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MTS - Metcash Limited

Discussion in 'Stocks I-P' started by sam76, Mar 16, 2007.

  1. sam76

    sam76

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  2. adobee

    adobee

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    Re: MTS - Metcash

    MTS results out which from what I browsed look reasonable positive. However is down 6% today ? When is the dividend due ?
     
  3. sam76

    sam76

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    Re: MTS - Metcash

    Ex Date Amount Franking% Books Closed Payable
    04-Dec-2006 0.07 0% 00-00-0000 03-Jan-2007
    26-Jun-2006 0.06 100% 30-Jun-2006 12-Jul-2006
    03-Nov-2005 0.06 100% 09-Nov-2005 02-Dec-2005

    This is the history of dividends.

    The market has slayed MTS for what seems to be some pretty good results. :eek:
     
  4. sam76

    sam76

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  5. meoden1005

    meoden1005

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    Re: MTS - Metcash

    Nice I just place order on Netwealth with limit 4.3 ^^ he he. Let's see if I m lucky enough $.$. Sometimes, market goes crazy ^^
     
  6. rooster6

    rooster6

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  7. kamil

    kamil

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    Re: MTS - Metcash

    Looks like a trend reversal. Lets see if it can penetrate that monster gap. It was heavily oversold in June. I think investors are starting to come back on board. What do you guys think? :confused:
     

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  8. GreatPig

    GreatPig Pigs In Space

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    Re: MTS - Metcash

    Some bullish divergence last month and looks like it might be settling back onto the longer term trend line (the bottom purple one).

    I was holding until back in late Feb, and it's back around the same price again now, so I'm keeping an eye on it to see how it goes.

    Cheers,
    GP
     

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  9. Awesomandy

    Awesomandy

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    Re: MTS - Metcash

    I have mentioned in another thread that I'm considering to follow some of the institutions in selling down MTS, so I thought I might give a bit of an explanation here.

    Firstly, from a more charting point of view... MTS has gone up 13c to $4.50 today, but it still appears to be in a down trend? It looks like it hasn't been doing well at all after the breakdown at the start of June. (I hope I haven't make any mistakes... my first attempt at posting a chart) :)

    I have also now digested the 2007 annual report. Yes, it is true that they have achieved their 8th consecutive record annual profit, with good increases in both revenue and dividends per share, but there are a few non-technical and qualitative items which I'm not very comfortable with.

    The number of full-time employees has decreased by around 15%, but wages and salaries have increased by 15%. One must wonder who ended up getting that much extra salaries.

    I also note that the lost time incident frequency rate has been reduced, but the number of lost time injuries and number of hours lost has both been increased by 1/3, while workers' compensation claims have been reduced by 1/5. This seems to suggest that either the company would try very hard to refuse claims, or the employees have lower morals and try to stay off work for longer, or there so happens to be a coincidence where a lot more injuries are of the less serious nature this year. Oh, and didn't I just mentioned that the number of full-time equivelent employees has been decreased?

    I'm not sure if I'm reading this right, but it appears to me that record profit in MTS will not continue for very much longer. Hopefully, I've explained myself well enough as to my consideration of closing out MTS even though the technical numbers in the 2007 annual reports are of a positive nature. :2twocents
     

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  10. Miner

    Miner

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    Re: MTS - Metcash

    Hi MTS holders / researchers

    I was looking for some information on MTS and found since August 07 there was nothing posted.

    Would some of the experts in retail sector who following MTS could say if there is any charm to hold (I hold it at the recommendation of Bell Potters and the price has fallen down substantially since I bought) it at this price or should be added up or sold ?

    WOW is fascinating but MTS is not. They have had soem fire in one of the big warehouses but no real update.

    Regards
     
  11. Rainmaker2000

    Rainmaker2000

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    Re: MTS - Metcash

    Mate, MTS is more fascinating than WOW.......seriously, I would prefer owning MTS which is now a little cheap but not a steal in the context of current market.

    MTS is valued less than WOW and Coles but I think has better growth prospects......which are probably not as good as five years ago but are pretty good........MTS long term performance makes Coles and Woolies performance look like a mere speed hump.......the same management is in place that has been delivering

    It's got bout 5% dividend and they are actually continuing to grow quite agressively. Just starting to move into fresh fruit and Veg, many new outlets IGA's opening still......they are refurbishing many stores.....no news from these guys is just the sound of money piling into the till
     
  12. ROE

    ROE

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    Re: MTS - Metcash

    Remember MTS is in selling commodity business and in commodity business
    the cheapest price seller wins.

    MTS grocery price is higher than WOW and Coles due to the nature of their target and audience. Local shop, remote place etc.

    Yes they are doing quiet well for the current size, but as they expand they will suffer because they start to get into WOW and Coles territory and they cant compete on price. WOW hasn't been paying attention to MTS because they sort of aim for different market and sort of can live side by side but once you start get into WOW territory you can expect fierce price war and WOW has much bigger war chest to fight.

    You can start seeing MTS expansion on liquor and getting into WOW territory and they haven't been doing that well.

    MTS has growth prospect but can they command the return from capital invest that is the key question and that what drive their share price down. I think most people don't have confident in them invest a lot of money in expansion then come up against a juggernaut like WOW that could deal them a deadly blow on return on investment.

    You see what WOW done to Coles, MTS can expect the same treatment.

    Having said I agree MTS trades at a much more attractive price and potential than WOW and like any investment it's not always a sure thing. Sometimes you got your analysis right other time you got it wrong and you got to go with your conviction.

    I actually been following MTS since they trade close to $4.70 and thinking of buying, then I come up with that analysis and decided to sit on the sideline until I can see them go head to head with WOW and Coles.

    Cheers
     
  13. Rainmaker2000

    Rainmaker2000

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    Re: MTS - Metcash

    I like your more conservative analysis ROE and I agree with some of it...maybe that WOW will always have lower cost base and scale....but I don't think its that 'cut and dried'....

    For example, I don't see MTS as being similar businesses to WOW and Coles...sure they are in the grocery industry......but MTS pretty much runs a franchise model....its the franchisees were feel the 'business risk' first before the chilly winds get to MTS

    For years I've expected Harvey Norman's overpricing to be their downfall once a 'company owned' outfit like a JB hifi or Dick Smith moves in and sqeezes them.....I now don't think that will ever happen because the franchise model just works better than the company owned model......if only cause capitalist incentive is passed down the chain.

    More than that, I just don't see MTS as in the same business....as you say, more a convenience retailer.......WOW and Coles under Westfarmer's will go more big box...some of MTS stores are getting bigger but then many are not...MTS is a much more flexible operator

    MTS scale is still very significant and I do see them taking more market share.....if only cause they are a smaller, more innovative business...much of their profit is derived from wholesale grocing, with them now being the only major wholesale grocer in Australia

    If the stock was above $5 it might be different....MTS business still has a lot going for it, even if WOW and Coles go 'at it'
     
  14. ROE

    ROE

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    Re: MTS - Metcash

    I like your analysis good to have you own board to throw around ideas ... market will be going through a yoyo phase for a while so good to throw ideas around :D
     
  15. dalek

    dalek

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    Re: MTS - Metcash

    Rainmaker, you are correct, MTS sells the same products but they are not in the same business.
    Their business model would certainly not be to take on the major big box supermarkets but to exploit the convenience store market position which they are doing pretty well.
    With their small footprint stores, obtaining optimum locations is not a huge issue and the franchisee style also encourages and rewards the best store operators.
    It is true that for major grocery purchases we will shop at WOW or similar but for convenience we trade off the cheaper prices and go to the local IGA.
    While the basket size is smaller so are all the store costs.
    In retail it is all about customer expectations and what they will trade off , in this case, lowest price, for convenience and service.
    One of the best examples of trading expectations is of course the Aldi group.
    No service, appalling store layouts, limited range, but unbeleivably cheap home brand commodity products. Customer numbers through the roof !!!

    All of this doesn't guarantee MTS share price success but their model is absolutely sound and in my view relatively insulated from the majors.
    I will be watching for SP of around $3.75 during the next dip.
     
  16. chops_a_must

    chops_a_must Printing My Own Money

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    Re: MTS - Metcash

    Well, this was my first proper bottom drawer so far. Had my eye on it for a while.

    Bought on the RBA news. It now officially has a higher low and higher high, which in this market is gold.

    I like the growth prospects from a conceptual point of view, moreso than coles, and prefer to shop at IGA more than coles and WOW. Will see how it goes. :)
     
  17. nunthewiser

    nunthewiser

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    Re: MTS - Metcash


    :D... LOL wish id posted the day b4 yesterday so i could of sounded suffisticated ......

    solid co , holding fairly strong , im biased :D

    cheers
     
  18. grace

    grace

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    Re: MTS - Metcash

    This is my grocer stock. I have held for 18 months I think. Always kept looking at Woolies, and this one seemed to always be outshined. Hasn't lost any money over that time though, and paid good divs.:)

    Glad to hear a few of you are buying up.
     
  19. nunthewiser

    nunthewiser

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    Re: MTS - Metcash

    ive held since around may o4 , been accumulating along the way and enjoy the fullyfranked divvies also :).....lol this is the first time ive looked at this thread since me joining courtesy of chops pointing it out
     
  20. nunthewiser

    nunthewiser

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    Re: MTS - Metcash

    Added to MTS holdings today . call me silly . this is an investment co for me so pay no heed if after a quick buck...should point at the volumes pushing it down tho.

    cheers
    an accumulating silly nun
     
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