SHRIRO HOLDINGS LIMITED - ASX: SHM

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ShareShack user name hidden until logged in June 27
Shriro smashed down today to $1.14 off low volume having risen so strongly and assuredly to $1.29 from $1.00 over the last few weeks- also off low volume!

Today’s fall was off no announcement.

The stock is priced on a p/e of around 8.0x at current price and a fully franked dividend of over 10%. Balance sheet is almost debt free.

The fundamentals therefore look very good and downside risk at current price is low.

Worth monitoring and waiting until it’s found a base as don’t want to catch a falling knife.
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ShareShack user name hidden until logged in June 21

Stocks I’ll be watching closely today are

1. Blackham Resources- they’ve announced drilling results which indicate a likely increase in resources and reserves to be determined in September. I am already a holder.

2. Great Boulder Resources- they’ve announced great drilling results at their Mt Ven project. I am already a holder.

3. Specialty Fashion Group- their price spiked 9% yesterday off the back of a Livewiremarkets event where Wilson Asset Management said they’d bought 9% of the shares.

Wilson have invested because the stock is only trading on a forward p/e of 9.3x, which is low for a company whose eps they say is forecast to grow at 20% per annum.

They say the group had 5 loss making brands that it recently sold, leaving it with one niche brand CityChic, which apparently is performing very well.

They like the strong online sales of the business and the quality of the management team.

They believe it could be a better quality business than Lovisa- which is trading on a forward p/e of 20x with the same growth.

They reckon the stock could double in a year.

So definitely worth watching as Wilson’s are one of the best fund managers out there.

4. Shriro- I notice there have been a a number of substantial shareholder notices, including from Macquarie.

This share is trading on a p/e multiple of less than 10x. It has almost no debt and potential to grow earnings.

I had held it from $1.00 up to $1.24 and then sold out. Will continue monitoring.

Goes without saying that the above is my own observations and views.

Everyone should do their own research if interested in any of the stocks
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ShareShack user name hidden until logged in June 12

I enjoyed today's trading. Was very interesting for 5 shares that I hold:

1. Nuheara (NUH): I was pleased to see the shares close up 4.55% to 11.5 cents following the completion of a $6 million capital raise on Thursday at 9.5 cents.

I felt the share price wasn't going to go anywhere until the company raised money and now that it has, I'm hoping it might rise.

Today was a good sign, but it may well be that the market wants a sales update before its willing to push the price higher.

On the face of things the company is executing well. It recently entered Japan, having previously entered the US and European markets and it now has funding.

2. Blackham Resources (BKL): This came out with an announcement today that drilling results have strongly supported the potential for the continuation of underground mining at its high grade Golden Age orebody.

In addition the article below in the West Australian talks about the company producing $1.5 million of gold every four days and looking to hire people to expand its operations.

However, the share price didn't budge- it stayed at 6.9 cents. This represents an $88 million market capitalisation, which is very small for a company that is producing gold at an annual rate of around 90,000oz per annum

I honestly don't know what I'm missing on this one. I left a message for the investor relations manager, but he didn't call me back. Will try again tomorrow.

https://thewest.com.au/news/wa/price-of-gold-spurs-wave-of-wa-fifo-jobs-in-remote-mining-town-of-wiluna-ng-b88863549z

3. Shriro Holdings (SHM). This share was smashed around a month ago. It fell from ~$1.40 to $1.00 due to a trading update that showed trading was challenging for its kitchen appliances business.

The $1.00 price represented a p/e multiple of ~6.0x and franked dividend yield of 11%.

Whilst I realise the business is in a competitive space, it's very rare to find companies trading at 6x p/e, producing cash that allows the payout of an 11% dividend and with a balance sheet that is almost debt free.

Since it has fallen it has gradually recovered, today reaching $1.27 and closing at $1.225.

What has been interesting about the recovery from $1.00 through to todays closing price has been the thin trading, with hardly any sellers on the screen and lots of buyers.

I'm a bit worried that someone with a smallish holding is pumping the stock (hence the small volumes driving the price up), but its done well for me.

4. Axesstoday (AXL): This share is a thinly traded stock that has fallen all the way back to a close of $2.09 today off small volumes. It had risen to over $2.40 a week or so ago.

I got in at $2.20, which represents a historic p/e multiple of around 20x

I'm thinking about buying more, because (as I've posted previously) they have a perfectly credentialed management team for what they do, are disrupting the incumbent competition and have been executing very well.

I also read that they presented at Shaw and Partners brokerage today and are held by Perennial Value in their micro cap fund. They were also spoken highly of in Livewire markets.

So the institutional sentiment around this stock is good and as long as they keep delivering, I reckon the share price will move higher in the long term.

5.Qantas (QAN): This closed at $6.57 today and seems to be moving up. I got in around a week ago at $6.40 off the back of Regal Funds Managements presentation at a conference.

I did a post on this a couple of weeks ago (you can find it by searching for Qantas in the search bar) which outlined a number of good reasons why Regal thought the stock was undervalued.

I like the fact Qantas is buying back their shares, as this means they believe they're cheap. In addition, with less shares on issue, it will also underwrite a stronger earnings per share growth profile.

All up, an interesting day...

Please note that the views I've expressed above are my personal opinion. Whilst I could be right in my assessment, I could also be entirely wrong.

You should always do your own research.

I'd also love anyone else thoughts, particularly if they disagree.
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ShareShack user name hidden until logged in May 24
Buy/ sell side on the screen is starting to look very weighted to the buy side for Shriro. Check out my earlier posts on Shriro over the past few days using the Search bar at the top for my thoughts on this one....Show more
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ShareShack user name hidden until logged in May 22
Shriro has been creamed over the past 2 days off the back of a trading update that has spooked the market.

I was going to buy 3 days ago off the back of research I had done which made it look like a perfect value investing play to me.

It was trading at $1.36 at the time, representing a p/e multiple of 9x, almost debt free, with a fully franked dividend of 11 cents- so a dividend yield of 8%.

Luckily I got distracted and didn’t buy, because the share price is now at $1.02!!

I just spoke with the CFO of the Company who confirmed what the update said- which is that their kitchen appliances business has faced challenges due to price competition.

However, it isn’t their most profitable business- their consumer products business is and its performance is weighted towards the second half of the year.

Also, the drop in EBITDA from kitchen appliances has been offset by an R&D claim and some tax savings, which means NPAT should be broadly in line with prior year.

The dividend should therefore still be the same, unless they decided to do a share buyback.

The company is now trading on a p/e of 6x and paying out a fully franked dividend of 11%- assuming it is unchanged.

It seems like a low risk no brainer to me (but it also did before so do your own research as always)

Check out my original post on this by searching for Shriro in the search bar at the top of the screen.
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ShareShack user name hidden until logged in May 18
I came across this stock, Shriro Holdings. It's involved in the distribution of kitchen appliances, fixtures and consumer products throughout Australia and New Zealand.

The company distributes and markets brands including Casio, Omega, and Everdure, among others, for products ranging from stoves and ovens, to watches and calculators.

It only has $2m of net debt, EBITDA of $24.7 million and profit after tax of $14.5 million for the year ending 31 Dec 17.

It is therefore highly profitable and easily able to service minimal debt.

It has a market capitalisation of only $130 million, translating into a p/e multiple of only 9.0x.

It paid a fully franked dividend of 11.0 cents per share in year ending 31 Dec 17, which represents a yield of 8.0% at the current share price of $1.37.

In my view, theres not much downside risk being priced at such a low earnings multiple, with a strong balance sheet and very attractive dividend.

It looks like the stock is not very liquid, with a quarter of the shares held by the major shareholder, so the price has the potential to be volatile.

However, this is more of an issue if its priced at a high multiple, not when its multiple is as low as Shriro's is.

The main headwinds to the business appear to be a downturn in the housing market, and therefore people renovating their kitchens less.

This is expected to result in earnings for the year ending 31 Dec 18 being lower than the prior year.

However, they have a great diversity of consumer products they're distributing and are expanding the sale of these into international markets, which could underpin future growth.

In my view, the stock is very compelling at current price levels, but interested in other peoples thoughts....

https://webbackend.shriro.com.au/images/upload/files/43rdxfw1pxn05y.pdf

https://webbackend.shriro.com.au/images/upload/files/SHRIRO%20AGM%20APRIL%2018%20PRESENTATION.PDF
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