Ebos Limited EBO

[Biscuit]

Biscuits - its this

Exchange differences, principally relating to the translation from Australian dollars, being the functional currency of the Group’s foreign controlled entities in Australia, into New Zealand dollars being the Group’s presentation currency, are brought to account by entries made directly in other comprehensive income and accumulated in the foreign currency translation reserve.

The key word is 'translation' - ie converting the Aussie (and other) accounts into NZD. Day to day trading impacts are probably already accounted for in the respective country P&Ls

You be non the wiser with this explanation but no need to worry about it, just complicates things. the year before it was a big positive number.

Yes, I also read that in the notes. The immediate effect of that seems to be: EBO share price up and SCL share price down, but I am not convinced there is really a difference otherwise.

[winner69]

Yes, I also read that in the notes. The immediate effect of that seems to be: EBO share price up and SCL share price down, but I am not convinced there is really a difference otherwise.

Fair enough - it is not simple and it is complicated. Thats why such items are shown as Other Comprehensive Income

Now don't try to work out why Scales has a $10m gain on cash flow hedges in its Other Comprehensive Income

[dagoldtoof]

Just noted local large food market has doubled their pet food aisle....Obviously growing market , good signs for Masterpet and Blackhawk...

[Snow Leopard]

Comprehensive income not that great though, they are taking a hit from relative weakness in Aussie dollars.

Dig out the a few years of company accounts and you you will see this goes up and down like a gooseberry in a lift.
It basically relates to the change of value in NZ$ due to exchange rate movements of overseas assets and liabilities which are just sitting on the books.

This is another good result from the company that keeps on delivering.

Best Wishes
Paper Tiger

[Biscuit]

Dig out the a few years of company accounts and you you will see this goes up and down like a gooseberry in a lift.
It basically relates to the change of value in NZ$ due to exchange rate movements of overseas assets and liabilities which are just sitting on the books.

This is another good result from the company that keeps on delivering.

Best Wishes
Paper Tiger

Ok, thanks. That explains it. I was thinking of that in terms of profit and loss rather than assets and was wondering why it did not seem to be reflected in cashflow. As you can tell, I'm no accountant.

[mccollr]

Ebos Group [NZX: EBO] posted a 20% gain in full-year profit and lifted its dividends as revenue topped $7 billion, expecting further 2016 earnings growth. Profit rose to $127 million, or 84c a share, in the 12 months ended June 30, from $105.9 million, or 70.8c, a year earlier, Christchurch-based Ebos said in a statement. Sales rose to $7.1 billion from $6.1 billion, exceeding brokerage Forsyth Barr's $6.7 billion forecast. Ebos shares have climbed 69% in the past 12 months, more than twice the S&P/NZX 50 Index's gain, as the medical consumables and pet products group throws off enough cash to pay dividends, repay debt and continue making acquisitions. The latest is a deal flagged this month to merge its Australian Chemmart pharmacy chain with rival Terry White Group, taking a half stake in the enlarged business and potentially listing it down the track. That deal, which requires the approval of Terry White shareholders, would allow Ebos to reap synergies from a larger retail group and benefit its wholesale division because "we would pick up the additional wholesale business flowing from that," chief executive Patrick Davies told BusinessDesk. "Some time down the track, we could separately list that vehicle on the Australian exchange" giving it access to a broader market "should it need to raise capital in the future or do deals that are easier as a listed company," says Mr Davies. Ebos would likely retain its current holding in the event of a listing. The 2016 results show Ebos' operating cash flow surged 68% to a record $224 million in the latest year while return on capital employed rose to 16.3% from 13.7%. The company transformed itself in 2013 with the purchase of Australian pharmaceutical wholesaler and distributor Symbion, its biggest-ever deal, and has since bought New Zealand vitamin and herbal tea maker Red Seal, pharmaceuticals firm Zest, Australian pharmacy retailer Good Price Pharmacy Warehouse and the BlackHawk Premium Pet Care pet food business. Its healthcare division posted an 18% gain in revenue to $6.68 billion and a 15% increase in earnings before interest, tax, depreciation and amortisation (ebitda) to $195 million. The revenue split was $5.3 billion from Australia and $1.4 billion from New Zealand, while the ebitda split was $155 million and $39.8 million respectively. Its animal care division posted a 10% gain in sales to $415 million and ebitda growth of $42.4 million, helped by a full 12-month contribution from BlackHawk, which was acquired in October 2014 and achieved sales growth of 55% in the latest year. Asked whether Ebos would remain a long-term owner of the pet products business, Mr Davies says the company asks itself across all its businesses whether it is still the logical owner. "In animal care, we've had such a terrific run. We still think there are opportunities for our group." The company raised its final dividend by 30% to 32.5c a share, making it 58.5c for the year, up 25% from 2015. That amounts to a payout ratio of 70% of profit, at the top end of the 60-to-70% range it targets. The result "reflects our ability to capture the growth opportunities that continue to emerge within our prime business segments," says Mr Davies. "Ebos Group has recorded a strong financial performance in 2016 and the company is confident of further profit growth into FY17 on a constant currency basis." Strong cash flow also allowed Ebos to repay debt, which fell to $248 million at June 30, from $317 million a year earlier, reducing its gearing ratio to 18.5% from 23.2%. Mr Davies, who headed Symbion for six years before the merger, says part of the success of the group's expansion was the Symbion acquisition took on a business which didn't need repairs and had characteristics familiar to Ebos. It was critical through the acquisition "to hold onto and motivate all the key executives at Symbion and across the business," he says. Mr Davies is confident the Terry White deal will be consummated in October. The transaction to create one of Australia's largest retail pharmacy networks with annual sales of about $A2 billion will see Ebos sell its Chemmart business into Terry White and then subscribe for shares in the enlarged company. He expects more consolidation in the sector. Ebos shares climbed 2.1% to $17.55. (BusinessDesk)

[h2so4]

Pretty good aye.
Looking forward to the next growth phase which might well be underway with the construction of its Brisbane distribution center.

[jim9358]

Morningstar value at only 17-flat but "hold" : Any thoughts? Over-priced?

[BC_Doc]

Morningstar value at only 17-flat but "hold" : Any thoughts? Over-priced?

I feel it is very close to the top end of a fair valuation and felt the need to trim my holding a little. Still believe it is an amazing company with upside potential in the medium to longer term.

[percy]

Morningstar value at only 17-flat but "hold" : Any thoughts? Over-priced?

I seem to remember posting awhile ago that in my over 25 years as an Ebos shareholder, I can not remember any broker ever having Ebos as a buy,or has said they were undervalued....
Morningstar's record [of being wrong] remains intact.
At the same time Ebos's record [of out performance] also remains intact.

[jim9358]

Thankyou BC_Doc and percy: LOL percy :cool:

[h2so4]

Morningstar value at only 17-flat but "hold" : Any thoughts? Over-priced?

Well yesterday it was $14.50.
Amazing what a day makes. LOL

[macduffy]

I feel it is very close to the top end of a fair valuation and felt the need to trim my holding a little. Still believe it is an amazing company with upside potential in the medium to longer term.

I've felt that way about EBO for years! Luckily, I've never sold any!

:)

[h2so4]

Things that have been going on for years:
Eye popping cashflows.
Cash in bank
Increasing stock turns.
To name a few .

[horus1]

I keep them . Buy when we have spare cash. Always overpriced.

[Snow Leopard]

http://i7.photobucket.com/albums/y269/TheTigerWithNoName/SharetraderImages/NZX-EBO/20160902-NZX-EBO.png

Best Wishes
Paper Tiger

[percy]

Silly?
Sillier?
Dilly?
Dillier?
Whatever???,
My $20 target price remains ontrack!!

[h2so4]

http://i7.photobucket.com/albums/y269/TheTigerWithNoName/SharetraderImages/NZX-EBO/20160902-NZX-EBO.png

Best Wishes
Paper Tiger

An EBO moment?
Momento?
Momentum?

[stoploss]

Silly?
Sillier?
Dilly?
Dillier?
Whatever???,
My $20 target price remains ontrack!!

$ 1.00 to go !!!!

[Snow Leopard]

$ 1.00 to go !!!!


So first share to break $100 back on then :)

Best Wishes
Paper Tiger

$80.61 to go

Best Wishes
Paper Tiger

Disc: Should have bought more

[winner69]

You guys need to step up your 'ramping' of this EBO - it hasn't even outperformed the NZ50 over the last 6 months (according to my yahoo chart)




.....winner runs away and hides on the CVT and TIL threads before he is crucified

[stoploss]

You guys need to step up your 'ramping' of this EBO - it hasn't even outperformed the NZ50 over the last 6 months (according to my yahoo chart)
.....winner runs away and hides on the CVT and TIL threads before he is crucified

Not going to crucify you but how about taking a look over a little longer period even 1 year ....EBO including dividends according to sharesight + 76 % whats NZX 50 ,35 % ish ?

[Snow Leopard]

You guys need to step up your 'ramping' of this EBO - it hasn't even outperformed the NZ50 over the last 6 months (according to my yahoo chart)...

I thought the current ramping benchmark was AIR.

Best Wishes
Paper Tiger

[babymonster]

Unbelievable, might be running a bit too hard? 20 dollars this week?

[h2so4]

You guys need to step up your 'ramping' of this EBO - it hasn't even outperformed the NZ50 over the last 6 months (according to my yahoo chart)




.....winner runs away and hides on the CVT and TIL threads before he is crucified

What's a yahoo chart?

[winner69]

Unbelievable, might be running a bit too hard? 20 dollars this week?

Not really running too hard babymonster - just getting to where it should be based on next years expected earnings

Updated my old share price v EPS chart - shown below. Current activity not outrageous is it

For years EBO traded on a PE of about 15 and now it is about 20 - a bit of rerating and a reflection of expanding PEs in low interest rate environment

zone needs to realise that since Symbion 'took over' Ebos they have essentially become an Australian operated company. We can no longer call them a real New Zealand company. That has helped the rerating process as being seen as Australian (and successful) helps that process - so those pesky Aussies do have some good points if they enrich NZ shareholders. I don't think the share price would have got to $20 so soon with out the Aussie influence

Once $20 broken we'll probably never see sub $20 again - so need to get in quick I reckon if you want to say you once bought EBO at under $20

[winner69]

Suppose it's only a matter of time that Ebos will decide to become a fully fledged Australian company with a primary listing on the ASX

Mind you didn't do Michael Hill and harm

[percy]

Suppose it's only a matter of time that Ebos will decide to become a fully fledged Australian company with a primary listing on the ASX

Mind you didn't do Michael Hill and harm

I agree.
It is just the when I don't know.
Maybe when they have more Aussie intos on the register.?
In the meantime I will continue to attend their ChCh agms,although I think a lot of us would enjoy them if they were held inSydney..

[Snow Leopard]

Yesterday (when all my troubles seemed so far away) I sold my ARG (to buy more Grrrhhhh :D)

Some of that I tipped into a few more EBO shares - I do rash things from time to time.

So EBO is now slightly more than 10% of the portfolio and that is enough.

Best Wishes
Paper Tiger

[babymonster]

Yesterday (when all my troubles seemed so far away) I sold my ARG (to buy more Grrrhhhh :D)

Some of that I tipped into a few more EBO shares - I do rash things from time to time.

So EBO is now slightly more than 10% of the portfolio and that is enough.

Best Wishes
Paper Tiger

i have only 5% and if air is doing a bit better, i will increase it to 10%... damm air...

[horus1]

I am sitting at 20% on a reasonable portfolio. I will buy more on weakness.

[percy]

I am at 16%.
Neither buying,nor selling.
Have not brought or sold any during the past couple of years,although I have received more shares via DRP,while the wife takes cash divies.
As always this could change on any announcement.

[h2so4]

It's replaced my pennysaver account.:)

[percy]

The falls in EBO's sp over the last two days should make for an interesting agm this afternoon.
Yet I don't think there will be any unhappy shareholders as EBO's performance over the years has been outstanding.!!
I am really looking forward to director Peter Williams' re election speech.Last time he said he wanted to be re elected because he was having "so much fun"Don't know how he can top that.!!!!
An outstanding man.

[h2so4]

The falls in EBO's sp over the last two days should make for an interesting agm this afternoon.
Yet I don't think there will be any unhappy shareholders as EBO's performance over the years has been outstanding.!!
I am really looking forward to director Peter Williams' re election speech.Last time he said he wanted to be re elected because he was having "so much fun"Don't know how he can top that.!!!!
An outstanding man.

No unhappy shareholders here percy.
Anticipating a good update from the "outstanding man".

[macduffy]

We don't pay those director's fees just for anyone to have fun - but can't argue with the results!

Tempted to buy more but that would tilt my badly-balanced portfolio further askew!

[percy]

We don't pay those director's fees just for anyone to have fun - but can't argue with the results!

Tempted to buy more but that would tilt my badly-balanced portfolio further askew!

When the 40% major shareholder's director says he is having fun,I am sure all us shareholders will find his fun, will continue to be very profitable.

[macduffy]

Expecting growth of 10-17% in underlying NPAT for the 2017 year. Very satisfactory!

:)

[percy]

Ebos agm thoughts.
I think Peter Williams must read ST.So as not to upset macduffy he did say he would continue to bring his "enthusiasm" to the board.
They were very pleased with the short video they have on their site which goes along way to explain what Ebos's 2700 staff do from 42 sites in Australasia.
The chairman did point out NZ has benefitted from very stable governments under Helen Clark and John Key.This stability has been lacking in Australia,and is most probably goes to explain why NZ has caught up so much.
Changing regulators and regulations means challenges that Ebos has always managed to meet.Ebos says governments in NZ and Australia, realise the importance private sector businesses such as Ebos play in the health sector.
Changing regulations and the huge costs involved in setting up, have put off new entrants.The NSW,Victoria,and soon to open Brisbane distribution centre cost Ebo between $30mil and $40 each without stock.
Share split.They are aware $20 maybe a barrier and think investors may prefer a share price between $5 and $10.Comes up for discussion but not decision has been made.I did ask The Chairman after the meeting, if the decision could be delayed until after the sp hit $20, as I have a bet on with Paper Tiger .
All divisions are trading well,and the business is in great shape.

[h2so4]

Expecting growth of 10-17% in underlying NPAT for the 2017 year. Very satisfactory!

:)

I thought it was 7-10%
Still given the update and the fact that EBO consistently converts sales to cash Id expect all the arrows to be pointing up again FY17.
I think another $13-19m fcf a 9-12% increase in revenue and a 18-24% increase in dividend.

[percy]

I spoke to the chairman after the agm about EBO's Australian listing.
Was done to attract Australian intos.
Not a lot of trading on the ASX [yet].
Appears the Aussie intos buy here,then transfer their shares onto the Aussie registry.

[h2so4]

I spoke to the chairman after the agm about EBO's Australian listing.
Was done to attract Australian intos.
Not a lot of trading on the ASX [yet].
Appears the Aussie intos buy here,then transfer their shares onto the Aussie registry.

That's what I do. LOL!

[percy]

That's what I do. LOL!

Another astute Aussie,buy,but never sell EBO.!!.lol.

[macduffy]

Thanks for the update from the AGM, percy. I'm sure we all share Mr Williams' enthusiasm for Ebos!

And yes, h2s, I confused my zeros and sevens! 7-10% will do just nicely.

[h2so4]

Another astute Aussie,buy,but never sell EBO.!!.lol.

Ha! Yes a big LOL there.

[h2so4]

Thanks for the update from the AGM, percy. I'm sure we all share Mr Williams' enthusiasm for Ebos!

And yes, h2s, I confused my zeros and sevens! 7-10% will do just nicely.

Morningstar had estimated 19% comparable. Aren't they a enthusiastic bunch? Lol!

[Snow Leopard]

Now sitting on the 200 day EMA.

I presume that percy has followed the TA discipline that he exhorts others to abide by and is long gone :p.

Best Wishes
Paper Tiger

Disc: Firmly hold

[horus1]

I do not sell these shares.

[winner69]

Now sitting on the 200 day EMA.

I presume that percy has followed the TA discipline that he exhorts others to abide by and is long gone :p.

Best Wishes
Paper Tiger

Disc: Firmly hold


PT - the 400MA is $14.42 so no need tonsell

All honky dory - no need to sell

AND ISN'T THIS GOING TO BE A $100 STOCK

[LAC]

I do not sell these shares.
I made that mistake once before:)

[Snow Leopard]

PT - the 400MA is $14.42 so no need tonsell...

...AND ISN'T THIS GOING TO BE A $100 STOCK

Yes, EBOS shares are like tonsils and should only be removed if absolutely necessary.

Will definitely be the first $100 stock on the NZX.

Best Wishes
Paper Tiger

[percy]

Now sitting on the 200 day EMA.

I presume that percy has followed the TA discipline that he exhorts others to abide by and is long gone :p.

Best Wishes
Paper Tiger

Disc: Firmly hold

No I sold 60% of my holding.Have retained 40%.[free ones]
Held on for the wrong reason, sentiment.
I sold as at the agm they spoke of 7% growth and the PE was well over 20.
I note the presentation at UBS confernce they altered that to between 7% to 10% growth.
The current PE is 19.29,which I feel is still too high compared to the growth rate.
I have brought two other shares, TNR and EVO, where I see their growth rates being higher than their PEs..Higher dividend yields are also attractive.

[Beagle]

Ebos agm thoughts.
I think Peter Williams must read ST.So as not to upset macduffy he did say he would continue to bring his "enthusiasm" to the board.
They were very pleased with the short video they have on their site which goes along way to explain what Ebos's 2700 staff do from 42 sites in Australasia.
The chairman did point out NZ has benefitted from very stable governments under Helen Clark and John Key.This stability has been lacking in Australia,and is most probably goes to explain why NZ has caught up so much.
Changing regulators and regulations means challenges that Ebos has always managed to meet.Ebos says governments in NZ and Australia, realise the importance private sector businesses such as Ebos play in the health sector.
Changing regulations and the huge costs involved in setting up, have put off new entrants.The NSW,Victoria,and soon to open Brisbane distribution centre cost Ebo between $30mil and $40 each without stock.
Share split.They are aware $20 maybe a barrier and think investors may prefer a share price between $5 and $10.Comes up for discussion but not decision has been made.I did ask The Chairman after the meeting, if the decision could be delayed until after the sp hit $20, as I have a bet on with Paper Tiger .
All divisions are trading well,and the business is in great shape.

Posted 19/10/16 after the annual meeting and nothing since until tonight's post. Hmmm.

[percy]

Posted 19/10/16 after the annual meeting and nothing since until tonight's post. Hmmm.
Yes.
HMMMMMMMMMMMMMMMMMMMMMMMM.!
And reading my agm post you can understand why I held onto my "free" ones.!!

[Lewylewylewy]

Ebos seen to be getting lots of new products sold through supermarkets, which is good to see. I think more good things to come, of course no way they can get the gains of this past year, bit still not a bad stock IMO.

EVO might not be the best choice, given the way the industry presents competition. TNR should be a winner at the right price, at least for a cyclical purchase.

[percy]

Ebos seen to be getting lots of new products sold through supermarkets, which is good to see. I think more good things to come, of course no way they can get the gains of this past year, bit still not a bad stock IMO.

EVO might not be the best choice, given the way the industry presents competition. TNR should be a winner at the right price, at least for a cyclical purchase.

Craigs initiated research this week on EVO.Comments such as "strong growth" with 12.6% eps growth this coming year and 12.8% eps growth next year.meaning a PE of 10.6 this year and 9.4 next year.Gross dividend yields of 6.5% and 7.4%.Their target price of $1.33 is a little lower than Forbar's earlier research.I paid 95cents,so am "well positioned."..lol.
TNR.I posted on TNR thread I saw eps of 35 cents in year 2018,and I would be happy with a PE of between 12 and 18 which would translate to a sp of between $4.20 and $6.30 compared to current sp of $3.50,but I think a PE of 15 would be about right, which gives a sp of $5.25.
Back to EBO.I would expect another very large acquisition within the next year or two.I still think they are an outstanding company.Have been a very happy holder for over 25 years.

[macduffy]

Time to rebuild that EBO holding, percy? Shareprice up 2.7% today. I move a lot slower - so never sold any!

;)

[percy]

Time to rebuild that EBO holding, percy? Shareprice up 2.7% today. I move a lot slower - so never sold any!

;)

Following your posts over the years,I think you move at the right speed.!!!
Fast is not always right in the long term.
In the very short term EBO is down 3.6% from the price I sold, while EVO are up 12.6% with a divie to come,and TNR are up 9.8% and I have received a small divie as well.
In real terms I have gone from a rather overweight position in EBO to an about right position.?
Being well overweight in a good company has always been very rewarding??!!
Still extremely overweight in HBL.But that's another stoey.!..lol.

[Sarge]

Perhaps never known was that the rubber stamping of the Symbion/Ebos deal at that time, had the nod of a 96 year old.

Sadly Dr Zuellig has passed away at the age of 99 - still very hands on - not dissimilar to Charles Luney in NZ.

http://development.aim.edu/about-the-zuellig-school

[percy]

Perhaps never known was that the rubber stamping of the Symbion/Ebos deal at that time, had the nod of a 96 year old.

Sadly Dr Zuellig has passed away at the age of 99 - still very hands on - not dissimilar to Charles Luney in NZ.

http://development.aim.edu/about-the-zuellig-school

Welcome Sarge to Sharetrader.
Very sad news.
EBO Chairman,Mark Waller has often spoken kindly of Dr Zuellig.
A man whom he greatly admired,and respected.

[Sideshow Bob]

This ad for this website came up on my Facebook feed

http://www.ebossport.co.nz

Can't say there is much for sale to get me excited. Would have thought would have had more in the nutritional/supplement line (IMO).

[percy]

This ad for this website came up on my Facebook feed

http://www.ebossport.co.nz

Can't say there is much for sale to get me excited. Would have thought would have had more in the nutritional/supplement line (IMO).

I think you must have missed the Chafe-Ease for only $17.99.

[tim23]

Just bought EBO shares the Masterpet business really appeals, just reckon this dog owing trend is here to stay.

[Sideshow Bob]

Just bought EBO shares the Masterpet business really appeals, just reckon this dog owing trend is here to stay.

Pet is definitely a growing market and a very good business to be in. Good to have aw joke range of all different products to meet pets needs eg food, treats, grooming products, etc etc etc.

[Zaphod]

Pet care is also a high margin business, that (anecdotally) isn't affected by recessions to the same extent as other produce/service purchases are.

[tim23]

We even bought a dog after 25 years without one - didn't know what all the fuss about dogs was now do converted and I'm guessing there are plenty of others like us too?

[winner69]

Half year this week I think

Stunning news to rocket share price past $20

Or has market assumed full year earniongs will be up 10% as mentioned at ASM

Just to show how wonderful Ebos is net chart below

[percy]

Half year this week I think

Stunning news to rocket share price past $20

Or has market assumed full year earniongs will be up 10% as mentioned at ASM

Just to show how wonderful Ebos is net chart below

Interin due this Wednesday.
At the AGM they spoke of 7% [eps] growth.At a later presentation they altered that to between 7% and 10%.
At at PE of 21.76 ,share price $18.29, it appears to me "the Market" is expecting growth of over 10%.?
We live in interesting times.Growth of 7% or less and I will be pleased I sold 60% of my shares.
Growth over 10% I will be asking a few questions of the CEO at the next AGM.!

[winner69]

Percy - PE is just under on F17 expected earnings

Still bloody high eh

[percy]

Percy - PE is just under on F17 expected earnings

Still bloody high eh

Yes.
From memory EBO traded in a band of between PE 13 to PE 16.
So should eps growth be up 7% then the current PE is three times the growth rate.!

[Snow Leopard]

Never mind the profit, look at the cash flow.

Best Wishes
Paper Tiger

[percy]

Never mind the profit, look at the cash flow.

Best Wishes
Paper Tiger

"Stripe on".
Always great,and the stock turns are fantastic too.

[percy]

Well EBO delivered another excellent result.
Even give us two or three choices for eps.?
Take your pick;.......................... 45.4 ...up 6.8%
....................underlying.............46.3... ..up 9% or constant FX up 12.7%

[winner69]

Well EBO delivered another excellent result.
Even give us two or three choices for eps.?
Take your pick;.......................... 45.4 ...up 6.8%
....................underlying.............46.3... ..up 9% or constant FX up 12.7%

Better use the underlying one eh

Gets rid of the things that don't matter - these sort of things will never happen again

And a better fit with the 7%-10% FY guidance

[h2so4]

Well EBO delivered another excellent result.
Even give us two or three choices for eps.?
Take your pick;.......................... 45.4 ...up 6.8%
....................underlying.............46.3... ..up 9% or constant FX up 12.7%

All arrows green.
Market should be impressed.
Better get those questions ready percy.

[LAC]

Interin due this Wednesday.
At the AGM they spoke of 7% [eps] growth.At a later presentation they altered that to between 7% and 10%.
At at PE of 21.76 ,share price $18.29, it appears to me "the Market" is expecting growth of over 10%.?
We live in interesting times.Growth of 7% or less and I will be pleased I sold 60% of my shares.
Growth over 10% I will be asking a few questions of the CEO at the next AGM.!

So Percy, upper end of 7-10% mentioned, you planning to have a chat with the CEO?

[macduffy]

Today's lesson: Don't sell (any) EBO!

(Sorry, Percy.)

:mellow:

[h2so4]

From the call last year undergrowth 16%. so I reckon they are on track to improve on that this year.

[percy]

Today's lesson: Don't sell (any) EBO!

(Sorry, Percy.)

:mellow:

Sage advice.!!!!!!!!!!!

[percy]

So Percy, upper end of 7-10% mentioned, you planning to have a chat with the CEO?

Always look forward to my EBO agm chats with the CEO and directors.
I should have known they would beat their forecast..!!
Well the 40% I have left are looking "well positioned."...lol.

[Snow Leopard]

Kuala Lumpur, Malaysia. 20 Feb 2016

In an an interview today Paper Tiger declared the recently released Ebos Half Year result 'pleasing'.

When asked their opinion on the recently released Ebos Half Year result, the reply was 'pleasing'.

Retiring from the interview several persons present claim they heard the phrase 'first $100 share on the NZX'.

from a Cub Reporter for Tiger News Network

[Jinx]

https://nzx.com/files/attachments/254044.pdf

Someone did something they weren't supposed to?

[winner69]

https://nzx.com/files/attachments/254044.pdf

Someone did something they weren't supposed to?

Just a standard compliance thing

Been a few lately as companies switch over to new Act

[Jinx]

Just a standard compliance thing

Been a few lately as companies switch over to new Act

Ah no worries then, thanks for the clarification.

[h2so4]

Ha! Something must have changed since yesterday?

Morningstar have up sized their valuation to $19.....will check again tomorrow.

[macduffy]

Shortages of some medical supplies in Wellington/Hutt Valley DHB's with talk of needing to source from "alternative suppliers".

http://www.stuff.co.nz/national/health/90246862/hospital-staff-forced-to-macgyver-solutions-due-to-national-shortage-of-medical-equipment

I hope EBO isn't involved, but given their dominant position in the business, wouldn't be surprised.

[Lewylewylewy]

Not a bad 1H result

[macduffy]

Big move up today +85c (4.7%).

Any news or ideas? percy?

[percy]

Big move up today +85c (4.7%).

Any news or ideas? percy?

None at all.
Checked as I thought I must have missed something.
216,709 shares traded in NZ,just over $4mil worth,which is more than usual.
The sp has been drifting down,so the sudden spike upwards came as a surprise to me.4.7% is a big move.

[Snow Leopard]

Nice surprise, can we have another 4.7% today please
Then I can dream of buying a bigger yacht.

Best Wishes
Paper Tiger

[Snow Leopard]

Nice surprise, can we have another 4.7% today please
Then I can dream of buying a bigger yacht.

Best Wishes
Paper Tiger

So down 2.4%, another dream shattered.

:) PT

[percy]

So down 2.4%, another dream shattered.

:) PT

Not so.
Just means we can enjoy the dream a little longer.

[macduffy]

Not so.
Just means we can enjoy the dream a little longer.

Quite so. Still a bit mystified by yesterday's big move, though.

:confused:

[percy]

Quite so. Still a bit mystified by yesterday's big move, though.

:confused:

I think over the years we have sometimes seen EBO go its own way.
But I can not recall anything like yesterday's.

[macduffy]

EBO announce that Peter Kraus ceases to be a director, in terms of the provisions of the company's constitution. Presumably an age-related restriction?

[percy]

27 years he has been on the board.
He was the person who really encouraged Mark Waller.

[LAC]

Music to my ears:)
https://www.nzx.com/files/attachments/258658.pdf

[winner69]

Music to my ears:)
https://www.nzx.com/files/attachments/258658.pdf

And eps accretive as well - yippee

[percy]

And eps accretive as well - yippee

Yes yippee...

[Oliver Mander]

Hi all...a quick question; what does everyone think is driving the particular (mostly downward) volatility on this share? my own target valuation is higher than current price, and I don't seem to be wildly out of sync with most of the forecasts out there...only factor I can think of is the Amazon effect on their AU retail, and recent board changes but seems like a harsh market reaction if those are the only factors...

(and yes, first time posting - looks like a good quality forum, hope I can help with that!)

[percy]

Hi all...a quick question; what does everyone think is driving the particular (mostly downward) volatility on this share? my own target valuation is higher than current price, and I don't seem to be wildly out of sync with most of the forecasts out there...only factor I can think of is the Amazon effect on their AU retail, and recent board changes but seems like a harsh market reaction if those are the only factors...

(and yes, first time posting - looks like a good quality forum, hope I can help with that!)

First of all welcome.
One of EBO's competitors in Australia recently reported lower pharmacy sales,which may be rubbing off on EBO,as they have [from memory] a 50% interest in 550 Australian pharmacies.
Valuation.I don't know, but with a PE of 20.26 eps growth most probably between 7% and 10% and a yield of 3.55% some people may consider the share fully priced.

[macduffy]

I think it's largely a "market" thing. Markets and individual stocks go up and down and the NZ and Aust markets, particularly NZ have had a pretty good run for some time now. True, EBO is in a downtrend at present - although only back to levels of 2-3 months ago - so I wouldn't be adding to my pile there until that reverses.

[percy]

I think it's largely a "market" thing. Markets and individual stocks go up and down and the NZ and Aust markets, particularly NZ have had a pretty good run for some time now. True, EBO is in a downtrend at present - although only back to levels of 2-3 months ago - so I wouldn't be adding to my pile there until that reverses.

I agree.
Often EBO's share price seems to go its own way for no particular reason.

[QOH]

Ebos ticks all the boxes for me.
Most of my friends are in the baby boomer category, and most of them have ailments which either require hospital care or expensive medicines, unless the health system implodes I can't see how Ebos can lose.
These people may live to a hundred but the cost is going to be horrendous.
Throw in what the older people are prepared to spend on their dogs to keep them alive.
One friend has a dog who has a pill daily that costs seven dollars .

[Oliver Mander]

Thanks all...helpful. percy, your comment around the competitor result sounds like the major impact. I guess I only become concerned if it impacts longer-term results.
I'm a long-term holder, and the current downtrend doesn't change my investment thinking (as QOH outlines). Have to say, I would have thought a PE of 20 with future growth of 7-10% sounds like a pretty good deal!

[percy]

Thanks all...helpful. percy, your comment around the competitor result sounds like the major impact. I guess I only become concerned if it impacts longer-term results.
I'm a long-term holder, and the current downtrend doesn't change my investment thinking (as QOH outlines). Have to say, I would have thought a PE of 20 with future growth of 7-10% sounds like a pretty good deal!

Take no notice of me.
I prefer a PE of 7 to 10 with growth of 20%......lol.
ps.My biggest mistake with EBO over the past 25 years has been getting nervous and selling down.Has always cost me heaps to buy them back.!

[Oliver Mander]

Take no notice of me.
I prefer a PE of 7 to 10 with growth of 20%......lol.
ps.My biggest mistake with EBO over the past 25 years has been getting nervous and selling down.Has always cost me heaps to buy them back.!

:-) Fair call!!! if you find any 7-10's with growth of 20%, let me know...!!

[QOH]

Have I missed some bad news re EBO? Seems to be sinking fast.

[babymonster]

nzd vs aud increases

[macduffy]

Have I missed some bad news re EBO? Seems to be sinking fast.

And now seems to be recovering quickly. Seems to be prone to large inexplicable movements, possibly Aussie market initiated?

I hold.

[axe]

full year results creeping up. possible share split coming. market seems to love EBO - over delivery experts

[macduffy]

full year results creeping up. possible share split coming. market seems to love EBO - over delivery experts

Any particular reason for "possible share split coming."?

[axe]

$20 a share is expensive - split it 10x and $2.50 is cheap as. :)




Any particular reason for "possible share split coming."?

[777]

$20 a share is expensive - split it 10x and $2.50 is cheap as. :)


I like your maths..

[axe]

Just to show how it can move up easily post split. :) look @ POT.NZ


I like your maths..

[macduffy]

$20 a share is expensive - split it 10x and $2.50 is cheap as. :)

I think we've had this discussion (high price "expensive", low price "cheap") before. Meanwhile, stocks such as CSL (ASX) continue to trade at new record prices $100 plus. Price in the thousands of dollars doesn't seem to put anyone off Berkshire Hathaway either!

:cool:

[ratkin]

I think we've had this discussion (high price "expensive", low price "cheap") before. Meanwhile, stocks such as CSL (ASX) continue to trade at new record prices $100 plus. Price in the thousands of dollars doesn't seem to put anyone off Berkshire Hathaway either!

:cool:

Cochlear is another that shot way past the 100 dollar mark without bothering to pause.
Not good to start unsubstantiated rumours about share splits for Ebos, seems like Axe is just guessing.

Ebos just doing what it always does, going up and down with its share price, while the actual company keeps trucking along nicely

[percy]

We really need a one for five share consolidation, to help us get up and over the $100 barrier.
Then there will be no stopping us.

[macduffy]

We really need a one for five share consolidation, to help us get up and over the $100 barrier.
Then there will be no stopping us.

I'll second that!!!

[axe]

Not really trying to start an unsubstantiated rumour..... Just my hunch. But yes; I am just guessing. :)



Not good to start unsubstantiated rumours about share splits for Ebos, seems like Axe is just guessing.

Ebos just doing what it always does, going up and down with its share price, while the actual company keeps trucking along nicely

[percy]

API's profit downgrade because of slowing pharmacy sales spooked me,as 51% of EBO's revenue, at the half year, was made up of wholesale and retail pharmacy sales.
So I went from a large EBO holding,to selling 60% of my holding, right down to holding just 10% of my original holding.
Been a wonderful investment.Just could not bring myself to sell out completely.

[peat]

So I went from a large EBO holding,to selling 60% of my holding, right down to holding just 10% of my original holding.
WOW Percy I am flabbergasted :eek2:

[percy]

WOW Percy I am flabbergasted :eek2:

Me too.!!!
Huge day for me.Selling way down EBO,then selling out of RXP [asx] and buying ATL [asx].

[value_investor]

Interesting movement downwards today. I'm always a little bit suspicious of a move down like this just because their wasn't any news. Perhaps a few people know more than the general investors.

The result next week is going to be interesting considering the profit downgrade from API has really scared the market off this one. I think that EBO is more well insulated than API to handle a downturn in the market. Still a fall in the market, would discount a really well run business with a great future perspective. Hoping to get a bargain on this..

[percy]

SIG Sigma Healthcare's profit downgrade on 11th August would not have helped.
Yet PGC [asx] had a cracker result, and is going like a house on fire.
Macduffy posted an interesting link today, on ASX thread Paragon Care Ltd.

[peat]

looks pretty good.... high single digit growth on most metrics on underlying figures.

[LAC]

Solid result and they seem confident with the fy18 outlook.

[percy]

Yes a very credible result.Constant FX var EPS up 11.1% to 91.3 cents per share is higher than I expected,putting EBO on a PE of 19.3
The guessing game now is what do we expect eps growth to be.?
Maybe we will get an indication at the agm on 17th October.
I very much doubt it will be double digit,which means the growth rate is under half the PE ratio,or the PE ratio is twice the growth rate.

[LAC]

Yes a very credible result.Constant FX var EPS up 11.1% to 91.3 cents per share is higher than I expected,putting EBO on a PE of 19.3
The guessing game now is what do we expect eps growth to be.?
Maybe we will get an indication at the agm on 17th October.
I very much doubt it will be double digit,which means the growth rate is under half the PE ratio,or the PE ratio is twice the growth rate.

Yeah but I highly doubt EBO will get down to anything close to 1:1 ratio, I would love to get them as cheap as possible, but I have missed out on some really good opportunities waiting for the bottoms and now came up with a better idea, I just buy them every 6 weeks regardless of the price. Same day same time.... been good so far.

[LAC]

Percy, how do you see the exchange rate playing out for FY18?

[percy]

Percy, how do you see the exchange rate playing out for FY18?

No idea.
My record of predicting exchange rates remains 100% wrong.
I look at company's fundamentals,and expect growing companies will out perform any currency fluctuations.
ps I love your "modus operandi" of buying every 6 weeks.

[LAC]

Haha so being 100% incorrect would suggest whatever you say here, will be the opposite of what is going to happen:) so go for it lol.
Yeah using that method has been the best so far ever since you mentioned this business a few years back (thanks for that), as before that I sold out so many times but was never able to buy in at those prices again. So now I keep it simple as I do with RYM, just keep adding to the portfolio every 6 weeks and will stop once the companies dont meet their forecasts/guidance:)

I really like how EBOS gets these smaller acquisitions which they pipe into their macro business with the intention of growth from day one - so being earning accretive from the initial acquisition is just the start of adding to the EPS growth.

[percy]

Haha so being 100% incorrect would suggest whatever you say here, will be the opposite of what is going to happen:) so go for it lol.
Yeah using that method has been the best so far ever since you mentioned this business a few years back (thanks for that), as before that I sold out so many times but was never able to buy in at those prices again. So now I keep it simple as I do with RYM, just keep adding to the portfolio every 6 weeks and will stop once the companies dont meet their forecasts/guidance:)

I really like how EBOS gets these smaller acquisitions which they pipe into their macro business with the intention of growth from day one - so being earning accretive from the initial acquisition is just the start of adding to the EPS growth.

All acqusitions have been carefully thought out.They have known where the growth is going to come from, and positioned the business to be there.
They have turned down a great number of acquisitions, because they thought they would not fit perfectly, for a number of reasons.
Their stock control and stock turns result in very strong cashflow,which supports the smaller bolt on acquisition.
Good grief..lol. I am nearly talking myself into buying back the shares I sold.!!
RYM and EBO = "well positioned."

[peat]

Good grief..lol. I am nearly talking myself into buying back the shares I sold.!!

Haha - go on , you know you want to.

My view on currency is that NZD will weaken against Aud
see AUD/NZD thread.

[macduffy]

Good grief..lol. I am nearly talking myself into buying back the shares I sold.!!
RYM and EBO = "well positioned."

All too complicated for me, percy. I just remain well positioned by continuing to hold EBO, and RYM, two of the best stocks on the NZX.

Yes, a satisfactory result from EBO.

[value_investor]

Pleasantly surprised with the result on this one today. This was one surrounded by doom and gloom due to all the profit downgrades and poor earnings by companies in the pharmacy business in Australia. However, it looks like EBO has really diversified well from its core business.

The acquisition is very pleasing as well, exposes them positively to that aging population dynamic. This is one that will really help long term perhaps more than short term. A new wholesale distribution site and contract logisitics site perhaps shows more growth to come.

Lesson of the day: Sell EBO at your own peril!

[Lewylewylewy]

For me the result was exactly as expected, but I was hoping for news a bit better.

I'm looking to sell, because there are better buys, but these are definitely not a bad stock... Good dividend, fair price. No worries, but not sure how I feel about the gearing.

[Lewylewylewy]

To add to that, I'm impressed that ebos is able to manage so much inorganic growth successfully. Credit to management.

[Snow Leopard]

10% constant-currency underlying EBITDA for FY18 (pdf page 15: click me (https://nzx.com/files/attachments/267839.pdf)).

With the dividends as well that is good?
Isn't it?

Surely that $100 a share is back on (for soon after the $20 a share)

Best Wishes
Paper Tiger

[horus1]

Excellent reports . Steady as she goes

[RTM]

10% constant-currency underlying EBITDA for FY18 (pdf page 15: click me (https://nzx.com/files/attachments/267839.pdf)).

With the dividends as well that is good?
Isn't it?

Surely that $100 a share is back on (for soon after the $20 a share)

Best Wishes
Paper Tiger

Reading the presentation I got a bit tired of having to mentally adjust for currency. It is a real cost to doing business. And I'm not sure what their result is like including currency effects. Still...I am going to hold after lightening up a bit earlier in the year. Nicely diversified. Australia and NZ. Divi OK.

Cheers
RTM

[macduffy]

A bit surprised to see EBO shareprice down this morning. Admittedly, only 10c on 2000 shares but with such a big chunk of their eanings coming from Aust these days I would expect them to be one of the bigger winners from a weaker NZD.

[Oliver Mander]

Agree - but suspect general sentiment impacting...

[macduffy]

Agree - but suspect general sentiment impacting...

.....and overlooking the new govt's social policies such as spending on health and hospitals!

[Zaphod]

.....and overlooking the new govt's social policies such as spending on health and hospitals!

The issue is we simply don't know what the policies surrounding the health sector will be. Mental health has been emphasised, which won't benefit EBO.

[winner69]

A bit surprised to see EBO shareprice down this morning. Admittedly, only 10c on 2000 shares but with such a big chunk of their eanings coming from Aust these days I would expect them to be one of the bigger winners from a weaker NZD.

.....but we are meant to judge them on a 'constant currency' basis aren't we

[RTM]

.....but we are meant to judge them on a 'constant currency' basis aren't we

Hmmm....but not sure that will help with the dividend ?

[macduffy]

.....but we are meant to judge them on a 'constant currency' basis aren't we

No, not judge, but it's a useful tool to add to one's analysis of the company.

[macduffy]

Market sees sense now and EBO back in the green numbers.

:cool:

[winner69]

No, not judge, but it's a useful tool to add to one's analysis of the company.

Only said what I did because EBO insists on using constant currencing when commenting on performance.

The touted 10% ebitda increase in constant currency just got better in real terms?

[percy]

Share price $17.90.
PE ratio 20.4
growth 10%.
Therefore the growth rate is only half the PE ratio.
yield 3.52%.

[winner69]

Share price $17.90.
PE ratio 20.4
growth 10%.
Therefore the growth rate is only half the PE ratio.
yield 3.52%.

Expensive then ....but always expensive isn't it

[percy]

Expensive then ....but always expensive isn't it

Yes.
Always seemed to trade on a PE between 13 and 16.

[winner69]

Yes.
Always seemed to trade on a PE between 13 and 16.

Updated this for you - EBO share price and EPS

The lines generally follow each other through to Dec 2015 and that essentially is your average PE over that time of 15

The share price went up more in % terms than EPS (a higher PE) in 2016 and the share price has been pretty flat since arounf the $18/$19 mark (reflecting it being 'expensive')

The EPS line for 2018 is with EPS growing by 12%. One could say that earnings are starting to catch up with the share price (a forward PE of about 18 now)

You might get your $20 very soon

Best bit of chart is the EPS line keeps going up eh percy

[percy]

Updated this for you - EBO share price and EPS

The lines generally follow each other through to Dec 2015 and that essentially is your average PE over that time of 15

The share price went up more in % terms than EPS (a higher PE) in 2016 and the share price has been pretty flat since arounf the $18/$19 mark (reflecting it being 'expensive')

The EPS line for 2018 is with EPS growing by 12%. One could say that earnings are starting to catch up with the share price (a forward PE of about 18 now)

You might get your $20 very soon

Best bit of chart is the EPS line keeps going up eh percy

Thank you.
I read it that eps lead the SP until 2016,so looks as though the sp has got ahead of itself.

[Lewylewylewy]

I think that they're expensive, which is another word for "good company" when it comes to stocks. You don't want to buy a "cheap company" unless you know something that the insiders don't, or like a gamble.

My only problem with the price is that it's priced for growth, and I don't understand to the growth plan clearly for next year 😞

My take is that they have a lot of new aspects of the business to explore and understand, before they can pick out the areas to grow. Of which I imagine there are a few, but I'd rather see plans with more easily calculatable outcomes. That said as a greedy shareholder looking for fast gains; if it were my business is be doing exactly as they're doing, otherwise the growth will be badly managed and inefficient.

I think market sentiment is in line with my sentiment, evidenced by an above expected profit announcement, with no increase to SP (falling PE).

[ratkin]

Thank you.
I read it that eps lead the SP until 2016,so looks as though the sp has got ahead of itself.

May have done, but looks about right now. Only dangers are regulatory. The company itself looks fine and if earnings keep growing so will price. I thougt you were a big cheer leader for Ebos, Percy? Did something happen you did not like the look of.

[percy]

May have done, but looks about right now. Only dangers are regulatory. The company itself looks fine and if earnings keep growing so will price. I thougt you were a big cheer leader for Ebos, Percy? Did something happen you did not like the look of.
Yes.At last year's agm the CEO talked of 7% growth.The pe at the time was about 21,[three times their projected growth rate] so I started selling.The sp is up 2.23% since then.I have retained a very small holding in my wife's, and my own portfolios.
I did not attend this year's agm as I have been busy.First one I have missed for years.
This year's expected 10% growth rate is higher than I would expect,taking into account the slow down and competition in retail pharmacies.
I think Redseal,and BlackHawk will see continued very strong growtn,but they are a very small part of Ebos.
The weakening GXH [nz] share price could see EBO make a move,although at this stage there is no reason to,as they have a large say in GXH's business already.

[macduffy]

I'm nearly as big a cheerleader of EBO as percy, having been on the register since the "Early Bros Dental and Medical Supplies" days. Growth has been consistently high throughout this time, aided by astute incremental acquisitions. Now, however, the merger with Symbion puts EBO in a somewhat different league, increases its exposure to regulation and, mainly, Australian govt policy and subjects its growth rate to the "tyranny of large numbers". In the immediate future, the weaker NZD will help profitability growth but over time I think I'll be reducing my overweight position in the company.

[value_investor]

I always thought that EBO would eventually buy GXH, but I understand EBO already have a hand in the pie over there. At current valuations, I think it would be a good buy considering the share price of GXH has been on a bit of a dive after their record highs about a year ago.

GXH is a slow burner but I still think that it is a huge long term play. Has exposure to the aging population on a few fronts but on the down side, the pharmacy aspect is still most of source of profits. Whereas EBO is well diversified. Time will tell..

[Snow Leopard]

Chucking some money at Pharmacist Phil to help him chat to more people:

Announcement: https://nzx.com/files/attachments/268208.pdf

'Phil': aka MedAdvisor: https://www.medadvisor.com.au/Home/Landing

[winner69]

Chucking some money at Pharmacist Phil to help him chat to more people:

Announcement: https://nzx.com/files/attachments/268208.pdf

'Phil': aka MedAdvisor: https://www.medadvisor.com.au/Home/Landing

Cool .........

[LAC]

The biggest worry for me regarding EBO is the currency over this year. With Labour in...makes me a little cautious at this stage. I dont plan to sell down as yet.

[peat]

The biggest worry for me regarding EBO is the currency over this year. With Labour in...makes me a little cautious at this stage. I dont plan to sell down as yet.
can you please explain further LAC

Ebos has a lot of Australian assets, (and earnings) as the Kiwi falls against the Aussie dollar this is largely a positive I would think.

[LAC]

Happy about the NZ dollar, but have a few colleagues in OZ who are talking about the slow down there.

[Snow Leopard]

Nice to see the old share price having a quick trot back on the high side of $18, although I would not be surprised to see back down taking a rest near $17.50 before the year is out.

Best Wishes
Paper Tiger

[value_investor]

Nice to see the old share price having a quick trot back on the high side of $18, although I would not be surprised to see back down taking a rest near $17.50 before the year is out.

Best Wishes
Paper Tiger

My motto with these is don't sell! Even if they are currently overvalued, the best thing you could do is top up if prices go lower or enjoy the ride if they go higher.

[kizame]

Ebos has broken out of the consolidation triangle it has been in since sept 16, and broken out on good volume.

[value_investor]

GXH dropped another 5% down to $1.60 which for me is becoming a bit oversold. I know the business is going to go through a rough patch with Chemist Warehouse establishing itself in pharmacy, however there are big opportunities for EBOS to come in and use some of the efficiency and purchasing power they already have to help them compete.

[percy]

Sad seeing CEO Patrick Davies stepping down,however CFO John Cullity steppig up is positive.
And Patrick agreeing to a contract position is another positive.
Mark Waller,Patrick Davies and John Cullity work well together,and with such a strong board ,the future does look sound for EBO.

[macduffy]

Just another good reason to continue to hold EBO.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11932105&ref=rss

:)

[percy]

Just another good reason to continue to hold EBO.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11932105&ref=rss

:)
Off subject yet again.
If you google Mark Stewart,Masthead, you will note his interest/control of ZiwiPeak.They manufacture up market dog biscuits.
The very best ingredients.Mainly export to a growing number of countries.
Well Ziwi's Tauranga factory can't keep up with demand.
Not sure whether Mark sold his $28mil Auckland house to help Ziwi's expansion or not,but Ziwi should have their new Rolleston factory, producing product with in the next few weeks.
Remember Mark Stewart sold out of EBO, where he was a director, to fund his [Masthead's] investment in Ziwi.
Maybe a good fit if EBO's animal business?.

[value_investor]

Looks like this one has come back to life again, its one of those that sticks with my portfolio and when I think of selling it goes up or I just look at the business again and realise I'm better off holding.

At a PE of 21, there is probably better value out there but its hard to bet against it long term.

[peat]

yeh I accumulated at todays lows as the other stocks rose and it didnt , except right at the end it did '+)

[peat]

The recent price action would indicate results wont be so great tomorrow morning

The guidance was given in late October "On the basis of our current trading performance, we expect constant currency, underlying EBITDAfor the 2018 financial year to grow by approximately 10% on the prior year."

The next couple of weeks is the time of the formal handover to the CFO who become CEO, at least there is plenty of familiarity in the new hands.

[LAC]

Can never bring myself to sell these again, I know its sitting on a high PE atm but I have made that mistake once before. I am just watching to see if they achieve the numbers they say, even if the PE is double that, I still rather just keep them in the cupboard and review it in 5 years time.

[percy]

A sound result with a positive outlook.

[LAC]

I am happy with today's results.

[RTM]

“Revenue decrease is driven by lower hepatitis C medicine sales (which were $250m lower than H1 FY17, constant FX).
– Revenue excluding hepatitis C medicine sales grew by $76m or 2.7% (constant FX).”

I would like to see some more information about why they had lower Hep C sales. Disappointing to see that this has had such a big effect on their revenue. Also would like to know how susceptible they are to single product issues such as this. Maybe I have missed something ? Other than that, nice to see a good dividend increase. Holding what I have left.
RTM

[LAC]

I read somewhere a while back that Australia are on track to completely eliminate Hep C in a decade, will try and dig up that article. Hep C might be just declining - yes it would be good to get some info on the single product issues that they may face in future.

[RTM]

That would be a great result for Australia.
Thanks.
RTM

[okay]

Good article in stuff regarding future EBOS geographical expansion plans. From the outgoing CEO, Patrick Davies

"Ebos took a big risk to move beyond New Zealand to the Pacific and then Australia in recent years. The next stage is to push further into Asia. "We've started a little of that and it will be a focus over the next five years."


The next Ebos targets included China, South Korea and a couple of other Asian countries.

Some more snippets:-

"The expansion into Asia will be different to the Australian story. In Australia the growth has come from acquisitions but our initial path in Asia is to export products using distributors rather than buying businesses immediately.

"We'll do well in China with our Red Seal and Black Hawk pet products and we'll take greater control when we're confident we can to that. Maybe we'll acquire a small business selling some products."

https://www.stuff.co.nz/business/102269885/top-executives-must-lead-the-way--ebos-ceo-davies

[macduffy]

The recent dividend demonstrated again how dominant the Australian side of the business has become. NZ div imputed to 25%; 100% fully franked in Aust. Not complaining though - should get a decent chunk of that 33% withholding tax back in due course!

[LAC]

About time we heard something from the great company:) Never fail to impress.

https://www.nzx.com/announcements/320214

[winner69]

About time we heard something from the great company:) Never fail to impress.

https://www.nzx.com/announcements/320214

That’s one pretty big contract eh

Even if margins are pretty thin they’ll only be using resources they already have so most should flow through to bottom line...yes?

[h2so4]

That’s one pretty big contract eh

Even if margins are pretty thin they’ll only be using resources they already have so most should flow through to bottom line...yes?

Oh my. That's a huge announcement.
Nice!!!!!
I thought Chemist Warehouse would be direct competition. Well it is but we will supply you as long as we make something out of it.....LOL

[winner69]

Oh my. That's a huge announcement.
Nice!!!!!
I thought Chemist Warehouse would be direct competition. Well it is but we will supply you as long as we make something out of it.....LOL

There will be a buck or two in it for EBO

[percy]

Oh my. That's a huge announcement.
Nice!!!!!
I thought Chemist Warehouse would be direct competition. Well it is but we will supply you as long as we make something out of it.....LOL

Think the present Chemist Warehouse contract was also with a competitor.
Do not need a big margin on $1 billion contract.
Be interesting to see whether with the added "bulk", EBO get better supply contract prices from their suppliers.

[h2so4]

Yes Sigma I think and their SP has been in a downtrend for a while. API is also in a downtrend. EBO bucking the trend.

[ratkin]

Boom, game changer. should bring the price out of its malaise. May finally breach that 20 dollar mark. Think the all time high around 19.35, should take it out.
The Aussie market reaction will be interesting.

[winner69]

Guru Mark from Craig’s likes it

Mark Lister (@MarkListerNZ)
2/07/18, 10:22 AM
Great contract win announcement today from EBOS Group. Stock up almost 5% in response. One of our most underrated NZX companies, has been an excellent performer over many years and very consistent. Has produced a +22.6% pa return last 10yrs, more than double the NZX50 at +9.1%.

[ratkin]

Guru Mark from Craig’s likes it

Mark Lister (@MarkListerNZ)
2/07/18, 10:22 AM
Great contract win announcement today from EBOS Group. Stock up almost 5% in response. One of our most underrated NZX companies, has been an excellent performer over many years and very consistent. Has produced a +22.6% pa return last 10yrs, more than double the NZX50 at +9.1%.

Funny thing is that like IFT it never feels like it is going up, but then you look back and realise it has been doing well from a percentage point of view. A bit like a watched pot.

[peat]

yes! my core stock (30% of portfolio) comes to some real life.
funny how it went up 50c or so last week and then on Friday lost all that.
perhaps can be a bit low on volume for institutions but shouldn't matter for most retailer investors.

[percy]

I am back onboard.

[h2so4]

I am back onboard.

Welcome aboard.

[Joshuatree]

I am back onboard.

Im glad we never left, nearly a 3 bagger for us now on this investment.:D

[percy]

Im glad we never left, nearly a 3 bagger for us now on this investment.:D

Was only away a year or two.Did not miss any action.Had fun elsewhere.
Held for over 25 years before then.
Will be a right old age if I hang onto them for another 25 years.??????????/

[h2so4]

Not to hard to work out that SIG is good value at current price.

[winner69]

Not to hard to work out that SIG is good value at current price.

Share price trashed eh

Announcement sort of suggests that they made $25m/$30m EBIT out of the lost contract

MC/CW might be winners out of this switch and hopefully it’s a win win with EBO

Wonder if EBO had to offer better terms ...the $300m mentioned (extended credit? Consignment stock?) is pretty horrendous

[peat]

SIG? whats that and why are you talking about it

[winner69]

SIG is Sigma Health who currently have that Chemist Warehouse contract

Down 40% or so on ASX

[ratkin]

SIG is Sigma Health who currently have that Chemist Warehouse contract

Down 40% or so on ASX

They claiming that to have won the tender would have meant not enough profit, so Either EBOS are
going to be making very little or their cost structure/infrastructure is much superior. Hopefully that is
the case given all their acquisitions over the last few years.

[percy]

They claiming that to have won the tender would have meant not enough profit, so Either EBOS are
going to be making very little or their cost structure/infrastructure is much superior. Hopefully that is
the case given all their acquisitions over the last few years.

From memory.
Each new EBO distribution centre;Sydney,Melbourne,and Brisbane are automated.They showed a video,at an agm of orders going down a conveyor belt and product being added to each order.Each warehouse has the capacity to do 10,000 separate orders a day.Set up costs for each warehouse was approx $35mil.
Mark Waller did say once, to think of Ebos as a logistics company, that is in the medical supply sector.
Today's announcement confirms this.

[h2so4]

They claiming that to have won the tender would have meant not enough profit, so Either EBOS are
going to be making very little or their cost structure/infrastructure is much superior. Hopefully that is
the case given all their acquisitions over the last few years.

I’m sure management know what they are doing considering their track record.
If you look back through Sigma reports facilities look dated and perhaps not as efficient as EBO.

[peat]

SIG is Sigma Health who currently have that Chemist Warehouse contract

Down 40% or so on ASX

it must be a very valuable contract.

[hardt]

“We made it clear at the start of the negotiations that we would only enter into a new contract if it made commercial sense and provided an adequate return on invested capital,” says Mark Hooper, Sigma managing director and CEO.

Sigma with an operating margin of around 2% started these private negotiations with CW last year and would not come down to a level CW wanted.

Guessing CW wouldn't move an inch for a new contract... hazarding a guess the margins will be absolute garbage as well.
1.5% net margin on the contract would be around 15m NPAT lift in the first year.
CW are only going to grow so this is worth a bit more than a 7% lift in EBO...

Disc: bought in this morning, should have hit $20 on the back of this one.

[JayRiggs]

Oooh there is a big buyer at 20 before open.
Looks like we finally going over 20 today!

[winner69]

“We made it clear at the start of the negotiations that we would only enter into a new contract if it made commercial sense and provided an adequate return on invested capital,” says Mark Hooper, Sigma managing director and CEO.

Sigma with an operating margin of around 2% started these private negotiations with CW last year and would not come down to a level CW wanted.

Guessing CW wouldn't move an inch for a new contract... hazarding a guess the margins will be absolute garbage as well.
1.5% net margin on the contract would be around 15m NPAT lift in the first year.
CW are only going to grow so this is worth a bit more than a 7% lift in EBO...

Disc: bought in this morning, should have hit $20 on the back of this one.


Sounds about right


Means about 10% uplift in earnings from FY2020

[winner69]

Now 20 bucks broken its all go to PTs target ....100 bucks

[Sideshow Bob]

Sigma are always going to paint the contract on the negative side, now that they lost it. In the situation, they are trying to polish a turd.

Obviously Ebos have a different cost structure and different perspective on the CW business.

[LAC]

Nice movement today:)
Really would like to know what the margins are expected to be.

[Snow Leopard]

Yesterday EBO became the largest constituent of my NZX investment portfolio, swapping places with SCL.

Today EBO achieved 'seriously-overweight' status in the same portfolio.

As has been mentioned whilst we are told that it is $1B of new revenue from 2019 onwards we do not know the increase in profit that will come along that.

Looking back at prior years accounts and extrapolating I would hope that the absolute minimum addition to the NPAT is $17.5M and would expect a few dollars more.

But this is all a year or two away.

Meanwhile I have been told that in a former life that percy and I had a competition as to when the $20 level would be reached/breached.
I have no recollection of this but I am sure that I would have picked the 3rd July 2018.

So next stop for the share price is a retreat to $19.50 to fill that gap and then $100 here we come.

https://iadsb.tmgrup.com.tr/3b7898/0/0/0/0/800/533?u=https://idsb.tmgrup.com.tr/2017/10/27/ghost-cat-bronx-zoo-welcomes-new-baby-snow-leopard-just-in-time-for-halloween-1509108747551.jpg&mw=550

[percy]

Monday 4th July 2022

Best Wishes
Paper Tiger
Posted 25-09-2015
?????????????????????????????????????????????????? ???????????
4 years out.!!..lol.

[percy]

EBO has doubled in the past 5 years.In fact according to Yahoo it is up 103.06% from 27th September 2010 to 21st September 2015.
Momentum is again gaining traction,so I would expect the $20 target price will be reached mid afternoon on 24th September 2018.Aprox 3.27pm.................lol.
Posted 25-09-2015
3 months early.
Well done EBOS,.

[stoploss]

Posted 25-09-2015
3 months early.
Well done EBOS,.

Love your work Percy , keeping the faith .

[Baa_Baa]

Yesterday EBO became the largest constituent of my NZX investment portfolio, swapping places with SCL.

Today EBO achieved 'seriously-overweight' status in the same portfolio.

As has been mentioned whilst we are told that it is $1B of new revenue from 2019 onwards we do not know the increase in profit that will come along that.

Looking back at prior years accounts and extrapolating I would hope that the absolute minimum addition to the NPAT is $17.5M and would expect a few dollars more.

But this is all a year or two away.

Meanwhile I have been told that in a former life that percy and I had a competition as to when the $20 level would be reached/breached.
I have no recollection of this but I am sure that I would have picked the 3rd July 2018.

So next stop for the share price is a retreat to $19.50 to fill that gap and then $100 here we come.

https://iadsb.tmgrup.com.tr/3b7898/0/0/0/0/800/533?u=https://idsb.tmgrup.com.tr/2017/10/27/ghost-cat-bronx-zoo-welcomes-new-baby-snow-leopard-just-in-time-for-halloween-1509108747551.jpg&mw=550

Welcome back, it's been awhile. You've been missed.

[RupertBear]

Posted 25-09-2015
3 months early.
Well done EBOS,.

Your a wee legend! :)

[glennj]

Wow! Up $2.55 over the first two trading days of the month. Before this price rise I was saying in another thread that this was a stock I could lock away for ten years. I've already held since 2007 and the gains have been very good. A 3½ bagger so far. Originally purchased because I judged it undervalued but it has shown plenty of growth characteristics.:)

[horus1]

I am a long term holder. Love them . Have topped up yesterday.

[h2so4]

Wow! Up $2.55 over the first two trading days of the month. Before this price rise I was saying in another thread that this was a stock I could lock away for ten years. I've already held since 2007 and the gains have been very good. A 3½ bagger so far. Originally purchased because I judged it undervalued but it has shown plenty of growth characteristics.:)

EBO is one of those growth + value shares:)

[winner69]

Morningstar think EBOS going OK

http://www.sharechat.co.nz/article/a0ef5664/morningstar-lifts-ebos-share-value-earnings-forecast-on-chemist-warehouse-deal.html?utm_medium=email&utm_campaign=Morningstar%20lifts%20Ebos%20share%20 value%20earnings%20forecast%20on%20Chemist%20Wareh ouse%20deal&utm_content=Morningstar%20lifts%20Ebos%20share%20v alue%20earnings%20forecast%20on%20Chemist%20Wareho use%20deal+CID_fca51cdc3798919e1beeeabf836c875a&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlea0ef5664mornin gstar-lifts-ebos-share-value-earnings-forecast-on-chemist-warehouse-dealhtml

[peat]

Morningstar think EBOS going OK

http://www.sharechat.co.nz/article/a0ef5664/morningstar-lifts-ebos-share-value-earnings-forecast-on-chemist-warehouse-deal.html?utm_medium=email&utm_campaign=Morningstar%20lifts%20Ebos%20share%20 value%20earnings%20forecast%20on%20Chemist%20Wareh ouse%20deal&utm_content=Morningstar%20lifts%20Ebos%20share%20v alue%20earnings%20forecast%20on%20Chemist%20Wareho use%20deal+CID_fca51cdc3798919e1beeeabf836c875a&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlea0ef5664mornin gstar-lifts-ebos-share-value-earnings-forecast-on-chemist-warehouse-dealhtml

...and have headroom for further growth without overburdening themselves

[h2so4]

I think a lot of institutions and funds will be rebalancing their portfolios with a bigger holding in EBO before the end of the month.

[winner69]

...and have headroom for further growth without overburdening themselves


Wonder if EBO have to carry this $300m of working capital that Sigma keep raving on about?

[percy]

Wonder if EBO have to carry this $300m of working capital that Sigma keep raving on about?

No,only about half of that.

[peat]

i focus on the growth being maintained and the efforts the company is putting into achieving that.
Growth is not always consistent with Ebos , they seem to have a year or two of merely average growth, and then another spurt.
97879786

[winner69]

Updated the old chart showing Ebos EPS and shareprice over the years

Gives you a good idea where the share price is heading over the next year or so

[JoeGrogan]

Updated the old chart showing Ebos EPS and shareprice over the years

Gives you a good idea where the share price is heading over the next year or so

Thats a nice looking chart there sir.

[percy]

Updated the old chart showing Ebos EPS and shareprice over the years

Gives you a good idea where the share price is heading over the next year or so

One of your charts is worth a thousand words.!!!

[silverblizzard888]

Its quite interesting looking at the opposite end of things, instead of on Ebos's end, the company that lost the contract was Sigma Healthcare, which dropped 40% on the day or about $343 million from their Market Cap. Given it was a smaller company compared to Ebos then I imagine Ebos will get better margins. Sigma Has a EBIT margin of 2% while Ebos has EBIT margin of 3%, so out of the same deal Ebos would earn 50% more for the bottom line. Based on the disclosures by Sigma the impact is about $30 million EBIT, given Ebos's better margins then it would likely be worth $45 million in EBIT , which will give it a 20% boost in EBIT for Ebos starting from next year when the deal starts.

*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.

[ratkin]

*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.

The contract terms will not be the same otherwise Sigma would have re-signed. EBOs have obviously undercut them to such an extent it was no longer viable for Sigma to compete. Question is how low have EBOS had to go.

[winner69]

Its quite interesting looking at the opposite end of things, instead of on Ebos's end, the company that lost the contract was Sigma Healthcare, which dropped 40% on the day or about $343 million from their Market Cap. Given it was a smaller company compared to Ebos then I imagine Ebos will get better margins. Sigma Has a EBIT margin of 2% while Ebos has EBIT margin of 3%, so out of the same deal Ebos would earn 50% more for the bottom line. Based on the disclosures by Sigma the impact is about $30 million EBIT, given Ebos's better margins then it would likely be worth $45 million in EBIT , which will give it a 20% boost in EBIT for Ebos starting from next year when the deal starts.

*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.

It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

[percy]

It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

With the growth CW are achieving possibly more.?

[silverblizzard888]

The contract terms will not be the same otherwise Sigma would have re-signed. EBOs have obviously undercut them to such an extent it was no longer viable for Sigma to compete. Question is how low have EBOS had to go.

Its fair to assume the terms would undercut Sigma, though might not be as bad as it would appear, from what their disclosure says they wanted 'adequate return on invested capital' so probably not aggressive terms, but likely not ideal terms for them. It would have likely been still viable but they probably played hard ball and Ebos probably came round the corner and made a straight forward offer and took the contract.



It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

From their disclosure they had already factored in the 'softer market conditions' in FY18/19, which they are still the supplier of CW. I only took the difference from the softer figure estimates, which they also start lowering operating cost for the second half of FY19 so that will have made up for any difference for the softer market conditions.

Well Ebos estimates a billion in the first year so maybe it could be more or less.

[JayRiggs]

EBO closing at a record high of $21 :t_up:
I'm predicting a 36c final dividend tomorrow.
Maybe we'll see an announcement of a new big acquisition tomorrow? It's been a bit over a year since we've had a big acquisition.

I've noticed that earlier this year, EBOS have made 2 small under the radar acquisitions with Grans and Ventura Health.
https://www.ebosgroup.com/about-us/investor-news/grans-remedy-bolsters-endeavour-portfolio/
https://www.symbion.com.au/our-businesses/community-pharmacy/ventura-health/

EBOS have grown so big that these acquisitions don't even make it to the NZX announcements!

Anyway, good luck to all holders tomorrow for the FY18 result!

[percy]

EBO closing at a record high of $21 :t_up:
I'm predicting a 36c final dividend tomorrow.
Maybe we'll see an announcement of a new big acquisition tomorrow? It's been a bit over a year since we've had a big acquisition.

I've noticed that earlier this year, EBOS have made 2 small under the radar acquisitions with Grans and Ventura Health.
https://www.ebosgroup.com/about-us/investor-news/grans-remedy-bolsters-endeavour-portfolio/
https://www.symbion.com.au/our-businesses/community-pharmacy/ventura-health/

EBOS have grown so big that these acquisitions don't even make it to the NZX announcements!

Anyway, good luck to all holders tomorrow for the FY18 result!

Yes I think another huge acquisition must be overdue too.
Adding a billion dollars of revenue with the supply agreement with The Chemist Warehouse was a rather big deal.

[ratkin]

EBOS will hold a live webcast at 11.30am NZST (9.30am AEST) on 23 August 2018
which can be accessed via following the attached link:
https://edge.media-server.com/m6/p/mgiqok72

Hopefully it all good news

[percy]

I think today's result is "modest".
No revenue growth,however a great deal better margins with their own products, such as the incredible success with Black Hawk dog and cat food.
Still an extremely well run business.

[LAC]

Very happy with that result.
The Hep C percentage of total revenue was brought up in ST once before, so wasnt a shock but over time they say Hep C will be almost non existent in NZ and Aust from a recent article. So I guess that part will continue to decline. I am really liking the fact their own brands are starting to materialize into something more significant in terms of earning. Hoping for a good acquisition which will drive revenue up again.

[RTM]

Can someone help me out ? I'm not a financial wiz.
Why / how can the NTA/Share be negative ? See below for EBOS. -56.47 cents

Is this a reflection of the level of borrowings that a company has.
Sorry if this is a dumb question. Data from ANZ Securities.

EBO.NZX - Ebos Group Limited Ordinary Shares

Total Issue:
152,539,304
Market Capitalisation:
$3,203,325,384 (@2100)
Earnings/Share:
92.53 cents
Price/Earnings Ratio:
22.7
NTA/Share:
-56.47 cents
Dividend/Share:
NZD 66 cents
Dividend Yield:
3.14%
1-Week Range (Low - High):
2039 - 2100
4-Week Range:
2000 - 2100
26-Week Range:
1730 - 2100
52-Week Range:
1700 - 2100

[percy]

Can someone help me out ? I'm not a financial wiz.
Why / how can the NTA/Share be negative ? See below for EBOS. -56.47 cents

Is this a reflection of the level of borrowings that a company has.
Sorry if this is a dumb question. Data from ANZ Securities.

EBO.NZX - Ebos Group Limited Ordinary Shares

Total Issue:
152,539,304
Market Capitalisation:
$3,203,325,384 (@2100)
Earnings/Share:
92.53 cents
Price/Earnings Ratio:
22.7
NTA/Share:
-56.47 cents
Dividend/Share:
NZD 66 cents
Dividend Yield:
3.14%
1-Week Range (Low - High):
2039 - 2100
4-Week Range:
2000 - 2100
26-Week Range:
1730 - 2100
52-Week Range:
1700 - 2100

They had to pay a great deal for goodwill and intangibles when they brought out other companies.

[winner69]

RTM not a dumb question

The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)

Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.

[RTM]

RTM not a dumb question

The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)

Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.

Thanks Winner and Percy,

I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?

I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."

[winner69]

Thanks Winner and Percy,

I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?

I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."

Yes it accounts for loans.

You obviously with ANZ. They like people understanding things like NTA and in their Education Dept they have this little article

https://www.anzsecurities.co.nz/directtrade/static/diynettangibleassetspershare.aspx

[RTM]

Yes it accounts for loans.

You obviously with ANZ. They like people understanding things like NTA and in their Education Dept they have this little article

https://www.anzsecurities.co.nz/directtrade/static/diynettangibleassetspershare.aspx

Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM

[winner69]

Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM

I wouldn’t worry about NTA at all ....to me it doesn’t mean much at at all.

I’d say you would be better off looking Book Value which is the same as Shareholder Equity. This gives you a far better guide to what the net assets of the company are (from an accounting point of view)

For EBOS that’s about $8.00 per share. The market is valuing that at $20 plus which means everyone is expecting the company to continue to make decent profits ....ie create value

[percy]

The result was not what I was looking for.
Have sold.

[LAC]

The result was not what I was looking for.
Have sold.
Aaaah you know u will just re-enter at a higher price in future;) U always do

[percy]

Aaaah you know u will just re-enter at a higher price in future;) U always do

Yes if there is good reason to I will.!!...lol.

[macduffy]

The result was not what I was looking for.
Have sold.

Looks like EBO is suffering from the law of large numbers. As issued capital and NPAT grow it gets harder and harder to post similar percentage increases as those when the company was much smaller. My biggest concern is whether becoming more reliant on the pharmaceutical business in Australia - which isn't yet reflected in results - exposes EBO to greater governmental/regulatory risk than in previous years.

I sold a few in July but EBO is still one of my biggest holdings.