Is that your opinion ?.Hopefully not advice as thats dangerous ground.Priced at the BOTTOM of range.Good yield defensive, lower risk play for me to be a starter in this one.
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It's priced at the bottom of the range because that the maximum price the sellers think they will be able to clear their allotments for. They will of course build in a slight discount to make the offer attractive after the IPO.
I'd never give advice on an internet forum hah!
Re lew's note above
Revenues have been pretty stable over a period of time, so this is definitely not a growth opportunity. Jeez lew growth last 3 years have been 6.8%, 8.8% and 3.3% this year. That's better than stable
Margin seems to be very slim. EBITA margins pretty reasonable and not very slim, been >10% last few years with this year 12.9% (Gross margin by the way is 23%/24% which I agree isn't fantastic
chicken is a substitute good for more expensive meats, so should see consumption increase in poorer economic conditions. Hope you right there lew - could call it a growth initiative - adding more to the growth rates mentioned above
A bit concerned about the big boost in profits the year before the IPO - smells of dressing up the turkey. Reading the papers again to come to that conclusion have we lew my old mate. The increased ebita (profits) has been driven mainly by increased sales off set to some extent by increased costs (growth initiatives they say) hardly the stuff of dressing the turkey up.
Lew - did you bother read/study Pages 56-60 of the Disclosure Statement?
Whatever Tegel will be a great investment in the short to medium term. Maybe even for the longer term if things go their way. I reckon the share price will be over $2 by year end
Nope, i didn't read pages 56-60, but I also didn't say those things :)
I think your rebuttal might be aimed at Grunter ;)
Affinity remain significantly invested, they've sold only about one-third of their equity, retaining 45 per cent and that will be escrowed until after Tegel releases its 2017 results. Unless the shares are trading 20% higher than their IPO price when Tegel releases its half-year numbers. Affinity's interest is closely aligned to a strong sp, and that'll be driven by good earnings.
For the record, I've not done any in depth research into tegal because it doesn't fit my strategy at the moment and I don't like the idea of supporting animal cruelty.
I think time to come many countries may implement some sort of animal welfare.
http://ec.europa.eu/food/animals/welfare/index_en.htm
Animal welfare