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View Full Version : Shares of questionable quality, but potential?



zyreon
03-07-2004, 07:09 PM
<h1>SEL SELECTOR GROUP LIMITED</h1>
In the spirit of talking about shares... as opposed to "other topics" what is the opinion/thoughts on this little puppy dog?

The only thing that catches my attention is something that was mentioned in the last announcement. It could be just general director speak (i.e. all is well), but more importantly it could point to future events which would cause a nice wee gain.


quote:
Name of Listed Issuer: SELECTOR GROUP LIMITED
For Full Year Ended: 31 MARCH 2004
Unaudited: NZ$000

CONSOLIDATED OPERATING STATEMENT

Total operating revenue: $417 ($429) -2.8%
OPERATING SURPLUS AFTER TAX BUT: Loss$3,812 (Loss$1,035)
NET SURPLUS AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER: Loss$3,812 (Loss$1,035)
Earnings per share: -0.05 cps (-1 cps)

Report to Shareholders

The Directors of Selector Group Limited advise the preliminary result for the year ended 31 March 2004.

Although annual sales revenue only rose slightly from $415,000 to $417,000 the net operating cash outflow for the period was substantially reduced from $247,000 to an almost break even situation of a net $8,000 outflow. The result reflects the stated intention of Directors of preserving the ongoing viability of the business as the Directors sought alternative distribution options and/or a restructuring of the business ownership.

There has been rigorous debate between your Directors and Auditors before it was agreed to write down goodwill to Nil. This write down decision was required because goodwill had previously been recorded on the basis of "future expected benefits" and the Company's last three years sales figures could not justify retention of goodwill.

Directors, however, remain confident in the inherent quality of the product, technology and support service and the potential for it to be leveraged through one or other of discussions currently taking place with interested parties which if successful would value the company significantly higher than that reflected in the balance sheet.

We will keep shareholders abreast of any development.

A definite dog... the only problem (or more appropriately the most impeding) is with little dogs like this is that of appaling liquidity. I have been experimenting with the low price stocks to see if i could turnover a little bit of profits. However it is appropriate that i say a little bit, as you can only really play with about 1k per trade (unless you're patient... but then if you're patient you should be in quality companies!)

<h1>RMG, RMGOB Receivables Management Group</h1>
The low point for this one has probably passed with the last announcement providing some sense of certainty.

Probably one issue is will the options make it back to 'in the money' status...
If so profits would be nice, especially with the options trading at some 0.4 of a cent

quote:RMG Limited today announced the purchase of a banking receivables portfolio with a face value in excess of AUD$50 million.

Consistent with industry practice and commercial confidentiality, the purchase price of the debt was not disclosed.

RMG's Managing Director, Mr Ron Logan stated "the purchase will be funded via a new debt program arranged by Presidio Capital and provided by a new international financier to the RMG Group. We have been having discussions with this party for some time and we are pleased they have aligned themselves with RMG to participate in future debt acquisitions".

Mr Ron Logan also commented that there were a number of other debt acquisition opportunities in prospect for RMG and its financier and was confident that RMG would be able to continue to grow its acquired debt portfolios.

wsheridan
05-07-2004, 09:55 AM
Selector could be an interesting punt zyreon if that can get another company for the backdoor listing.

It's not as simple as it used to be though .... it's much more difficult to hold onto any tax losses.

They haven't done too well in the past at getting rid of their shell.... but then the people at Greenacres are a bunch of rogues [B)][}:)]:D

Wiremu
05-07-2004, 06:49 PM
Zyreon

The days of a listed shell having any great value are long gone with the NZAX listing route now available.

As for Selector Group I have some knowledge of their operations and directors. They do not own anything by way of IP that is unique; they cannot turn what they have into an ongoing (let alone enduring) business; and their chairman... (self censored).

There is only one road for this company to proceed down, and even speculating in it as a penny dreadful is likely to see that investment lost, in my opinion.

zyreon
10-07-2004, 04:21 PM
quote:Selector Group Limited (SEL) to New Image International Ltd
Full Text of Announcement
Selector Group Limited has today signed a Heads of Agreement to purchase all of the shares of New Image International Limited ("New Image") for a consideration of $8,000,000 to be satisfied by the issue of 160,000,000 ordinary fully paid Selector shares at an issue price of 5 cents per share.

Prior to the issue of these shares to the New Image shareholders, Selector will undertake a consolidation of its share capital consolidating the total number of shares currently on issue to 5,000,000.

The New Image Group of companies formulate and manufacture health supplements and also operate a direct sales network in New Zealand, Australia, Malaysia, Singapore, Indonesia, Philippines and Taiwan. Two of the New Image Group companies, BioActive Technologies Limited and Symbiotics NZ Limited also undertake private label manufacture and market their own brands through traditional pharmacy and health food stores. Symbiotics is the world's biggest selling quality Colostrum brand.

New Image was formed in 1984 and is celebrating its 20th birthday this year.

New Image has won Trade and Enterprise Export Awards in 1992, 2002 and 2003.

New Image's chief Immunology Scientist Michail Borrisenko played a key role in the development of the process to make Colostrum fit for human consumption. Graeme Clegg, the managing director and principal shareholder of New Image was a pioneer in the colostrum market in Asia Pacific opening markets in Korea, Taiwan, Malaysia, Singapore, Philippines, Indonesia and Australia. The world's first commercial colostrum product was a powder blend drink called Lifeline produced by New Image. A unique feature of Lifeline was the inclusion of probiotics. Lifeline is still the company's lead product.

The Heads of Agreement is subject to a number of conditions, including:

1. Both Selector and the shareholders of New Image completing due diligence;
2. The parties concluding a full Sale and Purchase Agreement;
3. Selector obtaining all necessary NZX and shareholder approvals;
4. Selector obtaining a waiver from the NZX under Listing Rule 5.2.3(a) (on terms acceptable to the NZX) permitting the New Image shareholders to hold more than 75% of the total number of shares on issue in Selector following completion of the transaction for a limited period of time;
5. Selector undertaking a consolidation of its share capital consolidating the total number of shares currently on issue to 5,000,000 prior to settlement of the transaction.

Prior to settlement, and subject to Selector obtaining the requisite shareholder approvals, Selector will investigate undertaking a private placement of new shares in Selector to raise additional funds for the Company. This private placement:

o Must be approved by the New Image shareholders prior to it being undertaken;
o Will be conditional upon settlement of the purchase of the shares in New Image International Limited; and
o Will settle contemporaneously with settlement of the purchase of the shares in New Image International Limited.

Settlement of the transaction will take place ten business days after all conditions have been satisfied (or waived).

Contemporaneously with settlement of the proposed acquisition of New Image, the Company will seek shareholders approval to divest the existing Selector trading business into another entity ensuring that the beneficial ownership of those business assets are retained by the existing Selector shareholders.

New Image International Limited is considered by Selector's Directors to be a business with a satisfactory record of growth and sound future prospects.

Wiremu
10-07-2004, 05:31 PM
Zyreon,

Interesting to see what develops from the due diligence process.

Which raises the question - if you have a good company, with good history and good potential, why would you go through this convoluted process and risk being tarred with the same brush as the company whose shell you are going to crawl into; when it would be more effective to list direct on the NZAX????

Steve
11-07-2004, 11:09 AM
quote:[i]Which raises the question - if you have a good company, with good history and good potential, why would you go through this convoluted process and risk being tarred with the same brush as the company whose shell you are going to crawl into; when it would be more effective to list direct on the NZAX????


Would it be easier to "inflate" the value of the business thru a back-door listing as opposed to a new NZAX listing due to a lower degree of public analysis?