Consumers Warned Off From Taking Advice From Gerry Harvey
Has Gerry Harvey lost his business nouse, you would think so if you read the Financial Rewview who have warned readers about getting investment advice from the Harvey Norman retail boss.
Well known for his rants and raves and accusing everyone but himself for his business problems Harvey is now being slammed for losses in a dairy business that he lumped into the Harvey Norman operation which is more about technology, appliances and furniture than milking cows.
It’s been one month and one business dairy administration since Harvey Norman’s half-year results, when the stock briefly dipped below $4, to executive chairman Gerry Harvey’s considerable disdain, the Financial Review wrote.
“It’s mad,” he told CNBC. The writedowns and losses in the Coomboona dairy business, which Harvey bizarrely decided to invest in through the retailer, were “nothing”, he argued, given Harvey Norman was a $4 billion company (whose shareholders could be paying $60 million for Harvey’s ill-fated dairy escapade).
But never mind that. Speaking to CNBC in late February, Harvey gave investors the advice he always gives. “Sell your boat, sell your car, sell your house, buy Harvey Norman shares,” he said. “Harvey Norman shares are a good buy at $4.50, $5, [for them to] be under $4 is crazy.”
We hope no one took Harvey up on the suggestion. Those shares are a long way under $4 now, closing on Tuesday at $3.64. Just as well Harvey isn’t a financial adviser.