks so no rush for a contrarian buy IMO....I'm happy to be on the sidelines for now."

Quote from: LaserEyeKiwi on Today at 10:23 AMFunnily enough I asked AI what are the most desired anchor tenants for new retail developments, and it gave me IKEA & Costco as the preeminent names.

Nice work mate.    I agree 100%, this is a MAJOR milestone in this development being really successful.
 

@basil do you have a view on MFT?

Good seeing every NZ news site with headline saying "Auckland to get 2nd Costco store" and discussing KPGs Drury development.

The herald has more details on the deal. Costco saying the new location will serve both people in south Auckland as well as Hamilton and the wider Waikato region.

https://www.nzherald.co.nz/property/new-zealands-second-giant-costco-wholesale-to-be-built-at-drury/DSRQXPVDIZFJ3HEWX7PEYIPAZM/

Trying to thing of who else will now be lining up to get into Drury with either a deal to buy land or to lease.

Already got New World going in.

Presumably one of either Mitre10 or Bunnings will be jostling to get in.

Homewares I presume a Kmart or a Briscoes.

Funnily enough I asked AI what are the most desired anchor tenants for new retail developments, and it gave me IKEA & Costco as the preeminent names.