SBW - Expecting more from this one

[elZorro]

SBW disappointed with its news release this weekend - just when I was hoping for some stellar action, it just about pulled the whole market down with a terrible sideshow. Previously this share has been a great investment, so hoping for better results soon.

[minimoke]

Not so sure its been a great investment. I liken it to ECO or FTB - a company based on marketing rather than long term productive substance. When you look at the fundamentals it appears rock solid, perhaps even aspirational. But can their product offering stand the test of time and the somewhat fickel nature of their customer base who seem to quickly forget long held allegiances when switching to the new flavour of the day.

Also a bit reluctant to back the Board of SBW. Their attempt to diversify was a very risky ploy and in the end only rated a distraction rather than added substance to the bottom line. SBW may well have gotten the most out of the NZ market - I'm picking we'll see some offshore bids and a sell off again like FTB or perhaps a listing on a separate exchange like Cavotec / MSL.

I'm also picking we may have seen the end of SBW in our market, these are tough economic times. While we may have gotten over the worst of the hurdles I don't think now is the time for companies to rest on their laurels. Consumers will still tend towards companies with a proven long term track record who have the experience and enough in reserve to withstand current pressures. Though I may just hedge my bets - I'm not sure we have learnt from our finance company exposures in the past. You now, SCF may have had just enough in the tank to last out the Global Financial Crisis but it was decided to bring in the experienced Sandy Maier to make the most of a difficult situation. We may just see a fallback in support for one market participant and see SBW fill the spot. If so it will only be a short term fix which will inspire some public confidence but in the end have no impact on the end result.

[elZorro]

Cheers, thanks for that Minimoke. I have to confess to having done very little FA work on SBW, but have enjoyed its frequent run up the charts. Perhaps I should spread my investment a lot wider. Looking at ABs next.

[winner69]

SBW had a shocker last week .... needs more discipline methinks ... could have done terminal damage

SBW - Expecting more from this one - Sure am and pretty soon as well or else i think SBW might have new bosses

[winner69]

SBW had a shocker last week .... needs more discipline methinks ... could have done terminal damage

SBW - Expecting more from this one you ask (or state) - Sure am and pretty soon as well or else i think SBW might have new bosses

[minimoke]

Market announcement out today. SBW fallen out of the Top 15 index but retains positon in Top 22 Index.

Trading conditions in the near term expected to be challenging. Analysis of this Index against FRA Year End results shows the Index has out performed FRA 37 times to FRA's 12. In the past five Year Ends the Index has out performed 3 times to FRA's 2 times.

SBW could still get a spot in the Top 15, but it will take one in the Index to run low on reserves or take an unexpected hit to balance sheet.

[J R Ewing]

Interesting to note that SBW did not escape censure from the market regulators last week. Any continuation of unethical business practices could have an adverse effect on the index as a whole.

[winner69]

Minimoke - I'd be optimistic and say SBW will get included in the Top 15 for a while but worried where SBW goes from there

If performance doesn't improve dramatically maybe SBW would have done its dash and get included in the NRL again - esp if the rumour that QC and SBW might do some sort of partnership or merger but that might not be a good outcome for SBW as QC seems to have the lost the plot and seems rather directionless

[J R Ewing]

From market acion last weekend the proposed merger between SBW and QC appeared more like a hostile takeover!

[minimoke]

Interesting to note that SBW did not escape censure from the market regulators last week. Any continuation of unethical business practices could have an adverse effect on the index as a whole.

Word on the street is that there was a bottle of Heineken left lying around and that this wa not of sufficient motivation to take action when fridges with Champagne are a better target.