WHS - Warehouse Group

[Basil]

The race continues between this and HGH to see who can get to $1 first.  HGH made huge strides today but I reckon this could go into freefall when they announce their shocker first half result..

[Basil]

WHS been making huge strides down in the last couple of days and so far today, rapidly catching up to HGH.
Yesterday we found out WHS exits the small companies MSCI index at the end of this month.
Who would want to be a buyer knowing there's all that selling pressure coming this month as well as a shocker first half result in March.  Then there's the possible exit from the NZX50 coming in due course as well.  My goodness, this could get very ugly.... 
I reckon this is going under $1 before HGH, (the latter may or may not get there), but I am pretty sure this will.

[LoungeLizard]

WHS been making huge strides down in the last couple of days and so far today, rapidly catching up to HGH.
Yesterday we found out WHS exits the small companies MSCI index at the end of this month.
Who would want to be a buyer knowing there's all that selling pressure coming this month as well as a shocker first half result in March.  Then there's the possible exit from the NZX50 coming in due course as well.  My goodness, this could get very ugly.... 
I reckon this is going under $1 before HGH, (the latter may or may not get there), but I am pretty sure this will.

I reckon it's not just the plunging SP that Heartland and the Warehouse have in common.

 They have both come unstuck by a management team that seemed determined to diversify even when the economic circumstances didn't stack up and looked risky. WHS has its Torpedo 7 / Noel Leeming millstones and I'm not convinced that Challenger won't be an entity too far for HGH. It strikes me that NZ's most successful business's seem to be the one's that don't stray too far from their core business. And they manage that business with a laser eye kept on costs (including managements' salaries) and margins. If they do expand it is done progressively, at the right time and with caution. Think Briscoe's, Hallensteins and Turners.

HGH have got a head start but my money is on WHS to get to $1 before they do. HGH are in a protracted slump but will ultimately weather the storm. I'm not so sure about WHS - they are in deep, deep trouble and could be next to issue a trading halt. Let's hope they'll do a Fletcher's and "retire" their CEO and Chairman. 

[Basil]

And they manage that business with a laser eye kept on costs (including managements' salaries)

Yes Nick and Jeff's multi million dollar salaries both look outrageous both in absolute nterms but especially in the context of their weakening share prices and financial performance.

HGH have got a head start but my money is on WHS to get to $1 before they do. HGH are in a protracted slump but will ultimately weather the storm. I'm not so sure about WHS - they are in deep, deep trouble and could be next to issue a trading halt. Let's hope they'll do a Fletcher's and "retire" their CEO and Chairman.

Agreed.  I doubt too many shareholders would be teary eyed if Nick and Joan headed off to the "golf course" together.

[thatguy]

Ive been thinking about the cameron road sale, they have $60m of buildings on their books, no idea how many buildings make up this figure. How many others are for sale i wonder?

https://www.oneroof.co.nz/news/premier-tenant-in-prominent-tauranga-property-43862
$961k of lease id hazard this went for approx $15-20m

So maybe $40-45m left?

https://www.realestate.co.nz/42355861/commercial/sale/the-warehouse-fraser-cove-shopping-centre-241-fraser-tauranga-central - Is this maybe owned by the group?

$2m lease id say this one could be worth $30m?

https://www.realestate.co.nz/42263893/commercial/sale/units-a-b-croftfield-lane-wairau-valley
( maybe this one too? Would explain why this hasnt moved into a warehouse)

The fact that they sold Royal oak on the 31 Jul 2023 to enable them to pay a dividend (only way they could have) and now another significant sale (where the council "saved millions")

They are selling off some of their "anchor" assets - surely these decisions are driven by the bank as I cant see any announcement by them to say they were getting out of these properties which i think would warrant some commentary?

If the bank is saying cashup - what happens once these cash assets are fully absorbed? Cap raise?

Cap raise will be a very very interesting thing to watch


The tindalls & pascoes own 68% between them, given Stephen is on the board he must be witnessing first hand the destruction of shareholder wealth playing out in front of him.  The tindalls in the last 24 months have seen the erosion of their market value of their shares drop by $260m!!!

Between them they don't need a whole lot more % to eject grayston and the rest of the board.

What happens next??

[Gerald]

Looking at my charts, it appears the last time WHS was this cheap purely by share price was...... 1995

Even if you are generous and adjust for dividends you would have a 0% return having invested in 2000.

The Warehouse really had an excellent opportunity with its footprint to replicate the Costco model domestically and move to a approach that actually provided value for customers rather then the overpriced $2 shop it has become today.

Might be interesting as an punt one day, but not while they have management that really misunderstands WHS. It has the potential to be a simple well run profitable retailer but all those distracting subsidiaries and loss making adventures and weird management/operational decisions make it a little confusing.

On the bright side - as many boards seem to judge their performance by the share price hopefully this should wake them up and there could be a shake up  Otherwise, good old Nick and his mates can keep shifting deck chairs on the Titanic.

[850man]

T7 sold for $1

[Basil]

https://www.jardendirect.co.nz/app/news/urn:dt:6620622

Nick's "brilliance" knows no bounds.   

[winner (n)]

https://www.jardendirect.co.nz/app/news/urn:dt:6620622

Nick's "brilliance" knows no bounds.   

Nick could claim it to be a "legacy issue" seeing he wasn't around when they acquired it

Legacy works wonders for some companies

[LoungeLizard]

More pain to come, I reckon.

Torpedoing Torpedo7 was necessary and overdue, but the real problem is that the source of much of WHS's problems are still there - namely Nick and the Board. They are still hell bent on wasting money on all manner of things, which means that the "core" business isn't in good shape either. As of now, WHS are a loss making organisation just like Torpedo7. What's next? Sell WHS for a $1 to focus on their core business of renumerating their CEO and Directors?

[Basil]

More pain to come, I reckon.

Torpedoing Torpedo7 was necessary and overdue, but the real problem is that the source of much of WHS's problems are still there - namely Nick and the Board. They are still hell bent on wasting money on all manner of things, which means that the "core" business isn't in good shape either. As of now, WHS are a loss making organisation just like Torpedo7. What's next? Sell WHS for a $1 to focus on their core business of renumerating their CEO and Directors?

LOL...best post on here for ages...too funny LOL

[Minimoke]

Last $1 sale I remember was Stuff media - and it was all down hill for them ever since as they concentrated more on ESG than on news delivery.

[BlackPeter]

More pain to come, I reckon.

Torpedoing Torpedo7 was necessary and overdue, but the real problem is that the source of much of WHS's problems are still there - namely Nick and the Board. They are still hell bent on wasting money on all manner of things, which means that the "core" business isn't in good shape either. As of now, WHS are a loss making organisation just like Torpedo7. What's next? Sell WHS for a $1 to focus on their core business of renumerating their CEO and Directors?

Good points - they really should have sold Nick and the board for $1. I suspect however, nobody would have offered that much money for them as they offered for Torpedo 7;

Clearly - WHS shareholders pulled the short straw ... as so often.

[winner (n)]

Hey Basil ...you nagging and Nick finally listened

WHS to sell or close down TheMarket.com

[winner (n)]

WHS appoint the Chair of My Food Bag Tony as a Director