Australian (ASX) Stock Market Forum

MHJ - Michael Hill International

Dona Ferentes

A little bit OC⚡DC
Joined
11 January 2016
Posts
13,476
Reactions
17,919
market cap $315 million
Been listed for 7 years
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The laboratory grown diamond category continues to expand, with higher sales growth and margins, helping to offset high input costs for both mined diamonds and gold
- Daniel Bracken, CEO, Michael Hill International Ltd
.
you want fries with that?
 
Pesky outfit.
A local one shut it doors and for good. One of the most prominent locations in the shopping centre.

A prouds jewellers around the corner has moved into its grave now.
 
I had MHJ on a watch list years ago but didn't pull the trigger - regretted that decision for a while but I see they're down in the dumps again at around 67 cps (last time they were in the 30s). Thought I would look again.

"Comparable EBIT" is another junk term made up to avoid showing a more significant fall in profits. The cashflow statement does not look very healthy. Operating cashflow for the half ($22m) didn't even cover leases ($24m), which leaves them dependent on borrowing to pay for capex (13m) all the while paying a dividend which they also cannot afford. IN FY23, operating cashflow was 80m - capex was 25m, leases were 45m, buybacks were 10m - and they still paid a dividend.

They bought Bevilles (another Jewler) last year and traded cash for intangibles... I anticipate the usual ASX takeover post 1 year write-off in several months. I personally can't see where bevilles or michael hill have genuine name/brand recognition either. They're not Tiffany - your wife doesn't say I want a Michael Hill necklace.

Anyways, back on the watch list but I'm not holding out much short-term hope for a price increase.

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Just posting because I saw MHJ dropped 22.6% today in @barney 's shakers/fakers thread.

Poor earnings in an aftermarket announcement 17/5/2024. Down to consumer sentiment.

gg
 
Looks cheap. Trading just below FY23 book value for a stock that looks like its worth 3x book value or more if it can get back to an even keel. Share issuance flat, ROE consistently strong. Haven't read the announcement. Definitely an add to my retailers list - although I'm averse to jewellery.

Not Held
 
@finicky interesting one. Had a brief trade end of '21. Went up and back down, was a break even trade... hasn't hit my radar since.
Sentiment is obviously not there, I couldn't get in now but I do agree with you, it looks cheap and has some other qualities. If you don't mind waiting for the cyclical turnaround, I could understand a buy at this price.
 
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