storefund

[wsheridan]

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=3561790&thesection=business&thesubsection=retail&thesecondsubsection=general&thetickercode=

Anyone know much about this?

Looks like a piece of crap to me .... a nice exit strategy for a long-term investor who gets a nice "management" contract ..... but what do I know? [}:)]

[CAM]

Yeah I think they might be working the greater fool theory......well if they find enough people to invest in retail at the moment good on them. I sure won't be one of them.

[whatsup]

wsheridan: Holly Hel-, anything goes now but the old addage still applies "the nearer to the top of the market the more crap float/IPO's/floats come out of the wood work" to takeadvantage of the silly season before the **** fall out of the game , remember the Kiwi Bear float,et al.-1987!!!

[MeNoBatty]

Depends on the fine print really. Mangagment, structure, fees etc, etc,. Buying private retail companies has been lucrative for some. See PacBrands, the private equity guys in that made a mint. See also JB Hifi and Repco in Aussie. There was also an artical somewhere this morning that Maqcaurie are planning on bailing from the Reject shop chain in Aussie for a potentially tidy profit.

IMHO it would be better to invest in a fund that had a broader scope. Limiting the investment sectors increases risk through a lack of diversification.

A scenario i foresee would be that they invest the money; have a few failures but an anchor, like BBQ factory that is doing ok; shareholders get up set; directors decided to restructure and back door list their successful entity and we end up seeing the BBQ factory on the NZX in not too dissimilar fashion that got Sealegs onto the NZX through ITC (although this would have more cred than SLG as BBQF would have revenues and profits).

Just my 2 cents

[Nightmare]

If the BBQ factory is any good, Briscoe or someone else would have bought it.

According to the Dominion Post
http://www.stuff.co.nz/stuff/0,2106,2881036a13,00.html,

Wayne Walden (ex Farmers and Tranz Rail) is behind it. He has been buying up retail operations so why not BBQ factory?


Probably because it is being sold by a Richwhite!!!!!!!! Wayne is still painfully aware that that institutions bought Tranz Rail shares off Fay Richwhite at $3.40 per share!!!! [xx(][xx(][xx(]

[stormrose]

Yep, W.Walden's track record does not fill me with confidence. And another W.Walden managed co bought from a Richwhite?

For speculators only. The stag potential is too low for me on this IPO. The issue suffering such low sentiment that it is grossly undervalued and the market correcting soon after IPO is the only way I can see to make money here. Slim chances of that too.

MeNoBatty...yep wait until the BBQ company itself lists, not its holding/investment company storefund. Investment companies with only one cornerstone asset are too risky for me since they use the cornerstone's profits to "play" with other investment ideas. All too often without considering the cost of capital too.

[MeNoBatty]

This just might get off the ground if Mr Walden has some one underwriting. Wonder if the Richwhites are involved on both sides of the fence?;)

[Steve]

It is interesting to note that TELETEXT still has Storefund listed on pg219 despite the IPO being pulled...

MOST BIZARRE!