Tegel IPO

[JeremyALD]

What a shambles this has been. Their communication's have been shocking since the IPO. How embarrassing that it could go sub $1 after listing at the lowest end of guidance.

[Beagle]

What a shambles this has been. Their communication's have been shocking since the IPO. How embarrassing that it could go sub $1 after listing at the lowest end of guidance.

Private equity wanted to try and get up to $2.50 for this stale old bird at one point. Imagine how fowl the current situation would be if they'd got away with that !

[hardt]

“Obviously there has been some fallout between the largest shareholder and the board. I would say it was not an amicable split.”
However, the trading desk of one big broking firm concluded there were no implications for Tegel’s performance.
“We have done some checking and it appears to be nothing to do with TGH per se, rather it is reflective of James’ workload etc. He has seen the business through the [prospectus forecast] period and decided to move on, don’t read anything into it re business performance from what we understand.”

Analyst meeting
Amid the surprise over Mr Ogden’s exit there is talk around the market of his one-on-one meeting with Forsyth Barr analyst James Bascand some weeks ago.
NBR understands the two met for coffee one morning and Mr Bascand subsequently referred to the meeting in information shared with institutional equities teams and fund managers.
It is not unusual for analysts to meet with company directors and there is no suggestion Mr Ogden disclosed material non-public information to Mr Bascand.
Forsyth Barr’s most recent research note on Tegel on April 9 upgraded the company to “outperform.”

[bottomfeeder]

So shareholders have apparently lost 30 mill market cap in a day, over a secret fall out. They should come clean about differing opinions and quickly disclose exactly what has happened in full detail. Otherwise it stinks. Mind you if the SP goes down to $1.06 and back up to $1.17, I will be pleased as punch.

[traineeinvestor]

The Board needs to explain the reasons for the Chairman's departure – there are few things worse for investor confidence than uncertainty. With no explanation, people will assume the worst (and will sometimes be right to do so).

FWIW, I took a long look at TGH when the share price dropped into the $1.30+ range and decided the uncertainties were too high. Specifically, I wasn't convinced that the company would generate enough free cash flow at prevailing prices for their products. It has now dropped to a level where I will have another look at it. I suppose the three obvious questions are (i) when/if the pricing for Tegal branded chicken will improve (ii) whether there is room to boost margin by cutting costs and (iii) whether TGH can increase exports enough to make a difference.

[hardt]

The man who was here from the beginning, probably couldn't handle the disappointing run... Couldn't be happier to see him go quite honestly.

I picked up a small parcel at 110, TGH is at a lofty discount to its future cash flows and enterprise value, it is a great opportunity for long term investors.

[janner]

The man who was here from the beginning, probably couldn't handle the disappointing run... Couldn't be happier to see him go quite honestly.

I picked up a small parcel at 110, TGH is at a lofty discount to its future cash flows and enterprise value, it is a great opportunity for long term investors.

Splutter. !!!..

[hardt]

Splutter. !!!..

My holding is small enough for me to keep a dry forehead if a profit downgrade [ markets chinese whisper ] comes to fruition, speculating never did anyone any good.

price to book is around 0.85 currently, P/E of 11-13 and growth on the horizon [through the woods] It ticks a few boxes for me personally...

Lets revisit in November and see where we are!

[Stranger_Danger]

I agree that Tegel could become an opportunity, but I reckon we've got at least one more leg down. Despite the private equity history and a bad early start there is a real business here. Tegel is not Dick Smiths. I suspect I'll be buying it in the 70-80 cent range late this year.

[peat]

I reckon we've got at least one more leg down.

Maximum of two legs with this stock though.