- Joined
- 1 October 2008
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Being T'd up nicely today.
Time to get out big Bertha and smack it into the lake.
Fund manager Sid Choraria, who came first in a competition aimed at identifying the world's most-overpriced stocks, believes Harvey Norman shares are "priced for perfection" and will fall 35 per cent to 40 per cent over the next 18 months to two years.
Mr Choraria accused Harvey Norman of "robbing Peter to pay Paul" by paying underperforming franchisees more than $400 million in tactical support over the last four years while simultaneously jacking up rents to support its property values.
The fund manager also questioned the sustainability of Harvey Norman's franchise structure, pointing out that franchisees paid little upfront capital and received a salary and a car – making them more akin to employees than franchisees.
Mr Choraria, who works for Singapore-based funds management firm APS Asset Management, also raised concerns about Harvey Norman's debt levels, its poor financial disclosure and losses in its international operations, particularly Ireland, which has lost money in eight of the past nine years.
"At $3.70, Harvey Norman seems to be priced for perfection at 48 times free cash flow, unlikely to be sustainable over the long term, given slowing growth and severe competition," said his report, which came first place in a competition run by New York-based SumZero.
Mr Harvey defended Harvey Norman's franchise structure, saying it had been in place for 30 years, had been key to the company's growth and there was no reason to change.
"Because he sees it nowhere else he says it must be wrong," he said
If I knew how, I would short this company.
it should be pointed out that HVN went ex 17cFF yesterday
Ahh
That explains the mini Black swan!
Thanks
P.
Jerry Harvey - "It's all been started by a short seller - he's the enemy," an irate Harvey told shareholders. "He's out there and he's trying to disrupt our company - people don't do this unless they have a really good reason.
"It's common practice for short sellers to go out and try to demolish the company they've sold the shares in because it reduces the price of the shares and they buy them back and make some money, so they have a very strong motive.
"In this case it represents a short seller, it represents some of his cohorts in places like Europe, Asia and the Americas. We've had contact with these people, this is pretty serious stuff," he said.
"I think short sellers should be banned - when someone sells your shares (short) they have a huge incentive to go out there and demolish the price.
"If they are here – I suspect they're not here and have sent their stooges – you are the enemy, you are out there trying to do as much damage to our company as you possibly can, you are not a friend of this board or the shareholders here. If you are here please get up and piss off."
I beg your pardon?
Pretty rich coming from a prick who sells massively marked up products to people who can't afford them.
Whilst coning them with promises of no interest and all that crap for 2 years and then the suckers end up paying double or more the already massively inflated prices over time or there abouts.
Nothing like a billionaire taking advantage of the ignorant and the poor, who are not able to buy something outright in full.
Couldn't happen to a nicer person. Bring on Kogan. Go f(#$ yourself Jerry. :321:
Harvey Norman said the preliminary pre-tax net property revaluation increment for investment properties in Australia would be more than $70 million for the six months ending December, compared with $20.6 million in the same period a year ago, and would be recognised as income.
Gerry's interview.... it's gold.
Agree that Gerry is a player.
I'm tempted though to put a few $ in to HVN., just on the charts.
I'll look for a break above $4 before the ex-div.
gg
The Australian Securities and Investments Commission (ASIC) has confirmed to the ABC it is probing the accounts of listed retailer Harvey Norman — though the company's chairman and founder is still steadfastly refusing to accept that it is under investigation over the way it accounts for its exposure to failed franchises and troubled franchise loans.
"There is no investigation," billionaire founder Gerry Harvey said today.
Shares in the listed retailer suffered a huge slump after reports in Fairfax media about a maze of "zombie trusts" and failed franchises in the Harvey Norman retailing group.
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