TENON

[ari]

Why is liquidity so poor in this stock? zero trading today

Taken from RBC shareholders meeting Dec'14...Our top six holders own around 75% of our
issued shares – and unless they absolutely have to, they do not trade their shares, because
they believe in Rubicon’s future value upside. This means that the Company’s “free float” is
extremely small, and the share price can gap down on any particular day on small volumes.

Could this be the the case also for TENON?

[malus]

This minnow has been in my portfolio pond since I took a position in what was FFS (Fletcher Forests) when NTA verses share price was attractive with asset sales and shareholder distributions on the board table at the time... back in the day I was happy with the capital distribution. The resulting listing which washed out was TEN and it has languished in my portfolio since. RBC at one stage did offer to take the holding off my hands for $1.85 a share (in hindsight should probably have let them have it!)

Then in 2014, to keep this minnow, I needed to have the minimum number of shares, 2000. Decided to top up rather than sell back to the company.

And so it sat in the bottom of my portfolio pond (lost amongst the pond weeds!!)

Over the years the annual reports have come and gone… I have always noted the positive writings of those drafting the reports, even when they had to explain why the accounts weren’t so cheery and the company faced headwinds (US housing starts $US:$NZ exchange amongst other things).

More recently things looked up with the Company buying back shares and now a planned dividend (unimputed unfortunately), with promise of further dividends six monthly.

http://www.scoop.co.nz/stories/BU150...it-trebles.htm

Well what to do with this minnow?

My calculation of PE is around 15.2 based on reported earnings for the past financial year and they have given a projection for the coming financial year that would have the PE at 10.6.

So I decided to fetch this minnow out of the pond weeds and feed it up a little bit (dip the toe old into the water… hopefully the little blighter doesn’t bite it off!!)

Bought another 4400 shares at $2.26 before record date… gives me 6400 shares going forward.

As always interested in others thoughts.

And for those that might get excited about this minnows prospects, beware shares turn over infrequently! And so please do your own research.

[Felix]

The quarter profit announcement says it all really. After a decade of pain Tenon is starting to ramp up EBITDA. Tenon is finally a growth company and the directors are doing their best to ensure the market notices through undertaking share buybacks, commencing dividend payments and seeking advice about how they can best close the gap between share price and their perception of true company value.

As Ari suggested, a big challenge is the lack of free float. It is so difficult to buy or sell a reasonable parcel of Tenon shares, and the buy/sell spread can be very wide. Metlifecare had a similar problem a few years ago and unfortunately I don't see how it can be rectified by Tenon directors unless perhaps Rubicon reduces their Tenon holding or distributes their holding amongst their own shareholders.

[beetills]

Their latest nzx announcement leads me to think that they may sell with hopefully a benifit to Rubicon shareholders.Then again,i may have misinterpreted the announcement.

[iceman]

Their latest nzx announcement leads me to think that they may sell with hopefully a benifit to Rubicon shareholders.Then again,i may have misinterpreted the announcement.

Yes the announcement certainly indicates that a sale is possible and agree this could be positive news for us RBC shareholders. And we sure need it !!

[ratkin]

They have been concerned for some time about this value gap. What sort of price would any sale achieve? Can only be north of the current sp. The lack of liquidity has not helped, how can people close any vaue gap when there are no shares to buy.
Currently not a single share available to buy

[Joshuatree]

Atm 11,022 bought and 16,000 for sale @ last price $2.70.

[ratkin]

Atm 11,022 bought and 16,000 for sale @ last price $2.70.

I grabbed 8000 at 2.70 , some more have appeared now. Should be a profit in it eventually

In August they had this to say
In this respect Edison Research issued a report on
Tenon in March that, based on comparable equity market earnings multiples and
the NZ$:US$ cross rate at the time, valued Tenon at NZ$3.75 - NZ$4.99 per
share. The Board is very keen to quickly close this gap and today we are
announcing two initiatives aimed at increasing shareholder value -

[malus]

This minnow has been in my portfolio pond since I took a position in what was FFS (Fletcher Forests) when NTA verses share price was attractive with asset sales and shareholder distributions on the board table at the time... back in the day I was happy with the capital distribution. The resulting listing which washed out was TEN and it has languished in my portfolio since. RBC at one stage did offer to take the holding off my hands for $1.85 a share (in hindsight should probably have let them have it!)

Then in 2014, to keep this minnow, I needed to have the minimum number of shares, 2000. Decided to top up rather than sell back to the company.

And so it sat in the bottom of my portfolio pond (lost amongst the pond weeds!!)

Over the years the annual reports have come and gone… I have always noted the positive writings of those drafting the reports, even when they had to explain why the accounts weren’t so cheery and the company faced headwinds (US housing starts $US:$NZ exchange amongst other things).

More recently things looked up with the Company buying back shares and now a planned dividend (unimputed unfortunately), with promise of further dividends six monthly.

http://www.scoop.co.nz/stories/BU150...it-trebles.htm

Well what to do with this minnow?

My calculation of PE is around 15.2 based on reported earnings for the past financial year and they have given a projection for the coming financial year that would have the PE at 10.6.

So I decided to fetch this minnow out of the pond weeds and feed it up a little bit (dip the toe old into the water… hopefully the little blighter doesn’t bite it off!!)

Bought another 4400 shares at $2.26 before record date… gives me 6400 shares going forward.

As always interested in others thoughts.

And for those that might get excited about this minnows prospects, beware shares turn over infrequently! And so please do your own research.

Well, well... looks like a bigger fish may wish to have a bite!!

[ari]

https://www.nzx.com/files/attachments/226199.pdf
Will a sale be in the best interests of shareholders? Just when the corner has been turned. Mind you, it's all been done before with FFS, FEG & Capstone.