Ebos Limited EBO

[h2so4]

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.

My biggest concern is whether or not FALL IN MARGIN AND REVENUE is consumer driven.

SOLD

[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

OK….got it. The words are confusing. But the formula is crystal clear. IF they had said "less" or "minus" instead of "excluding" would have helped. Sorry. Science Grad.

"NTA (net tangible assets) is described as the total assets of a company, excluding intangible assets (such as goodwill, trademarks and patents) minus total liabilities. The NTA/share value is used to determine, in theory, the money that each shareholder would receive if the company was forced into liquidation and all of the assets were sold at that point in time.

Formula: NTA = total assets - total liabilities - intangible assets"

Intangibles must create havoc for the auditors over the years. How do you value them ? How fast and much do they depreciate ?
Appreciate you pointing me in the right direction.

Cheers
RTM

[winner69]

Intangibles must create havoc for the auditors over the years. How do you value them ? How fast and much do they depreciate ?
Appreciate you pointing me in the right direction.

Cheers
RTM

RTM ...good you are interested

Intangibles are ‘valued’ at the time a acquisition is made - essentially the difference between the acquisition price and the tangible assets (real things).

Things like goodwill aren’t amortised (the word they use for depreciation when it comes to intangibles) but there are some intangibles that have a finite life that are amortised (just like depreciating a piece of plant)

The value of the intangibles is tested each year to see whether it is still worth that amount - they generally let the accountants do discounted cash flow models assuming future growth rates and all that sort of stuff. If the SUMs say that the value of any intangible asset is at least what it is recorded as in the accounts all OK ....but if that value can’t be justified they need to reduce the value of that asset. That’s called an impairment ......and affects profit.

You are familiar with Ebos so have a read throughnof Pages 46 to 51 of the Annual Report
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/322615/285091.pdf

If you read it reasonably thoroughly without getting bogged down in the detail you’ll get a pretty good feel for what’s going on. There are a few paragraphs in plain English

Weekend homework

[Maverick]

Thanks Winner for your break down of the jargon. You have explained it well.I really do appreciate the time you took to go through this ,seriously.
I have always treated goodwill EXTREMELY suspiciously , for example, I take the boys (employees)out on the town..... I dont expense it , rather I call it "goodwill".
this way I have not hurt this years company's taxable profit because the beer doesn't come off the annual profit, rather it is treated as an asset, ie improved the intangible " brand"(obviously everyone is happier and will stay on another year-staff retention) . Therefore an asset to the company and the company is now worth more on paper.
... it improves the ( intangeble)asset brand of the company making it more valuable as a brand and this years profit is all but unaffected. ........ current management look good as the profit is high and the company looks asset rich...... drink on I say, everyone wins.
Personally I Look for the real cash, ie ... dividends. That's proof there is actual money in the pot.
but again. Winner , I do appreciate your responses, just have strong feelings about goodwill and the trap it can set for the unwary.

[Maverick]

Disclaimer. Have done zero homework on EBOS , so am unfit to comment on their result. Just too busy loving the retirement villages (sum/oca/arv)... now there are some serious assets.

[Snow Leopard]

...I have always treated goodwill EXTREMELY suspiciously , for example, I take the boys (employees)out on the town..... I dont expense it , rather I call it "goodwill".
this way I have not hurt this years company's taxable profit because the beer doesn't come off the annual profit, rather it is treated as an asset, ie improved the intangible " brand"....

That is NOT goodwill, that is fiddling your accounts, and is [hopefully] NOT how it works for proper companies.

[Maverick]

that was a simplistic example a pretty smart friend explained to me once. Big companies seem no different. In fact they might be worse.Dick smith, Tegel,Moa etc ......

[Snow Leopard]

I will exercise goodwill to those who mis-understand goodwill and let the matter drop.

Meanwhile despite the lack of revenue increase this year
and the below average EPS increase
and the fact that I (always) regard it as currently overpriced,
I have pulled up a long term chart, omm-ed a little, let peace and serenity enfold me and decided not to sell any.
Instead I will watch it joust with HLG for the #2 position in the portfolio.

Next year they start reporting in AU$.

Dividends are 100% (AU) franked but not 100% (NZ) imputed and I have realised that if I could persuade the registry that I was an Australian non-tax resident instead of a New Zealand non-tax resident (just for EBO mind) then I would end up with more money from the dividend/shares from the DRP

[Maverick]

I apologise Snow Leopard. You are totally correct , I have wrongly lumped the two two terms " intangible asset" and" good will " together in my head as one.I do see them both as similar fuzzy accounting tools that can manipulate the books and am wary of them both. Cheers for your patience. matter dropped.

[RTM]

Thanks all, much clearer now. Beaut day, chugging back to marina after having new antifoul applied. Need next months dividends!

[winner69]

Good on you RTM

Plenty of good boating / sailing up eh

[LAC]

I see EBO making an acquisition some time in next financial year to get the Revenue up, the fact their their own brands are doing well is a good sign they will look at further acquisition IMO. Have made mistake selling previously and will just hold this one. Decent divies as well based on my initial purchase prices.

[macduffy]

My biggest concern is whether or not FALL IN MARGIN AND REVENUE is consumer driven.

SOLD

Yes, revenue is down but margin increased - from 3.17% to 3.58%.

[RTM]

Lucky I had been doing some homework. From the Sky report.

"The net loss includes an impairment charge of $360 million. The SKY board is required to assess the fair value of intangible assets at each reporting period and if this is determined to be less than the book value, then the assets are impaired. The impairment charge reduces the net book value of SKY’s equity at 30 June 2018 to $1.03 billion ($2.64/share) compared to $1.33 billion ($3.41/share) at 30 June 2017. SKY shares closed at $2.60 per share on 30 June 2018. This goodwill asset arose on the merger of Independent Newspapers Ltd (“INL”) and SKY back in June 2005 and reflected the difference between the fair value of SKY’s assets at the date of the merger and the price that INL shareholders agreed to exchange their shares in INL for SKY shares. This is a non-cash charge that has no impact on SKY’s 2018 cash flows or on any of its bank covenants. "

And SEEKA...

"Profits for the six months were impacted by a $1.53m write down of goodwill in the tropical business, Seeka Glassfields. "

Lots of homework for the weekend !

[h2so4]

Yes, revenue is down but margin increased - from 3.17% to 3.58%.

Yes EBITDA margin increased.

[peat]

Im seeing the increase in margin as a good substitute for current revenue growth, as we know that revenue is going to increase by $1B over the next year or so. True it is likely that this recent large deal with ChemMart will compress margins but I guess its harder and hard to do both at the same time as the company grows.
They have a plan though and continue to execute. Its totally clear these guys aren't just sitting around praying. I'm still holding. share price hasn't retraced much from recent surge so I'd guess 21.60 might be a short term target for traders , though I wont sell.

[peat]

I'll try not to do a hat trick but will comment that today is an all-time closing high. Yesterday spiked higher but didn't hold.

Will the gap be filled ? If so price would revert to $19.25 , surely a bargain such as that could never present itself.


9877

[Snow Leopard]

Still going up, still setting new highs, good volume behind it too.

When will this madness end?

[peat]

share price hasn't retraced much from recent surge so I'd guess 21.60 might be a short term target for traders , though I wont sell.

Thanks for saving me the agony of posting again SL.

as I said 2.5 weeks ago 21.60 thar she blow.

[percy]

Still going up, still setting new highs, good volume behind it too.

When will this madness end?

When I buy back in...……………..
I have no spare cash at present,so it will keep going up for awhile...……………………….lol.

[janner]

Still going up, still setting new highs, good volume behind it too.

When will this madness end?

Good question.. Has been going sideways for almost 2 years..

Reasons ????.

[macduffy]

Good question.. Has been going sideways for almost 2 years..

Reasons ????.

Sideways perhaps - until July!

The company changed dramatically with the Australian takeover/merger. Now a much larger Aussi-centric pharma-dominated company. I reckon the adjustment to this "new, bigger Ebos has taken some time for the market to absorb.

[peat]

the longer the consolidation (the 2 year triangle) the more powerful the breakout
9919

[peat]

some were traded at 23.00 (up 50ish) on Friday afternoon, and not many sellers below that level today. further gains possible!

[peat]

okay the end of today brought a completely different picture and I succumbed to divesting 20% of my Ebos.
Firstly it was too big a percentage of the portfolio (and still is actually) and secondly the price had spiked on Friday (with large volume) and reversed giving it a topping look with that hammer candle , and now today its done a bearish engulfing candle.

I guess I'm also influenced by the price of SML too, and so creating some clear liquidity preparing for a double down on that one at a certain level.




9983


Hopefully not too fickle but this is what I saw today.

[kiwico]

I see Ebos as one you hold as you never know when the next leap is going to happen. It can stay dormant on a level pegging with very little movement of the share price for long periods of time until BAM it leaps up another 10-20%. Who knows when the next jump up will occur.

[LAC]

I see Ebos as one you hold as you never know when the next leap is going to happen. It can stay dormant on a level pegging with very little movement of the share price for long periods of time until BAM it leaps up another 10-20%. Who knows when the next jump up will occur.
I think it will be at their next acquisition announcement....

[kiwico]

I think it will be at their next acquisition announcement....

I agree, that is often a driver for Ebos.

[peat]

I see Ebos as one you hold as you never know when the next leap is going to happen. It can stay dormant on a level pegging with very little movement of the share price for long periods of time until BAM it leaps up another 10-20%. Who knows when the next jump up will occur.

I've only gone down to 80% of my earlier holding which constituted 40% of my portfolio so in essence I dont disagree but after such a huge rise there is very like to be retracement and an opportunity to rebuy at a lower price. If that never happens well I am still very exposed to the price staying high or higher with it now being 32% of the equities.

Down 33c today so it could keep falling after such a strong rise in the last six months.

[kiwico]

Down 33c today so it could keep falling after such a strong rise in the last six months.

And has effectively halved yesterday's drop today.

[Snow Leopard]

I am still surprised that it is trading above $20 to be honest.
So the fact that $22 has held since entering ultra blue sky territory and that you can draw a little trend line (log chart of course) for the last two months action makes for one happy Snow Leopard:
http://bioweb.uwlax.edu/bio203/s2008/bishop_kayl/happy%20guy.png

[LAC]

Does this go ex divi on 27th or 28th? NZX says yesterday 27th but the annual report says 28th...

[RTM]

Does this go ex divi on 27th or 28th? NZX says yesterday 27th but the annual report says 28th...

ANZ Sec. is saying XD

[Snow Leopard]

It went Ex Dividend yesterday, Thursday 27-Sep.

The report says the Record Date is the 28-Sep.

The Ex Dividend date and the Record date are two different things and one market open day apart on the NZX

[winner69]

EBOS might be buying Device Technologies in Oz. A A$700m company
https://www.theaustralian.com.au/business/dataroom/ebos-may-join-battle-with-private-equities-for-device-technologies/news-story/c08a2dd138073115dcc8a90f73df6323

Another question — do punters reckon the benefits from that new billion dollar contract that starts soon is built into the current shareprice

[LAC]

EBOS might be buying Device Technologies in Oz. A A$700m company
https://www.theaustralian.com.au/business/dataroom/ebos-may-join-battle-with-private-equities-for-device-technologies/news-story/c08a2dd138073115dcc8a90f73df6323

Another question — do punters reckon the benefits from that new billion dollar contract that starts soon is belt into the current shareprice

Yeah I think it is built into current price. I reduced significantly over the last couple weeks in favor of the retirement sector.

[Snow Leopard]

AGM Presentation & Speeches are available (https://www.nzx.com/announcements/325368).

For some unknown reason this stirring little piece of oratory:

"On the basis of our current trading performance, we expect the Group to generate underlying earnings growth in FY19 with further growth forecast into FY20 as we commence servicing the Chemist warehouse volumes."

has failed to light a rocket under the share price.

[horus1]

Bought a few at 21 . I never sell these

[LAC]

Bought a few at 21 . I never sell these
Had the same view but made the call and sold out at $22.5x 2 weeks ago. Will def buy in again but unfortunately the stock i moved the fund to has gone in the Red lol. so have to wait.

[macduffy]

AGM Presentation & Speeches are available (https://www.nzx.com/announcements/325368).

For some unknown reason this stirring little piece of oratory:

"On the basis of our current trading performance, we expect the Group to generate underlying earnings growth in FY19 with further growth forecast into FY20 as we commence servicing the Chemist warehouse volumes."

has failed to light a rocket under the share price.

It's been well anticipated!

:)

[ratkin]

AGM Presentation & Speeches are available (https://www.nzx.com/announcements/325368).

For some unknown reason this stirring little piece of oratory:

"On the basis of our current trading performance, we expect the Group to generate underlying earnings growth in FY19 with further growth forecast into FY20 as we commence servicing the Chemist warehouse volumes."

has failed to light a rocket under the share price.

In this market standing still is a win

[peat]

Interesting to see this at so much variance to the general market today and up 23c and over 1%. Im sure you all know what a signal this amounts to when there is no associated news.

A few days ago I replaced at 2055 half of what I sold at 2269. So now Ebos is 22% of my equities. An overweighting I am comfortable with.

When I think about it that hammer candle that I identified on this stock in late September was a precursor to all this October shenannigans.

[Snow Leopard]

Even more interesting, to me at least, is that the price after having touched the rising green-yellow zone boundary line a few days ago has remained in the green since despite all the market shenanigans.

When a stock respects the zone boundary line (akin to a smart trend line) one can be lead into believing that this is other than random chance and all those hours of programming and data processing have not been in vain.

Hopefully EBO will continue to follow the rule book as defined by my software and that $100 a share is still on.
:t_up:

Coincidently I am currently engaged on a major bout of Data Integrity, Conformity & Continuity investigation for my prime customer and it is a real eye-opener.
:scared:


TTFN

[horus1]

It was reported in AFR that EBO had lost interest in a takeover in AU . I think investors were scared they would pay to much for it . This is a well run co.Is about 18 % of my portfolio and I keep adding . Seems to me have formed a bottom at about $21 but out of cash.

[macduffy]

Whatever the reason, EBO strong again today, up 53c on light turnover. Perhaps the secret is to "lose interest" in takeovers.

:cool:

Disc: Holding, firmly!

[macduffy]

EBO results look just as good re-cast in AUD.

http://news.iguana2.com/macquaries/NZSE/EBO/329852

Just threw this in to make a change from reading about retirement company stocks!

;)

[NZSilver]

been watching this one - result weaker than first half 18

[peat]

been watching this one - result weaker than first half 18

yeh I was a bit underwhelmed and not sad to only have 60% of my usual holding at this point. Will look to get back to normal at lower prices if and when prices go lower.
not really a critical point this result though, the platform remains set for growth in the future.

[macduffy]

Yes, a bit disappointing but the possibility of a knock from the Aust govt's review of the Pharmaceutical Benefits Scheme was always present - and will probably continue to be there for the foreseeable future. The downside of growth by acquisition of Australian pharma businesses.

[Lewylewylewy]

Unspectacular result.

Ebo are a funny a though; they wait until you lose interest then they buy something and the price goes up.

Bottom draw for safe, moderate growth as part of a div portfolio.

[horus1]

Couldnt agree more . Buy when they dip.

[peat]

p.s.
Good to see the Pet side of things doing ok esp the food sales.
First-half Black Hawksales increased 23% with strong growth achieved across both Australia and New Zealand.

We dont use Black Hawk for whatever reason and I was wondering how this was going. New brand can be hard to work.

[Lewylewylewy]

Haven't even seen the pet stuff in the supermarkets, so i think there's some problem there... unless they're targeting vet shops

[stoploss]

Supermarkets not always your best customer if you want a decent profit margin .....

[winner69]

Haven't even seen the pet stuff in the supermarkets, so i think there's some problem there... unless they're targeting vet shops

Animates, vets and online suppliers like pet.co.nz

Holistically priced so bloody expensive. Some people send a fortune on their pets so the price don’t worry them. Apparently its feed to a lot of working dogs

High margin product for Ebos

We feed ours on a similar Australian product but at 50% of the price ....they don’t mind.

[RupertBear]

Animates, vets and online suppliers like pet.co.nz

Holistically priced so bloody expensive. Some people send a fortune on their pets so the price don’t worry them. Apparently its feed to a lot of working dogs

High margin product for Ebos

We feed ours on a similar Australian product but at 50% of the price ....they don’t mind.

Can I ask which product you use please Balance as I was thinking of trying my dogs out on Black Hawk but if there is a similar cheaper version I would be keen to try that out first :)

[peat]

[/B]
Can I ask which product you use please Balance as I was thinking of trying my dogs out on Black Hawk but if there is a similar cheaper version I would be keen to try that out first :)

no undercutting EBOS products on the EBOS thread!!!

start a thread about dog food somewhere else!

:p

[percy]

[/B]
Can I ask which product you use please Balance as I was thinking of trying my dogs out on Black Hawk but if there is a similar cheaper version I would be keen to try that out first :)

Beagles.?..................

[RupertBear]

no undercutting EBOS products on the EBOS thread!!!

start a thread about dog food somewhere else!

:p

Fair enough :D

[RupertBear]

Beagles.?..................

No two delightful mutts :)

[winner69]

[/B]
Can I ask which product you use please Balance as I was thinking of trying my dogs out on Black Hawk but if there is a similar cheaper version I would be keen to try that out first :)

This Coprice stuff - $69 for 20kg at Animates
https://www.animates.co.nz/coprice-family-dog-food-20kg.html

Can post that here as Ebos have an interest in Animates I believe


Dogs love it

[percy]

This Coprice stuff - $69 for 20kg at Animates
https://www.animates.co.nz/coprice-family-dog-food-20kg.html

Can post that here as Ebos have an interest in Animates I believe


Dogs love it

Yes EBO own 50% of Animates.

[RupertBear]

This Coprice stuff - $69 for 20kg at Animates
https://www.animates.co.nz/coprice-family-dog-food-20kg.html

Can post that here as Ebos have an interest in Animates I believe


Dogs love it

Thanks Winner, apology for calling you Balance my head is full of milky thoughts tonight ;)

[percy]

Craigs are expecting a flat year,however 20% growth next year.
Their target price is $24.11.

[tim23]

Haven't even seen the pet stuff in the supermarkets, so i think there's some problem there... unless they're targeting vet shops
Vitapet is in Warehouse and New World - been there for ages, my dog has just had his nightly choc drops treat!

[Lewylewylewy]

I was referring to black hawk, but this has been answered. Nn all

[peat]

Craigs are expecting a flat year,however 20% growth next year.
Their target price is $24.11.

Interim report out today is pretty flat
The words indicated a growth in profit but eps is actually down so some confucscation in the report. That good old underlying is up, but actual is actually down a little

But seemingly at the moment flat is the new growth huh.
No doubt weighted to second half, and next years gonna be a ripper ;+) (This sentence specially for W69 )

[Biscuit]

Interim report out today is pretty flat
The words indicated a growth in profit but eps is actually down so some confucscation in the report. That good old underlying is up, but actual is actually down a little

But seemingly at the moment flat is the new growth huh.
No doubt weighted to second half, and next years gonna be a ripper ;+) (This sentence specially for W69 )


Underwhelming report I think, they keep buying add-ons but not making any more money. Also, they are reporting in Australian dollars, so results are even worse re NZ dollars.

[peat]

Underwhelming report I think, they keep buying add-ons but not making any more money. Also, they are reporting in Australian dollars, so results are even worse re NZ dollars.

I don't think the changing of reporting currencies has made it worse. They are also presenting historical earnings in A$ now.

I only hope the price goes down on this flat reporting so I can get back to my full sized holding after selling some in the mid 22's.

[Biscuit]

I don't think the changing of reporting currencies has made it worse. They are also presenting historical earnings in A$ now....



With the decline in the AUD vs NZD over the last year, the comparative NZD results are worse. Not much admittedly. Since they are a NZ company (well, they were) I think it is a bl--dy cheek to report in AUD.

[macduffy]

With the decline in the AUD vs NZD over the last year, the comparative NZD results are worse. Not much admittedly. Since they are a NZ company (well, they were) I think it is a bl--dy cheek to report in AUD.

Yes and no. EBO now has a bigger Aust business than a NZ one, admittedly much of it is low margin, regulated pharma-type. Note, however, that the Aussie dividend is fully franked whereas for NZ shareholders it is only part-imputed. Speaking of which, the record date is/was 15 March so don't think of buying for the div!

Disc: Still holding.

[Snow Leopard]

...Note, however, that the Aussie dividend is fully franked whereas for NZ shareholders it is only part-imputed...

One of the 'fun' things I tried to do was become an Australian non-resident tax payer instead of a New Zealand non-resident tax payer (I pay taxes to both countries) with EBOS in order to keep more dividend.

Needless to say I have not succeeded yet!

[peat]

https://www.nzx.com/announcements/332489

35000 Ebos shares will buy a very nice deck. But with half a million or more left still quite a lot of skin in the game, so nothing to see here.....

[percy]

Agreed.Sale was worth approx $735,000
Yet when a TRA director sold approx $70,000 worth of TRA shares, the natives on TRA thread went right off their heads.
Different threads,different types of investors?

[minimoke]

Dang, timing is a funny old thing. Had a buy order in at 2100 for a while but seeing it get to 2200 I pulled the plug on it this morning. Bugger me 1.8m shares go through pre-open at $21.00.

[Sideshow Bob]

Bugger me 1.8m shares go through pre-open at $21.00.

Was that Percy following a director (and building a bigger deck)??

[minimoke]

Was that Percy following a director (and building a bigger deck)??I suspect he was freeing up some cash to take advantage of the year end sales at TRA

[Snow Leopard]

Dang, timing is a funny old thing. Had a buy order in at 2100 for a while but seeing it get to 2200 I pulled the plug on it this morning. Bugger me 1.8m shares go through pre-open at $21.00.

Doubt you would have got a look-in on the trade this morning, but looks like it might be worth digging your order out the bin.

[winner69]

For the top end of town and those who are well connected some cheap shares

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/333779/298957.pdf

[Biscuit]

For the top end of town and those who are well connected some cheap shares

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/333779/298957.pdf


Yes, a discount paid for by all other shareholders, that's pretty poor.

[Filthy]

So, a $150m raise. GXH market cap currently $157m(ish). Hmmm, so throw a couple of extra bucks in and they could maybe have a crack at it? Good timing too (5-year lows). Could be why there has been a bit more life in GXH recently? Just a guess though.

[macduffy]

Yes, a discount paid for by all other shareholders, that's pretty poor.

However, there may be some bargains when trading starts again if the discounted placement knocks the shareprice.

:cool:

[Biscuit]

However, there may be some bargains when trading starts again if the discounted placement knocks the shareprice.

:cool:


No, it's just legalized theft. Am reconsider this company as an investment, so certainly not in the market for more. They have not performed well for awhile now. Not sure there is really a compelling story here now.

[Joshuatree]

We have been offered some.Not enough in it for us and we have enough. Will be around 4.5% dilution .

[macduffy]

No, it's just legalized theft. Am reconsider this company as an investment, so certainly not in the market for more. They have not performed well for awhile now. Not sure there is really a compelling story here now.

Legalized theft or not, and whether we like it or not - I don't! - discounted placements are the modern way for raising large amounts of capital, quickly.

Not performing well? Increased earnings per share for the last five years!

[777]

Also the cheapest way.

[Biscuit]

Legalized theft or not, and whether we like it or not - I don't! - discounted placements are the modern way for raising large amounts of capital, quickly.

Not performing well? Increased earnings per share for the last five years!


Profit was down on the interim, 12% up last full year and 5% previous year? That's not too hot I think?

[percy]

I held EBO for over 25 years.No longer hold.
The PE ratio used to vary between 13 and 15.
The growth rate was between 12% and 20%.
Today the PE is 22.45 ,while the growth rate appears to be between 6% and 12%.
The current gross yield is a very modest 3.27%.

[Jaa]

Also the cheapest way.

Cheaper for who?

8% of 150m is 12m, then there is the placement and underwriting fees. An accelerated renouncable pro-rata rights issue would cost less than that and have no need for underwriting. That is best practice (https://www.nzshareholders.co.nz/shareholders-best-practiceDetail.cfm?bestpracticeid=23) and a company should justify why they use any other way to raise capital.

Remember the damage done to the TRA share price after they pulled the same rubbish and they had a SPP, something EBOS isn't even bothering with. Diluting shareholders to the benefit of the big end of town totally destroys shareholder goodwill. This from a company I held in high regard until now.

No wonder the NZX is falling apart if this is how companies treat their own shareholders.

[777]

You can't call the 8% below market value a cost to the company. A cash issue would have to be pitched at about the same level in order for shareholders to take up the offer. There would be more costs dealing with thousands of shareholders than what this is costing them.

I agree though that in fairness to shareholders that a cash issue is the preferred method .

[glennj]

This is a moderately negative thing as far as I'm concerned. EBO have been good to smaller share holders over the years but this has burnt goodwill as far as I'm concerned. I've got 60k + shares so will look to start maybe taking some money off the table in case this is the start of a new pattern of disregard for shareholders. Today I took the small step of cancelling my DRIP participation. I may write to the company tomorrow and make it known that IMO a rights issue would have been fairer even if not a cheaper way to raise equity.

[Jaa]

You can't call the 8% below market value a cost to the company. A cash issue would have to be pitched at about the same level in order for shareholders to take up the offer. There would be more costs dealing with thousands of shareholders than what this is costing them.

I agree though that in fairness to shareholders that a cash issue is the preferred method .

Disagree, any "loss" or "gain" from a pro-rata rights issue is born by shareholders in the same proportion as they own the company so it is not "lost". A placement guarantees most shareholders own a smaller relative % of the company.

They are also cheaper, because if the discount is big enough (~20%), there is no need for an underwriter which costs the big $$.

To maximise shareholder goodwill, sell any unclaimed rights to the highest bidder and return the money made back to those shareholders. So there is not a penalty for being on holiday or being financially unsavvy. This is how you grow your shareholder base and the market as a whole. Treat people as you yourself would want to be treated.

[Biscuit]

I held EBO for over 25 years.No longer hold.
The PE ratio used to vary between 13 and 15.
The growth rate was between 12% and 20%.
Today the PE is 22.45 ,while the growth rate appears to be between 6% and 12%.
The current gross yield is a very modest 3.27%.


I bought EBO in 2010, with a few more added in 2013. Shareprice up over 200% in that time which is not too bad considering there has also been a reasonable dividend. Looking back to 2010, at the same time I also bought Delegats. Lower dividend but they are up over 500% in the same time and currently have a lower PE and have an unchanging and excellent strategy they always deliver on. I like EBO and a bit reluctant to sell, I think they are in a space (spaces) that has tailwinds going forward but I think their delivery is patchy, their strategy a bit incoherent, the shares are overpriced and the managers just shafted the shareholders.

[percy]

I bought EBO in 2010, with a few more added in 2013. Shareprice up over 200% in that time which is not too bad considering there has also been a reasonable dividend. Looking back to 2010, at the same time I also bought Delegats. Lower dividend but they are up over 500% in the same time and currently have a lower PE and have an unchanging and excellent strategy they always deliver on. I like EBO and a bit reluctant to sell, I think they are in a space (spaces) that has tailwinds going forward but I think their delivery is patchy, their strategy a bit incoherent, the shares are overpriced and the managers just shafted the shareholders.

Can't remember whether it was 1991 or 1992 when I first brought into EBO.Think their market cap was under $3mil.[not a mistake]
Not long after I brought in a broker suggested I sell, as he knew they were going to loose Clark's hip and joint agency.!!!!!!Luckily there was no sharetrader in those days!!!.lol.
Had a fantastic run with them.Was extremely difficult selling down a few,then a few more until such time I sold out completely.
A wonderful company with great stock turns and strong cash flows.

[Lewylewylewy]

If you dilute some shareholders to get money to spend on growth, those shareholders not participating in the raise end up with a smaller percentage of a larger company.

If the money raised isn't too discounted, and the money spent on growth is well placed, diluted shareholders can end up better off... or vice versa. It can be bad, good or neutral.

So...

We know the raise is slightly discounted (as it has to be too get interest). The allocation wasn't fair in opportunity, but did keep the cost of the raise down, which is the important thing. So, I conclude that the money raised wasn't too discounted.

The question is, will the money spent be earnings accretive... enough to make the raise in the interests of all shareholders?

Personally, I suspect it will only be slightly bad, though we can only speculate. Certainly it shouldn't be too bad, though i think the market will overreact.

[peat]

I was a bit miffed at the institutional placement excluding retail shareholders. How did you get offered some JT?

However I have every confidence that the money will be well spend so will just let it go.

The significant shareholder notice today from FMR (Japan) is a bit weird.
They would appear to be telling us today that they increased their shareholding more than one percent from transactions dated early 2018. This strikes me a somewhat delayed ??

Other than that buy on dips - not that there have been many lately!

[winner69]

Peat ...all those buy and sells FMR made from 2014 not once did they increase their holding by that 1% needed to make a disclosure ...until the other day

[Joshuatree]

Peat , Craigs rang us and offered us the opportunity. We are not big big $ clients of theirs either so down the pecking order somewhat..

[winner69]

EBO Directors and Management should hold their heads in shame

http://www.sharechat.co.nz/article/082b905c/ebos-board-managers-should-hang-their-heads-in-shame-nzsa.html?utm_medium=email&utm_campaign=Ebos%20board%20managers%20should%20ha ng%20their%20heads%20in%20shame%20NZSA&utm_content=Ebos%20board%20managers%20should%20han g%20their%20heads%20in%20shame%20NZSA+CID_aa860452 70afb60fa224b7095ea1ced8&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle082b905cebos-board-managers-should-hang-their-heads-in-shame-nzsahtml

[peat]

this watering down thing has kicked in right ?

[macduffy]

this watering down thing has kicked in right ?

I blinked and missed it.

;)

[percy]

I blinked and missed it.

;)

Made my day...lol.

[peat]

new all time high?

[777]

new all time high?


52-Week Range: 1778 - 2300

[Snow Leopard]

new all time high?

New all time closing high beating $22.75 on 4th Oct 2019.

All time fleeting high $23.00 on 21st Sep 2019.

The long term chart; picking any timescale and adjusting for dividends or not; is a thing of great beauty.

[ratkin]

New all time closing high beating $22.75 on 4th Oct 2019.

All time fleeting high $23.00 on 21st Sep 2019.

The long term chart; picking any timescale and adjusting for dividends or not; is a thing of great beauty.

Been a great long term hold and possibly we are about to see a rerating upwards. The big pharmacutical contract they gained last year should be about to start have a positive effect on the financials.

[macduffy]

Yes, it's been a great long term hold - I hold a few! But I wouldn't expect the pharma contract to be a game changing boost - the Aussie govt keeps a tight hold on the business and margins there are pretty skinny.

[Snow Leopard]

New highs all round ( and in my last post for 2019 read 2018 :blush: )

I am hoping that my current EBOS holding is the modern equivalent of Mainfreight (https://www.sharetrader.co.nz/showthread.php?760-MFT&p=762824&viewfull=1#post762824) that I should never have sold.

[Snow Leopard]

Postscript: Rising price is on rising volume, both in NZ & across, which I see as a really good sign. :)

[winner69]

Postscript: Rising price is on rising volume, both in NZ & across, which I see as a really good sign. :)

It is still on track to become a $100 share

[RTM]

New highs all round ( and in my last post for 2019 read 2018 :blush: )

I am hoping that my current EBOS holding is the modern equivalent of Mainfreight (https://www.sharetrader.co.nz/showthread.php?760-MFT&p=762824&viewfull=1#post762824) that I should never have sold.

I dodged a bullet with EBOS...Bought at 8.45 and 9.05. Thought I was doing well when I sold at 13.53......ended up buying back in at 13.54 ! Fortunately not to much damage done and a lesson well learnt.

[kiwico]

Highlights of the comments from a recent review on an Australian value investor website I subscribe to are:

* good track record of acquisitions
* profit growth of 5% or more if margins remain stable
* risks seen as Australian government spending and if manufactures were to cut out the wholesaler
* valuation doesn't look demanding but healthcare part of the business looks ripe for deregulation or disruption.

Happy holder from $8 ish.

[MauroNZ]

Highlights of the comments from a recent review on an Australian value investor website I subscribe to are:

* good track record of acquisitions
* profit growth of 5% or more if margins remain stable
* risks seen as Australian government spending and if manufactures were to cut out the wholesaler
* valuation doesn't look demanding but healthcare part of the business looks ripe for deregulation or disruption.

Happy holder from $8 ish.

Would you mind sharing the name of that publication? you can send me a PM if you prefer. Thanks.

[kiwico]

Would you mind sharing the name of that publication? you can send me a PM if you prefer. Thanks.

I've PM'd you.

[macduffy]

New high of $24 today. Onward and upward!

:)

[Snow Leopard]

New high of $24 today. Onward and upward!

:)

I missed that 30 minutes of glory, But there is always next time!

[percy]

New high of $24 today. Onward and upward!

:)

Well that post certainly brought out all the sellers.Finished the day at $23.60.
Always next week.?.....lol.
$25.00.?

[macduffy]

Yes, there's always a few who can't resist a new peak, eh?

Will need continuing good results to justify these high prices but very hard to sell down any more of my oldest, best performing act!

[ratkin]

Yes, there's always a few who can't resist a new peak, eh?

Will need continuing good results to justify these high prices but very hard to sell down any more of my oldest, best performing act!

It has been fairly glacial movement upwards which is probably a good thing, unlike plenty of other shares it has not raced way ahead of itself.

[peat]

very hard to sell down any more of my oldest, best performing act!

yeh totally I am being torn apart by the high valuation and the ascending wedge making me want to further reduce , and the quality of the company making me not want to have too few.

[percy]

Don't ever sell.
I am still suffering withdrawal symptoms....!!!...lol.

[horus1]

do not sell ,only accumulate. These have not got overhyped like many.

[Snow Leopard]

I missed that 30 minutes of glory, But there is always next time!

twenty four dollars and ten cents at the close. :t_up:

That is $24.10 :t_up:

To Infinity And Beyond! (On the way to $100 a share) :D :D

[percy]

twenty four dollars and ten cents at the close. :t_up:

That is $24.10 :t_up:

To Infinity And Beyond! (On the way to $100 a share) :D :D

Well done holders.

[macduffy]

Nothing rises in a straight line, but ………...$24.15 now, another new high!

:t_up:

[Sideshow Bob]

We just got a new puppy. Wife came home from the vet with a bag of Blackhawke.

It's a labrador....if we keep her on it, there will be an earnings upgrade soon enough.... ;)

[Snow Leopard]

twenty four dollars and ten cents at the close. :t_up:

That is $24.10 :t_up:

To Infinity And Beyond! (On the way to $100 a share) :D :D

$23.45! B****r!

Should stop looking at the End of Day at the End of Every Day. :p

[kiora]

Ten years ago who would have thought
https://stocknessmonster.com/charts/mft.nzx/
https://stocknessmonster.com/charts/ebo.nzx/
https://stocknessmonster.com/charts/fph.nzx/
https://stocknessmonster.com/charts/ift.nzx/
https://stocknessmonster.com/charts/rym.nzx/

Ok which ones for next 10 years?

Is there over exuberance now?

[Snow Leopard]

Back in civilization and working internet in time to see a peak of $25.

Surely this madness must cease?

[kiora]

Back in civilization and working internet in time to see a peak of $25.

Surely this madness must cease?

Delayed by Golden Sacks until end 2020:eek2:

[winner69]

End if an era eh percy

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/339499/305798.pdf

[peat]

End if an era eh percy

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/339499/305798.pdf

with Liz Couts taking over!

[percy]

End if an era eh percy

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/339499/305798.pdf

An incredible record.1984 to 2019
Ron Brierley told him in the early days he thought the limit of their revenue would be $40 mil.!!
Luckily for shareholders Mark thought otherwise.
Liz Coutts will make an excellent chair.

[percy]

Modest result and outlook.

[macduffy]

Modest result and outlook.

Really, percy?

I'd call it another very good result and a good outlook.

:)
http://news.iguana2.com/macquaries/NZSE/EBO/339557

[Snow Leopard]

Modest result and outlook.

from the ann:

Outlook

EBOS Group has recorded a strong underlying financial performance in FY19 and the Group is confident of a significant increase in earnings in FY20.

OK my me :cool:

[peat]

I am not at all sure how you draw that conclusion esp re the outlook , percy.

I saw "confident of a significant increase in earnings in FY20". Significant is a word I would hope someone shouldn't use lightly. Significant is a lot more than a little bit. So I am quite hopeful on the outlook front.
The market seems to agree +110 today (4.5%)

I am however increasingly aware of over-valuation and exponential price movement however remain glad that I have a rule not to sell any more.

[percy]

EBO's PE ratio is over 5 or 6 times their eps growth.
And that significant increase in earnings for FY20 is really going to have to be very significant.

[peat]

it is true that most of the comparative figures are of modest increases and the one that counts most of all eps, is actually a slight minus.
Underlying results better though, and they are more indicative imo.
However it has been noted previously that Ebos growth is a bit lumpy so we know to have patience and they will perform.

[Lewylewylewy]

Personally, i wasn't that impressed. The numbers looked unimpressive, but the words were good. Im not worried about the company, though. Still solid. Beats the bank. Hopefully better growth next year.

Ebos by the numbers was "modest". Sp goes up.
Atm profit increase was massive. Sp goes down.

...i get it... its opposite day! Wait... let me get in the spirit of the day... its NOT opposite day ;)

Disclaimer: I am (not) a holder... or am i? Opposite day is (not) very confusing.

[ratkin]

Could have been far worse, would rather have an ok result now with promise of a big improvement, than a big rise now and talk of a slow down

[winner69]

Updated this chart of EBO share price v EPS over the years

One might say that based on history the EBO share price has got ahead of itself .....but 2020 is going to be ‘significantly higher ‘ they say (the new big contract no doubt)

But I reckon EBO is seen in better light these days ...being big helps ....and essentially being an Aussie company now may have something to do with it.

[percy]

Well if it is going to be "significant" I think it will be outside NZ or Australia.Most probably Indonesia or Asia.

[peat]

Updated this chart of EBO share price v EPS over the years

One might say that based on history the EBO share price has got ahead of itself .....but 2020 is going to be ‘significantly higher ‘ they say (the new big contract no doubt)

But I reckon EBO is seen in better light these days ...being big helps ....and essentially being an Aussie company now may have something to do with it.

nice chart and yeh gut says sell, but brain says HODL AND BITD

[Felonius]

nice chart and yeh gut says sell, but brain says HODL AND BITD


The share price is certainly high in historical terms.
I think the answer might be to take some profits by selling part of your holding.

We bought into Ebos 6 years ago at approx. $10.00 per share.
Yesterday I sold 20% of those shares at $24.00 per share.

The price (and market) may continue up but one never knows what is around the corner.
There is a comfort level in having reduced our risk while prices are so favourable.

[ratkin]

Updated this chart of EBO share price v EPS over the years

One might say that based on history the EBO share price has got ahead of itself .....but 2020 is going to be ‘significantly higher ‘ they say (the new big contract no doubt)

But I reckon EBO is seen in better light these days ...being big helps ....and essentially being an Aussie company now may have something to do with it.

If eps jumps to say 1.40 your chart would have the price north of 30 dollars, probably more because nothing puts a rocket under a stock price better then a big jump in EPS

[RTM]

nice chart and yeh gut says sell, but brain says HODL AND BITD

Sold EBOS @ 13.53 Oct 15. Bought them back again @13.54 Jan 16. Sold a little less than 50% Aug 17 @ 17.80. Thought I was doing well with all the sales...…..The outlook seems good. I'm going to sit tight. Lesson learnt.

[winner69]

How much in way of earnings this new supply contract going to create seeing its now up and running.

Is that the ‘significant’ bit or is that the yet to be announced Indonesia play as percy suggests

[macduffy]

EBO opened an office in Shanghai to counter Chinese crackdown on daigou sales.

http://www.sharechat.co.nz/article/f8dfa85d/ebos-opens-shanghai-office-after-daigou-crackdown.html

[peat]

I sold some in the high 22's so only just now with the price coming back below 24 it is beginning to ease my disquiet (a little). It had gone quite a bit parabolic.

Patience , Grasshopper I keep telling myself.

Winner I think it is a big question how much profit the Chem Warehouse deal will generate, even if it does bulk up turnover.
I still have a lot of confidence in this company to do well. Patience...

[Snow Leopard]

I sold some in the high 22's so only just now with the price coming back below 24 it is beginning to ease my disquiet (a little). It had gone quite a bit parabolic.

Patience , Grasshopper I keep telling myself.

Winner I think it is a big question how much profit the Chem Warehouse deal will generate, even if it does bulk up turnover.
I still have a lot of confidence in this company to do well. Patience...

I get where you are coming from. I sometimes lie awake for seconds thinking about EBO.

I look at my valuations, then the SP, shake my head and then reassure myself with a price and volume chart

[Beagle]

http://www.sharechat.co.nz/article/e8be4d1a/nzsa-to-oppose-310k-ebos-directors-fee-increase.html?utm_medium=email&utm_campaign=NZSA%20to%20oppose%20310k%20Ebos%20di rectors%20fee%20increase&utm_content=NZSA%20to%20oppose%20310k%20Ebos%20dir ectors%20fee%20increase+CID_e653e4486df29f93231056 878807c51d&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlee8be4d1anzsa-to-oppose-310k-ebos-directors-fee-increasehtml

[Brain]

I hope all sharetraders are members of the NZSA. They are doing a good job.

[winner69]

http://www.sharechat.co.nz/article/e8be4d1a/nzsa-to-oppose-310k-ebos-directors-fee-increase.html?utm_medium=email&utm_campaign=NZSA%20to%20oppose%20310k%20Ebos%20di rectors%20fee%20increase&utm_content=NZSA%20to%20oppose%20310k%20Ebos%20dir ectors%20fee%20increase+CID_e653e4486df29f93231056 878807c51d&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlee8be4d1anzsa-to-oppose-310k-ebos-directors-fee-increasehtml

NZSA don’t think much of the way treat shareholders

No doubt the much revered Liz will sort that out

[peat]

last time I sold some shares while standing on the moral high ground they promptly went up 25% (VHP)
less inclined to act with my feet now.
it seems that good company directors want to be paid a lot. I mind less and less the better the overall return is.

[Beagle]

NZSA don’t think much of the way treat shareholders

No doubt the much revered Liz will sort that out

You mean like she's sorting Oceania out ?

[winner69]

You mean like she's sorting Oceania out ?

I wasn't going to comment ....but many revere her

She's into tennis like Jane

[Jaa]

Are they early warning signs when the first thing the new guard does is, look after the big end of town, (richly) reward themselves and hire additional directors?

[winner69]

Another small acquisition ....broadens Ebos business into medical devices.

Good move


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/342638/309746.pdf

[Lewylewylewy]

I liked the bit about committing to do more acquisitions. I believe that this is one of EBOS's main strengths.

[macduffy]

Now that's odd. I've held EBO since the Early Bros days and always thought that the business included medical devices as well as medical supplies!

No harm done - EBO's been a great investment for a long time.

:)

[ratkin]

Very strong today, looks like all time high, something up?

[macduffy]

Very strong today, looks like all time high, something up?

Not quite the all time high - $25.60 - but yes, very strong. EBO SP tends to move in big chunks, up and down.

[peat]

EBO SP tends to move in big chunks, up and down.
mostly up
but yeh sometimes like today down quite a bit. 3% range

The vet says BlackHawk is a big seller, when I asked. But then proceeded to give me 2x $10 vouchers for Royal Canin…?
I haven't tried BlackHawk but will do so when I've used up the vouchers ;)

[Sideshow Bob]

mostly up
but yeh sometimes like today down quite a bit. 3% range

The vet says BlackHawk is a big seller, when I asked. But then proceeded to give me 2x $10 vouchers for Royal Canin…?
I haven't tried BlackHawk but will do so when I've used up the vouchers ;)

Blackhawk is quite a big seller - not the most expensive brand, but certainly not the premium ingredients they make out it to be. They say made with "real meat" but is just meat & bone meal. I'm quite hot on this, as I think is complete BS - as for instance lamb meat & bone meal is rendered guts, bone, head, wool, skulls, brains and other waste.

Some vets are conflicted/have some sort of deal or incentivised by some of the big multi-national manufacturers - eg Royal Canin, Purina, Iams etc.

[stoploss]

Not quite the all time high - $25.60 - but yes, very strong. EBO SP tends to move in big chunks, up and down.

Big block going at a good discount ....

[peat]

it was a good presentation they published today
that compound 4 year shareholder return is just awesome at 23.8%
and ...
10855


hopefully todays touting will boost Australian interest - there is virtually no trading on the ASX listing that I can see. I'm not at all sure why this should be so - it now reports in AUD, has 75% of its business there...
???

[Joshuatree]

Down nearly 8% atp:scared:

GENERAL: EBO: Sybos partial sell-down (https://online.asb.co.nz/ost/56FC2869D9E7F73EE66C9B00748D7B8A/companyannouncements/showannouncement/nzx/ebo?issuercode=ebo&number=344512&ispdf=false)

[Snow Leopard]

This will change the slope of the uptrend a bit.

But so far the day is of little concern, or no concern at all if it closes at $23.10 or higher, according to the Panthera Pricing Paradigm.

[tango]

Down nearly 8% atp:scared:

GENERAL: EBO: Sybos partial sell-down (https://online.asb.co.nz/ost/56FC2869D9E7F73EE66C9B00748D7B8A/companyannouncements/showannouncement/nzx/ebo?issuercode=ebo&number=344512&ispdf=false)

It will recover! That's typical when there is a large placement. The shares were sold at a significant discount (10%) but usually the price rebounds in a matter of weeks. There is nothing wrong with the fundamentals of EBOS

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/344525/312135.pdf

[tango]

I'm sure given Sybos received the shares as part of the sale of Symbion that they simply saw an opportunity to cash in gains and reinvest elsewhere to diversify.

[Lewylewylewy]

I see this as a good buying opportunity for those who are interested in getting more. Personally, I see more attractive prospects elsewhere, but these are probably good for people looking for income woof a little growth.

[peat]

I agree Tango
I have bought back some I stupidly sold at 2450

[peat]

Big block going at a good discount ....
How did you know this ?
did you know before closing?

[tango]

How did you know this ?
did you know before closing?

There was a book build
Presumably some of the brokers offered the shares to their clients and this individual got some shares at a discount

[tango]

I agree Tango
I have bought back some I stupidly sold at 2450

At least you sold high and are buying lower

I still curse selling all of my MFT at $26 ;)
Coulda shoulda woulda

[peat]

At least you sold high and are buying lower

I still curse selling all of my MFT at $26 ;)
Coulda shoulda woulda

I think the lesson is never to sell great companies , even at what seems like a high price , as long as you are not stretched or leveraged uncomfortably you should just bottom drawer them
I remember putting people into MFT at $23 and being a bit dicey about it at that price at the time but yeh look now.

IMO as long as you have some cash holdings etc to ride out any storms there are a few companies that should only be reviewed once a year to see if the story is still true. (Im still learning this hahah)

[tango]

I think the lesson is never to sell great companies , even at what seems like a high price , as long as you are not stretched or leveraged uncomfortably you should just bottom drawer them
I remember putting people into MFT at $23 and being a bit dicey about it at that price at the time but yeh look now.

IMO as long as you have some cash holdings etc to ride out any storms there are a few companies that should only be reviewed once a year to see if the story is still true. (Im still learning this hahah)

I sometimes forget to review my portfolio and get a pleasant or not so pleasant surprise because I haven't been keeping on top of things :D I keep promising myself to be more diligent with following company news

[peat]

I sometimes forget to review my portfolio and get a pleasant or not so pleasant surprise because I haven't been keeping on top of things :D I keep promising myself to be more diligent with following company news
supposedly the people who review their portfolio least often, do best - so maybe not such a bad failing.

[winner69]

supposedly the people who review their portfolio least often, do best - so maybe not such a bad failing.

Yes, besides generally doing better they have a much less stressful life and are a lot happier

[Joshuatree]

Agree, our estate averaged in at $6.86. Unfort our advisor didnt offer us any in the placement as he thought our weighting was now high enough, having never sold any:glare:

[macduffy]

The underwritten price is NZD22.50. Will be good buying at that price if it gets there.

[Joshuatree]

Thanks Mac was just about to ask.

[peat]

The underwritten price is NZD22.50. Will be good buying at that price if it gets there.

crazy thing is - it is actually pretty expensive (based on PE), I guess that's why I sold even higher.
but PE/G makes things feel a lot better.

[Snow Leopard]

Results out:

All good.

'nuf said :cool:

[RTM]

Results out:

All good.

'nuf said :cool:

Yes...they look great as far as I can tell.
My only regret with Ebos is selling a few a while ago.

[theace]

Based on the result today ... I've decided to get a few more. Pricey, but 'think' that will continue doing well.

[winner69]

No specifics in terms of full year earnings forecast but “the Group is confident of a significant increase in earnings in the current financial year." is a pretty bullish outlook

Share price over $30 by Xmas

[LAC]

Based on the result today ... I've decided to get a few more. Pricey, but 'think' that will continue doing well.

Likewise...i have done the same

[peat]

I was wondering who knew something when the share price had a bad day yesterday. So todays enthusiasm is really only undoing that.
All good though, I'm loaded. (or well positioned)

I am not really enjoying reading the figures in $A though. I guess its not hard but bugs me.

But look at this

11045

[macduffy]

Yes, an excellent result and a positive outlook at a time when many other companies are facing difficult times. Particularly pleasing that the wholesale pharmacy operations are proving to be a success - I was sceptical that this would be the case. Delighted to be proved wrong!

[ratkin]

Very nice result. Very comforting in this stressful time. Been fighting the urge to sell shares and Two good results (EBOS and Spark) has settled the nerves

[glennj]

Very nice result. Very comforting in this stressful time. Been fighting the urge to sell shares and Two good results (EBOS and Spark) has settled the nerves

Ebos is worth holding and has consistently performed. This result is comforting! My divi yield based on purchase price with this one is over 16% pa. and the paper capital gain is well over a million dollars. I once sold POT because I thought it was overpriced but ended buying back in at a higher price. That taught me something and I've resisted the odd impulse to sell EBO. With EBO I do turn the DRIP on and off based on short term considerations.

[horus1]

I sold some 6 months ago . A mistake will buy back in slowly.

[percy]

I sold some 6 months ago . A mistake will buy back in slowly.

I sold out some time ago.
Best thing I have done in a long time,because I recycled the funds into PAZ,which has more than quadrupled.!.

[macduffy]

Well done with the PAZ, percy. But I bet you wish you'd kept a few EBO. (Early Bros. and all that!)

;)

[percy]

Well done with the PAZ, percy. But I bet you wish you'd kept a few EBO. (Early Bros. and all that!)

;)

Correct.
Felt like a traitor.Sold down then sold out.
The trust I help out on still holds some,so I get to keep following them..

[winner69]

Based on the result today ... I've decided to get a few more. Pricey, but 'think' that will continue doing well.

Pricey but getting less pricey based on that statement FY20 will be significantly ahead of last year

Updated this chart - cool eh

[value_investor]

I like this result a lot, I see that the cash position of the company is 66% higher than it was at June 2019 which to me points to more acquisitions. The medical device sector has good margins and will continue to grow, the last two have been in this field and I trust EBO to find ROI positive companies to acquire.

I wont buying any more shares but its not a bad valuation. If the FY result comes in at a similar rate of increase it gives about $1.01 in EPS and a forward PE of about 23. I will continue to hold, but I'd be tempted if this came down.

[theace]

A 'little' fire under the share price!

[ratkin]

A 'little' fire under the share price!

Yeah, I was surprised it did not rise more yesterday, imagine what it would have done without all the current uncertainty. It going up to the next level. If there is a market selloff will be going in for some more.

[peat]

a sign of strength that Ebos is still paying the interim dividend. everybody else is bailing out of it eg VGL SEK FBU.

There have been some great opportunities to cheaply add to your holding of this company over the last week.

[Cadalac123]

Maybe one of the only blue chips which might hold strong.

I wouldn't read into todays exuberance with the other stocks, will be short lived. Lot's trading on signficiant margin of safety to valuations by institutions but that doesn't really mean anything in the long-term unless you want to trade that

[tim23]

Quality company has held up superbly, I hold.

[peat]

it still made me feel sick one morning this week when it opened at 18.50
so what did I do. I bought some.
11160

[tim23]

it still made me feel sick one morning this week when it opened at 18.50
so what did I do. I bought some.
11160

Well done, best time to buy straw hat is middle of winter!

[macduffy]

Well done, best time to buy straw hat is middle of winter!

Yes, that's the rule! Let's hope that when this particular "winter" is over, straw hats are still in vogue.

[ratkin]

Should be doing well although no updates for a while. They put out a letter to suppliers on the 12th
https://online.ebos.co.nz/images/banners/documents/EHC%20NZ%20Aged%20Covid%2019%20Letter_March%202020 1.pdf

The medical side should be going gangbusters, except for the PPE stuff that seems rarer than gold dust. Animal division could be doing ok as vets etc are partially open, while the competition (Animates etc) are not.

P/E becoming ever more stretched compared with most other sectors, but that largely reflects the better prospects.

[percy]

Should be doing well although no updates for a while. They put out a letter to suppliers on the 12th
https://online.ebos.co.nz/images/banners/documents/EHC%20NZ%20Aged%20Covid%2019%20Letter_March%202020 1.pdf

The medical side should be going gangbusters, except for the PPE stuff that seems rarer than gold dust. Animal division could be doing ok as vets etc are partially open, while the competition (Animates etc) are not.

P/E becoming ever more stretched compared with most other sectors, but that largely reflects the better prospects.
Animates is 50% owned by Ebos.Seem to have cut a bit off,but I think you will get gist from the following.
n this unprecedented time, the NZ Government has recognised Animates as a Key Service to continue to meet the animal health and welfare needs of New Zealand’s pets during Alert Level 4. This means providing the essentials like specialist diets, food, and breed specific nutrition to all types of the big and barky, small and meowy, chirpy and feathery, and all of our beloved hoppy, scaly, or slimy pets. Even the highly unique and specialised bearded dragon.

Without the ability for Animates to supply this, the health and welfare of many of our precious New Zealand pets will suffer.




To keep you and our community safe in your bubbles, ordering online is the only way you can access your pets essentials from Animates during Alert Level 4. We are also waiving any delivery fee for orders over $79.
Our courier partners will be doing their best to get your orders to you, however as many kiwis will be shopping online during this period, we’re sorry but, there could be some delays.





You can even set up a Repeat Delivery service with us on animates.co.nz as a type of ‘set and forget’ way of shopping for your pet essentials online. As a Repeat Delivery customer, you’ll always get free delivery too.





From Monday 30 March, our new Zero Contact Click & Collect service will also be available in some of our stores for essential pet supplies if;
- ordering through Home Delivery is not accessible in your home location, or
- is not optional because the product is perishable or bulky, or
- your pet needs the products quickly for their welfare.






To minimise person to person contact Grooming Salons and DIY Dog wash facilities will also be closed.

Animates.co.nz provides further info on these services and how we are operating during the Alert Level 4 period to keep people safe.




Vetcare clinics are open to support youn this unprecedented time, the NZ Government has recognised Animates as a Key Service to continue to meet the animal health and welfare needs of New Zealand’s pets during Alert Level 4. This means providing the essentials like specialist diets, food, and breed specific nutrition to all types of the big and barky, small and meowy, chirpy and feathery, and all of our beloved hoppy, scaly, or slimy pets. Even the highly unique and specialised bearded dragon.

Without the ability for Animates to supply this, the health and welfare of many of our precious New Zealand pets will suffer.




To keep you and our community safe in your bubbles, ordering online is the only way you can access your pets essentials from Animates during Alert Level 4. We are also waiving any delivery fee for orders over $79.
Our courier partners will be doing their best to get your orders to you, however as many kiwis will be shopping online during this period, we’re sorry but, there could be some delays.





You can even set up a Repeat Delivery service with us on animates.co.nz as a type of ‘set and forget’ way of shopping for your pet essentials online. As a Repeat Delivery customer, you’ll always get free delivery too.





From Monday 30 March, our new Zero Contact Click & Collect service will also be available in some of our stores for essential pet supplies if;
- ordering through Home Delivery is not accessible in your home location, or
- is not optional because the product is perishable or bulky, or
- your pet needs the products quickly for their welfare.






To minimise person to person contact Grooming Salons and DIY Dog wash facilities will also be closed.

Animates.co.nz provides further info on these services and how we are operating during the Alert Level 4 period to keep people safe.




Vetcare clinics are open to support you

[DarkHorse]

Wow - I have to teach from home without being able to buy a decent webcam online... but at least we can order gourmet pet food!

[peat]

at least we can order gourmet pet food!

we got 3 cats so this is definitely an essential service!


lil diddims gotta have the right tucker for his urinary infection.
and pedigree ragdoll gotta have the proper food for a ragdoll.
moggie just gets the dine desire from the supermarket.

[rooster]

The company hasn't given any business updates regarding Covid yet. Wonder when they will put something out.

[peat]

The company hasn't given any business updates regarding Covid yet. Wonder when they will put something out.

they have actually
In the interim report released on 20th Feb they said this:

Our business has also been assisting the Australian Government in its preparations to assess returning citizens for coronavirus. This involved quickly mobilising resources to provide infrared thermometers to officials for use at airports in Brisbane and Sydney. In New Zealand, Onelink has been engaging with the Ministry of Health and District Health Boards to support efforts to combat coronavirus by providing Personal Protective Equipment (PPE) to front-line responders

and this:

We have not seen any significant impact to the Group as a result of the coronavirus (COVID19). We continue to closely monitor this issue and will take all necessary actions to ensure we are well placed to respond to any challenges that arise as the situation unfolds.

That was fairly early in the timeline of Covid19 but they also said

We reconfirm the Group is confident of a significant increase in earnings in the current financial year.


So one might expect an announcement if this changed.

[Gerald]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/351950/321128.pdf

[rooster]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/351950/321128.pdf

That's what I was after. :t_up:

[peat]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/351950/321128.pdf


That's what I was after. :t_up:

yes a nice update indeed now that they presumably have a much better feel for how the business continues to track.
I know Animates haven't been open but have managed to continue selling their high margin pet food, and will be doing click and collect for Lev 3 as well. So not all is lost even from them.

it is so good to read comments like this

the Healthcare segment experienced unprecedented levels of demand in response to COVID-19 developments. The Group’s significant investment over recent years in its distribution network positioned us well to meet the increased demand

[HKG2301]

EBO down below 2200 again. I see that majority shareholder Sybos Holdings sold off a quarter of its 37% stake (15M shares) at a 10% discount back in Nov 19 - at 2250, I think. Any news on what Sybos will do with its remaining holding after the 6-month escrow period elapses this month? Reckon this is driving the price lower in the meantime?

[peat]

a presentation out today for Macquarie conference
they are a pleasure to read.
still confirming a significant increase in earnings for FY20. :t_up:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/352673/321975.pdf (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/352673/321975.pdfhttp://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/352673/321975.pdf)

[Snow Leopard]

EBO was one of my big holdings, which I sold out of completely when peak gloom arrived late March as it was holding up well and used the proceeds to buy some bargains.

Now I have sold many of those and in theory it is time to buy my EBO back and spend the extra on Wine, Chocolate and other essentials.

But I hesitate...

[Baa_Baa]

EBO was one of my big holdings, which I sold out of completely when peak gloom arrived late March as it was holding up well and used the proceeds to buy some bargains.

Now I have sold many of those and in theory it is time to buy my EBO back and spend the extra on Wine, Chocolate and other essentials.

But I hesitate...

I think this applies to many shares as the DCB turns over, what to buy, but when. The market might be forward looking but it hasn’t known a deep recession or depression for a long time. EBO might be a good choice, but maybe not right now.

[macduffy]

EBO was one of my big holdings, which I sold out of completely when peak gloom arrived late March as it was holding up well and used the proceeds to buy some bargains.

Now I have sold many of those and in theory it is time to buy my EBO back and spend the extra on Wine, Chocolate and other essentials.

But I hesitate...

Why? Have you lost your taste for wine, chocolate and other essentials, SL?

:)

[peat]

I... as the DCB turns over,

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

[Biscuit]

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

Limitations of a Dead Cat Bounce
As mentioned above, most of the time, a dead cat bounce can only be identified after the fact, which means that traders that notice a bounce after a steep decline may think it is a dead cat bounce, when in fact it is a trend reversal - that is, instead of being a short-lived bounce, the rally may signal a prolonged upswing. How can investors determine whether a current upward movement is a dead cat bounce or a market reversal? If we could answer this correctly all the time, we'd be able to make a lot of money. The fact is that there is no simple answer to spotting a market bottom. Investopedia

[HKG2301]

I have said elsewhere this is no Dead Cat Bounce. We have retraced over 62%
In my book over half of retracement and over six weeks in duration means it is not small or brief (qualities defined by Investopedia).

Yes, but you'll agree we (and the US markets) seem to have stalled out at the 618 retracement. And there are many new & scary aspects to this particular crash that may blur the edges of Investopedia's definition?

[HKG2301]

Limitations of a Dead Cat Bounce
As mentioned above, most of the time, a dead cat bounce can only be identified after the fact, which means that traders that notice a bounce after a steep decline may think it is a dead cat bounce, when in fact it is a trend reversal - that is, instead of being a short-lived bounce, the rally may signal a prolonged upswing. How can investors determine whether a current upward movement is a dead cat bounce or a market reversal? If we could answer this correctly all the time, we'd be able to make a lot of money. The fact is that there is no simple answer to spotting a market bottom. Investopedia

For me it's the shape of the bottom. Seldom (never?) has there been such an extreme sell-off, followed by a v-shape bottom, then continue as if nothing had happened. Especially this time around. The (global & local) economic damage from Covid is going to grind on for quite some time, don't you think?

[kiora]

For me it's the shape of the bottom. Seldom (never?) has there been such an extreme sell-off, followed by a v-shape bottom, then continue as if nothing had happened. Especially this time around. The (global & local) economic damage from Covid is going to grind on for quite some time, don't you think?

Yes, time for stock pickers,not all companies are equal.

[peat]

Yes, but you'll agree we (and the US markets) seem to have stalled out at the 618 retracement. And there are many new & scary aspects to this particular crash that may blur the edges of Investopedia's definition?

any half decent definition applies all the time.
every crash is scary and seems new at the time. if it wasn't scary people wouldn't panic sell.

and yes the increased volatility around the 61.8% fib level is a sign of uncertainty.

given that we are now clearly talking about 'The Market' and not Ebos I will post in another thread (Dead Cat Bounce thread (https://www.sharetrader.co.nz/showthread.php?11803-Dead-Cat-bounce&p=813218&viewfull=1#post813218)) what I think the SP500 will most likely do.

[Waltzing]

EBO has hardly moved. I was consider buying in at 17 but we may see 20 at some point.

[macduffy]

I like the term " mutually beneficial outcome".

https://newswire.iguana2.com/e30d7c2830541bc4/ebo.nzx/354757/EBO_GENERAL:_EBO:_EBOS_welcomes_finalisation_of_7t h_CPA

[Snow Leopard]

Still looking at the share price chart and not seeing the need to buy back in yet.

And when it becomes time I may not have any spare cash :mellow:.

[Joshuatree]

was offered some today by broker @ $21.52. Selldown by Sybos

[peat]

was offered some today by broker @ $21.52. Selldown by Sybos

its not a bad price but I've told myself not to buy any more above 20 for now. With a dollar per share earnings the price is the PE.

[Gerald]

" Essential products saw increased demand. Prepared dishes and cooking aids, Purina PetCare, coffee and Nestlé Health Science products reported increased growth "

From Nestle, which is good for Ebos with petcare being 14% of earnings.

[Jaa]

Sybos did own 45.5m or 28% and are selling 15m. From the NZX release (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/355053/324954.pdf):


On 22 June 2020, Sybos entered into a block trade agreement (the "Agreement") with
Citigroup Global Markets Limited (the "Underwriter") under which Sybos appointed the
Underwriter to manage and underwrite the sale of 15,000,000 ordinary shares in EBOS
currently held by Sybos for NZ$21.52 per share (or NZ$322,800,000 in aggregate). Under
the terms of the Agreement, Sybos undertakes in favour of the Underwriter to not deal in its
remaining shares in EBOS until the business day following the release of EBOS's full year
results for the year ended 30 June 2020 (as set out in full in clause 3 of the Agreement).

[peat]

Citigroup has found owners for the 15m with only less than 100k still on their books.

[Joshuatree]

Not enough in it for me atpit. Id be about 2cents up after brokerage.The road ahead suggests there may be a cheaper entry.

[peat]

I'm looking forward to the full year result which is presumably out this month some time.
We know there has been unprecedented demand and have been told to look forward to a significant increase in earnings in the current financial year.
They quietly announced the annual meeting last week as if to remind us of a pending full year result. That would have been the time to advise us if anything was different.

[Pegasus2000]

I was looking for a bargain however SP has been quite stable ($20 - $22) since March. Lots of confidence?

[tango]

I was looking for a bargain however SP has been quite stable ($20 - $22) since March. Lots of confidence?

I have been holding and hoping that the result is good!

[sampson]

Also hoping for a good result - added to my position a week or two ago, perhaps against my better judgement given reporting of my holdings in the last couple of weeks (BUB, OCA etc). But in for the long term.

[Snow Leopard]

Finally bought back in Ebos this morning, but on the ASX.

The liquidity is appalling by my standards but it is intended to be a long-term hold and hopefully I will get the AU dividend which is fully franked as opposed to the NZ dividend with its with-holding tax. [ I am not resident in either country ]

[Gerald]

FY out tommorrow, should be a good one judging by how the half year was a absolute banger (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/348703/317092.pdf)

Been topping up recently, relatively good value, resilient with a decent yeild + growth (in comparison to the gentailers for example).

[Biscuit]

FY out tommorrow, should be a good one judging by how the half year was a absolute banger (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/348703/317092.pdf)

Been topping up recently, relatively good value, resilient with a decent yeild + growth (in comparison to the gentailers for example).


I've also been drippling some cash in here over the last few months. Seems likely to be a resilient performer come-what-may over the next few years.

[jorge_telosa]

$8.8billionrevenue >>> + 26.5% increase
$162.5 million reportedNPAT >>> + 18.0% increase
$296.6 millionunderlyingEBITDA >>> +13.4% increase
100.6 cents earningsper share >>> +12.0% increase
77.5 cents dividendper share (NZ) >>> +8.4% increase

A great year for EBO indeed. Reaching 8 billion dollar revenue for the first time.

[percy]

Another excellent result.
Well done holders.

[Shareguy]

A good result however I’m concerned with the fourth-quarter revenue being down and is this going to continue into the next year. Also a potential sell down still to come.

[sb9]

A good result however I’m concerned with the fourth-quarter revenue being down and is this going to continue into the next year. Also a potential sell down still to come.

And divvy is fully franked for AUS holders but only 25% imputed for NZ holders.

[Pegasus2000]

Just wondering if it is better to buy shares in ASX directly even after exchange rate from NZD to AUD?

[RTM]

A good result however I’m concerned with the fourth-quarter revenue being down and is this going to continue into the next year. Also a potential sell down still to come.

The only thing I've regretted re EBOS is selling. At one stage I made more than 50%, thought I was clever....and bought them back at 1c more months later.

[Optimistic]

EBO have continually demonstrated that they can undertake M&A successfully time and time again. Really cant see any downside in their key sectors.