Ebos Limited EBO

[forest]

I phoned Computershare and asked what formula was used to calculated the amount of shares investors got for their oversubsciption.

The guy I talked to would not tell me although I was quite persistant. This information is surely public???

Anybody else knows how it was worked out?

[macduffy]

This information is surely public???


I very much doubt it.

Companies retain the right to issue oversubscriptions at their discretion. Although you can be sure that the formula takes account of such criteria as the absolute amount sought, the relationship to the entitlement, proportion of the amount sought etc, the last thing that they want is to enter into a debate with anyone as to the "correct" numbers to use in these calculations.

[forest]

Thanks macduffy for clearing that up, my logic of having such financial matters available to the owners of the company is not everybodies logic.

I hope it was done fairly to all share holders :(

[ratkin]

When are they repaying the excess loot?
Not shown up in bank account yet

[macduffy]

When are they repaying the excess loot?
Not shown up in bank account yet

"As soon as practicable" and in any case within 10 business days from the Closing Date - which was 1 July. (Actually, the doc said "with 10 business days" - but I think we know what they mean!)

[ratkin]

"As soon as practicable" and in any case within 10 business days from the Closing Date - which was 1 July. (Actually, the doc said "with 10 business days" - but I think we know what they mean!)

Thx

Applying for the extra shares was hardly worth it , only recieved around 6o, but lost interest on 25k for about 25 days all up.
Who makes all the interest on the money they keeping ? Ebos or Computershare

[percy]

Thx

Applying for the extra shares was hardly worth it , only recieved around 6o, but lost interest on 25k for about 25 days all up.
Who makes all the interest on the money they keeping ? Ebos or Computershare

Well for 25 days at 4% you have lost $68.50.
While you have made $3.10 per share or $186.50.
And to think just how much those 60 shares are going to be worth in a few months time.!!!!

[Snow Leopard]

Thx

Applying for the extra shares was hardly worth it , only recieved around 6o, but lost interest on 25k for about 25 days all up.
Who makes all the interest on the money they keeping ? Ebos or Computershare

Seriously, you applied for about 4,000 extra and only got 60 odd?

I guess you were looking to double your holding on the cheap.

Best Wishes
Paper Tiger

[percy]

Seriously, you applied for about 4,000 extra and only got 60 odd?

I guess you were looking to double your holding on the cheap.

Best Wishes
Paper Tiger

He would have had the last laugh had he pulled it off.!!!

[ratkin]

He would have had the last laugh had he pulled it off.!!!

Was a longshot , still , nothing ventured nothing gained

[macduffy]

Thx

Applying for the extra shares was hardly worth it , only recieved around 6o, but lost interest on 25k for about 25 days all up.
Who makes all the interest on the money they keeping ? Ebos or Computershare

It's usual for the interest to accrue to the issuing company; Computershare would pick up their handling fee with processing the refunds, as per a dividend distribution I would think. More rewarding for both parties that way than the alternative of juicing up the entitlement ratio to achieve the same result!

Sorry about that but my cynical streak's showing today!

[percy]

Refund in my bank this morning.

[macduffy]

I'm not complaining but EBO up 29c (3%)! this morning.

Too much of a good thing?

[ratkin]

I'm not complaining but EBO up 29c (3%)! this morning.

Too much of a good thing?

There will be plenty of buying pressure due to index reweighting , plus the ciompany looks in tip top shape.
Onwards and upwards

[percy]

There will be plenty of buying pressure due to index reweighting , plus the ciompany looks in tip top shape.
Onwards and upwards

I am just adding to my holding.Using the refund money.
I agree with your comments.
Going through the pain barrier paying nearly $10 dollars.!!!

[Snow Leopard]

Seems that the froth is subsiding rapidly.

Best Wishes
Paper Tiger

[winner69]

Seems that the froth is subsiding rapidly.

Best Wishes
Paper Tiger

It'll be ok again soon tiger ...I finally sold out earlier in the week

Great run since masterpet came on board but my reason for investing no longer valid

If they buy something else that excites me will have another go at them

Hang in there Percy ......your type of investment ....prob be 20 bucks in 10 years time

[percy]

It'll be ok again soon tiger ...I finally sold out earlier in the week

Great run since masterpet came on board but my reason for investing no longer valid

If they buy something else that excites me will have another go at them

Hang in there Percy ......your type of investment ....prob be 20 bucks in 10 years time

Expecting $20 within 4 years, [ the SP without dividends has doubled in the last 4 years] as each acquisition over the last 20 years has speed up growth [from memory over 20%pa].May only have to wait 3 years?
"Am well positioned."

[winner69]

EBOS DELIVERS AGAIN says the headline

But profit wasn't that much than last year ...must have read it wrong

I only hope they don't do a Nuplex .....keep on buying the world and don't make any more money ....in Nuplex case many are still waiting

Off course EBO won't be like that

[macduffy]

Good to see a positive outlook from EBO in contrast to the mainly cautious comments from many companies at this time. Let's hope that they're justified.

[percy]

EBOS DELIVERS AGAIN says the headline

But profit wasn't that much than last year ...must have read it wrong

I only hope they don't do a Nuplex .....keep on buying the world and don't make any more money ....in Nuplex case many are still waiting

Off course EBO won't be like that

Their history of over 20 years is to make acquisitions work.Mark Waller has never not delivered on what he said he would do.
When he uses words like "game changer",opportunities for further growth,leveraging the strengths of Ebos and Symbion,shareholders can expect the share price to continue of its upward trajectory.
To think EBO could do an NPX shows a complete misunderstanding of EBO's business and people.

[percy]

Good to see a positive outlook from EBO in contrast to the mainly cautious comments from many companies at this time. Let's hope that they're justified.


They are justified.!!!
We are "well positioned." lol

[winner69]

Had a look at the segment analysis to see how my beloved Masterpet were doing. Made $12.5m on sales of $169m so a good contributor. What was a concern was the H2 performance where sales were up 24% on last year but NPAT was DOWN 13%. They sold $18m more stuff but made a $1m less - WTF is going on Percy?

I was then curious as to how Healthcare was tracking in NZ. Hard to say because they have added 1 month of Symbion into the numbers but the notes say this produced $4.687m of NPAT so working backwards it looks like Healtcare in NZ NPAT was $26.2m - DOWN 4% on last year. Like Animals H2 was pretty dismal with NPAT DOWN 10% after being ahead in H1

OK after leaving out the acquisition costs and the 1 month NPAT from Symbion they profit is up 5.7% for the year. That's $1.6m extra profit but after H1 they were $3.4m up so in H2 they were $1.8m down.

So from the all the numbers and leaving out those acquisition costs and Symbion for 1 month they made $1.6m more than last year. Healthcare was down $1.1m, Animals were up $4.1m and HO (Corporate) spent $1.6m more. The concern is that the Animal increase of $4.1m is solely because this was the first full year with EBOS and there were 5 or so extra months this year.

Wish I hadn't looked at the segment stuff but I do love Masterpet for boosting the EBO shareprice so much last year. But one would have to say this is a pretty poor result ..... just as well they have all these other stories to tell

They say that if the Symbion thing had been for the full year (ie they had taken over on July1 2012) this years NPAT would have been $90m. On a market cap of $1.4 billion that is a PE of 15 odd ....... umm

Be interesting to see how it all turns out

[winner69]

Sparky - I don't think they will achieve growth of 8% over the next 3 years ... let alone for 5 years

Health has achieved little growth the last few years - low top line growth and margins a struggle.

All I know about health is what percy has told me and what the numbers say .... but I know a heck a lot about Masterpet .... before and after the acquisition

My forecasts for EBOS are shown below ..... summary from a bit of number crunching right down to economic value added stuff.

So on these currently around 16 times forecast earnings with future growth of 5%-6% .... maybe a PR rating coming up

But what the heck do I know .... of course they will be better than this

Was a little bullish with my forecast back then ... said $30.3m and it was $29.5m

But what the heck do I know and it is all irrelevant as Ebos have a bigger fish to fry now

My advice to them is that they better buy something else soon to keep the story going

[percy]

Had a look at the segment analysis to see how my beloved Masterpet were doing. Made $12.5m on sales of $169m so a good contributor. What was a concern was the H2 performance where sales were up 24% on last year but NPAT was DOWN 13%. They sold $18m more stuff but made a $1m less - WTF is going on Percy?

I was then curious as to how Healthcare was tracking in NZ. Hard to say because they have added 1 month of Symbion into the numbers but the notes say this produced $4.687m of NPAT so working backwards it looks like Healtcare in NZ NPAT was $26.2m - DOWN 4% on last year. Like Animals H2 was pretty dismal with NPAT DOWN 10% after being ahead in H1

OK after leaving out the acquisition costs and the 1 month NPAT from Symbion they profit is up 5.7% for the year. That's $1.6m extra profit but after H1 they were $3.4m up so in H2 they were $1.8m down.

So from the all the numbers and leaving out those acquisition costs and Symbion for 1 month they made $1.6m more than last year. Healthcare was down $1.1m, Animals were up $4.1m and HO (Corporate) spent $1.6m more. The concern is that the Animal increase of $4.1m is solely because this was the first full year with EBOS and there were 5 or so extra months this year.

Wish I hadn't looked at the segment stuff but I do love Masterpet for boosting the EBO shareprice so much last year. But one would have to say this is a pretty poor result ..... just as well they have all these other stories to tell

They say that if the Symbion thing had been for the full year (ie they had taken over on July1 2012) this years NPAT would have been $90m. On a market cap of $1.4 billion that is a PE of 15 odd ....... umm

Be interesting to see how it all turns out


Just concentrate on what Mark Waller has said.
He will make it happen.
Twenty six years of being right.
Look out for more acquisitions here and Aussie for the Pet businesses.
Give them a year before passing judgement.
"Today someone is sitting in the shade,because years ago someone planted a tree."
Mark Waller is like you, a great tree planter.! lol.

[winner69]

Past headings for FY announcements


2005 EBOS GROWTH CONTINUES
2006 Milestone for EBOS
2007 EBOS Makes Quantum Leap
2008 EBOS DELIVERS ON GROWTH
2009 EBOS REPORTS ANOTHER RECORD RESULT
2010 OUTSTANDING FULL YEAR RESULT & POSITIVE OUTLOOK FOR EBOS
2011 EBOS GROUP CONTINUES EARNINGS GROWTH
2012 GROWTH MOMENTUM CONTINUES FOR EBOS

and then this year (they forgot the upper case)

2013 EBOS Delivers Again


Great story over many years

But 2013 not one of the best with profit increase only coming from a full year Masterpet. Just sraped in they did

But they used QUANTUM in 2007 .... with profits going from $30m to $100m in 2014 Mark already thinking up the heading .... maybe he will give us a clue in the half year what the word is

[percy]

Past headings for FY announcements


2005 EBOS GROWTH CONTINUES
2006 Milestone for EBOS
2007 EBOS Makes Quantum Leap
2008 EBOS DELIVERS ON GROWTH
2009 EBOS REPORTS ANOTHER RECORD RESULT
2010 OUTSTANDING FULL YEAR RESULT & POSITIVE OUTLOOK FOR EBOS
2011 EBOS GROUP CONTINUES EARNINGS GROWTH
2012 GROWTH MOMENTUM CONTINUES FOR EBOS

and then this year (they forgot the upper case)

2013 EBOS Delivers Again


Great story over many years

But 2013 not one of the best with profit increase only coming from a full year Masterpet. Just sraped in they did

But they used QUANTUM in 2007 .... with profits going from $30m to $100m in 2014 Mark already thinking up the heading .... maybe he will give us a clue in the half year what the word is

This latest deal is just as/or even more significant than the PNZ acquisition which gave the QUANTUM result.
I think we see hear clues at the AGM and half year,but real results will take a year or more.
I expect a lot of developments in animal area,as it is so more profitable than human health area.
I also expect to see further bolt on acqusitions.They certainly want to get closer to vets. [Bigger animals need bigger doses. Think cattle and horses,working dogs,rather than small cats and dogs]
Waller has certainly planted the seeds for exciting future growth.I think we will look back in 3 years time and see what a "game changer"the Symbion deal was.

[winner69]

Nice presentation pack they put together

Bit inconsistent .....like they do a 'normalised' view of the business but when they talk about Healthcare they (conveniently) forget about 'normalised' and put the full result in, ie boosted by a few weeks of Symbion

For heritage business H2 was not good ...profit less than than last year

Maybe with all the excitement of acquisitions they have taken the eye of the ball locally .....so better make Symbion work eh .....game changer yes ....one way or the other

[percy]

Waller and the team have kept their eye on the BIG BALL, which will drive the small balls to bigger balls.
At the end of the day we will end up with GREAT BALLS.!! lol.

[macduffy]

A headline in the AFR today states that EBO

" ......is closely examining two further acquisitions here as it accelerates plans for an ASX listing."

I'm not a subscriber so can't follow the article any further. Can anyone help?

[NZSilver]

http://www.stuff.co.nz/business/industries/9142197/EBOS-eyes-further-Australian-acquisitions

Might help MD

[macduffy]

http://www.stuff.co.nz/business/industries/9142197/EBOS-eyes-further-Australian-acquisitions

Might help MD

Thanks, NZSilver.

:)

I wonder if the "animal health" company is City Farmers, which was said to be on the market recently?

[percy]

Thanks for the links.Exciting times ahead.

[percy]

the Bershire Hathway of NZ eh?

Yeah Right.!
Hope you are hanging onto your EBO shares.Do not even think of trading them>!!! lol.

[percy]

From this year's Managing director's Review;
Exciting Times Ahead.
Last paragraph" Healthcare and Animal care are key sectors of the economy and as such provide a wealth of future opportunity."
Certainly agree with that statement.!!

[kizame]

From this year's Managing director's Review;
Exciting Times Ahead.
Last paragraph" Healthcare and Animal care are key sectors of the economy and as such provide a wealth of future opportunity."
Certainly agree with that statement.!!

Why? Is it cos the countries ageing animal population are going to need a village to retire in? Ooops sorry that should be Ryman.
So we must be looking after our fish,rabbits and budgies better,or just paying more to do it.

[Mista_Trix]

Why? Is it cos the countries aging animal population are going to need a village to retire in? Ooops sorry that should be Ryman.
So we must be looking after our fish,rabbits and budgies better,or just paying more to do it.

As someone who is 30, a huge amount of my friends are spending large money on pet bills. First houses are unattainable, and because of this the 'family unit' seems unachievable. A first step towards this however is getting a pet, sometimes several 'practice babies' or 'fur babies' if you will.

Its an interesting market, those people that treat these animals like children, because for them in a way, they are. And maybe unlike a developed family where the kids come first, pets a clear second, they might spend a lot more money on keeping them alive.

I had some friends shell out $3,000 before deciding the cat they loved so dearly wasn't meant to live and had too many problems. But up until this point they bought all the care/meds products they could ... because for them it was their first 'child' as a couple.

I don;t get it myself, but that's one element of this crazy industry.

[percy]

Why? Is it cos the countries ageing animal population are going to need a village to retire in? Ooops sorry that should be Ryman.
So we must be looking after our fish,rabbits and budgies better,or just paying more to do it.

I look forward to my next visit to wonderful Tauranga.
Hope to visit the Kizame Full Care Pet Retirement Village.
Trust you will have a dementia yard for that old dog SNOOPY.

[Mista_Trix]

I m definitely part of the fur baby generation, and since I will never have children I will have many over my lifetime. pets are great and I would spend quite a bit on keeping them alive (up to a point and ethically of course). they are respected members of the family and treated that way by the vast majority :)

I think that's part of it as well to be honest. Where before it may have been stigmatising for people (either single or a couple) not to have children, now its a lot more acceptable for people to chose not to, and everyone loves company, so perhaps those people will now buy pets ... and spend oodles on them.

[percy]

Looks as though Milford join us ,so we are all now 'well positioned.'
Wonder when they will join "the smart money" at HNZ? lol.

[percy]

Well the AGM went off well.All directors re-elected.Speeches by Chairman Rick Christie and MD Mark Waller were excellent.Symbion acquisition is proving to be a great fit.Same customer driven culture as EBO.
Everything on track.Looking to make the projected figures,NPAT $48.7mil.EPS up 13% to 33cents.Net Cash Surplus $42.7mil from operations.Net debt low at $383mil.
Presentation included a video of the Greystone plant in Sydney.Collating orders electronically was awesome.
Growth will come from cross selling opportunities.
Animal health area,EBo intend to expand into veterinary wholesale in NZ.
EBO are working with HBL [HealthBenefits Ltd].This is govt company set up to supply all NZ hospitals.Like Pharmac.
Really Mark Waller summed up the presentation by saying "EBO is incredibly well placed."
As I have pointed out before;EBO share price will double.The question is;will it take two,three or four years?
Does not worry me,as I am a long term shareholder.[Been there over 20 years,and think the next 20 will be even more fun!!]
Some time ago some one asked where the shares for the Australian listing would come from? I asked both Liz Coutts and chairman Rick Christie this question.Both gave the same answer;"They will have to come from NZ."
Christie did wind me up by saying some could come available should they issue shares for their next Aussie acquisition.!!!!!!I think my cheesed off expression made him laugh more.!!!

[winner69]

Thanks for that Percy

Sounds like you had a great time at the meeting revelling in all the good news and mixing with all those famous wealthy and knowledgable people.

So we need to wait to hear what next acquisition is and another call on shareholders eh

Hear from you soon about hnz asm

[macduffy]

Yes, thanks, Percy. Always good to get the goss from someone with a stake in the company!

[percy]

Thanks for that Percy

Sounds like you had a great time at the meeting revelling in all the good news and mixing with all those famous wealthy and knowledgable people.

So we need to wait to hear what next acquisition is and another call on shareholders eh

Hear from you soon about hnz asm

Bit surprised the rich and famous talk to me.!!!
EBO have walked away from the two acquisitions they were looking at when they brought Symbion.
A lot for cross selling opportunities with EBO/Symbion.
The HBL deal is very important.
Next acquisition which they are in no hurry for will most probably be Vet wholesale.

[percy]

Yes, thanks, Percy. Always good to get the goss from someone with a stake in the company!

I learn so much from these meetings.
You can read the annual reports,read presentations,etc,but nothing compares with hearing it from the horse's mouth.
Don't know whether it is body language,or how they say things,or the throw away lines,or their sense of excitement.
We have shares in a great company.The next 5 years are going to be fantastic.Aussie health market is being reorganised more like NZ model.Pharmac type buying will see a lot of multi nationals leaving Aussie.EBO/Symbion will pick up agencies and opportunities.
The Australian listing is about to happen.NO more shares issued.EBO have been doing presentations to Aussie's.Most of EBO's turnover is now in Aussie.So I expect the Aussie's will push up the SP once they start buying.Not a lot of shares on issue.
Big take up of dividend reinvestment.

[Snow Leopard]

Looks like the EBO share price could use a little support at the moment.

Come On EBO, You can do it !!

Best Wishes
Paper Tiger

[percy]

looks like the ebo share price could use a little support at the moment.

come on ebo, you can do it !!

best wishes
paper tiger

poised.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[JayRiggs]

I bought a bit a couple of weeks ago, does that help?

[percy]

I bought a bit a couple of weeks ago, does that help?

Yes.
Keep buying.
You didn't buy enough.!!!!! lol.

[macduffy]

Reported in Australia this morning that EBO will list on the ASX this Friday, 29 November.

[Ginger_steps_]

A decent correction going on here with no news othe than the ASX listing. Also very quiet on the BUY side - anyone care to elaborate? I thought people would be thinking about topping up at these levels?? Or maybe waiting for a confirmed support?

[Nigel]

PE still around 20. Still a tad high for my liking.

[winner69]

PE still around 20. Still a tad high for my liking.

Be careful with what you read on the internet

The EPS quoted most places is last years, and that only had one month of Symbion in it

With full year of Symbion EBOS should achieve NPAT of ~$90m this year so real PE is about 13 to 14 at the moment

Maybe still a bit high? No idea

[percy]

Be careful with what you read on the internet

The EPS quoted most places is last years, and that only had one month of Symbion in it

With full year of Symbion EBOS should achieve NPAT of ~$90m this year so real PE is about 13 to 14 at the moment

Maybe still a bit high? No idea

For as long as I can remember,[and I have a long memory],EBO have traded between a PE of 13 and 16.
I am surprised the Australian listing has not seen EBO take off.
Mark Waller did say at the AGM a lot of Australian intos wanted forward projections,which EBO would not give.
The Symbion acquisition is a fantastic buy,and I expect to see EBO share price at $20.Just don't know whether it can happen in under three years,or not?!

[Nigel]

I like EBOS - well run company, solid performer year after year. But right now, the depth is looking ugly and there's general negative sentiment. I'll be looking to buy a few once the down trend (which has been going now for three months) reverses.

[percy]

I like EBOS - well run company, solid performer year after year. But right now, the depth is looking ugly and there's general negative sentiment. I'll be looking to buy a few one the down trend (which has been going now for three months) reverses.

Nigel,I think you are right to wait until the trend favours buying.
Over a good number of years I have noted EBO share price seems to do its own thing.Don't know why, but it does.Whenever I have got really nervous and thought something must be really wrong,the down trend seems to stop and up it goes again.Can be a bit of a concern when every thing except EBO is going up.

[modandm]

per consensus estimates at a shareprice of 9.00 pe is about 14.5x.

I imagine the continued AUD weakness means actual results will be lower, therefore EBOS still looks to be on 16 or 17x.

I want to do more research on this stock and think it could be a great long term investment. My concern about buying now is - if results disappoint in a few months, (likely given AUD), will this send the stock lower? On one hand I would think the market realises this already, but on the other I am surprised at the stupidity of the market on a regular basis.

[winner69]

H1 NPAT of $48m is in the bank ... so no half year surprises

[winner69]

Down another 3% today to 870

Moosie cheeky bid at 850 filled tomorrow ........might regret it

Maybe punters finally realised that nz profits fell in h2 for 2012 year .....and maybe that trend continuing this year.

H1npat in the bank .....some concern over h2 ....I don't know but not flavour of the month is it

[winner69]

Have there been any trades on tASX yet?

[winner69]

http://www.stuff.co.nz/business/industries/9504993/Abano-accused-of-overspending

[gv1]

Same I thought as well, wrong thread. Bit overvalued I think?

[percy]

I see Milford have sold 575,000 ebo shares.
Maybe to pay for their MGL shares.?!
I dare not pass judgement.!!! lol.
Disc hold EBO,
don't hold MGL.

[Snow Leopard]

EBOS leads NZ market with first Investor Relations App (http://www.scoop.co.nz/stories/BU1402/S00444/ebos-leads-nz-market-with-first-investor-relations-app.htm)

Results better be good.

Best Wishes
Paper Tiger

Disc: EBO and a Nexus7 (Android)

[percy]

Not too worried about the results being good.
Just want to hear how progress is going.
The results will come,either sooner or later.[And they will be fantastic!]

[winner69]

WOW. WOW AND WOW

Had to say it three times Percy because u need a certain number if words to post

ON TRACK TO THE 100 MIL PROFIT METHINKS

[percy]

They are delighted.I am excited.!
Absolutely incredible result.
Succession very clever with Patrick Davies taking over from Mark Waller,and Waller taking over from Rick Christie.
On track to $20 a share.!!
All against a strong NZ dollar.
And wait there's more;Increased divie on increased number of shares !!!
Also I will miss Dennis Doherty, CFO, who was always helpful with any questions I had.

[JayRiggs]

Wow this is great! Bought some more this morning.
Thank you to Mark Waller for all your years as managing director.

[Mista_Trix]

Overview of success and changes;
http://www.nbr.co.nz/article/ebos-meets-guidance-1h-profit-more-triples-overhaul-executive-team-bd-152098

[okay]

Very pleasing result. Management delivering once again.

[macduffy]

Yes, a great result!

Australian business accounted for nearly 74% of profit in a period of a strengthening NZD against the AUD! Any doubts about the Symbion acquisition - and I had a few - well and truly put to bed!

[noodles]

Shows great companies can beat earnings when external factors are against them. Same as fph.

Companies like Scott use it as an excuse

[ratkin]

High fives all round to fellow holders. This my largest NZ holding and was rather nervous about this one , but all looks good.
Did they give a breakdown per division? couldnt see it anywhere , would like to know how masterpet performing

[Snow Leopard]

I have quietly about doubled my holding of EBO over the last couple of months.

So I am pleased with this result, though I have not dived into the actual accounts yet.

Best Wishes
Paper Tiger

[ratkin]

It gave no specific guidance for the full year while noting that the trading mix has traditionally been skewed 52 percent-48 percent between the first and second halves."

Hopefully no guidence going forward is not a worrying sign

[glennj]

What a great company! Thank you Mark Waller team for the last 7 or so years.
At todays price, my returns show an IRR of 182% for EBO on the combined purchases since 2007.
Future still looking rosey & I like the management shifts with Mark becoming chairman.

[percy]

It gave no specific guidance for the full year while noting that the trading mix has traditionally been skewed 52 percent-48 percent between the first and second halves."

Hopefully no guidence going forward is not a worrying sign

Other than prospectuses I can not remember Mark Waller ever giving guidance.In fact, I recall him saying the Australian fund managers could not understand him not giving guidances,when he did presentations there.

[ratkin]

Consistent company always delivering on its promises. Should close above $10 and stay there easily.
Added to an already overweight position today

[ratkin]

The app is very good by the way , there is a presentation etc and a short video on SYmbion, company looks even better on the iPad.

[Snow Leopard]

So the results came in within a cat's whisker of forecast results.

Divvy to be only 50% imputed (again) so a little extra tax to pay.
[Imputation: $0.03986, Gross: $0.24486, (could be wrong of course)]

So, onwards and upwards hopefully.

Best Wishes
Paper Tiger

[percy]

It is onwards and upwards.
No hopefully about it.!!

[percy]

It is onwards and upwards.
No hopefully about it.!!


sorry I have done it again.!!

[stoploss]

It is onwards and upwards.
No hopefully about it.!!


sorry I have done it again.!!

Percy good story in stuff today, particulary like the last line ...
DISC : Holding


http://www.stuff.co.nz/business/industries/9741608/Shakeup-and-new-contracts-a-lift-for-Ebos

[percy]

Stoploss,
Thank you posting the link.Look forward to the announcement.

[Snoopy]

Shows great companies can beat earnings when external factors are against them. Same as fph.

Companies like Scott use it as an excuse.


Don’t wish to take anything away from what Mark Waller has achieved.

Once at a talk, Mark related his son had asked him why he had stuck with the same company for 25 plus years? Mark’s reply was it might have had the same name. Nevertheless, it wasn’t the same company. Every year had presented different challenges to overcome, different market directions in which to steer. There was never a day when he got out of bed and didn’t feel like going to work. I don’t need to add that long-term shareholders have benefited accordingly from Waller’s dedication. Can you name another CEO of an NZ company with a better growth record over a twenty five-year period? Perhaps only Ron Brierley, although his star has subsequently dimmed. One of my investment regrets is never having held Ebos shares. I like to wait for transient investment mistakes to lower the price of any ultimately promising new long-term investment I might make. I am not sure Mark has made any!

Nevertheless, Ebos is not a manufacturer in the sense of FPH and SCT. Yes I know that Anti-Flamme cream is an Ebos engineered product, and a good one. But generally Ebos is a distributor of product in the health sector, a market with largely inelastic demand. It is not a fair measuring stick to compare EBO with FPH, who despite also being in the health sector have had their currency issues, or SCT. I don’t think a high exchange rate has ever been presented by FPH or SCT as an ‘excuse’ for non-performance. Certainly SCT who for many years made all their sales in US dollars have addressed the issue by diversifying into many currencies: the Soviet block, South America and Australia and New Zealand. Stating that high exchange rate will affect an NZ based manufacturer’s results is just a fact. But yes, Ebos have handled their somewhat lesser currency issues very well

SNOOPY

[percy]

So Mark Waller tells the story;Sir Ron employed Mark to run EBO.Told Mark he thought EBO could possibly achieve $40mil of sales although he doubted it.!!
Mark Waller had other ideas.!! Ron old out of "the good" to keep investing in "the rubbish."
As to investing in EBO at present price? One must remember with each major acquisition growth has accelerated.So the next 5 to 10 years should be exciting and rewarding.

[noodles]

Nevertheless, Ebos is not a manufacturer in the sense of FPH and SCT. Yes I know that Anti-Flamme cream is an Ebos engineered product, and a good one. But generally Ebos is a distributor of product in the health sector, a market with largely inelastic demand. It is not a fair measuring stick to compare EBO with FPH, who despite also being in the health sector have had their currency issues, or SCT. I don’t think a high exchange rate has ever been presented by FPH or SCT as an ‘excuse’ for non-performance. Certainly SCT who for many years made all their sales in US dollars have addressed the issue by diversifying into many currencies: the Soviet block, South America and Australia and New Zealand. Stating that high exchange rate will affect an NZ based manufacturer’s results is just a fact. But yes, Ebos have handled their somewhat lesser currency issues very well

SNOOPY
Snoopy, I regret making those comments about Scott. It was a throwaway remark. I hold neither SCT,FPH, or EBO.

[percy]

Snoopy, I regret making those comments about Scott. It was a throwaway remark. I hold neither SCT,FPH, or EBO.

I just don't know how you can live with yourself not owning EBO!!! lol.

[noodles]

I just don't know how you can live with yourself not owning EBO!!! lol.

ha. Selling out of CAJ.AX at 8c. Now that is hard to live with!
Lesson learnt: When owners sell to institutions, it is a good thing. Improves liquidity and institutions spread the word.

[percy]

ha. Selling out of CAJ.AX at 8c. Now that is hard to live with!
Lesson learnt: When owners sell to institutions, it is a good thing. Improves liquidity and institutions spread the word.

Oh dear.!!! Think I may have done the wrong thing selling my CAJ at 47cents.!!
I was thinking about my holding of EBO held since 1991.Had I been posting on sharetrader everyone would have said I was mad.Over the last 23 years there have been so many reasons to sell;losing this agency,fear of losing that contract,Aussie business facing headwinds,currency,Govt depts regulations,health boards. You name it EBO have faced it.Other posters would have laughed at me.How many times brokers have had under perform,reduce and sells I would hate to think.!!
My biggest mistake has been selling down EBO.
So why has EBO succeeded even when Sir Ron said it had limited potential? The reason is Mark Waller saw where the future of medical supplies was headed.The board backed him,as did shareholders.He shared his vision with staff and has taken us all on a great journey.And yet the future is where the fun is.!!!
I have been to agms,and presentations where Waller has shared his vision.What he says they intend to do,they do do it.
He delivers.
What is EBO's moat? Service with integrity.
So why did I buy EBO 23 years ago? Because with an ageing population I saw growth in medical supplies.Same today!

[kizame]

Oh dear.!!! Think I may have done the wrong thing selling my CAJ at 47cents.!!
I was thinking about my holding of EBO held since 1991.Had I been posting on sharetrader everyone would have said I was mad.Over the last 23 years there have been so many reasons to sell;losing this agency,fear of losing that contract,Aussie business facing headwinds,currency,Govt depts regulations,health boards. You name it EBO have faced it.Other posters would have laughed at me.How many times brokers have had under perform,reduce and sells I would hate to think.!!
My biggest mistake has been selling down EBO.


I have been to agms,and presentations where Waller has shared his vision.What he says they intend to do,they do do it.
He delivers.
What is EBO's moat? Service with integrity.
So why did I buy EBO 23 years ago? Because with an ageing population I saw growth in medical supplies.Same today!


So why has EBO succeeded even when Sir Ron said it had limited potential? The reason is Mark Waller saw where the future of medical supplies was headed.The board backed him,as did shareholders.He shared his vision with staff and has taken us all on a great journey.And yet the future is where the fun is.!!!

Nice job Percy,there aren't many people who could hold for so long,me included.
I have always watched Ebos and at times owned their shares,a company to be admired. 23years and still heaps of growth to come.

[Mista_Trix]

Huuuuge amount through today !!

[noodles]

Huuuuge amount through today !!

Perhaps a leak on the health benefits contract?

[ratkin]

Any ideas why the sell off?

[psychic]

1.0m Shares issued under the DRIP today but no other news.??

Did we ever get confirmation of the health benefits contract noodles referred to a month ago?

[percy]

Any ideas why the sell off?

Craigs recent research;"The key issue for investors is the extent to which reforms to the PBS [Australian Pharmaceutical Benefit Scheme] will impact the profitability of pharmacy wholesaling in Australia."
Craigs' Portfolio view;Underweight.

Percy's personal view;Raging Buy!!.

[Snow Leopard]

Un-impressed that I am in the orange* on my recent topping up of EBOS.
Need a little support here, or some reasons why? (or why-not?)

Best Wishes
Paper Tiger

*orange with black is a good colour for a coat but not a share status.

[percy]

From Craig's research "Sector summary";
"The ageing population in Australasia will support demand for healthcare services for some time.Healthcare is a defensive sector that is relatively insulated from the cycle compared to the broader market.
EBO has been a solid consistent performer.Following the acquisition of Symbion,the majority of earnings will come from Australian wholesale pharmacy,which holds material funding risks."
Maybe people see these risks.I still believe the Symbion acquisition was brilliant,and opens up more opportunities for EBO in both animal and human health areas.
The half year result was very positive.

[Snow Leopard]

Quick look at the charts suggests a double top failure here. Anyone have any reason why EBO has dropped so far and fast on no news other than that? Is it the NZD AUD cross?

Not a chart pattern tiger myself (but use software design patterns extensively) but as far as I see what we have here is a potential double top (price to close below the low of the inter-top dip to complete?)

From then there is a 65-70% chance of a double top where the price continues to drop away.
or a 30-35% chance that it turns around and becomes a double top failure/triple top (with chocolate flavour)/whatever.

No idea why it is doing this and where it will actually go next.

Anyway I would prefer up to down.

Best Wishes
Paper Tiger

[modandm]

Quick look at the charts suggests a double top failure here. Anyone have any reason why EBO has dropped so far and fast on no news other than that? Is it the NZD AUD cross?

I think it is partly this. The half year results were very good despite the AUD weakness, but they overstate earnings given the AUD weakened throughout. The full year is likely to show more subdued growth (though still decent).

I am really keen to get on board with EBO, its just timing the entry. I think the next 18 months will be a bit more challenging, so the stock looks like dead money for a while.

Long-term, and when the can do some more acquisitions - then its a great compounder - 4% dividend + 5-10% EPS growth, not bad. Just buy at the right valuation. At the moment there are better opportunities elsewhere I think.

[percy]

I think we will see EBO taking advantage of a lot of synergies opportunities that the Symbion acquisition provides for both.
I have noted over the past 23 years EBO often has periods of weakness.The charts show that over the past 14 years [longest I can find] EBO has often broken the 498 day moving average[again longest I can find].The positive is it is still above it at present!!!!!
I can't advise on timing buying ,however my greatest mistake has been selling down my EBO at times.!! Will not make that mistake again!!!! lol.

[winner69]

As EBO sinks below 900 a guy on the radio last night mentioned corporate activity in big pharma in the US was the reason - that's all I heard as wasn't really paying attention

What that got to do with EBOS no idea

[winner69]

As EBO sinks below 900 a guy on the radio last night mentioned corporate activity in big pharma in the US was the reason - that's all I heard as wasn't really paying attention

What that got to do with EBOS no idea

Market has overreacted says Mark

Mark also says he has been boss for 20 years and never mentioned the EBO shareprice but today it is CHEAP. Yes he said CHEAP

sell your HNZ Percy and back up the truck to load up with EBO ...as Mark says a great opportunity

Radionz Business Report at 6.45am
http://www.radionz.co.nz/audio/player/2593993

[percy]

Thanks for the link Winner69.
Mark Waller has always been a straight shooter.Always hits the bullseye.If he says they are cheap,then they are cheap.
I reread the interim report yesterday,and thought to myself,Percy old son,lucky you have two trucks,No.1 truck is loaded up with HNZ,however No.2 truck still has a bit of space left,so about time to fill it up with EBO.
Timely advice thanks Winner69.

[macduffy]

"I never comment on the shareprice, but............"

Hhmm.......

I like it better when CEO's don't "talk their own book" in that way. It doesn't alter my view on EBO, one of my oldest investments, but .........

[percy]

I paid $9.10 per share for this morning's top up.

[Snow Leopard]

Looking for a close above PSAR @9.20 Ttoday to show an uptrend in progress. Looks like everyone got the message!

So Hammers are out and Parabolics are now in, then?

Best Wishes
Paper Tiger

[percy]

INFINZ- Equity Issue of the Year 2014;Winner- EBOS Group Limited;$239m Capital Raising.

INFINZ-Mergers & Acquisitions Transaction of the Year2014;Winner-EBOS Group Limited;Acquisition of Symbion.

INFINZ-LeadershipAward 2014;Winner-Mark Waller,Managing Director/CEO of EBOS Group Limited.

Well done Mark Waller/EBOS.

[kizame]

Looking for a close above PSAR @9.20 Ttoday to show an uptrend in progress. Looks like everyone got the message!

Yep too many tools, the KISS principal applies here too. Basic TA should tell you whats going on.

[Snow Leopard]

Mark's word carry along way - still going up:t_up:

Best Wishes
Paper Tiger

[percy]

Agreement between EBO subsidiary Onelink,and Crown owned Health Benefits Ltd signed.[at last!!]

[noodles]

Agreement between EBO subsidiary Onelink,and Crown owned Health Benefits Ltd signed.[at last!!]
How can this not be a price sensitive announcement?
Also, I would have liked them to provide the financial impact.

[percy]

How can this not be a price sensitive announcement?
Also, I would have liked them to provide the financial impact.

Well it has been expected for months.
Announcement was "very thin" on details.No mention of financials.
However it is very positive for EBO.Puts them in the right place?

[macduffy]

Yes, percy, it was expected that EBO would win the contract but they'd have been on a hiding to nothing if they hadn't, considering the purchasing clout of Health Benefits Ltd. I would expect that pencils would have been sharpened to get the contract and that profit margins will have narrowed.

[percy]

Yes very sharp pencils.Slim margins on huge volume?
At last year's agm EBO showed a video of Symbion's Sydney $30mil order collating system.A conveyor moves along.As it moves along pills,etc are dispensed down shoots to add to each order.Fantastic.I think EBO's Auckland distribution centre is very clever too.
Mark Waller has often stated EBO is more a "logistic" company.

[winner69]

How much of this is new business or is it just an extension of what they do now.

Excuse my ignorance .... I only understand the pet side and that is bubbling along very nicely I hear

[percy]

I can not remember how many DHBs EBO were supplying [maybe 6 or 8] ,so the new agreement is significant, as it is for ALL 20 DHBs.

[winner69]

I can not remember how many DHBs EBO were supplying [maybe 6 or 8] ,so the new agreement is significant, as it is for ALL 20 DHBs.

Thanks Percy

So a lot more business for EBO

Good they going to do things even more efficient so save the taxpayers a few bob

[percy]

Thanks Percy

So a lot more business for EBO

Good they going to do things even more efficient so save the taxpayers a few bob

Trying to work with Govt. to save a lot of money.[Here and Australia]
Working to make the health spend go further.
Best practice,stop waste,duplication of supply,overstocks,understocks,buying power.Modern distribution channels,linked with modern ordering system means the right product is being delivered very quickly.Not sure about hospitals,but I think chemist shops enjoy two deliveries a day.{for some reason I think EBO have to be able to supply a hospital in an hour].

[macduffy]

Masterpet subsidiary to lease a new Wellington distribution centre.

http://www.stuff.co.nz/business/industries/10244859/Masterpet-to-lease-large-capital-property?cid=edm:businessday:dailybrief

[winner69]

Mark probably spot on

http://www.stuff.co.nz/business/industries/10246165/Slow-Christchurch-rebuild-a-tragedy

[MAC]

Mark probably spot on

http://www.stuff.co.nz/business/industries/10246165/Slow-Christchurch-rebuild-a-tragedy

I could not agree more Winner;

Three years ago when many folk were calling for a professional international developer like Bechtel to manage the re-build, all the local politicians were strutting about telling us how they could do it all better.

Bakers for baking, butchers for butchering, politicians for ...................

[winner69]

As long as honesty and integrity prevails I totally agree with Marks comments (about too much corporate governance)

http://www.radionz.co.nz/audio/player/20141653

[Tomtom]

Looking to increase my position.

[sommelier]

Is that after watching that new condom ad? "You do like sex... Don't you?". Thanks Ebos.

[Onion]

What are the reasons for the current weakness of EBO? Presumably it is the doubts about Health Benefits Limited (http://www.radionz.co.nz/news/national/251456/mistrust-over-health-sector-razor-gang)?

... given that Ebos's Onlelink subsidiary has won a big chunk of that business: https://www.nzx.com/companies/EBO/announcements/252297.

[winner69]

What are the reasons for the current weakness of EBO? Presumably it is the doubts about Health Benefits Limited (http://www.radionz.co.nz/news/national/251456/mistrust-over-health-sector-razor-gang)?

... given that Ebos's Onlelink subsidiary has won a big chunk of that business: https://www.nzx.com/companies/EBO/announcements/252297.

One day fall to slightly below 10 bucks is not really weakness is it onion

[Onion]

One day fall to slightly below 10 bucks is not really weakness is it onion

I guess you are right winner, but having been pretty steady hovering around or above $10 for the last couple of months there must be a reason behind a 20c drop.

[percy]

I guess you are right winner, but having been pretty steady hovering around or above $10 for the last couple of months there must be a reason behind a 20c drop.

Yes you are right.I have noticed over the past 23 years it does this at times.

[winner69]

I guess you are right winner, but having been pretty steady hovering around or above $10 for the last couple of months there must be a reason behind a 20c drop.

For 39 days EBO close was between 1000 and 1004. Very stable indeed.

So a drop to 975 (2.5%) could be described as a disaster.

But if you look at the 2 year chart the price has fallen to 900 odd a few times since it peaked at 1040 odd in June last year

If you look at Percy's 2 year old chart it is all up with a few little blips along the way

Believe the story ....have faith .....be strong ......in 10 years time it will be $20

[winner69]

Sure hope you didn't over the past few days. Oz just realesed a SHOCKING jobs report (contraction v expected expansion) and EBO is taking a hammering because of it.

If the NZD/AUD does what you predict that should EBO

[Tomtom]

Position doubled

[Onion]

Position doubled

I've gone the other way and bailed while I am still ahead. I think they are a good company so will keep a watch and possibly re-enter later when the cycle reverses (as EBO seems to do). I have seen my Summerset holding go from a nice gain to a moderate paper loss and didn't want EBO to do the same.

[rivka]

Hey onion, I will buy your shares now... and then I can sell back to you when it goes back above 10 bucks.
:-)

[Onion]

Hey onion, I will buy your shares now... and then I can sell back to you when it goes back above 10 bucks.
:-)

You can buy them on the market cheaper than I sold mine for.

For now I would like the SP to drop even further so I can get back in for the climb back to $10. I bought back in April after the SP dropped to $9.50 and topped up under $9 so I am new to the stock and didn't have a large profit margin like those lucky to have been in since 2012 -- if you are one of those then I can see that a drop to 9.50 is pretty insignificant.

[Onion]

You can buy them on the market cheaper than I sold mine for.

For now I would like the SP to drop even further so I can get back in for the climb back to $10. I bought back in April after the SP dropped to $9.50 and topped up under $9 so I am new to the stock and didn't have a large profit margin like those lucky to have been in since 2012 -- if you are one of those then I can see that a drop to 9.50 is pretty insignificant.

And so down it goes... to $9.25 as I write.

Reasons?

As Moosie wrote last week, "Oz just released a SHOCKING jobs report (contraction v expected expansion) and EBO is taking a hammering because of it."

Tim Hunter in the Dominion Post says: "By contrast, companies with exposure to Australia, such as Fletcher Building and Ebos, would be hit by its weak economy and the high exchange rate."

[Tomtom]

Yes. I agree. Obv. it's a complete pup ;).


EBOS will announce its annual results for the year ended 30 June 2014 to the Market on Wednesday, 27 August 2014.

[percy]

Yes. I agree. Obv. it's a complete pup ;).



Your post is not correct.
The market capitalisation has increased from $2,500,000 in 1990 to $1,403,915,280 today.

[winner69]

Your post is not correct.
The market capitalisation has increased from $2,500,000 in 1990 to $1,403,915,280 today.

Be patient with the young ones Percy

For many even 1 year ago is ages ago

But I think tomtom might have said that with tongue in cheek - he did double down the other down (at least that was what he posted)

Yes EBOS might still be a pup, when its a dog its market cap will be $10 billion ... now that's a big number

[percy]

WHAT A STUNNER!!!!!
Revenue up 216%.
EPS up 34%.
Operating cash flow $114.2 mil.
Increased dividend.
Well done EBOS.

[horus1]

Thi si san excellent long term stock. Thanks CEO and Board

[cyclist]

WHAT A STUNNER!!!!!
Revenue up 216%.
EPS up 34%.
Operating cash flow $114.2 mil.
Increased dividend.
Well done EBOS.

And the market can barely contain itself :confused:.

I picked up a few earlier in the year and have just topped up. Unfortunately for holders, that probably means the price is about to fall again.

[macduffy]

Yes, an excellent result!

It "only" met market expectations but that's only because the market has such high expectations of EBO! The really significant achievement is that they have made a success of the acquisition of Symbion. Plenty of companies have come to grief in attempting such a large scale company transformation.

[Beagle]

http://www.nbr.co.nz/article/ebos-profit-soars-first-full-year-symbion-sees-growth-2015-bd-161450

NBR article - Ebos outloook subdued.

[percy]

http://www.nbr.co.nz/article/ebos-profit-soars-first-full-year-symbion-sees-growth-2015-bd-161450

NBR article - Ebos outloook subdued.

Must say I agree with the article.
I too doubt EBOS will triple their annual revenue again this year!!!!
Going from $5.76 billion to near $18 billion may mean EBOS have to expand further than Australia !!!!!!!! lol.
Roger.Thanks for the link.

[arcticblue]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

[percy]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

You may have noticed Ebos have often gone their own way over the past 23 or so years.
So nothing unusual here.
Always a great opportunity to add to your holding when it happens.
It is a $20 stock.Only not saw when it will happen,but I will be there to enjoy it.I am thinking 3 to 5 years.

[macduffy]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

Yes, I would have!

The expansion into Australia is seen by the market as a company - changing move - which it is! - and is waiting for further evidence that its been the right move.

EBO has a great track record but caution here, on the market's part, is understandable.

A long term hold for me.

[winner69]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

1 -The 23 year chart says it is still trending up .....extrapolate the line and $20 sometime in next 10 years

2 - Medium turn the chart is showing the party is over and they need to do another acquisition to give the price a boost

3 - Short term the price oscillating between $9.00 and $10.50.

So today could be a good time to buy as per 3 with the hope that 2 will happen in the not too distant future so 3 will eventuate.

Fundamentally I think EBO more than fully valued at moment with a fair bit if growth built in

But that doesn't mean much - the share price all depends on how afew big traders (instos) feel today

[winner69]

I did that last post without seeing Percy's reference to 23 years

[percy]

I did that last post without seeing Percy's reference to 23 years

I did my post having 23 years experience as a shareholder!!!!
Growth.There are still a great deal of opportunities to leverage off both EBO's and Symbion's businesses in Australia and NZ.Plus cost savings.
I think they have about $350 mil they can use for acqusitions without coming to shareholders for more funds.I see growth in animal sector,plus I would not be surprised if they brought a foothold in Asia.
History has proved each acquisition has speed up the growth trajectory,so the fun is about to start in earnest?

[Beagle]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

I think you've answered your own question. Percy and others know the company FAR better than I but looking at the chart this morning doesn't make for a pretty picture.
Clearly below the 100 day MA and SP has stalled in recent times in the range you mention. Dividend yield isn't all that flash so you're not being paid all that well to wait for further growth.

That said from a fundamental perspective it doesn't too bad to me at all. I prefer it when TA and FA line up together :)

[percy]

Winner69 says EBO share price will be $20 in ten years time,while I think it will be $20 in three to five years time.
The main reason I think it will happen sooner than later is because of the changes that are happening at present.Mark Waller is standing down after a fantastic 30 years as CEO,to concentrate on acquisitions for the next year before becoming Chairman.Taking over as CEO is Australian Patrick Davies.Patrick drove Symbion to the position it is today.An fantastic performer.The new CFO is also an Australian with a proven record,taking over from Dennis Doherty who did an excellent job for 27 years.
Most of EBO's $7billion turnover comes from Australia.EBO is dual listed with very few ,if any.Australian intos on the share register.
There are only 148,719,839 shares on issue.I see a lot of fun when the Australian CEO,and the Australian CFO start to talk to Australian intos.
Yes most of our $7 bil plus turnover is here in Australia,yes both of us are Australian,yes we have a fantastic record for growing Symbion,yes we see great growth,yes we have recently opened our new state of the art warehouse in Melbourne to compliment our state of the art Sydney distribution warehouse,yes we see huge growth in animal as well as human health sector.We are well positioned.Bring it on!

[Beagle]

I think its safe to say you're bullish Percy :)

[percy]

Yes well!!????
Added to my holding this morning!!!!
Should not read my own posts.!!! lol

[Beagle]

Dividends carry full N.Z. imputation credits ?

[percy]

Dividends carry full N.Z. imputation credits ?

Imputed to 35%.

[Mista_Trix]

Is the Div payment likely to increse over the next couple of years or do you think they'll look to acquire?

[percy]

Is the Div payment likely to increse over the next couple of years or do you think they'll look to acquire?

Both !!
Increasing dividends and further acquisitions,plus organic growth.ie business as usual!

[macduffy]

I like your optimism here, percy, and share it to some degree. $20 in 3-5 years would be a great outcome! My reservations though concern the degree to which EBO's fortunes now depend heavily on how Symbion fares, which in turn depends much on how the Australian govt treats the question of pharmaceutical benefits and the suppliers thereof. I suspect that the Aussie market will remember Sigma's experiences of recent years and treat EBO with caution for a while.

[percy]

I like your optimism here, percy, and share it to some degree. $20 in 3-5 years would be a great outcome! My reservations though concern the degree to which EBO's fortunes now depend heavily on how Symbion fares, which in turn depends much on how the Australian govt treats the question of pharmaceutical benefits and the suppliers thereof. I suspect that the Aussie market will remember Sigma's experiences of recent years and treat EBO with caution for a while.

I suppose you are correct.My memory is going a bit so excuse me if my facts are wrong.15 to 19 years [guess] it was all over for EBO as they were losing the hugely profitable joint replacement business.Clauss sell down.Then it had to be all over when Mark Stewart sold his holding and resigned as a director. Then they were losing another agency.Trouble was when they built an agency up the manufacturer then took it back/over.Then they lost so many agencies through mergers.Mark Waller did say at one agm that they always had a back up agency/supplier which they could use.Was not many years ago at the agm Waller said they were wasting their time in Australia,either had to give it up or buy something big.Brought Symbion.How many times has the NZ government been going to put them out of business.Latest deals the government are getting EBOS to do the job,because they know EBOS can do it better and cheaper.For ever challenge there has been an opportunity that EBO have taken advantage of. I wish I could show you the video they showed at last year's agm of Symbion's automated picking system at their Sydney distribution centre;$30 mil it cost.It was like a VW factory production line.I expect the new Melbourne one is similar.I think the Auckland distribution centre is very clever too.The manufacturers are again finding EBOS can do a better and cheaper distribution for them than the can do themselves.The health systems in Australia and NZ keep changing,but EBOS always ends up with a bigger share of the market.

[Beagle]

Reuters shows five analysts covering EBO and all five rate it a hold. PE of 14.

[percy]

Reuters shows five analysts covering EBO and all five rate it a hold. PE of 14.

I am very happy to have been wrong with this stock for 23 years!!! Wish I could make as much with other mistakes?.
Buying more at $8.95 this morning, my rating it a buy, must mean I remain wrong!! A least I am consistant.! lol

[winner69]

So EBO has dropped from $10.40 in June to $9.05 now. Is there a reason for this? Is it the changing of people at the top? Something I've missed? Or just a good opportunity to buy into the company? It seems to have a pretty good history of growing and the divs just seem to keep increasing each year. Divs give a good return 4.685% gross according to NZX.com
So can someone tell me what I'm missing and why EBO might not be as good as I think? Or should I just be buying now?

What are the chartist's thoughts, I guess it's now in a downtrend and I should be waiting for this to be broken?

Hope you bought in today blue

On its way back above 10 bucks

[cyclist]

Hope you bought in today blue

On its way back above 10 bucks

I still haven't worked you out Winner. (Bet I'm not the only one either :p). I'm never quite sure if you are taking the piss, but I recall similar previous pronouncements on various stocks, and dammit they are often right.

So, if you wouldn't mind expanding on your reasons for thinking this is likely. Thanks.

[winner69]

I still haven't worked you out Winner. (Bet I'm not the only one either :p). I'm never quite sure if you are taking the piss, but I recall similar previous pronouncements on various stocks, and dammit they are often right.

So, if you wouldn't mind expanding on your reasons for thinking this is likely. Thanks.

See my post #401 earlier today

[arcticblue]

Good timing Percy up 15c already. I haven't bought in yet. EBO definitely have a good history of growing shareholder wealth but I need to look at the chances of growth in the future particularly internal growth. Still it looks like EBO has been in a trading range for the past year or so, so just need to work out what a good price is for this company with respect to growth prospects.

[percy]

Good timing Percy up 15c already. I haven't bought in yet. EBO definitely have a good history of growing shareholder wealth but I need to look at the chances of growth in the future particularly internal growth. Still it looks like EBO has been in a trading range for the past year or so, so just need to work out what a good price is for this company with respect to growth prospects.

articblue,
I can understand where you are coming from.I brought yesterday as I thought under $9 was great value.However there is no way in the world I can back up my confidence with cold hard future projections!!!! As you point out, the trading range over the past year does not seem to give any idea of the share price's future direction.The only,and maybe the only real test/indicator is Ebos's good history.
The agm on 31st October will be the first one the new CEO, Patrick Davies, gives a presentation to.Whether he stays with Mark Waller's policy of not giving projections or not, we will have to wait and see.
I will be attending it, so I will report what was said and the mood of the meeting.

[winner69]

Good timing Percy up 15c already. I haven't bought in yet. EBO definitely have a good history of growing shareholder wealth but I need to look at the chances of growth in the future particularly internal growth. Still it looks like EBO has been in a trading range for the past year or so, so just need to work out what a good price is for this company with respect to growth prospects.

Hope you stopped dilly dallying around and on board

On way to $10.50 in next month .... and then we watch if it bursts through that mark or not

[percy]

Hope you stopped dilly dallying around and on board

On way to $10.50 in next month .... and then we watch if it bursts through that mark or not

Well we were not alone buying Ebos this week,$10.7mil worth traded today at mostly $9.30 cd.

[winner69]

Nice feel to the Annual Report

Percy, hope you read Principle 3 on Page 49

[winner69]

Heaps more people earning more than $300,000 now than a year ago. Some 25 this year versus 6 last year.

Head honcho on $1.4m

Cost of being a big Australian company I suppose

[percy]

Revenue over $7billion I suppose we will get more big earners.
No Vice Presidents I hope.
Look forward to ready the report.

[JayRiggs]

Ebos going ex-dividend next week on Wednesday 01/10, and it's trading under $9 again.
Hmmm looking kinda vulnerable when it goes ex-div???

I was reading the Kingfish monthly report (https://www.nzx.com/files/attachments/200811.pdf) and it says Ebos earnings per share is up 11%.
But the Ebos full year result says earnings per share is up 34%.
I'm a bit confused, how did Fishers get +11% EPS vs +34% EPS?

[winner69]

Revenue over $7billion I suppose we will get more big earners.
No Vice Presidents I hope.
Look forward to ready the report.

Not quite their yet Percy

$5.8 billion .....maybe $7 billion in 2016

[percy]

Not quite their yet Percy

$5.8 billion .....maybe $7 billion in 2016

$5.8 billion it is.!! Sorry.!!
Now we can work out what fantastic stock managers they are.
Sales of $5,760,053,000 on $491,624,000 inventories.!

[winner69]

$5.8 billion it is.!! Sorry.!!
Now we can work out what fantastic stock managers they are.
Sales of $5,760,053,000 on $491,624,000 inventories.!

If you use the Cost of sales figures that is 10.5 stock turns per year

Just over a months sales in stock

Pretty good

[Beagle]

Considering the industry I'd say that's exceptional stock turn.

[Leica]

Inventory is down since last year. Must be hot shots at logistics!

[macduffy]

Inventory is down since last year. Must be hot shots at logistics!

Yes, that's their business!

:cool:

[JayRiggs]

Why is EBO going down?
I thought the EBOLA outbreak would help EBO.

[percy]

Why is EBO going down?
I thought the EBOLA outbreak would help EBO.

Expect it will?
I will be attending the agm on the 32st of this month,so expect EBO will give us a trading update .

[winner69]

$8.7283 is a bargain for DRP shares eh

A lot cheaper than the $9.90 for the interim earlier this year and i notice they are even cheaper than the $9.5268 they dished them out this time last year

[percy]

$8.7283 is a bargain for DRP shares eh

A lot cheaper than the $9.90 for the interim earlier this year and i notice they are even cheaper than the $9.5268 they dished them out this time last year

My thoughts too.
Nice to get a few extra.!!
Are you attending the agm at 2pm Friday 31st October at Chateau on The Park,ChCh.???

[winner69]

My thoughts too.
Nice to get a few extra.!!
Are you attending the agm at 2pm Friday 31st October at Chateau on The Park,ChCh.???

Not holding anymore .....but will read the slide show to see what's up

Never could work out if I came out ahead of all those rights and bonus shares last year and when it struggled to stay over 10 bucks a few times went looking elsewhere.

Symbion hasn't been as good to the shareprice as Masterpet was has it- $6 to $10 was good when they bought Masterpet eh.

Funny world isn't it ...market doesn't seem so responsive to a ginormous acquisition.

[percy]

I am holding more!! so will be even more interested in "the slide show."!!!!!!!!!!!!!!!!!!!!!!
If they show a clip of their fantastic automated order system, I am going to ask that they put a link so we can all see it.
I think the Symbion acquisition was brilliant.
Fantastic fit with EBO and we got their CEO and CFO too!!!.

[horus1]

I am topping up and will keep doing this at these prices. look at the free cash flow in the last report

[winner69]

I am topping up and will keep doing this at these prices. look at the free cash flow in the last report

Were we looking at different reports?

Operating cash flow $114m less say $40m spent on capital gives $74m free cash flow.

If you bought all the company's shares and took on its debt it would cost you $1.65 billion (enterprise value)

So your return on that would be 4.4% (even if you didn't worry about buying new equipment etc return would have been just 7%. You wouldn't be happy with that sort of return on $1.65billion would you?

[BFG]

I relckon it has gotta be cheap at these prices too. Buying.

Just when you think it's bottomed...

It can only get cheaper if Oz economy (EBOs main driver) implodes. I'd take winners advice, not cheap at all when looking forwarx (much better than backwards!!!!).

Wait and see would most likely be best course of action on EBO...

[Ginger_steps_]

Just when you think it's bottomed...

It can only get cheaper if Oz economy (EBOs main driver) implodes. I'd take winners advice, not cheap at all when looking forwarx (much better than backwards!!!!).

Wait and see would most likely be best course of action on EBO...

And the Moose claimed last year, at this time, that the SP would have doubled by now....

[percy]

I am reminded of those great ads on TV;"Sale must end this Sunday".Looks as though the sale has finished, with today's $9.36 rewarding the astute bargain hunters.!!!!
I am looking forward to this Friday's agm.

[ratkin]

I'm not a bottem picker... but I actually did!... just lucky this time.

Agm on friday at the chateau on the park, usually gives the price a littlee boost

[JayRiggs]

I am reminded of those great ads on TV;"Sale must end this Sunday".Looks as though the sale has finished, with today's $9.36 rewarding the astute bargain hunters.!!!!
I am looking forward to this Friday's agm.

Just topped up at market close of $9.10. Doing my best to support the share price!

Good luck at the AGM tomorrow percy. If you get the chance, can you ask if Ebola has affected their business?
Hope it all goes well and look forward to your post AGM summary.

[horus1]

A good acquisition .Great firm , hold as core stock

[JayRiggs]

Yeah great timing with the AGM today.

EBOS Announces Acquisition of BlackHawk Premium Pet Care
https://www.nzx.com/companies/EBO/announcements/257073

[winner69]

Yeah great timing with the AGM today.

EBOS Announces Acquisition of BlackHawk Premium Pet Care
https://www.nzx.com/companies/EBO/announcements/257073

If it anything like Masterpet was I am seriously interested in EBO again.

Symbion fully priced in, this acquisition isn't

[winner69]

If it anything like Masterpet was I am seriously interested in EBO again.

Symbion fully priced in, this acquisition isn't

Bit short on detail, hopefully percy will get all the details like sales and profitability this arvo

Blackhawks ....100% proudly Aussie owned ......ha ha no more

[JayRiggs]

Bit short on detail, hopefully percy will get all the details like sales and profitability this arvo

Blackhawks ....100% proudly Aussie owned ......ha ha no more

Yeah, a bit short on details. I did a quick google on Blackhawk Premium Pet Care to see what profits they make, but couldn't find anything. Anyone know where we can get this info?

I note that Ebos paid $105M for Masterpet compared to $57.8M NZD for Blackhawk. Hmmmm, wonder if they got a good deal out of this?
The market hasn't really reacted to this news. Trading at $9.35 at this stage.
Guess investors are waiting for more details at AGM.

[winner69]

Yeah, a bit short on details. I did a quick google on Blackhawk Premium Pet Care to see what profits they make, but couldn't find anything. Anyone know where we can get this info?

I note that Ebos paid $105M for Masterpet compared to $57.8M NZD for Blackhawk. Hmmmm, wonder if they got a good deal out of this?
The market hasn't really reacted to this news. Trading at $9.35 at this stage.
Guess investors are waiting for more details at AGM.


Hopefully paid no more than 7 times EBIT .....and didn't take on any Blackhawk debt

[winner69]

Methinks blackhawk worth another 60/70 cents share for EBO

Problem being EBO is now so so so big a piddly $55m acquisition doesn't set the world on fire. Masterpet was significant and added more 50% to the value of EBO

[okay]

The Aussie listing doesn't seem to generate a lot of excitement:). A company with $5.8 Billion in sales, and as at the time of writing not a single sale on the ASX since the 28th! With one solitary bid on there for 500 shares @ $A7.7 lol.

[RTM]

Will EBOS get included because of its size into some ASX Indexes which would force some folk to pay attention ?
Or to small in that market ?

[percy]

The AGM was well attended.Good speeches by Rick Christie and Mark Waller.First time CEO Patrick Davies has spoken.He spoke well.Excited with the new Melbourne distribution warehouse,which is operating.Offical opening next month.State of the art.Very positive speaker.The Blackhawk business is in premium animal food,which is growing quickly and with EBO sales channels expected to grow even quicker.Would appear another company is the distributor [at present] in NZ.
The directors who were up for re election gave good back ground to their contribution to EBO success.Peter Williams is a hard case.Wanted to be re elected business because he had so much fun at board meetings!!.Great bit of humour which was appreciated.
Ebola.Although EBO are not involved in drug manufacturing,they would be called on by governments in Australia and NZ to do the distribution. \
Figures and projections.No.
My overview is the company's future looks exciting.
To Tim,nice to catch up.See you at our next get together,when ever that is.Tim is a keen reader of sharetrader,but has not yet joined us as he only has a gmail address.
I have asked Patrick Davies to post on EBO a short clip of their new warehouse in action.He told me after the meeting he thinks it is the best in the world.

[JayRiggs]

Thanks for the AGM summary percy. Very positive indeed.

[noodles]

EBOS upgraded By Forbar- $98mill
http://podcast.radionz.co.nz/business/bus-mdr-20141103-1220-analyst_ebos_trading_above_expectations-048.mp3

Prior to the AGM, Average forecasts were $95.8mill.

Without reading the Forbar report, I think it could prove conservative given the 10% growth in the first quarter.

[Beagle]

Hi Percy,

Mate would you mind sharing your impressions of how serious or otherwise the regulatory environment in Australia is in regard to their operations there, (for those of us with insufficient time to read the full annual report and attend the ASM). Aren't they looking at some sort of federal price controls on certain products over there ?

[winner69]

EBOS upgraded By Forbar- $98mill
http://podcast.radionz.co.nz/business/bus-mdr-20141103-1220-analyst_ebos_trading_above_expectations-048.mp3

Prior to the AGM, Average forecasts were $95.8mill.

Without reading the Forbar report, I think it could prove conservative given the 10% growth in the first quarter.

That's not much for the normal bullish analyst

I have in mind $100m as a good result ....about 67 cents a share ....which is 6% more than FY14.

So at $10 about 15 times earnings ....um

[percy]

Hi Percy,

Mate would you mind sharing your impressions of how serious or otherwise the regulatory environment in Australia is in regard to their operations there, (for those of us with insufficient time to read the full annual report and attend the ASM). Aren't they looking at some sort of federal price controls on certain products over there ?

From memory the CEO Patrick Davies did say they have managed to work in the changing regulatory environment [ and do well] for ....
years.Did not hear whether that was 20,30 or 40 years,but it was some time !!!.
Mark Waller has always said changes give rise to opportunities.As there are/ have been a lot of changes, Ebos has been able to take advantage of those opportunities.
Patrick Davies did point on that in the human health supply chain they work on some very small margins.Tighter margins means only firms like Ebos, with state of the art distribution logistics survive.Means more drug manufacturers will give their distribution to Ebos,and it is too expensive for them to do themselves.
The animal sector has a lot higher margins.The top end of the market has the best margins and growth.

[noodles]

That's not much for the normal bullish analyst

I have in mind $100m as a good result ....about 67 cents a share ....which is 6% more than FY14.

So at $10 about 15 times earnings ....um

Remember that EBOS has around a $12mill in Amortisation of Intangibles charge(annually). So any pe estimate should really take that into account. I think you will find pe will drop below 14 when you factor that into it.

[Beagle]

Thanks Percy. As a keen pet owner of three dogs I have taken a particular interest in people's propensity towards spending money on their pets. Its a curious phenomenon. I heard a recent survey of U.K. pet owners which said nearly half of dog owners were more concerned about their dogs health than their partners health !!!...I'm not sure what this says about the state of marital relations in the U.K. lol.
My own psycho-analysis of people spending habits on pets goes along these lines...Firstly, my three dogs are all always over-joyed to see me at the end of the day, and won't leave me alone until they've all been thoroughly greeted and properly patted which takes quite some time I tell ya. Anywhere near the same level of enthusiasm cannot always be said for my wife. Kids can be pretty variable too on the odd occasion when I get to see them now they've left home. My dogs always give true 100% unconditional love. I wonder how many people can always say the same about their partner and kids ?????? Perhaps this explains the sort of survey results I've seen / heard about people's propensity to look after their pet's health irrespective of cost ?

[noodles]

Remember that EBOS has around a $12mill in Amortisation of Intangibles charge(annually). So any pe estimate should really take that into account. I think you will find pe will drop below 14 when you factor that into it.
Additionally, you could annualise the Blackhawk earnings to get an even lower pe.

[percy]

Thanks Percy. As a keen pet owner of three dogs I have taken a particular interest in people's propensity towards spending money on their pets. Its a curious phenomenon. I heard a recent survey of U.K. pet owners which said nearly half of dog owners were more concerned about their dogs health than their partners health !!!...I'm not sure what this says about the state of marital relations in the U.K. lol.
My own psycho-analysis of people spending habits on pets goes along these lines...Firstly, my three dogs are all always over-joyed to see me at the end of the day, and won't leave me alone until they've all been thoroughly greeted and properly patted which takes quite some time I tell ya. Anywhere near the same level of enthusiasm cannot always be said for my wife. Kids can be pretty variable too on the odd occasion when I get to see them now they've left home. My dogs always give true 100% unconditional love. I wonder how many people can always say the same about their partner and kids ?????? Perhaps this explains the sort of survey results I've seen / heard about people's propensity to look after their pet's health irrespective of cost ?

The UK survey results would be repeated in most countries.!!!!!

[Beagle]

Remember that EBOS has around a $12mill in Amortisation of Intangibles charge(annually). So any pe estimate should really take that into account. I think you will find pe will drop below 14 when you factor that into it.

Can you please explain the background to that approach mate ? Why are they amortising goodwill, because its diminishing ?

[winner69]

Additionally, you could annualise the Blackhawk earnings to get an even lower pe.

How much are Blackhawk earnings then?

[winner69]

The UK survey results would be repeated in most countries.!!!!!

That's why Masterpet was a great buy for EBO .....and it took the market ages to recognise the value.

Back then though Masterpet acquisition was a significant acquisition for them, the Blackhawk one is a piddly one in the big picture but should add 60/70 cents to shareprice

[percy]

That's why Masterpet was a great buy for EBO .....and it took the market ages to recognise the value.

Back then though Masterpet acquisition was a significant acquisition for them, the Blackhawk one is a piddly one in the big picture but should add 60/70 cents to shareprice

A few good piddly ones do add up.!!!!

[noodles]

How much are Blackhawk earnings then?
Forbar reckon Blackhawk EBITDA=$8mill

[Beagle]

The UK survey results would be repeated in most countries.!!!!!

I hear you mate and couldn't agree more !!!

[winner69]

Can you please explain the background to that approach mate ? Why are they amortising goodwill, because its diminishing ?

Note 14 of the 14 Annual Accounts is quite interesting

[percy]

I hear you mate and couldn't agree more !!!

Also remember the bigger the animal the more profits for EBO.
Eat more and require larger doses.!!!

[winner69]

A few good piddly ones do add up.!!!!

Sure do ...a few 60/70 cents here and there help you get to your 20 bucks

But no doubt working on something BIG I reckon, didn't he go on about once it was NZ and now Australia .....and beyond.

Shareholders more than willing to front up with more dosh and banks will lend more

[percy]

Sure do ...a few 60/70 cents here and there help you get to your 20 bucks

But no doubt working on something BIG I reckon, didn't he go on about once it was NZ and now Australia .....and beyond.

Shareholders more than willing to front up with more dosh and banks will lend more

Just between you and me I think that $20 will be sooner rather than later.!!!!!
Think you are on to it !!!!! lol.

[Beagle]

Also remember the bigger the animal the more profits for EBO.
Eat more and require larger doses.!!!

Yeah that's for sure. Fortunately all our doggies are lap-dog size :)

Thanks W69 - So the $12m we're talking about is definitely amortisation of "finite life" intangibles as opposed to non amortisation of the $700m plus of goodwill that's not finite life.
Noodles, I'm struggling to see the validity of adding back $12m defined life intangibles that are being amortised over their useful life ? They'd be amortising what is a very modest percentage of their intangibles because they definitely are finite life so adding back this to calculate a reduced PE wouldn't appear to be appropriate especially in the context of the overall size of the intangibles on the balance sheet, unless I'm missing something ???

[noodles]

Yeah that's for sure. Fortunately all our doggies are lap-dog size :)

Thanks W69 - So the $12m we're talking about is definitely amortisation of "finite life" intangibles as opposed to non amortisation of the $700m plus of goodwill that's not finite life.
Noodles, I'm struggling to see the validity of adding back $12m defined life intangibles that are being amortised over their useful life ? They'd be amortising what is a very modest percentage of their intangibles because they definitely are finite life so adding back this to calculate a reduced PE wouldn't appear to be appropriate especially in the context of the overall size of the intangibles on the balance sheet, unless I'm missing something ???
Well it is a grey area. I'm not keen to get into a debate with an accountant, but I will highlight how IQE.NZ have treated finite intangibles in their prospectus
http://stocknessmonster.com/news-item?S=IQE&E=ASX&N=406626

Perhaps another way to look at it is this. Would Symbion have added Goodwill to their balance sheet when they signed up a finite term customer? Probably not. So why should EBO all of a sudden have to account for it as an expense? Especially since Symbion was effectively a reverse takeover.

[Beagle]

Wise man, accountants love debates about intangible property :D Honestly I don't have time to look into how other companies are handling this sort of thing, (especially new entrants in the tech / education
sector which are constructing ever more creative ways to justify their lofty IPO pricing) but generally accepted accounting practice is to amortise goodwill where its a defined fixed life term. This constitutes <$100m of their goodwill and as there's >$700m of goodwill they're not amortising then prima facie there must be very sound reasons why they're required to amortise the former. Percy, perhaps you can help unpack this a bit more with your in-depth knowledge of the company gleaned over many years. Leaving the $12m goodwill amortisation debate aside, even not adding it back I agree that the company is not unrealistically priced and I have a bias towards adding some at some stage soon. I've got to get the warm fuzzies somehow when I pay those outrageous prices for a few mls of flea treatment.

[noodles]

Wise man, accountants love debates about intangible property :D Honestly I don't have time to look into how other companies are handling this sort of thing, (especially new entrants in the tech / education
sector which are constructing ever more creative ways to justify their lofty IPO pricing) but generally accepted accounting practice is to amortise goodwill where its a defined fixed life term. This constitutes <$100m of their goodwill and as there's >$700m of goodwill they're not amortising then prima facie there must be very sound reasons why they're required to amortise the former.

Maybe I'd have more luck convincing a promoter of an IPO rather than an accountant:)

I take your point on the conscious decision to amortise a small portion and not the large portion.

[winner69]

Maybe back out the interest as well and just value on a ev/ebitda basis?

Currently about 10 times ebitda ....um

The Future is Now .....how much of the future is the question

[clarky]

EBO getting a bit of a mention over the tasman earlier this month

http://www.fool.com.au/2014/11/11/woolworths-limited-coca-cola-amatil-ltd-and-ebos-group-ltd-should-you-buy/

[percy]

Thanks for the link clarky.
Sorry I can't do the link,but there is an interesting article on the new Melbourne $40m warehouse;
go to www.ebosgroup.com then click onto Symbion,then The Latest News,"Symbion Invests in Industry's Future."
With most of Ebos's revenue generated in Australia,and now with both the CEO and CFO being Australians and based in Australia.I look forward to the Australians waking up to EBOS.Then the fun should start, when they realise there are fewer the 150mil shares on issue,and they are going to cough up if they want to buy any.

[noodles]

Thanks for the link clarky.
Sorry I can't do the link,but there is an interesting article on the new Melbourne $40m warehouse;
go to www.ebosgroup.com (http://www.ebosgroup.com) then click onto Symbion,then The Latest News,"Symbion Invests in Industry's Future."
With most of Ebos's revenue generated in Australia,and now with both the CEO and CFO being Australians and based in Australia.I look forward to the Australians waking up to EBOS.Then the fun should start, when they realise there are fewer the 150mil shares on issue,and they are going to cough up if they want to buy any.

Is this it?
http://www.symbion.com.au/symbion-invests-in-industry-s-future/w1/i1003363/

[percy]

Is this it?
http://www.symbion.com.au/symbion-invests-in-industry-s-future/w1/i1003363/

Yes.
Thanks for posting the link.

[clarky]

here is what is said in the article:

EBOS Group Ltd. (ASX: EBO)

EBOS is probably a name many Australians haven’t heard before. However, it’s a $1.2 billion New Zealand pharmaceutical retailer which occupies leading positions across a number of industry sub groups. It has made approximately 20 acquisitions in the past 12 years and achieved a total shareholder return (dividends plus capital gains) of 19% per year, over the past decade. In 2013, EBOS acquired Symbion for $1.1 billion and has stated the integration of the business has been largely successful. Interestingly, the acquisition provided a foothold in the pet care market, where the group will continue to grow in years ahead.

Indeed, in coming years, analysts are forecasting strong earnings per share growth. I’m cautiously optimistic about the company’s future, but I’m not a buyer today. Other than the lack of liquidity in the Australian-listed shares, I’d like to see how the company fares in the coming 24 months before committing to a purchase.

[macduffy]

Ebos wins key NSW distribution contract.

https://www.nzx.com/files/attachments/206941.pdf

[noodles]

Initiation of coverage by Forbar (outperform rating)
http://podcast.radionz.co.nz/business/bus-mnr-20150127-0655-forsyth_barr_analyst_raises_recommendation_target-048.mp3

[percy]

Initiation of coverage by Forbar (outperform rating)
http://podcast.radionz.co.nz/business/bus-mnr-20150127-0655-forsyth_barr_analyst_raises_recommendation_target-048.mp3
Thanks for posting the link.
Must agree I agree with Forbar?????????????!!!!!!!!!!!!!!!!!!!!

[winner69]

Thanks for posting the link.
Must agree I agree with Forbar?????????????!!!!!!!!!!!!!!!!!!!!

Bloody conservative target from Chelsea

Tell her Percy, this is a $20 share

[percy]

Bloody conservative target from Chelsea

Tell her Percy, this is a $20 share

She will find out in due course.!!!! lol.
You would laugh at me this morning,running around like a chook with its head chopped off.
My wife heard the talk on the radio and told me EBO had made a $300mil acquisition.Looked at EBO site,NZX site,Stocknessmonster site,the Herald site,the age site and could not find anything..!!!
So thanks Noodles for posting the link and getting me up to speed.!!!

[winner69]

Half year report in next week or two.

Share price finally getting back to 10 bucks

Must be going to be a boomer of a result

[macduffy]

Half year report in next week or two.

Share price finally getting back to 10 bucks

Must be going to be a boomer of a result

I'd hope so as EBO is one of my biggest holdings. A note of caution though as Aust grows in importance to the company and the AUD weakens against the NZD.

[JayRiggs]

Very excited about the EBOS interim result in a few hours!
Wild guess. +25% net profits and a 24c dividend :)

[ratkin]

Very excited about the EBOS interim result in a few hours!
Wild guess. +25% net profits and a 24c dividend :)

Me scared, currently my largest holding in Nz

[percy]

Me scared, currently my largest holding in Nz

Being my second largest holding I am optimistic they have made further gains from the merger,the new distribution centre in Melbourne should be in full swing,but with most of the earnings being in Australian dollars were may get hit with the NZ$ being so strong against the A$.
Such a well run company I would not mind it being my largest holding.!!!!

[percy]

Result was solid,with the benefits of the Melbourne warehouse and Black Hawk acquisition likely to show through in the 2nd half.
Balance sheet/gearing has capacity for further acquisitions.
And the dividend has been increased.

[horus1]

a good solid result from a great co.Hold them and accumulating even in this market.

[ratkin]

It has been two years but Ebos has finally broken out of its channel, been treading water for a while now

7184

[Snow Leopard]

wot ratkin said plus:

$10.57 close beats $10.50 on the 24-Mar-14 (that is nearly a year ago :mellow:)

$10.59 high still lags the $10.62 from 24-Jul-13 (that is more than a year ago :cool:)

We go ex-div on Wednesday (no dividends were included/harmed during the creation of this post).

Best Wishes
Paper Tiger

[ratkin]

wot ratkin said plus:
$10.59 high still lags the $10.62 from 24-Jul-13 (that is more than a year ago :cool:)

Best Wishes
Paper Tiger

My feeble, free Yahoo data dosent even have a high of 10.62 on 24-jul-13
You get what you dont pay for :-)

[Snow Leopard]

My feeble, free Yahoo data dosent even have a high of 10.62 on 24-jul-13
You get what you dont pay for :-)

Actually it does >> Tah-dah (http://finance.yahoo.com/q/hp?s=EBO.NZ&a=06&b=1&c=2013&d=06&e=31&f=2013&g=d)<<

And if you use their interactive chart (http://finance.yahoo.com/echarts?s=EBO.NZ+Interactive#) you will find it there also. (Not sold on their dividend amounts mind you!)

But it look like you have got the dividend/split/earth tilt corrected data and are playing with that, as long as you are aware of that then no worries.

I try and get raw data on everything these days and then I can make my own decisions on what to do with it.

Anyway having a breakout is one thing, whether it becomes a false breakout is another (and then a false false-breakout usw...)

Best Wishes
Paper Tiger

[percy]

I have a note in my diary that Mark Waller was to talk to the Christchurch branch of NZ Shareholders Assn yesterday.
Going by the share price today it must have been a fantastic talk.!!!!
Can anyone confirm?

[Snow Leopard]

From $9.25 to $10.95 in less than two months with a $0.22 (less some tax) dividend on the way.

Helps balance out the HNZ portfolio bias a bit.

Best Wishes
Paper Tiger