Ebos Limited EBO

[Rowdy Flat]

19]Another excellent result.
Well done holders.

Agreed - this is a strong performance. Dividend increase, strong cash flow and a solid balance sheet. This is a high quality business.

[Biscuit]

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.

I've repeatedly made that mistake with FPH. With good companies it is probably best just to hold them and not try to be clever. Another good result from EBO. So much nicer reading reports like this.

[ratkin]

One of the best gems on our market

[percy]

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.

Good thoughts,thanks for sharing.

[Snow Leopard]

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

If the share registrar has you as NZ Tax resident then it is probable that you will get the NZ partly imputed dividend so buying on the ASX or the NZX would make no difference.

AS I mentioned before there is little trade of EBO on the ASX and buying any quantity can be a lengthy progress, and selling in a hurry is not an option.

I have no real concerns over the 4Q revenue.

I am one happy cat today:
https://cache.desktopnexus.com/thumbseg/2534/2534243-bigthumbnail.jpg

[ratkin]

If the share registrar has you as NZ Tax resident then it is probable that you will get the NZ partly imputed dividend so buying on the ASX or the NZX would make no difference.

AS I mentioned before there is little trade of EBO on the ASX and buying any quantity can be a lengthy progress, and selling in a hurry is not an option.

I have no real concerns over the 4Q revenue.

I am one happy cat today:


Strange that liquidity is still so Low in OZ, it has been there a while now.

[tango]

Agreed - this is a strong performance. Dividend increase, strong cash flow and a solid balance sheet. This is a high quality business.

Very happy with the strong cash flow and debt reduction and of course I’m always happy with an increase in dividends.

[Pegasus2000]

Thanks Snow Leopard!


If the share registrar has you as NZ Tax resident then it is probable that you will get the NZ partly imputed dividend so buying on the ASX or the NZX would make no difference.

AS I mentioned before there is little trade of EBO on the ASX and buying any quantity can be a lengthy progress, and selling in a hurry is not an option.

I have no real concerns over the 4Q revenue.

I am one happy cat today:
https://cache.desktopnexus.com/thumbseg/2534/2534243-bigthumbnail.jpg

[Snow Leopard]

Strange that liquidity is still so Low in OZ, it has been there a while now.

Well, it has been slowly improving and has basically doubled since the start of June to now, but:
1/ my measure of average daily turnover is only $104K.
1 + 0.5/ days with less than 1,000 shares trading have been reasonably common
1+1/ there is usually a big spread on the buy & sells with poor depth at any one time.
2+/ which means you stick an order in and hope that enough people bite.

[James108]

Am I right in saying that as more shares move from NZ to the Australian register ebos will eventually be able to give more imputation credits on Nz shares?

[winner69]

Am I right in saying that as more shares move from NZ to the Australian register ebos will eventually be able to give more imputation credits on Nz shares?

Doesn’t really matter what register shares are on.

NZ imputation credits are based on NZ profits (ie NZ taxable income). Can’t attach NZ imputation credits to profits earned in Australia.



Will a

[James108]

Doesn’t really matter what register shares are on.

NZ imputation credits are based on NZ profits (ie NZ taxable income). Can’t attach NZ imputation credits to profits earned in Australia.



Will a

I understand that, I guess my thinking goes that maybe (all figures are for illustrative purposes) 20% of profits are in NZ but 80% of shareholders are in NZ and want imputation credits (remainder in Aus and want franked dividends).

If the % of shareholders in NZ wanting imputation credits was more aligned with the % of profits in NZ, say 20% of profits in NZ and 20% of shareholders in NZ, would this mean the dividend to NZ shareholders could be fully imputed?

[Snow Leopard]

I understand that, I guess my thinking goes that maybe (all figures are for illustrative purposes) 20% of profits are in NZ but 80% of shareholders are in NZ and want imputation credits (remainder in Aus and want franked dividends).

If the % of shareholders in NZ wanting imputation credits was more aligned with the % of profits in NZ, say 20% of profits in NZ and 20% of shareholders in NZ, would this mean the dividend to NZ shareholders could be fully imputed?

In a word... No.

[Scrunch]

In a word... No.

Imputation credits are attached to all shares. Thats why there are only very limited imputation credits on ANZ and Westpac dividends despite big profits from their nz operations and presumably only a small percentage of their shareholders being tax resident in NZ.

[James108]

Ah... thanks for the explanation. Anyway, good result for ebos I continue To hold happily and receive slightly imputed dividends.

[winner69]

This is all I do to track EBO ...not much point doing much more

Bit disappointing share price is still where it was 2 years ago ...but snowie says its going to a 100 buck share one day

[value_investor]

Great result all around and nice to see a company implementing decent constraints on cost side as well. Despite the new contract they were still able to keep numbers in check. I'm also happy to see the net debt position move in the right direction where many companies aren't.

The only issue I have with this stock is I don't own more. Bought a decent position years ago in the low teens but never topped up again on the way up.

Disc: Hold a decent position.

[peat]

Whats the PE/G tho?

I'm seeing it a bit high when I think about it.

EPS 2015 70.8 NZ cents converted to OZ at 1.1 = 64.3
EPS 2020 100.4 (Aus cents)

From online calculator
Over the course of 5 years/months your investment grew from 64.3 to 100.6. Its compound annual growth rate (CAGR) is 9.36 %
CAGR over the last five years = 9.36%

(P/E)/G
(22.1/1.006 )/9.36 = 2.35

If we use underlying earnings from 2020 the figure improves to 2.17

I mean its not bad but its not exceptional given PE should equal growth and we're seeing half that.

[winner69]

Whats the PE/G tho?

I'm seeing it a bit high when I think about it.

EPS 2015 70.8 NZ cents converted to OZ at 1.1 = 64.3
EPS 2020 100.4 (Aus cents)

From online calculator
Over the course of 5 years/months your investment grew from 64.3 to 100.6. Its compound annual growth rate (CAGR) is 9.36 %
CAGR over the last five years = 9.36%

(P/E)/G
(22.1/1.006 )/9.36 = 2.35

If we use underlying earnings from 2020 the figure improves to 2.17

I mean its not bad but its not exceptional given PE should equal growth and we're seeing half that.

...and that's why long time believers in Ebos like percy sold back when the blue line (share price) went way above the red line (eps) on the chart above (or below if new posts at top of page) - he shared the same sentiments when he did sell (think my memory is OK)

Probably percy hasn't got back in (yet) ..nor have I

Share price gone nowhere for 2 years

[percy]

...and that's why long time believers in Ebos like percy sold back when the blue line (share price) went way above the red line (eps) on the chart above (or below if new posts at top of page) - he shared the same sentiments when he did sell (think my memory is OK)

Probably percy hasn't got back in (yet) ..nor have I

Share price gone nowhere for 2 years

Yes you are correct on all counts.

[tango]

...and that's why long time believers in Ebos like percy sold back when the blue line (share price) went way above the red line (eps) on the chart above (or below if new posts at top of page) - he shared the same sentiments when he did sell (think my memory is OK)

Probably percy hasn't got back in (yet) ..nor have I

Share price gone nowhere for 2 years

The share price went down in November 2019 when someone offloaded a massive parcel of shares and since then it has languished.

[macduffy]

The share price went down in November 2019 when someone offloaded a massive parcel of shares and since then it has languished.

The market has had to absorb the selling-down of large parcels following the Symbion merger a few years back. As long as EBO continues to turn in increasing profits, I'm happy to see the shareprice languish!

:)

[trader_jackson]

Forsyth saying it will be $28.00 in 12 months (or less, or more)
Actually one of the few stocks in this market that look reasonably priced, and the story is pretty good as well.

[tango]

Forsyth saying it will be $28.00 in 12 months (or less, or more)
Actually one of the few stocks in this market that look reasonably priced, and the story is pretty good as well.

I haven't found Forsyth price forecasts to be accurate but I do agree that this is a solid company. I'm happy to hold and haven't jumped ship

From memory the price went down from $25 to $22.50 Nov 19 last year. My broker offered me more shares at the time because someone was offloading a large holding privately. The price hasn't recovered since… and I expected it to bounce back quickly

[macduffy]

Seems the value in EBO has been rediscovered. Shareprice up 5% today!

I hold.

[Gerald]

Seems the value in EBO has been rediscovered. Shareprice up 5% today!

I hold.

Yes, but not much volume.

[ratkin]

deleted....

[bull....]

bigger competition on the way for ebos via petfood sales

Bidders bark at New Zealand's Ziwi Peak
So it’s not surprising to hear that one of the region’s hot young pet stories – New Zealand’s Ziwi Peak which specialises in 100 per cent natural, healthy pet food – has some dealmakers fired up. It is understood the group’s private owners have been in discussions with potential private equity and trade buyers in Australia

https://www.afr.com/street-talk/bidders-bark-at-new-zealand-s-ziwi-peak-20201004-p561ur

looks like asx score another ipo from nz

[Sideshow Bob]

bigger competition on the way for ebos via petfood sales

Bidders bark at New Zealand's Ziwi Peak


So it’s not surprising to hear that one of the region’s hot young pet stories – New Zealand’s Ziwi Peak which specialises in 100 per cent natural, healthy pet food – has some dealmakers fired up. It is understood the group’s private owners have been in discussions with potential private equity and trade buyers in Australia

https://www.afr.com/street-talk/bidders-bark-at-new-zealand-s-ziwi-peak-20201004-p561ur

looks like asx score another ipo from nz

Ziwi is a different market/product and price point. Most of their sales are export, and perhaps only 10-20% max sales in NZ & Australia at a guess. They're about to build a new factory down in Napier and going pretty good from all reports.

Blackhawk products are popular and well priced, but they are really stretching it by advertising real meat. They use meal which is rendered down waste, like heads, hooves, bones, innards etc......and show photos of chicken breast and lamb racks on their packaging.....very, very poor in my book.

**gets off soapbox**

[ratkin]

Ziwi is a different market/product and price point. Most of their sales are export, and perhaps only 10-20% max sales in NZ & Australia at a guess. They're about to build a new factory down in Napier and going pretty good from all reports.

Blackhawk products are popular and well priced, but they are really stretching it by advertising real meat. They use meal which is rendered down waste, like heads, hooves, bones, innards etc......and show photos of chicken breast and lamb racks on their packaging.....very, very poor in my book.

**gets off soapbox**

I saw a documentary about petfood last week on Tubi. Most stuff that goes into petfood could barely be called meat. I would not pick on Blackhawk in particular, it is standard practice world wide. They all play fast and loose when it comes to product labelling, content etc.

I suspect most consumers would rather not know the truth. It is like nearly everyone that eats meat. Deep down they know there is lots of animal cruelty involved, but their burgers taste so nice they turn a blind eye.

[Sideshow Bob]

I saw a documentary about petfood last week on Tubi. Most stuff that goes into petfood could barely be called meat. I would not pick on Blackhawk in particular, it is standard practice world wide. They all play fast and loose when it comes to product labelling, content etc.

I suspect most consumers would rather not know the truth. It is like nearly everyone that eats meat. Deep down they know there is lots of animal cruelty involved, but their burgers taste so nice they turn a blind eye.

Yes, for sure product labelling and claims are often fast & loose.

Many of the companies, especially the major US producers use MDM - mechanically deboned meat. So residual bones and waste ex edible carcase from when it is being processed into cuts. These are broken down, and squeezed under pressure - so all the residual meat, fat, soft tissue, marrow etc.

Meal is the rendered down (ie cooked) waste - skulls, hooves, stomach contents etc. So to put it in your product as Blackhawk does, and then have a chicken breast or lamb french rack on the packaging is quite simply, ridiculous.

[macduffy]

Bear in mind that the Animal Care division's revenue was about 5% of Group total in 2020. And there's more to "Animal Care " than Blackhawk products.

Disc: Holding.

[tango]

Bear in mind that the Animal Care division's revenue was about 5% of Group total in 2020. And there's more to "Animal Care " than Blackhawk products.

Disc: Holding.

The animal care products made me hesitate about investing in EBOS because they also sell a range of dog treats sourced from China. Just Google duck treats for dogs and the FDA if you want a fright.

However, as stated it's a small % of the income and what I like about EBOS is the diverse income streams and the health sector revenue streams

[Sideshow Bob]

Bear in mind that the Animal Care division's revenue was about 5% of Group total in 2020. And there's more to "Animal Care " than Blackhawk products.

Disc: Holding.

Yes, appreciate not all Blackhawk products, but Animal Care was 13%. (2020 AR, Page 7).

13% of $8.8b is north of $1.1b. This turnover is much bigger in itself than many listed companies.

Personally, I would have expected better regarding Blackhawk.

[peat]

are you guys sure of your facts here or are you just slinging mud generically ?

sure they use meal in some of the products but not all and ALL of them have heaps of other nutritional stuff
random examples here one for dog and one for cat





Cat

Product Ingredients

Chicken, chicken broth, peas, lamb, plasma protein, egg powder, essential vitamins and minerals*, flaxseed oil, sunflower oil, guar gum, carrageenan, salt, locust bean gum, caramel, xanthan gum, taurine, emu oil, glucosamine HCI, chondroitin sulphate, cranberries, blueberries, coconut, pumpkin, dried kelp.
* A blend of essential vitamins, minerals and amino acids to support cat health




Crude Protein
8.50% (min)


Crude Fat
5.00% (min)


Crude Fibre
1.00% (max)





Dog


Lamb Meal, Chicken Meal, Peas, Tapioca, Chicken Fat (naturally preserved with Rosemary Extract, Mixed Tocopherols and Citric Acid), Potato, Sweet Potato, Chicken Gravy, Sugar Beet Pulp, Essential Vitamins and Minerals (see tables), Salmon Oil, Sunflower Oil, Chicory Root, Di-Calcium Phosphate, Egg, Alfalfa, Salt, Apple, Brewers Yeast, Pumpkin Seeds, Natural Antioxidants, Coconut Oil, Yoghurt Powder, Emu Oil, Blueberries, Cranberries, Dandelion Tea, Parsley, Peppermint Tea, Rosemary Extract, Chondroitin, Glucosamine, Carrots, Yucca Schidigera, Spinach, Kelp, Tomato, Beta Carotene.



Crude Protein
28% (min)


Crude Fat
18% (min)


Crude Fibre
2% (max)






I mean I am currently studying to be an epidemiologist so dont have the time to be come an animal food nutrition expert but it looks like a lot of thought and effort has gone into the composition of their products to me.

So if you are going to rattle on about it, please use some facts related to Ebos and Blackhawk , like I have, and not just talk about pet food manufacturers in general

[percy]

Well the excitement builds.
We all eagerly await with bated breath, PAZ's launch of pet treats,made in NZ, from only NZ source ingredients ......

[peat]

Well the excitement builds.
We all eagerly await with bated breath, PAZ's launch of pet treats,made in NZ, from only NZ source ingredients ......

wrong thread Percy

[percy]

wrong thread Percy

Could not help myself....lol.

[Sideshow Bob]

are you guys sure of your facts here or are you just slinging mud generically ?

sure they use meal in some of the products but not all and ALL of them have heaps of other nutritional stuff
random examples here one for dog and one for cat





Cat

Product Ingredients

Chicken, chicken broth, peas, lamb, plasma protein, egg powder, essential vitamins and minerals*, flaxseed oil, sunflower oil, guar gum, carrageenan, salt, locust bean gum, caramel, xanthan gum, taurine, emu oil, glucosamine HCI, chondroitin sulphate, cranberries, blueberries, coconut, pumpkin, dried kelp.
* A blend of essential vitamins, minerals and amino acids to support cat health




Crude Protein
8.50% (min)


Crude Fat
5.00% (min)


Crude Fibre
1.00% (max)





Dog


Lamb Meal, Chicken Meal, Peas, Tapioca, Chicken Fat (naturally preserved with Rosemary Extract, Mixed Tocopherols and Citric Acid), Potato, Sweet Potato, Chicken Gravy, Sugar Beet Pulp, Essential Vitamins and Minerals (see tables), Salmon Oil, Sunflower Oil, Chicory Root, Di-Calcium Phosphate, Egg, Alfalfa, Salt, Apple, Brewers Yeast, Pumpkin Seeds, Natural Antioxidants, Coconut Oil, Yoghurt Powder, Emu Oil, Blueberries, Cranberries, Dandelion Tea, Parsley, Peppermint Tea, Rosemary Extract, Chondroitin, Glucosamine, Carrots, Yucca Schidigera, Spinach, Kelp, Tomato, Beta Carotene.



Crude Protein
28% (min)


Crude Fat
18% (min)


Crude Fibre
2% (max)






I mean I am currently studying to be an epidemiologist so dont have the time to be come an animal food nutrition expert but it looks like a lot of thought and effort has gone into the composition of their products to me.

So if you are going to rattle on about it, please use some facts related to Ebos and Blackhawk , like I have, and not just talk about pet food manufacturers in general

Their composition would have been through a nutritionist and likely to meet AAFCO standards (some of their foods say this, although unsure if all are - but not compulsory). Yes, have lots of other good stuff - which is great to see where alot of other products have a long listed of scientific compounds.

But my "beef" is simply that Blackhawk say they have "real meat" in their foods. In particular, with their lamb & beef foods, I don't consider meal as "real meat". They have a picture of a lamb French rack on their packaging.....I simply see it as being way too cute with what they say.

[Sideshow Bob]

Could not help myself....lol.

Never miss an opportunity eh Percy! :t_up:

[percy]

Never miss an opportunity eh Percy! :t_up:

I call it community service...lol.

[macduffy]

Yes, appreciate not all Blackhawk products, but Animal Care was 13%. (2020 AR, Page 7).

13% of $8.8b is north of $1.1b. This turnover is much bigger in itself than many listed companies.

Personally, I would have expected better regarding Blackhawk.

No, p 26 shows Animal Care $425m revenue, total revenue $8765m = 5.1%

I think the 13% (p 7) is Animal Care share of earnings, admittedly a more important figure.

:)

[Sideshow Bob]

No, p 26 shows Animal Care $425m revenue, total revenue $8765m = 5.1%

I think the 13% (p 7) is Animal Care share of earnings, admittedly a more important figure.

:)

Thanks McD!

[kiwico]

Ziwi is a different market/product and price point. Most of their sales are export, and perhaps only 10-20% max sales in NZ & Australia at a guess. They're about to build a new factory down in Napier and going pretty good from all reports.

Blackhawk products are popular and well priced, but they are really stretching it by advertising real meat. They use meal which is rendered down waste, like heads, hooves, bones, innards etc......and show photos of chicken breast and lamb racks on their packaging.....very, very poor in my book.

**gets off soapbox**

I see little wrong with innards etc being served up to pets. As a youngster our cats much preferred cooked cow lungs (known as lites) than tinned cat food. And when there are so many hungry in the world (and, apparently, in NZ) we shouldn't really be feeding food fit for humans to our pets.

[Zaphod]

There's not much nutrition in hooves, but other offal products can be beneficial. What concerns me is the percentage of fillers in many brand name pet foods, that people blindly buy because it is a) cheap and b) advertising (inclusive of social media) has convinced them they must.

[peat]

What concerns me is the percentage of fillers in many brand name pet foods, that people blindly buy because it is a) cheap and b) advertising (inclusive of social media) has convinced them they must.

Blackhawk excludes all fillers pretty clearly - and I assume they're not just liars so yeh just sayin ....



Every ingredient that makes it into our recipes has a nutritional purpose, so you’ll never find wheat, corn, soy, gluten, artificial preservatives, colours, flavours or any unnecessary fillers in Black Hawk.

[kiora]

Not all CP and CF percent are animal based
That is where the beef is

[ratkin]

I see little wrong with innards etc being served up to pets. As a youngster our cats much preferred cooked cow lungs (known as lites) than tinned cat food. And when there are so many hungry in the world (and, apparently, in NZ) we shouldn't really be feeding food fit for humans to our pets.

Our Alsatian used to love eating sheep heads. However it is humans that go shopping so you cannot blame the companies for putting a picture of a tasty looking steak on the tin. If they put a sheeps brain on it, then nobody would buy it.

It is good all of the slaughtered animal is used up. Would be a waste otherwise, and the pets seem to enjoy it so whats the worry?

From an EBOS perspective, I do not see this company posing much of a threat to the bottom line, pretty niche, at 78 dollars for 24 small cans of catfood it is more than twice as expensive as the stuff you buy in the supermarket.

[macduffy]

From an EBOS perspective, I do not see this company posing much of a threat to the bottom line, pretty niche, at 78 dollars for 24 small cans of catfood it is more than twice as expensive as the stuff you buy in the supermarket.

I agree, ratkin. Followers of EBO should remind themselves to "watch the doughnut, not the hole!"

:)

[Waltzing]

Does EBOS distribute nasal vaccine products yet? Well there is a nasal vaccine coming from altimmune or someone that blocks the virus in the nasal cavity. There will be a rush to get and distribute this to market later next year. Where would a product like this be distributed and which companies in the chain would profit from it.

[peat]

Does EBOS distribute nasal vaccine products yet? Well there is a nasal vaccine coming from altimmune or someone that blocks the virus in the nasal cavity. There will be a rush to get and distribute this to market later next year. Where would a product like this be distributed and which companies in the chain would profit from it.

Does it matter about one product?

Refer donut / hole post

share price well supported and y'day there was good volume and a spike at one point but that wasn't sustained.
Back to all time highs and looks like we are in a strong impulse

[Waltzing]

"Does it matter about one product?"

ranges of products - merely asking. Its not a toe fungus product. It will be one of the most sort after products for distribution in the world.

it will be possible be given to teens in the millions and billions.

If it works some companies will be fighting over each other to get access.

EBOS distribution into hospitals and chemists would be perfect and a PR coup.

[peat]

have a look yourself under the products sections

https://www.eboshealthcare.com.au/#

there is nothing obvious to me indeed the vaccine section is looking empty

but lots and lots of other products that will clearly benefit from the global acceptance of stricter health protocols arising from coronavirus


12008

[Waltzing]

thank you! that what i was after. Yes stellar result and should have held and had more faith in there incredible team.

[Waltzing]

I see they have abbot. yes nothing under flues yet. My thought was that nasal spray is really a game changer if it works for teens and prevention and might be over the counter.

[tango]

Is there a link to attend today’s AGM online? I don’t see one in my emails

[peat]

Is there a link to attend today’s AGM online? I don’t see one in my emails

https://edge.media-server.com/mmc/p/5kc4zbha

[Gerald]

" Trading for the first quarter of FY21 has seen the Group continue to record impressive growth;with group revenue for the first quarter above last year by 6.5%. Growth in underlying EBITDA and NPAT for the firstquarter is above last year by 9%and 15% respectively. "

[tango]

https://edge.media-server.com/mmc/p/5kc4zbha

Thanks! Logging on now

[Waltzing]

"In New Zealand, EBOS played a key role in assisting the Ministry of Health with the supply ofmeasles vaccinations to help combat the outbreak; with our Healthcare Logistics andProPharma businesses distributing more than 114,000 doses of the measles vaccine."

they are a player in the vaccine field after all.

[peat]

I've attended Telstra and Ebos AGM today

pretty boring really quite frankly , and worse with Telstra coz you've done so much dough holding their shares .....

[percy]

"In New Zealand, EBOS played a key role in assisting the Ministry of Health with the supply ofmeasles vaccinations to help combat the outbreak; with our Healthcare Logistics andProPharma businesses distributing more than 114,000 doses of the measles vaccine."

they are a player in the vaccine field after all.

A few years ago they made a lot of money distributing Hepatitis B vaccine in Australia.
In Australia and NZ they have the logistics to supply hospitals,chemists etc straight away.
You could call them "the go to" people either Govt call on first.

[winner69]

Paper Tiger once said EBO was going to be a $100 stock

It’s getting there

[Waltzing]

"A few years ago they made a lot of money distributing Hepatitis B vaccine in Australia."

OHHHHH now i thinking and we sold thinking this stock was stuck in a range!!!

That is a great post, thank you sir!

This distribution world wide has been in the media as a very big logistic operation. 8000 747 planes in one article , not idea how accurate that was yesterday.

[macduffy]

It pays to know the history of a stock like EBO that's been around for yonks and grown steadily!

:cool:

Disc: Held since the days it was known as "Early Bros Dental and Medical Supplies".

[Waltzing]

Yes we are guilty of not studying it history other than its TA and basic EPS.. we assumed it would suffer a small hit in sales for up to 12 months but in fact demand increased for its products and was not stuck in a range. We though its growth phase was reaching a level off. Took the profits and moved them into commercial property. The figures are stunning but we did not know its exposure product by product sector. Simply to many stocks to follow at the moment, big world.

[tango]

A few years ago they made a lot of money distributing Hepatitis B vaccine in Australia.
In Australia and NZ they have the logistics to supply hospitals,chemists etc straight away.
You could call them "the go to" people either Govt call on first.

Are you still an owner in EBOS?

[percy]

Are you still an owner in EBOS?

No .However The Trust I am a trustee of still holds them,so I still follow them.
Every so often I still suffer "EBO withdrawal symptoms".lol.

[tango]

No .However The Trust I am a trustee of still holds them,so I still follow them.
Every so often I still suffer "EBO withdrawal symptoms".lol.

I was having moments of doubt about EBOS but I dug in deep to their businesses and decided to hang in there. I’m very much liking their new acquisition.

[tango]

For anyone who missed the ASM EBOS are acquiring Cryomed Aesthetics and expect the acquisition to be completed by the end of October
https://www.cryomed.com.au/

[horus1]

These are a very good share /.Solid I am buying and am way overweight.

[tango]

These are a very good share /.Solid I am buying and am way overweight.

I’m not buying at this price but I will add when the price drops! I keep expecting another crash but I’m still waiting...

[Waltzing]

"I will add when the price drops"

classic , the other one was "pays to know the history of a stock" i should post some charts from the US from the 1990's we have lying around.. now they were charts..

[ratkin]

All time high today, onwards and upwards

[Waltzing]

[removed] - what a result. Another cramer screaming buy buy buy.. well at least we made profits but it appears it got another ten years growth ahead. Live and learn.

[tango]

"I will add when the price drops"

classic , the other one was "pays to know the history of a stock" i should post some charts from the US from the 1990's we have lying around.. now they were charts..

Only stonks go up all the time! Unless you believe we are never having another market correction?

I’ve been investing since the 1980s. Patience wins the day. I have a nice holding which I will add to when to when it’s priced at a discount. As a value investor I don’t buy stocks that IMO are fully priced.

[sampson]

Yeah, has been a great run since $22 and a decent dividend too. I'm a little overweight now and have little cash for other purchases at the moment so considering selling a small proportion if it plateaus. Will give it a few days maybe.

[peat]

Yeah, has been a great run since $22 and a decent dividend too. I'm a little overweight now and have little cash for other purchases at the moment so considering selling a small proportion if it plateaus. Will give it a few days maybe.

yeh I've covered a quarter but am nervous about this lol. ATH often means more ATH's

[sampson]

yeh I've covered a quarter but am nervous about this lol. ATH often means more ATH's

Yeah, that's what I'm thinking too. Always hard to know the best option in situations like this though. Ultimately depends what you put the resulting funds in as to whether it was the smart thing to do or not I guess.

[macduffy]

Need to judge EBO's shareprice in the context of the market generally and ask what company isn't looking a bit "toppy"?

I hold.

[Snow Leopard]

My dreams of becoming extremely rich by owning EBOS shares on the ASX and getting a larger dividend have been shattered ( and I have had to revert to dream B and buy Powerball tickets ).

It seems that I get exactly the same dividend amount as I would have on NZX based shares allowing for the exchange rate.

Turnover/liquidity for EBOS on the ASX continues to improve but the buy/sell spread is still a problem at times.

[peat]

yeh I've covered a quarter but am nervous about this lol. ATH often means more ATH's
back to full strength = it is nice to make half a dollar on the way down too.

[macduffy]

A nice bounce to $27.76. An all time high?

[ratkin]

A nice bounce to $27.76. An all time high?

Yep smashed the all time high today, about time, never seems to move much but has been a great wealth generator for long term holders

[glennj]

Yep smashed the all time high today, about time, never seems to move much but has been a great wealth generator for long term holders

Indeed, just this one stock has produced income and capital gains that I never even dreamed of when I bought a decent sized holding (for me). Average buy in price is $6.10 - unrealised capital gains are in seven figures and net annual dividends are more than my annual salary used to be during salaried employment days. "Just one successful stock can make you wealthy" or so the story goes but it is true. I've been lucky enough to buy and hold a number of "winner" stocks over the years with several others doing better than EBO in percentage terms but because of the relative size of positions taken EBO is my best gainer in dollar terms for unrealised gains. Hope this snippet gives some encouragement to newer investors.

[peat]

I've been waiting for wave 5 in this phase and have now managed to reduce my holding to a modest 10% of the portfolio.
If it goes to $30 I will sell out completely.
12152

[sampson]

Has been quite a marked increase in the last couple of weeks on no news (that I'm aware of) - any thoughts?

[glennj]

EBO was 28.30 last time I looked and has climbed from 24.90 at the end of November. I'm happy to hold and spend the dividends that I take in cash now rather than receive the DRIP. (Div yield based on average buy in price is very acceptable) As for wave 5 and many TA indicators I take little notice of them. IMO paying too much attention to TA or rebalancing to equal weightings in the portfolio would have seen me with a much less valuable EBO position than I have today. (BTW I have a widely diversified portfolio(s) so letting EBO go overweight was really a no brainer & I do pay some attention to bits of TA particularly when buying)

[winner69]

Punters just love Brokers Picks

EBOS in 3 of the brokers top 5 .....so be quick and join the throngs jumping on.

[Waltzing]

you old rampa rapper you ! deserts are calling.. they are the future..

[winner69]

Has EBO ever hit 30 bucks?

[winner69]

I am now more interested in when will it become the first stock on the NZX to breech $100.

Given the closing low of $9.29 on 11-May this year and todays $14.07 then we should be there on 2nd May 2018.

Mind you it may pick up speed and get there early.

Best Wishes
Paper Tiger

PS: Enjoying it while it lasts.

Still On track to Snowies 100 buck target

[peat]

Has EBO ever hit 30 bucks?


no , not yet.

[winner69]

Share price hit 30 bucks today

That's good

[ratkin]

Share price hit 30 bucks today

That's good

Hopefully with results out soon it is going to push on through that psychological barrier. Maybe overtaking FPH in the near future

[peat]

I'm out at 29.90
Very nice ride thanks Ebos.

Might buy again under 25 if that ever happens and it may well not!

PS What the hell happened to this site over the last several days!! ????? DDOS?

[Rawz]

I'm out at 29.90
Very nice ride thanks Ebos.

Might buy again under 25 if that ever happens and it may well not!

PS What the hell happened to this site over the last several days!! ????? DDOS?

Nice sell price! Curious where you see better value out there? (If you are reinvesting elsewhere)

I'm continuing to hold.

[macduffy]

I'm holding, although I wouldn't be expecting anything sensational from the profit announcement next week. My reasoning is that Covid 19 may have crowded out the usual EBO hospital and medical supplies usage/re-ordering to some extent as the health system concentrated on the big issue.

[peat]

there was quite strong demand yesterday but price is only held up today by minnows.

[Biscuit]

I'm holding, although I wouldn't be expecting anything sensational from the profit announcement next week. My reasoning is that Covid 19 may have crowded out the usual EBO hospital and medical supplies usage/re-ordering to some extent as the health system concentrated on the big issue.


Do you think that has had much effect in NZ and Oz? Probably fairly small effect.

[macduffy]

Do you think that has had much effect in NZ and Oz? Probably fairly small effect.

I really don't know but it's hard to conclude that NZ/Aust health systems have completely escaped the diversion of personnel and facilities to the Covid issue. I hope you're right in that the effect is probably fairly small.

[Biscuit]

I really don't know but it's hard to conclude that NZ/Aust health systems have completely escaped the diversion of personnel and facilities to the Covid issue. I hope you're right in that the effect is probably fairly small.

Interesting to see what sort of year they have had. I feel they are a safe ship to hold long term, though they are a bit pricey now, like everything else.

[macduffy]

Interesting to see what sort of year they have had. I feel they are a safe ship to hold long term, though they are a bit pricey now, like everything else.

I fully agree. One of my four longterm holds!

[ratkin]

I fully agree. One of my four longterm holds!

By far my biggest holding on the exchange, will be happy with a good steady as she goes result with all divisions continuing their good trajectories.

[Rawz]

EBO trading at a current P/E of 27 and MFT trading at a P/E of 40. Based on historical earnings. As per ASB securities.

EBO still worth holding in any portfolio imo.

[winner69]

EBO trading at a current P/E of 27 and MFT trading at a P/E of 40. Based on historical earnings. As per ASB securities.

EBO still worth holding in any portfolio imo.

MFT with its superior ROE than EBO possibly deserves a higher PE

[Rawz]

MFT with its superior ROE than EBO possibly deserves a higher PE

MFT run a much higher debt/equity ratio. Thus should have a better ROE.

Perhaps time EBO do another acquisition, funded by debt.

[Biscuit]

Nice results today, onward and upward

[Louloubell]

Going from strength to strength. A solid and safe hold in uncertain times.

[ratkin]

Smashed through the 30 dollars now let's hope it stays that way' basecamp before the next climb to 40 dollars

[peat]

ratkin
I see massive resistance at $30


12315
which one of us is correct

oh and yes PS good result except in their consumer health products
so on a PE of about 26 still. which is supported by the constant growth
NB Jan 2021 still showing earnings growth​.

[Biscuit]

ratkin
I see massive resistance at $30......

There's resistance .. for now. Don't think you'll get back in under $25 now though peat! I bought quite a lot last year $21-$22, give away prices for this well managed growth company.

[macduffy]

Another solid result. Pleased to see that my rather pessimistic prediction of a lacklustre half year was unfounded!

:)

[ratkin]

ratkin
I see massive resistance at $30


Yes, I made a bit of a mistake there, was looking on my tiny phone screen and misread the price. Agreed the risistance is holding it back.
The good thing is once it does go through, it will be more significant

[peat]

The good thing is once it does go through, it will be more significant
True dat. I should hold some. Ebos does (has , and probably will, ) make superb returns almost easy.

[newtrader]

Interesting there is no DRP on this dividend due to a strong balance sheet. Is this an indicator from management on the current share price?

[macduffy]

Interesting there is no DRP on this dividend due to a strong balance sheet. Is this an indicator from management on the current share price?

I doubt it. More likely to be the strong balance sheet "effect".

[winner69]

What's going on today

Share price down nearly 5%

[John.S]

I'm only a novice retail investor, but the volume traded appears to be about the normal volume of 100k shares.

Just my 2c, but I'm guessing with the DRP being cancelled some have taken it as a sign that the share price has reached/exceeded the short term valuation so they are selling some shares with the idea to buy back in later?

Personally, I'm just holding and waiting for a bit more of a correction before topping up. I couldn't find anything else online to suggest why the price is down today.

[Rawz]

Share market overall having a red day. FPH taken a beating as well.

[Greekwatchdog]

Reason for you Infratil was included in the FTSE Russell All-World Index at the expense of Ebos Group – based on market cap size – and they had quite different days. Infratil was unchanged at $7.28, and Ebos fell $1.10 or 3.78 per cent to $28. Link for info - Pay wallhttps://www.nzherald.co.nz/business/market-close-strong-nz-dollar-and-mixed-results-weigh-down-sharemarket/6YB3WZHOGZVLBX35WFTW4Z4LQ4/

[RTM]

I am a little puzzled by the dual announcement .... why ? What is the tie up between Harbour and Jardens ?

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/368360/341474.pdf

What am I missing ?

[winner69]

I am a little puzzled by the dual announcement .... why ? What is the tie up between Harbour and Jardens ?

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/368360/341474.pdf

What am I missing ?

Jardens and Harbour Asset are related parties

Jardens are a majority shareholder in Harbour .....and other connections

Between them (combined) they’ve gone below 5%

[RTM]

Jardens and Harbour Asset are related parties

Jardens are a majority shareholder in Harbour .....and other connections

Between them (combined) they’ve gone below 5%

Thanks, didn’t realize that.

[Zaphod]

Should have slipped the word blockchain in there somewhere and the SP would have risen like a rocket.

https://www.nbr.co.nz/story/ebos-ceo-confirms-involvement-nz-s-vaccine-rollout

"Ebos chief executive John Cullity has confirmed the healthcare and animal care company “will have involvement” in vaccine distribution in New Zealand.

He was asked by a shareholder, at an investor presentation on the back of the company’s half-year results, whether its Australian pharmacy network, Terry White Chemmart, would have a role to play in the vaccine rollout.

Cullity said the NZX-listed company, which has a nearly $5 billion market capitalisation, would have “involvement” in New Zealand but not Australia’s rollout at this stage, noting there was strict confidentiality around the nature of its role."

[ratkin]

Ebos overtaken FPH in share price, bit sad it on a day when they both going down though. Ebos winning the battle of the healthcare companies.

[ratkin]

EBOS getting ready for a crack at 30 dollars. Now we have the vaccine for one and all, what part is EBOS going to play in its distribution?

[Ricky-bobby]

Good turn around today, should of grabbed some on Friday!! Don’t own, but looking to enter soon...

[ratkin]

First time ever over 30.00

[RTM]

First time ever over 30.00

Yes, my biggest mistake with EBOS was selling a few and thinking I was being clever,
Nope !

[sampson]

Yes, my biggest mistake with EBOS was selling a few and thinking I was being clever,
Nope !

Sadly, I'm guilty of the same thing. Would be great if it could close above $30 one day though.

[percy]

Yes, my biggest mistake with EBOS was selling a few and thinking I was being clever,
Nope !

Was a very clever sell for me.
Shares I brought with the funds have out performed EBO.

[glennj]

I've been happy to hold EBO as the total return pa is good. You've done well Percy to sell and get a better return than EBOS was providing.
Out of curiosity I've just run a report of NZ stocks I hold or have held during the last ten years and only 7 have out performed EBO and one was almost as good.
I realise various timing and pricing variables are involved but it can't have been easy find something you could be sure was going to do better than EBO.
My strategy is to hold stocks that are more than earning their keep thus EBO has never been sold down. In recent times I have used the EBO dividends to invest elsewhere though.

[For the time periods involved my CDI, RBD, SPN, HLG MEL, MFT & THL (sold) are the only ones that did better than EBO. CMO was almost as good]

[percy]

My big out performers are both on NZ Unlisted.
Silver Fern Farms since I started buying April last year, and including the divie due on the 28th has returned me over 95%.Two divies one 5.4 cps the one due 5.5cps and av cost around 62 cps.Current share price $1.00.
PAZ.Pharmazen.Well one year return is about 300%[going from 25 cents to 75 cents,,while two year return is about 500% going from 14 cents to 75 cents.I originally started buying at 2.5cps and my average cost would be between 7 and 8cps.
I am fortunate that they were my two largest investments.

[RupertBear]

My big out performers are both on NZ Unlisted.
Silver Fern Farms since I started buying April last year, and including the divie due on the 28th has returned me over 95%.Two divies one 5.4 cps the one due 5.5cps and av cost around 62 cps.Current share price $1.00.
PAZ.Pharmazen.Well one year return is about 300%[going from 25 cents to 75 cents,,while two year return is about 500% going from 14 cents to 75 cents.I originally started buying at 2.5cps and my average cost would be between 7 and 8cps.
I am fortunate that they were my two largest investments.

Well done Percy, one could say you are very well positioned :D

[winner69]

Took a while to get through 30 bucks

We’re on our way to 40 bucks

Cool

[macduffy]

Took a while to get through 30 bucks

We’re on our way to 40 bucks

Cool

There's no particular hurry though.

:)

[James108]

My big out performers are both on NZ Unlisted.
Silver Fern Farms since I started buying April last year, and including the divie due on the 28th has returned me over 95%.Two divies one 5.4 cps the one due 5.5cps and av cost around 62 cps.Current share price $1.00.
PAZ.Pharmazen.Well one year return is about 300%[going from 25 cents to 75 cents,,while two year return is about 500% going from 14 cents to 75 cents.I originally started buying at 2.5cps and my average cost would be between 7 and 8cps.
I am fortunate that they were my two largest investments.

Good on you, some of my best investments have also been very small companies. It's easiest to be the smartest person in the room when the room is empty :)

[Biscuit]

... It's easiest to be the smartest person in the room when the room is empty :)

No, it would be impossible to be the smartest person in the room if the room was empty.

[Rawz]

EBOS, the quiet little achiever finishing the day above $31. Good on them and looking forward to their next update

[macduffy]

EBOS, the quiet little achiever finishing the day above $31. Good on them and looking forward to their next update

But not so "little" these days. Must rank in the NZX top ten by capitalisation?

[peat]

But not so "little" these days. Must rank in the NZX top ten by capitalisation?

nope
16th (but the top 3 are of course Australian companies. WBC ANZ TLS)

yes well done to all those holding ... time in the market ;+)

[macduffy]

nope
16th (but the top 3 are of course Australian companies. WBC ANZ TLS)

yes well done to all those holding ... time in the market ;+)

Thanks, peat. And EBO is practically an Australian company itself now with the biggest part of the business over there.

[winner69]

EBO one of the largest listed companies , if not the largest based on revenues

Revenues about $9 billion - much higher than the giants of the market like FBU, FPH, SPK and A2

Little known fact

[Rawz]

Priced better than Mainfreight too

[alokdhir]

Is EBOs breakout over $ 30 failing again or its last buying chance ??

[Rawz]

Is EBOs breakout over $ 30 failing again or its last buying chance ??

If there is no negative news its the last buying chance. Remember when FPH fell below $30.. was the last buying chance..

Sometimes the market offers up good accumulating opportunities on good stocks

[ratkin]

Someone is buying up, took it to an all time high today, has established base camp over 30, readying for the next leg up

[Biscuit]

Someone is buying up, took it to an all time high today, has established base camp over 30, readying for the next leg up


They must want to get in ahead of the results in August perhaps? I doubled my holding over May, June, July last year. Its up 50% since then and doesn't look overly cheap anymore but always a good buy all the same in my book. A company you can rely on to deliver in good times and bad.

[ratkin]

They must want to get in ahead of the results in August perhaps? I doubled my holding over May, June, July last year. Its up 50% since then and doesn't look overly cheap anymore but always a good buy all the same in my book. A company you can rely on to deliver in good times and bad.

Cant remember them ever putting a foot wrong. long may it continue

[ratkin]

There have been no acquisitions for a while. Newest board member is very experienced in mergers and acquisitions. Coincidence?

[macduffy]

There have been no acquisitions for a while. Newest board member is very experienced in mergers and acquisitions. Coincidence?

Perhaps. But the company has plenty of experience in such matters! Don't expect any action if nothing meets their criteria meanwhile.

[macduffy]

Deleted. Duplication.

[Shareguy]

A great company. Should be in everyone’s portfolio in my opinion.

[Snow Leopard]

EBOS used to be a major holding in my NZX portfolio until I migrated them to the ASX where it became my largest holding until today, when it has been overtaken by Johns Lyng Group.

EBOS is definitely a keeper until it isn't.

[Panda-NZ-]

Nice recession proof option.

Should go more into the pet care side as its booming overseas (pawz, chwy etc).

[ratkin]

EBOS GROUP LIMITED TO RELEASE FY21 FULL YEAR RESULTS ON WEDNESDAY 18 AUGUST

Hopefully another good result, there has been some price weakness recently, someone has been selling. Everyday price has fallen in last hour or Two of trading, been going on for weeks now

[Rawz]

EBOS GROUP LIMITED TO RELEASE FY21 FULL YEAR RESULTS ON WEDNESDAY 18 AUGUST

Hopefully another good result, there has been some price weakness recently, someone has been selling. Everyday price has fallen in last hour or Two of trading, been going on for weeks now

EBOS cheap when compared to MFT.
Good buying under $32.

[ratkin]

Result out in the morning, am not optimistic, price action has been a bit negative for a while.
Would have to think the Australian lockdowns might have had some effect

[macduffy]

Result out in the morning, am not optimistic, price action has been a bit negative for a while.
Would have to think the Australian lockdowns might have had some effect

Really?
I would have thought that EBO would be one stock least affected by a lockdown.

[ratkin]

Really?
I would have thought that EBO would be one stock least affected by a lockdown.

True I guess, hopefully all the medical side of it will have essential worker status

[Sideshow Bob]

Full Year Results - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/377444)

Full Year Highlights
• Revenue of $9.2 billion, exceeding $9 billion for the first time (up 5.0%)
• Statutory Audited Net Profit after Tax (NPAT) of $185.3 million (up 14.0%)
• Underlying Net Profit after Tax (Underlying NPAT) of $188.2 million (up 15.5%)• Final dividend declared of NZ 46.0 cents per share, bringing total dividends declared for the year to NZ 88.5 cents per share (up 14.2%)
• Continued strong performances from both our Healthcare and Animal Care segments, with Healthcare’s Underlying EBIT up 11.4% and Animal Care’s EBIT up 26.4%
• Excellent operating cash flow (before capex) of $298.3 million (up 30.1%)
• Inaugural Sustainability Report released today
• Consistent with our strategy of investing for growth, EBOS today announces:o a significant capital investment in a new state of the art pet food manufacturing facility to facilitate insourced manufacturing of Black Hawk and accelerate new product development opportunitieso a number of acquisitions in a further expansion of our Institutional Healthcare division
• Strong balance sheet, with Net Debt : EBITDA of 0.85x (1.11x at June 2020)

[Rawz]

Fantastic result.

[ratkin]

Fantastic result.

Yeah much better than I was expecting, 15% profit and dividend rise, onward and upwards.
One less thing to have to worry about

[RTM]

The only mistake I've made with these was selling a few.

Interesting to see new Pet Food manufacturing facility being built.
"Black Hawk has grown sales by more than 4 times under EBOS’ ownership and has reached significant scale."
Good business to be in.

[ratkin]

They see the effect of covid as slightly positive overall, so it is one stock that is very reliable with or without covid, no real negative impact if covid stays or goes.
The medical device aquisitions look interesting and could be a good source of future growth. While the animal division looks very solid.

[Rabbi]

Yes, another outstanding result with underlying net profit up 15.5% and seems they can do no wrong in today's covid environment.
When you think this sort of growth is factored into the SP it just keeps rising on future growth expectations a la Mainfreight.:)

[Snow Leopard]

Looks like another good one.
A company that consistently delivers the results.

[Rawz]

EBOS cheap compared to MFT on a price to earning basis!! Imagine if it got re-rated to a MFT p/e

[Waltzing]

Yes EBO is a GO...performance par Excel.

You have to have it in your Portfolios.

[winner69]

EBOS cheap compared to MFT on a price to earning basis!! Imagine if it got re-rated to a MFT p/e

PE relativities to a certain extent depend on ROE - higher returns often rewarded with higher multiples

Look at these to see what I'm getting at. I've added FPH to further highlight thsi

...... ROE PE
EBO 14% 26
MFT 18% 33
FPH 42% 36


Also remember EBO is a low margin business - Profit Margin of 2% v MFT of 5% and FPH 26%

Marketscreener numbers

[Mr Slothbear]

PE relativities to a certain extent depend on ROE - higher returns often rewarded with higher multiples

Look at these to see what I'm getting at. I've added FPH to further highlight thsi

...... ROE PE
EBO 14% 26
MFT 18% 33
FPH 42% 36


Also remember EBO is a low margin business - Profit Margin of 2% v MFT of 5% and FPH 26%

Marketscreener numbers



geez throw ATM’s ROE and PE multiple in and in makes those three look pretty steep, or makes ATM look very very cheap.

[winner69]

geez throw ATM’s ROE and PE multiple in and in makes those three look pretty steep, or makes ATM look very very cheap.

But ATM’s ROE likely to be <10% this year ….with prospects of it never reaching its past stellar heights for a few years (if ever) ……makes ATM expensive but one needs hope eh

[Rawz]

PE relativities to a certain extent depend on ROE - higher returns often rewarded with higher multiples

Look at these to see what I'm getting at. I've added FPH to further highlight thsi

...... ROE PE
EBO 14% 26
MFT 18% 33
FPH 42% 36


Also remember EBO is a low margin business - Profit Margin of 2% v MFT of 5% and FPH 26%

Marketscreener numbers

Lots of upside for EBO. Those ratio's can only get better :t_up:

Love your work W69

[Rawz]

EBO kinda like MFT and FPH combined from an operations/product point of view. The ultimate company?

[winner69]

EBO slowly but surely getting rerated

Updated this chart

[winner69]

This chart highlights gradual PE expansion over the years

Rawz (and others no doubt) will say it will continue to go up

[iceman]

EBO slowly but surely getting rerated

Updated this chart

Thanks for the charts w69. The EPS growth is pretty impressive. Been watching it for a long time but only dipped my toe in last week with a long term view much like MFT & FPH.

[winner69]

Thanks for the charts w69. The EPS growth is pretty impressive. Been watching it for a long time but only dipped my toe in last week with a long term view much like MFT & FPH.

EPS growth steady as she goes though not spectacular

[Waltzing]

up up and away...

https://www.youtube.com/watch?v=2-UQ0-8ktAM

[winner69]

up up and away...

https://www.youtube.com/watch?v=2-UQ0-8ktAM

You talking about BGR are you

[Waltzing]

The 5 month chart for EBO from APRIL to End of AUGUST.

OMC->STOCKORDERSQTYNO = STOCKORDER->IDORDERQTY;

[Snow Leopard]

The 3 month chart for EBO from JUNE to End of AUGUST.

Anytime scale looks good for the EBOS chart

Terrible taste in music there :t_down:

[Waltzing]

"Terrible taste in music there"

just a laugh... no doubt you lost some money in booking for St Peterberg and Moscow for the 2020 season, but arguable the best russian dancer dances in london anyway.

see you in Norway for NORDIC PULSE....

https://www.youtube.com/watch?v=1vmh-fm5ZxQ

[RTM]

https://www.directbroking.co.nz/directtrade/dynamic/announcement.aspx?id=5782943

Sounds like a good addition.
"....fourth acquisition completed during the last 12 months" Must put quite a bit of strain on their operations. Unless they have a dedicated team to execute these. Holding...not enough tho.

[ratkin]

https://www.directbroking.co.nz/directtrade/dynamic/announcement.aspx?id=5782943

Sounds like a good addition.
"....fourth acquisition completed during the last 12 months" Must put quite a bit of strain on their operations. Unless they have a dedicated team to execute these. Holding...not enough tho.

All their other stuff is well bedded in , they very rarely seem to make a bad acquisition, every faith they will have chosen wisely

[macduffy]

All their other stuff is well bedded in , they very rarely seem to make a bad acquisition, every faith they will have chosen wisely

Agree. EBO has been successfully integrating acquisitions for as long as I've held them - since the days they were known as Early Bros Dental and Medical Supplies Ltd.

:)

[Rawz]

$36. Pretty good. I last topped up at $32 on the 7th July.

I reckon MFT booming share price kinda helps EBO

[winner69]

Agree. EBO has been successfully integrating acquisitions for as long as I've held them - since the days they were known as Early Bros Dental and Medical Supplies Ltd.

:)

Hey Macduffy, probably a bit before your time but did your Dad tell you that they started in 1922 when they were Early Brothers Trading Co. Ltd. Based in Christchurch, the company sold lamps for horse drawn carriages.

[macduffy]

Hey Macduffy, probably a bit before your time but did your Dad tell you that they started in 1922 when they were Early Brothers Trading Co. Ltd. Based in Christchurch, the company sold lamps for horse drawn carriages.

No, he didn't. ( I should have known that there would be some old codger, older than me, on ST!)

;)

[Shareguy]

Should be in everyone’s portfolio in my opinion.

[iceman]

An interesting article behind paywall in the Herald today about pet food maker Ziwi Peak and how there are industry rumours it may sell for over $1B, with operational earnings of $50m. EBOS mentioned in the article as one of the original possible suitors but now Chinese funds have entered the race !!
https://www.nzherald.co.nz/business/billion-dollar-bidding-war-for-nz-pet-food-maker-ziwi/D4YQ4ZFMQWSEAAHWZC53DZO34I/

[Sideshow Bob]

An interesting article behind paywall in the Herald today about pet food maker Ziwi Peak and how there are industry rumours it may sell for over $1B, with operational earnings of $50m. EBOS mentioned in the article as one of the original possible suitors but now Chinese funds have entered the race !!
https://www.nzherald.co.nz/business/billion-dollar-bidding-war-for-nz-pet-food-maker-ziwi/D4YQ4ZFMQWSEAAHWZC53DZO34I/

There have been plenty of rumours about Ziwi for a while, had previously heard $650m a few months ago, but if they have a bidding war going on, good on them. Building a new factory in Napier - think about 12,500 sq metres.

Personally don't think they are for EBOS. Going to pay a large multiple, and only a small amount of Ziwi's sales are in NZ - so not much of a bolt-on to existing business. Although think they do a bit in Australia. Most sales are in markets outside Oceania.

K9 Natural got sold to KKR recently, and would have been a large multiple/goodwill, as K9 don't own their own plants. KKR Acquires Natural Pet Food Group | Business Wire (https://www.businesswire.com/news/home/20210502005040/en/KKR-Acquires-Natural-Pet-Food-Group)

Going to be a great payday for Mark Stewart (72%) and the remaining Ziwi owners/founders.

[percy]

There have been plenty of rumours about Ziwi for a while, had previously heard $650m a few months ago, but if they have a bidding war going on, good on them. Building a new factory in Napier - think about 12,500 sq metres.

Personally don't think they are for EBOS. Going to pay a large multiple, and only a small amount of Ziwi's sales are in NZ - so not much of a bolt-on to existing business. Although think they do a bit in Australia. Most sales are in markets outside Oceania.

K9 Natural got sold to KKR recently, and would have been a large multiple/goodwill, as K9 don't own their own plants. KKR Acquires Natural Pet Food Group | Business Wire (https://www.businesswire.com/news/home/20210502005040/en/KKR-Acquires-Natural-Pet-Food-Group)

Going to be a great payday for Mark Stewart (72%) and the remaining Ziwi owners/founders.

At one stage Mark Stewart was a director and major shareholder in Ebos.
Ziwi is an incredible success.

[Waltzing]

might be some movement in share prices coming up this month as the china property market weights on global markets.

giving opportunities for picking up more shares in quality stocks at lower prices.

[peat]

BlackHawk and Vitapet generated double digit sales growth in FY21 and have continued their strong performance in the first quarter of FY22.

a pleasing start to the FY22 financial year with strong revenue and earnings growth recorded across both our Healthcare and Animal Care segments.For the three months ended 30 September 2021, Group revenue and earnings grew at just over 10% compared to the prior corresponding period

[Waltzing]

Lock downs and pets are being petted.

Luxury dog hotel on some channel somewhere with a day care centre catering for a full range of dog services and mental health care.

Its a "mystical bond between man and dog (car)" ...Bobby Bolivia.

[winner69]

Liz said We have received positive feedback from the investment community on our first Sustainability Report and I look forward to keeping you updated as we make further progress in this area.

That’s an important statement ……the way investment managers look at ESG things these days that could possibly add a few bucks to the share price over time.

[Waltzing]

"ESG"

yes some solutions for that dog walk.

[peat]

triple top now firmly established

possibly test the low of the channel again. (or more - triple tops are often a big deal - though this is only on the hourly)

this picture taken a few days ago when I first noticed it forming. (tho I havent added anything to it - just a clean snap)
13184

[glennj]

A bit like an abstract art work and more colourful than scattered tea leaves. What is your interpretation of significance/artists statement peat?

[peat]

missed seeing your post glennj

so a triple top is a sell but look what its done now, its come back and pierced that high level briefly. oh how confusing! now gone back to test again.

so I see this as pent up pressure now, but clearly direction is still unclear.

But, given its a fantastic stock that is doing well and while priced quite expensively the metrics are somewhat supported by LT growth and quality management I'd consider it more likely to explode upwards.

no position held.

[peat]

thar she blows

[maclir]

Tradin halt. Placement coming today.

[maclir]

"EBOS Group Limited (EBOS) has entered into a share purchase agreement to acquire LifeHealthcare from Funds advised by Pacific Equity Partners and other minority holders, comprising 100% of LifeHealthcare’s Australian & New Zealand subsidiaries and 51% of LifeHealthcare’s Asian subsidiary, Transmedic (together, LifeHealthcare), for total consideration of approximately A$1,167 million (representing an enterprise value of approximately A$1,275 million on a 100% basis) subject to customary purchase price adjustments (the Acquisition or Transaction).FUNDING
The Acquisition will be fully funded through a combination of the proceeds of a non-underwritten retail offer to eligible existing shareholders to raise up to A$100 million, with the ability to accept oversubscriptions at EBOS’ discretion, approximately A$642 million raised from the Placement, a new A$540 million term loan debt facility and approximately 0.7 million new EBOS shares issued to LifeHealthcare management (approximately $23 million )."

[jg8512]

"EBOS Group Limited (EBOS) has entered into a share purchase agreement to acquire LifeHealthcare from Funds advised by Pacific Equity Partners and other minority holders, comprising 100% of LifeHealthcare’s Australian & New Zealand subsidiaries and 51% of LifeHealthcare’s Asian subsidiary, Transmedic (together, LifeHealthcare), for total consideration of approximately A$1,167 million (representing an enterprise value of approximately A$1,275 million on a 100% basis) subject to customary purchase price adjustments (the Acquisition or Transaction).FUNDING
The Acquisition will be fully funded through a combination of the proceeds of a non-underwritten retail offer to eligible existing shareholders to raise up to A$100 million, with the ability to accept oversubscriptions at EBOS’ discretion, approximately A$642 million raised from the Placement, a new A$540 million term loan debt facility and approximately 0.7 million new EBOS shares issued to LifeHealthcare management (approximately $23 million )."

$1.3b !!!
this is the same lifehealthcare which PEP and friends bought for ~A$200m just there years ago???!!!
I note they have added a couple of small acquisitions since (~A$20m).

first impressions ... I'd rather have been the seller in this transaction than the buyer.

[winner69]

Good move --- EBO getting bigger and bigger

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/384370/361288.pdf

[ratkin]

$1.3b !!!
this is the same lifehealthcare which PEP and friends bought for ~A$200m just there years ago???!!!
I note they have added a couple of small acquisitions since (~A$20m).

first impressions ... I'd rather have been the seller in this transaction than the buyer.

It all about the synergies, EBOS do not generally get it wrong

[Waltzing]

Probably thought with there own share price riding high they could leverage share holders and instos into a bigger game..

sometimes these big ones dont actually work...

on the other hand it shows they are big enough now to start seeing themselves as a regional player.

When you get big you feel the need to get bigger still..

[Rawz]

ebos going to be a bigger beast after this.

Might catch MFT one day?

Ill happily participate and ask for more as I sold some at $36 not too long ago

[Gerald]

5.8b company with 9.2b revenue spending 1.2b for 0.3b revenue.

Luckily EBO is now pretty pricey so almost anything looks acretive :)

Maybe they aiming for a FPH or resmed mutiple with all these consumables/devices acquisitions.

[Sideshow Bob]

5.8b company with 9.2b revenue spending 1.2b for 0.3b revenue.

Luckily EBO is now pretty pricey so almost anything looks acretive :)

Maybe they aiming for a FPH or resmed mutiple with all these consumables acquisitions.

From the announcement:

EBOS anticipates LifeHealthcare will generate approximately $110 million – $114 million EBITDA3 in CY22

[Snow Leopard]

This troubles me.

https://news.microsoft.com/wp-content/uploads/prod/sites/382/2018/04/snowleopardsnow.jpg

Snow Leopard Selfies (https://news.microsoft.com/transform/snow-leopard-selfies-ai-save-species/)

[tango]

I have great faith in EBOS but it is one thing to hold shares at an ATH and a whole other beast to buy at an ATH at a time when the entire asset market is in a bubble.

I’m not sure I will participate

I can see the whole share market tumbling 50% in the next year or two now all the free money is starting to dry up

[newtrader]

Anyone know how they will scale the retail placement? Will it be based on $ applied or based on shares owned.

Just don't want to lock up too much money and waiting it for to be refunded.

[Waltzing]

very defensive stock and a lot safer than many.. they are using the high SP as leverage. It pretty pricy up here in anticipation of continuing the growth story..

[tango]

Anyone know how they will scale the retail placement? Will it be based on $ applied or based on shares owned.

Just don't want to lock up too much money and waiting it for to be refunded.

Most are scaled on shares owned. Assuming it is oversubscribed.

We will get a better feel tomorrow but I expect the institutional offer will have been fully subscribed

[ratkin]

very defensive stock and a lot safer than many.. they are using the high SP as leverage. It pretty pricy up here in anticipation of continuing the growth story..

Do we know the price of the new shares yet?

[Snow Leopard]

OK, I think that they are paying to much for this acquisition.

Interestingly enough this is not the only company I have an investment in that has announced recently that they are buying some wonderful company from a private equity outfit but it appears to be the most expensive.

I have been selling down on a number of my holdings recently and may may well add EBOS to the list.

[percy]

Do we know the price of the new shares yet?

The new shares under the Placement will be issued at NZ$34.50 per share24 (Placement Price),
representing a discount of 5.5% to the last close price of NZ$36.50 per share as at 8 December 2021.

[Muse]

aye this is an expensive wee stock but its financial performance in whatever way you look at it has been sensational. If interest rates rise that could impact its high PE ratio but it ought to still grow earnings under inflation - distributors with fixedish costs should grow margins faster than the rest under inflationary environment I would have thought. I'll take another dabble has been a good ride.

[winner69]

One thing the acquired business has a a much higher profit margin than existing EBOS group - like 16% v 2%

On the proforma basis takes EBO Group NPAT/Sales from that razor thin 2.0% to 2.4%

[percy]

One thing the acquired business has a a much higher profit margin than existing EBOS group - like 16% v 2%

On the proforma basis takes EBO Group NPAT/Sales from that razor thin 2.0% to 2.4%

That is a huge 20% increase.

[ratkin]

The new shares under the Placement will be issued at NZ$34.50 per share24 (Placement Price),
representing a discount of 5.5% to the last close price of NZ$36.50 per share as at 8 December 2021.

Will probably look at increasing my holding by around 10% just to keep pace with the dilution from the new shares

[Waltzing]

off she goes ...well done those who bought ... was always part of a diversified retail sector portfolio surely..who doesnt own some.

[winner69]

Market likes this acquisition

Good vote of confidence .... share price could be 40 bucks next week

[Rawz]

Market likes this acquisition

Good vote of confidence .... share price could be 40 bucks next week

I might sell at $40. Seems a bit expensy

[Waltzing]

if they make this work it will stay expensive most likely as its always been priced well above current growth..

Busy with our new platforms for europe but winner might do some numbers, Snoopy or Mr B for the local market...

any big pull backs would surely just be another buy ..

[Rawz]

This year most (by memory) share prices of companies that have raised funds has seen the SP fall back to or below the cap raise price.

So could go below $36 or even $35 quite easily

[Waltzing]

this company has a track record of performance..

many of the others may not have been as strong as this one.

It deserve a very HIGH P/E.

[glennj]

This year most (by memory) share prices of companies that have raised funds has seen the SP fall back to or below the cap raise price.

So could go below $36 or even $35 quite easily

That would still be a win for those that took part in the EBOS placement at $34.50. As for companies that have raised funds having the SP fall back to or below the cap raise price.
Less than two months ago I took part in the ARV rights issue and it is up 6%.
Re the EBO Retail Offer, I haven't seen the booklet yet, but going on past acquisitions EBO are particularly good at getting value from acquisitions.
I'll be taking up my entitlement and chucking money in the oversubscription pool in the hope of picking up additional shares as well.

[macduffy]

this company has a track record of performance..

many of the others may not have been as strong as this one.

It deserve a very HIGH P/E.

Well said, waltzer. I'll be adding to my holding.

:)

[RTM]

Well said, waltzer. I'll be adding to my holding.

:)

Yep...me to.
My only regret with these guys has been taking some profit a couple of times.

[ratkin]

Anyone think the price is being hiked to try ands entice more in?

[tango]

Sharesies did a placement that was massively oversubscribed

“ EBO’s $674m Share Placement received strong support, and the total amount investors applied for was more than what EBO needed. Because of this, and so that shares are allocated fairly, Sharesies has scaled every application to 8.2% of the amount applied for. For example, if you applied for $100 worth of shares, you’ll only receive $8.20 worth of shares.”

[peat]

thar she blows
from Mid Nov

triple top breakout required a little patience but worked well

[tango]

I've changed my tune LOL
I will be adding but I only have 1000 shares so there is probably no point putting in for the whole $50k

[ratkin]

Any reason not to wait until close to the cut off date?

[Waltzing]

well you might get a chance to buy some more if world war 3 erupts before the close off date...

pray and there is a 1 in a million chance to buy some more under 34

dont like the odds though...

or like the GFC all started with one investment house dropping a shoe .. behind the scenes though it appears the BOC is plugging the gaps unfortunately... love a damn good financial crisis.. health crisis not so much...

[Muse]

Any reason not to wait until close to the cut off date?

Not that i can think of though havent read the retail offer statement yet. Ill just wait - would feel a lot better putting in my requested allotment buying shares at 24.50 when they are still trading at +28 bucks…feel less interested when just buying them at 5 day vwap

[777]

Not that i can think of though havent read the retail offer statement yet. Ill just wait - would feel a lot better putting in my requested allotment buying shares at 24.50 when they are still trading at +28 bucks…feel less interested when just buying them at 5 day vwap

"These shares will be issued at the lower of the price paid by investors in EBOS’ recent Placement, being NZ$34.50 per share, and the five day volume weighted average price of EBOS shares traded on NZX during the five NZX trading days up to, and including, the closing date of the Retail Offer."

[Muse]

"These shares will be issued at the lower of the price paid by investors in EBOS’ recent Placement, being NZ$34.50 per share, and the five day volume weighted average price of EBOS shares traded on NZX during the five NZX trading days up to, and including, the closing date of the Retail Offer."

Sorry 34.50, not 24.50. Point remains the same - I’d prefer choosing the quantum I’d invest if I knew the price the shares were actively being traded at were a lot higher than the SPP. Rather invest more into that scenario, and less into the scenario where the VWAP fell below the 34.50 and just bought at vwap. More discount, more dosh I want to invest, and waiting later will help clarify that decision

[Shareguy]

I always wait till closing of the offer to make sure I’m not missing any other opportunities that may come up and to get a better understanding of the offer price. Prefer the money in my account as long as possible. This is a get rich slowly stock in my opinion and a stock that consistently delivers. A great company.

[winner69]

Great acquisition but treatment of smaller shareholders is deplorable

As with most companies small shareholders are a pain in the butt …….a necessary evil of being listed ….instos could have funded this acquisition and no real need to ask small shareholders to help out but we better show we are nice guys

https://businessdesk.co.nz/article/finance/nice-purchase-ebos-horrible-capital-raising-method

[Waltzing]

Throttle up.. main boosters engines just kicking in...feel the G's

[theace]

Re the Retail Offer - Is there any way to work out how many shares you may get based on the no. of shares you held at records date. The offer size has been set at NZ$105 million. I don't want to fork out the max $50,000 knowing that I may only get a portion of it.

[macduffy]

Re the Retail Offer - Is there any way to work out how many shares you may get based on the no. of shares you held at records date. The offer size has been set at NZ$105 million. I don't want to fork out the max $50,000 knowing that I may only get a portion of it.

Unfortunately, no, other than that the more you hold, the more you are likely to have allocated. Incidentally, I think that the company reserves the right to exceed the $NZ 105m.

[Waltzing]

you really have to put in the most you can ..leave it as late as you can.

ask your investor pool to subscribe to your offer.

[glennj]

Re the Retail Offer - Is there any way to work out how many shares you may get based on the no. of shares you held at records date. The offer size has been set at NZ$105 million. I don't want to fork out the max $50,000 knowing that I may only get a portion of it.

My take is that if there is scaling it will take in to consideration your existing holding and that you will be unlikely to be able to increase your holding beyond 11.9% of your existing holding or if you can it will be by only a small amount as this offer will be very popular. Pretty sure I read the allocation will be pro rata based on your existing holding up to $50,000 worth. To me if there is unfairness in this retail offer I see it as being to the larger shareholders who even if they get $50,000 worth will still be diluted and in some cases very considerably.

[Muse]

Interesting spike today on not particularly large volumes. Suspect with prices remaining well above the coming placement price investors are buying so they can purchase discounted shares and existing investors looking to grow # shares to maximise their position prior to scaling.

Also suspect we will see a lot of people stagging their newly purchased discounted shares for a profit post allotment - with a bit of a dip in prices following that.

No matter - great price reaction post announcement. I will subscribe for maximum shares but expect to be well scaled.