SKC - Sky City

[traineeinvestor]

Have a look at the prices of the Macau companies listed in HK.

The only one I hold is down about 20% in the last month as Macau has closed its border with China cutting off the bulk of the SAR's customers.

[bull....]

Have a look at the prices of the Macau companies listed in HK.

The only one I hold is down about 20% in the last month as Macau has closed its border with China cutting off the bulk of the SAR's customers.

savaged those macau gambling stocks , not surprised i went in one of there gambling hotels when i was in hong kong travelling didnt see a table game under a minimum 100 us bet i was thinking wow these people bet big

[bull....]

Macau casino revenue drops 11.3% in January as coronavirus worries mount
https://www.cnbc.com/2020/02/01/macau-casino-revenue-drops-11point3percent-in-january-as-coronavirus-worries-mount.html

[Snoopy]

Casinos are crowded places with mostly Asian/Chinese clientele - entirely logical.

Places to avoid so guess shares too! :eek2:


I have a love hate relationship with tourism shares. I was an Air New Zealand shareholder until before it was bailed out by the government and I lost big time (about 80% of my investment IIRC). I think that was about the time I read about Warren Buffett having set himself up a hotline to ring whenever he thought about investing in airline shares. Airline shares often look attractive on conventional sharemarket metrics. But the ease with which competition can be set up, the high capital cost of the equipment and volatile fuel prices spiking running costs generally erodes any competitive advantage for potential investors quite quickly.

OTOH Auckland Airport, which sadly has always seemed too expensive to me to invest in, and the likes of Sky City Casino in Auckland (and Adelaide) are natural monopolies. They aren't totally dependent on international travellers. In fact there is some anecdotal evidence that kiwis spends more time at the casino when times are difficult. I believe the recent fall in the Sky City share price is likely justified in the short to medium term. But even if international tourism stopped this wouldn't be the end for Sky City Not all of those Chinese faces you see at Sky City Auckland are tourists!

SNOOPY

discl. Happy to hold SKC through this downturn

[RGR367]

Thanks Snoopy about your sensible thoughts on SKC.
But not only I am holding I will be acquiring more of it now as it has been really a while since I last bought them.

disc: long term holder of SKC as I considered this stock boring since getting enough of them

[Benny1]

I bought in to SKC in the later months of last year.. Can't quite decide whether to grab a few more now to average down or wait to the update in 10 days time...
My head says wait... My Sagittarius side isn't very patient!

[bull....]

skc will take a hit from less punters at casino as well as less tourists in there hotels , wise person wouild wait to skc put out an update in time on how there profits been impacted.

[King1212]

https://www.cnbc.com/2020/02/04/coronavirus-latest-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....

[Snoopy]

https://www.cnbc.com/2020/02/04/coronavirus-latest-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....


Closing down the casinos in Macau for two weeks is good for Sky City isn't it? Less competition! Unless you are suggesting the bureaucratic contagion will spread to such an extent that security guards will be stationed outside Sky City Auckland refusing entry to 'Chinese looking people'?

SNOOPY

[Balance]

https://www.cnbc.com/2020/02/04/coronavirus-latest-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....

And I asked my Australian friend (in Shanghai) who is the GM of a major hotel chain in China and he said it is bad as there has been so much disruption to the management and operation of their hotels - staff quarantined, travelers cancellations, supply lines of products and services disrupted and high anxiety amongst staff. But he said that life continues and since Monday, life has been returning to Shanghai and other main cities.


Closing down the casinos in Macau for two weeks is good for Sky City isn't it? Less competition! Unless you are suggesting the bureaucratic contagion will spread to such an extent that security guards will be stationed outside Sky City Auckland refusing entry to 'Chinese looking people'?

SNOOPY

No travelers coming in from mainland China so biggest impact will be felt in the high roller area of Sky City. Then, there's the accommodation side of the operation.

Sky City is definitely one which is being hit and will continue to be impacted - likewise AIA, THL, MCK and QEX.

[winner69]

Not easy to see through all the ‘normalisation’ in the Sky City reports

Maybe aim is to bambozzle everybody with science

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/348343/316639.pdf

[bull....]

IB business down 40% probably be down even more next results as virus impacts travel in the current period , also affect hotel bookings going forward too

[MauroNZ]

Not easy to see through all the ‘normalisation’ in the Sky City reports

Maybe aim is to bambozzle everybody with science

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/348343/316639.pdf

I remember that Beagle doesn't like normalised earnings but I can't remember the reason, can you remember it Winner?.

[Cadalac123]

Absolute joke having reported and normalised, just exited the presentation after reading that. Be upfront with your business financials.

[Biscuit]

There is a good reason for having normalised and reported and having both results with a reasonable explanation of them just gives you more information to understand the business. They don't seem to be trying to hide anything? The normalised results are much worse than the reported....

[Balance]

There is a good reason for having normalised and reported and having both results with a reasonable explanation of them just gives you more information to understand the business. They don't seem to be trying to hide anything? The normalised results are much worse than the reported....

Companies on the NZX do have to report to set formats - but as per usual, the set formats end up creating confusion, hence the normalized results.

In the good old days, companies were free to use their 'judgement' to present as they saw fit - so the likes of Fay Richwhites had a field day changing their accounting policies one period to the next as it suited them.

So what are the pertinent points about the normalized results?

EBITDA down 10.7%, NPAT down 16.4% and EPS down 15%.

Forecast FY2020 normalized NPAT of $130m vs $173m FY2019 - down 25%, so company expecting a massive 34% drop in 2H NPAT.





I think SKC

[winner69]

Companies on the NZX do have to report to set formats - but as per usual, the set formats end up creating confusion, hence the normalized results.

In the good old days, companies were free to use their 'judgement' to present as they saw fit - so the likes of Fay Richwhites had a field day changing their accounting policies one period to the next as it suited them.

So what are the pertinent points about the normalized results?

EBITDA down 10.7%, NPAT down 16.4% and EPS down 15%.

Forecast FY2020 normalized NPAT of $130m vs $173m FY2019 - down 25%, so company expecting a massive 34% drop in 2H NPAT.






I think SKC

Second half looking a bit sad eh

But good for the share price.

[gbogo]

SCAM or ERROR?

People, this is not quite the usual forum for such a post but I would like some local educated opinion on my recent experience.. dined at one of Sky City’s flagship restaurants on Sunday night. $240 bill seemed a bit steep given what we had ordered. Checked the math, as is my habit - and it only added up to $180..

Expressed my puzzlement to front of house staff who (too) quickly apologised and said it was the waiter’s error and that he had put “meal 2” (??) in by mistake. I said “ok but it looks like your machine doesn’t add up the amounts correctly... that must be programmed in deliberately...??” and so they quickly took some wine off the bill as well..

To be clear, this wasn’t adding in an extra bottle of wine. It was purposeful mis-adding. So, wise and savvy investor peoples, has anything like this happened to you? Is it a scam? A way to boost profits?? Or is the error explicable?

answers please...

[Benny1]

SCAM or ERROR?

People, this is not quite the usual forum for such a post but I would like some local educated opinion on my recent experience.. dined at one of Sky City’s flagship restaurants on Sunday night. $240 bill seemed a bit steep given what we had ordered. Checked the math, as is my habit - and it only added up to $180..

Expressed my puzzlement to front of house staff who (too) quickly apologised and said it was the waiter’s error and that he had put “meal 2” (??) in by mistake. I said “ok but it looks like your machine doesn’t add up the amounts correctly... that must be programmed in deliberately...??” and so they quickly took some wine off the bill as well..

To be clear, this wasn’t adding in an extra bottle of wine. It was purposeful mis-adding. So, wise and savvy investor peoples, has anything like this happened to you? Is it a scam? A way to boost profits?? Or is the error explicable?

answers please...
Haven't had this happen to me.. But haven't dined in those restaurants either..
If you still have a copy of the bill I would forward a copy of it to the commerce commission and also a copy to the CEO of SKC.
Good on you for checking the bill... It's a great reminder to all of us to do the same!

[carrom74]

SCAM or ERROR?

People, this is not quite the usual forum for such a post but I would like some local educated opinion on my recent experience.. dined at one of Sky City’s flagship restaurants on Sunday night. $240 bill seemed a bit steep given what we had ordered. Checked the math, as is my habit - and it only added up to $180..

Expressed my puzzlement to front of house staff who (too) quickly apologised and said it was the waiter’s error and that he had put “meal 2” (??) in by mistake. I said “ok but it looks like your machine doesn’t add up the amounts correctly... that must be programmed in deliberately...??” and so they quickly took some wine off the bill as well..

To be clear, this wasn’t adding in an extra bottle of wine. It was purposeful mis-adding. So, wise and savvy investor peoples, has anything like this happened to you? Is it a scam? A way to boost profits?? Or is the error explicable?

answers please...

Just to be clear--The initial $240 bill had the same food and quantity you ordered? -if yes then it could be a totaling mistake by the machine and is not human error...

Skycity uses or used to (not sure now)one of the top of the line billing systems which is used in restaurants and hotels all over the world(micros-fidelio)...My wildest guess would be a programming error..I doubt Skycity would do it deliberately.

[gbogo]

Just to be clear--The initial $240 bill had the same food and quantity you ordered? -if yes then it could be a totaling mistake by the machine and is not human error...

Skycity uses or used to (not sure now)one of the top of the line billing systems which is used in restaurants and hotels all over the world(micros-fidelio)...My wildest guess would be a programming error..I doubt Skycity would do it deliberately.

The initial bill had eg 10 line items of $18 each = $180, but a “Total” of $240. I wish I had taken a pic before they whisked it away.

[NZSilver]

Buy today and take the div. Strong cashflows will see this business through the corona downturn.

[hogie]

SCAM or ERROR?

People, this is not quite the usual forum for such a post but I would like some local educated opinion on my recent experience.. dined at one of Sky City’s flagship restaurants on Sunday night. $240 bill seemed a bit steep given what we had ordered. Checked the math, as is my habit - and it only added up to $180..

Expressed my puzzlement to front of house staff who (too) quickly apologised and said it was the waiter’s error and that he had put “meal 2” (??) in by mistake. I said “ok but it looks like your machine doesn’t add up the amounts correctly... that must be programmed in deliberately...??” and so they quickly took some wine off the bill as well..

To be clear, this wasn’t adding in an extra bottle of wine. It was purposeful mis-adding. So, wise and savvy investor peoples, has anything like this happened to you? Is it a scam? A way to boost profits?? Or is the error explicable?

answers please...


Likely human error of some sort .. definitely not a scam ... SkyCity doesn't care about your extra $60 when they make thousands of dollars per minute in the casino :)

[see weed]

Buy today and take the div. Strong cashflows will see this business through the corona downturn.
Yes, did that this afternoon on close at $3.49c just for the dividend. This is the start of the dividend stripping month for me. I expect the sp will drop a bit tomorrow, by how much I don't know, but am not to concerned.

[MauroNZ]

Yes, did that this afternoon on close at $3.49c just for the dividend. This is the start of the dividend stripping month for me. I expect the sp will drop a bit tomorrow, by how much I don't know, but am not to concerned.

And you are very right mate, shame I didn't read this on time. BTW what made you think this? some TA indicators? Thanks in advanced.

[Biscuit]

First bought SKC for 3.25 in 2009. Now it is nearly back there. Starting to look a little tempting. Company never seems to achieve very much, but they should be recession-proof if that is where we are heading.

[RGR367]

And you are very right mate, shame I didn't read this on time. BTW what made you think this? some TA indicators? Thanks in advanced.

If you've been a follower or better still a long time holder of this stock, it normally goes down by the dividend amount on the day after it goes ex-div date. Which is a normal thing for a stock to do and the timing you need if you need to accumulate at a lower price. But SKC is no longer a growth stock so it acts as just boring dividend paying company now. Its going down terribly today could be just the realization that it may not hover back to its safe price range of 390-410 of old. And Sars Cov 2 scare effect is affecting it too.

[MauroNZ]

If you've been a follower or better still a long time holder of this stock, it normally goes down by the dividend amount on the day after it goes ex-div date. Which is a normal thing for a stock to do and the timing you need if you need to accumulate at a lower price. But SKC is no longer a growth stock so it acts as just boring dividend paying company now. Its going down terribly today could be just the realization that it may not hover back to its safe price range of 390-410 of old. And Sars Cov 2 scare effect is affecting it too.

Thank you, I have been a holder for over 6 years and joined 2 years ago to the DRP. The idea was originally to hold a monopoly long term, after Nigel left I started to consider selling but then I thought better to wait and see how the conventions centre goes.

You are right about the ex-div date I just forgot the date. Now is at a price that I haven't seen before.

[Marilyn Munroe]

The initial bill had eg 10 line items of $18 each = $180, but a “Total” of $240. I wish I had taken a pic before they whisked it away.

Was the bill printed on a roll printer. Did you watch it being printed or was it brought to the table. Was there page header stuff printed on the top of the bill you were presented with?

An old fiddle is to enter an item you have not ordered at the top of the bill and then trim the bill below that item. Most people will check to see if there is a stray item but won't add the items to check the total. Any time this is detected they will offer profuse apologies and correction but that doesn't happen often.

Time for SKC security to do some investigating to reassure themselves all is well.

Boop boop de do
Marilyn

[bull....]

some countries are making casinos close , a risk to be aware off.

[carrom74]

some countries are making casinos close , a risk to be aware off.

But SKC's new online gaming platform(started last year) could help...(some non-contactable additional revenue)

[bull....]

But SKC's new online gaming platform(started last year) could help...(some non-contactable additional revenue)

not big enough compared to other bigger players

[Biscuit]

some countries are making casinos close , a risk to be aware off.

They are going to take a pretty big hit over the next months anyway. Probably best that the convention center hasn't opened. I guess they are in a position to weather the storm, they have been wasting enough shareholder's money on share buy-backs. Is on my shopping list for when there is some actual certainty.

[Snoopy]

They are going to take a pretty big hit over the next months anyway. Probably best that the convention center hasn't opened. I guess they are in a position to weather the storm, they have been wasting enough shareholder's money on share buy-backs. Is on my shopping list for when there is some actual certainty.


SKC are not in a good position, but they are in a relatively good position. Some people see SKC as a 'tourism' business. For sure tourism provides the cream. But SKC is actually a domestic business with most of the turnover coming from Aucklanders or domestic visitors, They have an analogous position with their casino in Adelaide. Furthermore the insurance payout from the convention centre fires have left them relatively cashed up. So one to keep an eye on I think, although I would say that!

SNOOPY

discl: holder

[Biscuit]

S.....Some people see SKC as a 'tourism' business.......

SNOOPY

discl: holder


Looking at their share-price chart, you would be forgiven for thinking they were an airline.

Disc: long-term holder

[bull....]

All bets are off: Casinos grind to a halt over coronavirus


https://www.washingtonpost.com/business/2020/03/15/casinos-coronavirus-closures-jobs/

dont know how sky city casino can stay open if you are not allowed large gatherings


Crown Melbourne adopts social distancing
https://www.news.com.au/finance/business/breaking-news/crown-melbourne-adopts-social-distancing/news-story/d0aeb229b6c6e11f86b2773fd7a7eb49

[Snoopy]

All bets are off: Casinos grind to a halt over coronavirus
https://www.washingtonpost.com/business/2020/03/15/casinos-coronavirus-closures-jobs/

dont know how sky city casino can stay open if you are not allowed large gatherings


I think the unions are on top of this. They were in the media yesterday asking what would happen on busy nights when there are more than 500 people on the floor at Sky City Auckland. The solution to me seems obvious. They have security guards on the doors already, If too many people are inside, stop entry! When people leave, the security guard can let in a few more to replace them. I have a feeling the whole situation could be self regulating anyway, with less people wanting to go out in general. Listening between the lines, I got the impression that having 500 people on the floor was a peak event and wouldn't be an issue except for perhaps Friday and Saturday nights. If less people are gambling, then the existing staff can spend more time cleaning the slot machines and tables to keep it safe for those customers that do remain.

The article you referenced Bull is about Las Vegas, a tourist town where casinos are the sole attraction. It is a long bow to compare Auckland (or Adelaide) to Las Vegas. I wouldn't totally discount the risk though, and thanks for the reference.

SNOOPY

[bull....]

I think the unions are on top of this. They were in the media yesterday asking what would happen on busy nights when there are more than 500 people on the floor at Sky City Auckland. The solution to me seems obvious. They have security guards on the doors already, If too many people are inside, stop entry! When people leave, the security guard can let in a few more to replace them. I have a feeling the whole situation could be self regulating anyway, with less people wanting to go out in general. Listening between the lines, I got the impression that having 500 people on the floor was a peak event and wouldn't be an issue except for perhaps Friday and Saturday nights. If less people are gambling, then the existing staff can spend more time cleaning the slot machines and tables to keep it safe for those customers that do remain.

The article you referenced Bull is about Las Vegas, a tourist town where casinos are the sole attraction. It is a long bow to compare Auckland (or Adelaide) to Las Vegas. I wouldn't totally discount the risk though, and thanks for the reference.

SNOOPY

i posted another link saying crowne casino in aus is implementing social distance guild lines. it would be good if sky city came out and said how they are going to help in the fight against the virus. they are very quiet maybe profits are all they are concerned about?

[Snoopy]

i posted another link saying crowne casino in aus is implementing social distance guild lines. it would be good if sky city came out and said how they are going to help in the fight against the virus. they are very quiet maybe profits are all they are concerned about?


From the article you referenced

https://www.news.com.au/finance/business/breaking-news/crown-melbourne-adopts-social-distancing/news-story/d0aeb229b6c6e11f86b2773fd7a7eb49

"Crown said on Monday it would keep gamblers apart by switching off every second gaming machine and electronic table, barring standing players at seated table games, and restricting the number of players at stand-up table games to five."

"The company will also restrict the number of patrons in its banqueting and conference facilities to 450 people "with a prescribed maximum density"."

"Crown said it has also implemented other measures at its Melbourne and Perth properties, including greater frequency of cleaning and the provision of hand sanitiser."

Very sensible precautions from Crown. I would like to see Sky City mirror these moves.

SNOOPY

[Balance]

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12317277

Steps taken by Sky City

[bull....]

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12317277

Steps taken by Sky City


good to see sky being good responsible entity lets hope other businesses follow there lead

[frostyboy]

Has anyone been to the Auckland Casino before Coronavirus and since? How much less busy do you think it is? How much more staff than normal are doing nothing?

I can't see any big discounts on the hotel bookings on websites

[limmy]

Has anyone been to the Auckland Casino before Coronavirus and since? How much less busy do you think it is? How much more staff than normal are doing nothing?

I can't see any big discounts on the hotel bookings on websites

About the same number of people. Gamblers don't wear masks either.

[winner69]

Gloomy outlook from Sky City

FY20 normalised npat about $85m

Essentially means losing money at the moment

How long will this last?

[Balance]

Gloomy outlook from Sky City

FY20 normalised npat about $85m

Essentially means losing money at the moment

How long will this last?

HY was $75m so yes, losing money at present.

[Biscuit]

HY was $75m so yes, losing money at present.

That's not surprising and clearly it is going to get worse. But really, they are starting to look over sold. I'm holding but not buying yet as this is going to impact them for quite a while.

[Grimy]

I sold mine with a bit of a capital loss in the mid $3s.
Was looking to buy back in when there was a 2 as a first number.
Looks like I'll be able to wait for a 1...…..

[Biscuit]

I sold mine with a bit of a capital loss in the mid $3s.
Was looking to buy back in when there was a 2 as a first number.
Looks like I'll be able to wait for a 1...…..

When to buy is a hard question. Long term, I think they are a safe, if unspectacular, company - not likely to go bust and not likely to excel. Covid-19 is a significant short-term hit but should provide buying opportunities for long term holders.

[Grimy]

I sold mine with a bit of a capital loss in the mid $3s.
Was looking to buy back in when there was a 2 as a first number.
Looks like I'll be able to wait for a 1...…..

And there we are!
Still not buying. I think the numbers behind the 1 will go quite a bit lower. But certainly on my watchlist.

[Grimy]

$1.70.
I have to keep adjusting my buy price down-hardly getting a chance to write down a new number!

[Biscuit]

$1.70.
I have to keep adjusting my buy price down-hardly getting a chance to write down a new number!

If you keep adjusting your buy price down without buying, it isn't a buy price.

[Grimy]

The "I would buy at that price" price in my head!

[Biscuit]

The "I would buy at that price" price in my head!

Not a recommendation, as what do I know, but I bought some today. Hard to say no at that price. Even if all SKC revenue was written off for a whole year that would not come close to the value that has been wiped off this company recently. I know that we are in a bear market and that they will likely be cheaper tomorrow and cheaper again the next day and ..... but these prices look good enough for me.

[Balance]

Not a recommendation, as what do I know, but I bought some today. Hard to say no at that price. Even if all SKC revenue was written off for a whole year that would not come close to the value that has been wiped off this company recently. I know that we are in a bear market and that they will likely be cheaper tomorrow and cheaper again the next day and ..... but these prices look good enough for me.

Agreed. :eek2:

[moimoi]

Hmmm... $1.75 couldn't hold. Lets see if $1.25 does... :cursing:

[Cadalac123]

This ones going to be a steal soon

[Baa_Baa]

This ones going to be a steal soon you know with the border closed, no international visitors or tourists, in a month or two you won’t be able give away SKC. I predict a very very slow recovery as well.

[Beagle]

you know with the border closed, no international visitors or tourists, in a month or two you won’t be able give away SKC. I predict a very very slow recovery as well.

Okay so no foreign tourists but there's another problem as well. Who in their right mind (apart from hardened addicted gamblers who arguably are not), would want to go to the Casino now ?

[King1212]

Online gambling mate....once u are addicted...u will try anything to gamble

[hogie]

Online gambling mate....once u are addicted...u will try anything to gamble

Yep ... actually this could be just what SkyCity needs to promote it's online casino option (despite the fact they are not allowed to promote it). Short term pain for long term gain? Maybe ..

[Beagle]

Online gambling mate....once u are addicted...u will try anything to gamble

Isn't 7 hours a day 10.00 am to 5.00 p.m. gambling on the NZX enough lol

[Cadalac123]

you know with the border closed, no international visitors or tourists, in a month or two you won’t be able give away SKC. I predict a very very slow recovery as well.

I don’t mean now I mean long term buddy

[King1212]

Isn't 7 hours a day 10.00 am to 5.00 p.m. gambling on the NZX enough lol

NZX is different...not a gambling.....I called it fortune grabbing....

From panic sellers to rational investors.....like some of us... including me��

[trackers]

Okay so no foreign tourists but there's another problem as well. Who in their right mind (apart from hardened addicted gamblers who arguably are not), would want to go to the Casino now ?

I was in Auckland on business this week and put up in the sky city hotels. Airport dead, town dead, everything dead.... sky casino? Pretty bloody busy. Couldn’t believe it. Predominantly Asian, pacific island, and American crowd. ATM had a line each of the times I went past over 2 days

[dubya]

So the Government is banning indoor gatherings of more than 100 people. Workplaces are exempt at this stage.
Does the ban apply to Skycity, or is the casino considered a workplace????

[Harley]

Auckland
• Visitation to the precinct down around 15%
• Electronic gaming machine revenue down 14%
• Domestic table and automated table game revenue down 43%
• Hotel revenue down 19% with average occupancy of 79%
• Food, beverage and conventions revenue down 32%
• Sky Tower revenue down 35%

Not a pretty picture.

Sold out at a loss at $3.17 as I felt it was going below $3, never expected it would go this low.
Intend to buy back but not just yet.

[Beagle]

So the Government is banning indoor gatherings of more than 100 people. Workplaces are exempt at this stage.
Does the ban apply to Skycity, or is the casino considered a workplace????

Now that's a good question !
If Churches of more than 100 regular parishioners have to stop religious meetings then surely on the opposite side of the ledger this den of iniquity must follow suit ?

[Airw0lf]

Now that's a good question !
If Churches of more than 100 regular parishioners have to stop religious meetings then surely on the opposite side of the ledger this den of iniquity must follow suit ?

Damn right it should, especially when you factor in handling of chips, playing cards, etc. It's a virus spreading bonanza.

[Biscuit]

Now that's a good question !
If Churches of more than 100 regular parishioners have to stop religious meetings then surely on the opposite side of the ledger this den of iniquity must follow suit ?

They will simply sub-divide the space to ensure they comply. Generally higher ethical standards than many religious organisations?

[THEONE]

I am suprised this has dropped this much. Surely they easily have enough funds to see out the crisis...Worst case if they shut for 12 months, how much would this cost them? Roughly 2 billion has been shaved off their valuation. Surely shutdown would cost 200 million max for 12 months.
Sorry very rough numbers. The loss would then be able to be used in following years...

[bull....]

I am suprised this has dropped this much. Surely they easily have enough funds to see out the crisis...Worst case if they shut for 12 months, how much would this cost them? Roughly 2 billion has been shaved off their valuation. Surely shutdown would cost 200 million max for 12 months.
Sorry very rough numbers. The loss would then be able to be used in following years...

worst case is casino is made to close , like casinos in las vegas have been.

hotels will be loss making i would think , restaurants empty pretty much

so its a tough time for sky city

[Beagle]

They will simply sub-divide the space to ensure they comply. Generally higher ethical standards than many religious organisations?

You're kidding me right ? Casino's are a parasite on society and the source of much social discord. How many people take their loss frustration out on their partner and kids ?

[Biscuit]

You're kidding me right ? Casino's are a parasite on society and the source of much social discord. How many people take their loss frustration out on their partner and kids ?

I'm not saying that SKC (that provides accommodation and entertainment services) is not a "den of iniquity", although I don't personally think that is an entirely accurate description. That is anyway a separate argument. I just said, in counter to your negative comparison of SKC to "church groups", that SKC would likely have a higher ethical standard than some of those organisations, which I think is clearly the case. I would think that we can probably both agree that overall both groups are roughly comparative ethically. In terms of applying social distancing rules, you could argue that the same rules should apply, and maybe they should, but the economic consequences of closing large employers is likely to be more significant than closing church groups.

[moimoi]

You're kidding me right ? Casino's are a parasite on society and the source of much social discord. How many people take their loss frustration out on their partner and kids ?

And non transparent offshore entities, with the knowledge and wherewithal to investigate 1000's of investment opportunities globally, have decided they are duty bound to improve the lives of the 5% of NZ'ers able to afford independant retirement village living...

[Beagle]

https://www.nzx.com/announcements/350444 Interesting times coming for SKC shareholders.

[bull....]

NZ casinos would have to close at level 4

[Beagle]

NZ casinos would have to close at level 4

Maybe even at level 3, coming later this week ?

[Beagle]

New all time low for SKC. If I remember correctly the IPO was at $1.40 24 years ago in 1996 !

[Sideshow Bob]

New all time low for SKC. If I remember correctly the IPO was at $1.40 24 years ago in 1996 !

May have been a share split at some stage??

[Scrunch]

New all time low for SKC. If I remember correctly the IPO was at $1.40 24 years ago in 1996 !

Splits and or rights issues have changed the issued capital quite a bit. An old 1998 Investment yearbook has the listing being at the equivalent of $4.25 with 100m shares on issue for a market capitalisation of $425m at issue price. Now there's 667m shares on issue and a market cap at $1.30 of $867m.

Having not followed them closely, I don't know how much of the change from 100m to 667m was rights issues, bonus issues, shares to executives or splits.

[Balance]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/351201/320261.pdf

Good to see SKC taking action to 'right-size' its expenses base during the lockdown and for post the lockdown.

Acceptance that it is going to take a while for the business to recover.

[vorno]

Auckland
• Visitation to the precinct down around 15%
• Electronic gaming machine revenue down 14%
• Domestic table and automated table game revenue down 43%
• Hotel revenue down 19% with average occupancy of 79%
• Food, beverage and conventions revenue down 32%
• Sky Tower revenue down 35%

Not a pretty picture.

Sold out at a loss at $3.17 as I felt it was going below $3, never expected it would go this low.
Intend to buy back but not just yet.

When will you buy back is the question?
...Just as well you sold at $3.17

[Biscuit]

Not a recommendation, as what do I know, but I bought some today. Hard to say no at that price. Even if all SKC revenue was written off for a whole year that would not come close to the value that has been wiped off this company recently. I know that we are in a bear market and that they will likely be cheaper tomorrow and cheaper again the next day and ..... but these prices look good enough for me.

Sold back what I bought in March, today. The sp has bounced up quite well and there is still a hard road ahead for them I reckon. Level 3 is not going to help them I don't think. Things are going so well in NZ with getting on top of COVID-19 everyone has got their rose-tinted glasses on i think.

[carrom74]

Sold back what I bought in March, today. The sp has bounced up quite well and there is still a hard road ahead for them I reckon. Level 3 is not going to help them I don't think. Things are going so well in NZ with getting on top of COVID-19 everyone has got their rose-tinted glasses on i think.

Sold mine too. Even in level 3 i doubt they will be open and going by the media reports, the unions will be hunting down the management- the way the staff have been fired without any consultations... Tough going for SKC for sure...(NZICC fire seems just a smoke if compared with the present scenario)

[clip]

SKC looking to do an AIR, good for a quick trade

[bull....]

I agree skc needs a capital raising

$1b wiped from SkyCity - dividend suspension, capital raising forecast
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12330260

[Cadalac123]

I agree skc needs a capital raising

$1b wiped from SkyCity - dividend suspension, capital raising forecast
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12330260

wow who would have thought, with the 100% share price increase recently , didn't that mean skycity is a booming company /sarcasm

[huxley]

Hmmm, they had over $400m liquidity and they are burning through about $20-$30m a month. So they should be all good for a wee while. Long term this IS a good value play, hence the share price movement. They’ll be back to paying 20-15c pa dividends in a year or two :)

[Balance]

Sobering.

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12330899

"Casino operator SkyCity Entertainment Group has revealed "incredibly difficult" plans to slash another 700 jobs which a union says is mainly in Auckland and almost a third of the approximately 3000 part and full-time jobs there.

The company is blaming "weaker economies, lower personal disposable income, changed entertainment habits, restrictions on mass gatherings and physical distancing requirements" and long-term travel restrictions for the decision."

[dompf]

Sobering.

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12330899

"Casino operator SkyCity Entertainment Group has revealed "incredibly difficult" plans to slash another 700 jobs which a union says is mainly in Auckland and almost a third of the approximately 3000 part and full-time jobs there.

The company is blaming "weaker economies, lower personal disposable income, changed entertainment habits, restrictions on mass gatherings and physical distancing requirements" and long-term travel restrictions for the decision."

I think many larger companies will be streamlining. Despite the terrible job loss coming at least Skycity are being upfront and proactively realistic about what their future is looking like albeit grim :(.

[hogie]

I think many larger companies will be streamlining. Despite the terrible job loss coming at least Skycity are being upfront and proactively realistic about what their future is looking like albeit grim :(.

Really sad ... but realistic ... I guess they held onto the staff as long as possible until things became more certain.
Downturn in International Travel/Tourism will hurt big time ... as well as the social distancing rules hitting Casino, Bars, Restaurants, Hotels.

[carrom74]

At the ASX - last hour trading( after NZX closed) saw a spike of almost 8%... interesting day tomorrow

[JohnnyTheHorse]

At the ASX - last hour trading( after NZX closed) saw a spike of almost 8%... interesting day tomorrow

Thanks for highlighting this. Got in first thing for an arb play.

[Balance]

Steady as she goes - one company which may not need to raise capital?

https://www.nzx.com/announcements/354062

SkyCity continues to have a strong liquidity position with around $330 million of cash and undrawn debt facilities currently available as at 31 May 2020. SkyCity does not expect to require any waivers for its 30 June 2020 debt covenants.

[Waltzing]

i hope no cap raise as i forgot to panic and sell... i will trade the relation in another portfolio specially set up for new trades..

[King1212]

Surprisingly great update. Even lockdown....its business managed to be profitable.

Plenty of cash....cost reduction...no need to capital raise.

Should see SKC back to $3.50 next Monday if the government announcement to level 1. Which is really promising...as uncle Peter is screaming loud as...

[Waltzing]

3.50 by next monday? i hope not...... please i havnt even set up my reflation portfolio thinking that the market would be terrified to invest... no so... i now feel by the shear scale of money flowing into the market we are going to have a new bull market and the proces will in 5 years be higher than the last bull market...DISC: own sky city in 2 portfolios and do not want this stock to recover until after the banks recover... This market is not even remotely following the GFC play book due to the fact that investors now realise that QE and the new QE to infinity means neither the banks nor businesses can go bust... in the next Global financial markey melt down the RBNZ will follow the feds lead and buy rated bonds of NZ companies? i hope im still trading to see it..this is not your grand parents depression. Roads packed in the southern districts of waipa.. You would not even know the tourists have gone...Except prehaps farther south in rotorua and tuapo..

[sb9]

Joined the fun here with very man and his dog pushing the markets higher and higher on back stimulus by various Central banks. Enjoy while its lasts :D

[Leftfield]

Joined the fun here with very man and his dog pushing the markets higher and higher on back stimulus by various Central banks. Enjoy while its lasts :D

GLH........one of my rules - 'no gambling stocks.'
Crazy aye!?

[Waltzing]

Sky city packed to allowed limits last night in hamilton. That notice was marked NOT PRICE SENSITIVE.... please who is hiring these people... This stock is now one of the most tradable on the NZX and also investable in the long run.. BARGIN at who ever was lucky at the bottom..

[kiwico]

GLH........one of my rules - 'no gambling stocks.'
Crazy aye!?

You'd love Simplicity, I think they have the same view with their NZX fund. Me I've SKC plus CWN and SGR on the ASX. I don't partake myself as I can't even win on the slot machines in Las Vegas with the biggest payout percentage in the world...but luckily lots of other people do.

[Scrunch]

GLH........one of my rules - 'no gambling stocks.'
Crazy aye!?

In the current market I hope you have sold any shares in the NZX Ltd. I'm struggling to see the difference between them and the behaviour of the stocks they list and SKC and a casino table at present.

[kiora]

3.50 by next monday? i hope not...... please i havnt even set up my reflation portfolio thinking that the market would be terrified to invest... no so... i now feel by the shear scale of money flowing into the market we are going to have a new bull market and the proces will in 5 years be higher than the last bull market...DISC: own sky city in 2 portfolios and do not want this stock to recover until after the banks recover... This market is not even remotely following the GFC play book due to the fact that investors now realise that QE and the new QE to infinity means neither the banks nor businesses can go bust... in the next Global financial markey melt down the RBNZ will follow the feds lead and buy rated bonds of NZ companies? i hope im still trading to see it..this is not your grand parents depression. Roads packed in the southern districts of waipa.. You would not even know the tourists have gone...Except prehaps farther south in rotorua and tuapo..

& Waitomo?

[kiwico]

& Waitomo?

But that won't matter because hasn't the PM just given them $40m of our money for some reason.

[Waltzing]

Waitomo? Yes im afraid my comment were a little bit paper over the cracks? i mean large ravines in the new zealand business landscape. While the stock market has repriced at a rate im struggling to keep up with there are many main street businesses that wont see this repricing and tourism willl be one of them. But the market is already pricing in 2 years out.

[NOCASH]

Can someone tell me what is going with SKC, share prices has gone up 8.4%! I guess all investor that bought today reckons SKC is under price? I did see Morning Star report has SKC valued at $3.80. I am wondering should I sell now before the dip back to $2.XX?

[Waltzing]

if by some chance it drops to 2x ill buy more.... please...the market is a future pricing machine...

[bull....]

Banks, investors gear up for SkyCity funding plan


The equity deal, should it be finalised, is expected to take the form of a share placement, however sources said the board had yet to decide exactly how much

https://www.afr.com/street-talk/banks-investors-gear-up-for-skycity-funding-plan-20200611-p551i1

[Waltzing]

they probably got excited when the share price went up... can go down just as fast in the new la la land of QE infinity...2.50? But really in 5 years time its tops at easy 5 dollars?

[Waltzing]

A lot of traffic here in the mid central waikato over the weekend with no small towns having issues with statues being removed. Traffic very heavy in some towns and sky city hamilton busy through out the week. Movie going returned to hamilton at the LIDO with the french film festival attended by small numbers and staff returned looking happy to be back at work. Venues like the lido of course providing some student work.

[Biscuit]

Banks, investors gear up for SkyCity funding plan


The equity deal, should it be finalised, is expected to take the form of a share placement, however sources said the board had yet to decide exactly how much

https://www.afr.com/street-talk/banks-investors-gear-up-for-skycity-funding-plan-20200611-p551i1

Yeah, and this is a company that a couple of months ago was flat out buying its own shares. That didn't work out too well (for shareholders). Seems to me there is a need for more prudence in some of our boardrooms.

[Balance]

Yeah, and this is a company that a couple of months ago was flat out buying its own shares. That didn't work out too well (for shareholders). Seems to me there is a need for more prudence in some of our boardrooms.

And a few months ago, there was no Covid-19 lockdown just as there was no earthquake in Christchurch in 2009.

[Waltzing]

the last ten years there does seem to have been a lot of rather big events occuring that have caused some big falls in global markets. We have all been hit by these events and there may be more to come on this one. Have a plan in case this happens is always good in the rear view mirror. SKC is a stock that will go higher in the long run.

[Biscuit]

And a few months ago, there was no Covid-19 lockdown just as there was no earthquake in Christchurch in 2009.

Yes, a few months ago there was, to paraphrase, no covid19, no earthquake, no Global Financial Crisis, no Asian Recession, no 2nd Gulf War, no Twin Towers, no Cuban Missile Crisis, no Suez Crisis, no World Wars, no Great Depression, no... (I could go on forever, history repeats over and over). That is why prudence is useful. When there isn't a crisis, that is the time to bolster your defenses for when, inevitably, there is a crisis. There are several reasons why that is a better way to manage a business long term: 1) you avoid the risk of falling off a financial cliff in really tough times; 2) you avoid spending shareholders hard-earned money on over-priced shares; 3) you are in a better financial position to take advantage of buying opportunities that cyclically occur whenever there is a crisis or even just at the bottom end of a business cycle.

[Waltzing]

over priced? in the long term? maybe the management team look at the long term and in their OP they decided it was not. Its up to you to view it glass half full.. or empty..i do agree that share buy backs are supposed to return more to share holders in the long term but the other view is that a special dividend is more in order if cash cant be reused to say pay down debt which is in my view how such money should be used in SKC case.

[Waltzing]

capital raise.....trading halt...no div for over a year...

[sb9]

capital raise.....trading halt...

2.50 a piece, not bad...

[Biscuit]

2.50 a piece, not bad...

I bought them for a whole load less than that a few months ago, sold them for a bit less than that and I'll take the risk that I'll buy them back for less than that in the near future.

[Waltzing]

yes its a trade for sure... but i dont know how many chances you will get to buy less than that. A lot of very big action on the vaccine front with the big pharma not waiting for all phases. 3 years time and i would be surprised if it doesnt re pass 4.0. After all they have a government backed asset generator. If you could have seen them line up to get into hamilton at level 2 it was an eye opener! Level 1 and the new very comfortable seats at the bar food lounge and i was astounded..If they get there act together in AUS and the convention centre and hotels will be packed...sports bar and bowling.. its a place people go..new concert centre being developed and the golden triangle will grow. People will try to leave china again within 3 years.

[Biscuit]

yes its a trade for sure... but i dont know how many chances you will get to buy less than that. A lot of very big action on the vaccine front with the big pharma not waiting for all phases. 3 years time and i would be surprised if it doesnt re pass 4.0. After all they have a government backed asset generator. If you could have seen them line up to get into hamilton at level 2 it was an eye opener! Level 1 and the new very comfortable seats at the bar food lounge and i was astounded..If they get there act together in AUS and the convention centre and hotels will be packed...sports bar and bowling.. its a place people go..new concert centre being developed and the golden triangle will grow. People will try to leave china again within 3 years.

Interesting comment regarding punter lining up to get in at level 2. I've always had difficulty understanding why anyone goes in there at all, but obviously they do. SKC is a long term hold for me, with a bit of re-positioning along the way. I think there is a lot of water still to flow under the bridge before we are out of the woods regarding covid and I won't be taking up the share placement, hopefully it is tradable rights?

[RGR367]

Need to ask for an increase on my ML limit to be able to participate on this. And I will apply for the maximum allowed.

[bull....]

buying into these capital raisings is money for jam , think everyone on the NZX has made s/h money

[Biscuit]

buying into these capital raisings is money for jam....

And yet a few months ago, hardly anyone wanted to buy these shares at nearly half this price, go figure.

[bull....]

And yet a few months ago, hardly anyone wanted to buy these shares at nearly half this price, go figure.

yea seems alot of the buying of all stocks on the plunge was from the newbies . good on them they all probably made sh..loads.

[Beagle]

Recent events and statements by Australian officials have shown the Trans-tasman bubble is unlikely anytime soon. Smart move for them to do a capital raise before everyone wakes up to the implications and possibilities of this weeks events.

[Waltzing]

yes MR B. On the money again. but they seem to buying again!! Its that long term value here out 5 years. Its dirt cheap if you have a 5 year or longer term view. I would say that management cannot but think that this is a wonderful oppo for them to buy up big ramp up the DIV later on. Imagine what div off the back of some of these prices in 5 years... blows anything out of the water...I amend my post by saying that this is not a stock for some based on moral grounds.

[Beagle]

ESG concerns for me with this one. Not for me.

[sb9]

Banner on Direct Broking website says, due to high demand in institutional placement, no shares were available for retail investors...however eligible holders can apply through SPP.

[MauroNZ]

Banner on Direct Broking website says, due to high demand in institutional placement, no shares were available for retail investors...however eligible holders can apply through SPP.

Thanks sb9, I saw that as well.

[Waltzing]

powering up today.... 290 !!

[theace]

Any idea of buy-in price for SPP? ... haven't seen anything, and the offer website doesn't have any details yet (scheduled for release on Monday).

[sb9]

Any idea of buy-in price for SPP? ... haven't seen anything, and the offer website doesn't have any details yet (scheduled for release on Monday).


SkyCity intends to offer the SPP to eligible existing shareholders with a registered address in New Zealand and Australia, enabling them to subscribe for up to $50,000/A$47,000 of new SkyCity shares. The SPP offer size is $50 million (with no oversubscriptions) and theoffer price of these shares will be the lower of the Placement offer price of $2.50 and a 2.5% discount to the five-day VWAP of SkyCity shares traded on the NZX during the last five days of the SPP offer period. If scaling of the SPP is required, it will be done with reference to the shareholders' existing shareholdings at the record date of 16 June 2020 and otherwise at SkyCity’s discretion.

Going by current price trend and huge demand, its probably safe to assume that SPP price will be same as instos at $2.50 a piece.

[dibble]

Going by current price trend and huge demand, its probably safe to assume that SPP price will be same as instos at $2.50 a piece.

...there's a curious recurring theme with these capital raisings (IFT is latest) where the share price dips to a cent or three below the placement price before scurrying up again just in time to ensure the final retail price isnt discounted... almost by design...

[Waltzing]

yes we under estimated the KMD demand and only took our allotment.. made profit but really should have bought the farm... the market is loving it. Probably because the amount raised wasnt as bad as expected? really there is appear to be some very very popular stocks and the market including all new investors have decided these business are a once in a life time price... but after many many years of transactions passing under the bridge there appears to always be another once in a life time event to effect prices as some outline on another thread back to 1987... and before 1933...

big day 15 million ... market loves it !!!!

[Norwest]

Offer is now live and I've bought in. In 2025 this will look very cheap, this is a great buy and hold at this price.

[NOCASH]

Offer is now live and I've bought in. In 2025 this will look very cheap, this is a great buy and hold at this price.

When you are cheap, what will the share price be approximately in January 2025....

[Waltzing]

possible somewhere over 4. It depends on china's relationship to australia but 4 would be if all is not well.

[NOCASH]

Very nice 4 in front is better than 2 or 1 in front.

[Snoopy]

...there's a curious recurring theme with these capital raisings (IFT is latest) where the share price dips to a cent or three below the placement price before scurrying up again just in time to ensure the final retail price isnt discounted... almost by design...


Confirmation of the first part of the dibble theory. SKC drops to $2.49 today, 1c below the share issue price. Still I have my request into the offer hoping to fill my boots. Looks like I might get my wish?



theoffer price of these shares will be the lower of the Placement offer price of $2.50 and a 2.5% discount to the five-day VWAP of SkyCity shares traded on the NZX during the last five days of the SPP offer period.


Last five days of share price plan offer period are 29th June, 30th June, 1st July, 2nd July and 3rd July. Despite the close, the vwap for 29th June was 252.56. Yet a 2.5% discount off that brings it down to $2.46. Good for small shareholders who have applied through the share purchase plan if this price heads lower?

SNOOPY

[Waltzing]

well Snoopy any reason we wont see 2.40? or will the newbie share investors see out 5 years and push the price back to 3 dollars?

[Balance]

well Snoopy any reason we wont see 2.40? or will the newbie share investors see out 5 years and push the price back to 3 dollars?

There you go.

Closed today at $2.39 on 12.7m total traded volume!

[Waltzing]

Well.Balance.. i havnt got the reflation entity up and running yet!!! does snoopy want to recalc the average now?

market finally starting to make some sense... even though the FED is at the ready...should give the newbie a bit of something to think about it they bought over 3... still they can always buy another 50,000 worth...if they can get them... after all if snoopy is buying ...

just checking my notifications... really i think we need something that is for investors... a whole new type of private site..a dark pool investor site..

[sb9]

There you go.

Closed today at $2.39 on 12.7m total traded volume!

I think the sell off must've been due to govt pulling the plug on APEC summit 2021 which will be now virtual/online event.

[Balance]

I think the sell off must've been due to govt pulling the plug on APEC summit 2021 which will be now virtual/online event.

The ICC will not be constructed in time anyway.

It’s something else I think. That’s big volume!

[Waltzing]

Combination of factors but the slightly bigger vols might be everything from

USA flare up

WHO saying its just getting started.

Victoria flare up

Government saying all the procedures and systems are not in place yet for bubble expansion.

Comments today from our group members today were they feel the execution of step by step detailed border and isolation procedures were not as they expected.


If the basics of that saga did not get a tick from professional instos then investors may feel the next step will not according to plan either and hit the button.

[Paradox]

Combination of factors but the slightly bigger vols might be everything from

USA flare up
WHO saying its just getting started.
Victoria flare up
Government saying all the procedures and systems are not in place yet for bubble expansion.
Comments today from our group members today were they feel the execution of step by step detailed border and isolation procedures were not as they expected.
.

On the contrary, AIA went up 2.18% with good volume.

[Waltzing]

AIA has never been a stock that reacts like SKC. The two stocks have nothing in common and SKC will always react in far more extreme ways.

[sb9]

The ICC will not be constructed in time anyway.

It’s something else I think. That’s big volume!

End of FY selling perhaps to window dress...

[Balance]

End of FY selling perhaps to window dress...

Ah - I think you are right.

Maybe not just window dressing but locking in tax losses as well for the Aussies.

[sb9]

Ah - I think you are right.

Maybe not just window dressing but locking in tax losses as well for the Aussies.

Yes, that's what I was meant to say to claim EOY tax losses.

[Balance]

Yes, that's what I was meant to say to claim EOY tax losses.

👍

Also a benefit to those participating in the SPP to have the sp below $2.50!

[sb9]



Also a benefit to those participating in the SPP to have the sp below $2.50!

I doubt anyone applying would get allocated much due to high demand.

[Waltzing]

with no expansion of the bubble coming soon.. and the fire about to rage out of control in the US , earning about to report in the USA. It could be that the stock tanks under the 2.40 for a short time and you MAY be able to top up more on market but its a slim chance. Low on the GFC was about 2.50 ish.

the big sell orders have been pulled...

moving back up 2.54... its as vol as ever.. wonderful trading stock.. DISC: we never sold ... sadly... we usually do...

[Snoopy]

Confirmation of the first part of the dibble theory. SKC drops to $2.49 today, 1c below the share issue price. Still I have my request into the offer hoping to fill my boots. Looks like I might get my wish?

Last five days of share price plan offer period are 29th June, 30th June, 1st July, 2nd July and 3rd July. Despite the close, the vwap for 29th June was 252.56. Yet a 2.5% discount off that brings it down to $2.46. Good for small shareholders who have applied through the share purchase plan if this price heads lower?


A couple more data points notched up. The VWAP was quoted at $2.40.46 for 30th June ($2.34 with the 2.5% discount) and $250.67 for 1st July ($2.44 with the 2.5% discount). That last figure surprised me with the share price closing at $2.59. However there were a couple of big crossings at $2.39 first thing in the morning that must have skewed the average. If the second part of the dibble theory holds, that higher price should stick for the next couple of days, denying those small shareholders a sub $2.50 entry via the share plan. Let's see what happens.

SNOOPY

[tango]

I doubt anyone applying would get allocated much due to high demand.

I doubt there will be high demand from retail investors

[Waltzing]

if you study the last 10 years of prices you will see plenty of entry points to trade. Well there is now another 10 years to trade and a world that is very very unstable.

[sb9]

I doubt there will be high demand from retail investors

In which case, big boys will be more than happy to lap them up. They sure know how the game works...

[sb9]

There you go.

Closed today at $2.39 on 12.7m total traded volume!

Here you go, looks like Blackrock dumped most of them at $2.39 on that day (30th Jun).

[tango]

In which case, big boys will be more than happy to lap them up. They sure know how the game works...


Here you go, looks like Blackrock dumped most of them at $2.39 on that day (30th Jun).

So the big boys know how it works but BlackRock dumped more than 10 million shares!

[sb9]

So the big boys know how it works but BlackRock dumped more than 10 million shares!

Why not, its all part of their play...

[sb9]

Filled and sent off my SPP form online, will find out on 8th (wed) how much of what I asked will I get.

[dubya]

If todays VWAP stays roughly where it is now, looks like the new shares will be issued at about a 2% (5 cent) discount to the offer of two weeks ago

June 29 VWAP 252.51
June 30 VWAP 240.46
July 01 VWAP 247.47
July 02 VWAP 255.71
July 03 VWAP 260.15 (at present)

5 day average: 251.26ish

Less 2.5% = $2.45 ish per share

[winner69]

If todays VWAP stays roughly where it is now, looks like the new shares will be issued at about a 2% (5 cent) discount to the offer of two weeks ago

June 29 VWAP 252.51
June 30 VWAP 240.46
July 01 VWAP 247.47
July 02 VWAP 255.71
July 03 VWAP 260.15 (at present)

5 day average: 251.26ish

Less 2.5% = $2.45 ish per share

That June 30th day was very high volume and will have a big bearing on the final VWAP over the 5 days

Might be a bigger discount

[sb9]

If todays VWAP stays roughly where it is now, looks like the new shares will be issued at about a 2% (5 cent) discount to the offer of two weeks ago

June 29 VWAP 252.51
June 30 VWAP 240.46
July 01 VWAP 247.47
July 02 VWAP 255.71
July 03 VWAP 260.15 (at present)

5 day average: 251.26ish

Less 2.5% = $2.45 ish per share

Thanks to Blackrock for dumping 12mln odd shares on 30th June at $2.39 a piece

[Snoopy]

The vwap for 29th June was 252.56. Yet a 2.5% discount off that brings it down to $2.46.

A couple more data points notched up. The VWAP was quoted at $2.40.46 for 30th June ($2.34 with the 2.5% discount) and $250.67 for 1st July ($2.44 with the 2.5% discount). That last figure surprised me with the share price closing at $2.59. However there were a couple of big crossings at $2.39 first thing in the morning that must have skewed the average. If the second part of the dibble theory holds, that higher price should stick for the next couple of days, denying those small shareholders a sub $2.50 entry via the share plan. Let's see what happens.


We have the last two data points. These are $2.5631 for 2nd July and $2.5961 for 3rd July. Those figures reduce to $2.50 and $2.53 respectively. So the average for all five data points is:



...there's a curious recurring theme with these capital raisings (IFT is latest) where the share price dips to a cent or three below the placement price before scurrying up again just in time to ensure the final retail price isnt discounted... almost by design...

The dibble theory is confirmed! Albeit the share price rise, after discount, does not seem high enough to get past that $2.50 target figure.

($2.46 + $2.34 + $2.44 + $2.50 + $2.53)/ 5 = $2.45

That is the same answer as 'dubya' gets, so it must be right!


Thanks to Blackrock for dumping 12mln odd shares on 30th June at $2.39 a piece

Actually I think some of those Blackrock shares were not crossed until the morning of the next day. So they stacked the price on 1st July as well.



That June 30th day was very high volume and will have a big bearing on the final VWAP over the 5 days

Might be a bigger discount

But hang on a minute. What does the offer document actually say about the alternative option to the $2.50 price?

---------

(b) a 2.5% discount to the volume weighted average market price of the Shares traded on the NZX over the five business day period prior to and including the Closing Date, rounded down to the nearest cent.

---------

That reads like all of the trades over five days are being lumped into one big mixing bowl when it comes to working out the average. If that were to happen, then the shadow of the Blackrock dump would be cast over all the five days of trading. If that is how the calculation is done then we can expect a lower share issue price than $2.45. Surely this can't be right though? Wouldn't that leave the whole process ripe for manipulation by the 'big boys'?

SNOOPY

[winner69]

Snoops — yes your last paragraph is correct ...one big mixing pot with all 5 days sales in it.

[Waltzing]

hmm should have bought in multiple folios and transferred off market after all...

"prior to and including the Closing Date"

well done snoopy... you hopefully are the winner!!!

sorry about that...

[sb9]

Blackrock buying back??



1:50:19 pm
1:50:19 pm
260.5
5,000,920
0.5
$13,027,396
1

[Balance]

Blackrock buying back??



1:50:19 pm
1:50:19 pm
260.5
5,000,920
0.5
$13,027,396
1



Could be further selling from them.

Good news is that someone is prepared to buy such a big line at above Friday market closing price.

[NOCASH]

Interesting to see how many shares I will get, before the SPP, I owned 2 shares, I submit for $17,000 worth of shares. Will we know by lunch time tomorrow?

[Waltzing]

well done NOCASH!

[mfd]

Interesting to see how many shares I will get, before the SPP, I owned 2 shares, I submit for $17,000 worth of shares. Will we know by lunch time tomorrow?

If they are scaling based on existing holdings like other recent SPPs, e.g. IFT, you may get lucky and be granted one share.

[tango]

If they are scaling based on existing holdings like other recent SPPs, e.g. IFT, you may get lucky and be granted one share.

On the over hand if it is undersubscribed like ZEL or they take over subscriptions as TRU did you could get it all.

[tango]

I already am heavily invested in SKC at less than $2.50 average cost so I only applied for $5k. Based on my shareholding I expect to get it all even if it is pro rata.

[mfd]

No oversubscriptions according to 22nd June announcement. Looks like you can expect to be issued a maximum of around 25% of your holdings as of 16th June in the SPP, maybe a little more if lots of holders don't apply.

[tango]

No oversubscriptions according to 22nd June announcement. Looks like you can expect to be issued a maximum of around 25% of your holdings as of 16th June in the SPP, maybe a little more if lots of holders don't apply.

That’s okay. I applied for less than 25% of my current shareholding and if I had my time again I would have put it into PEB instead :D

I’m not expecting this to be massively oversubscribed, if at all.

[sb9]

Final price for SPP $2.38 with 91% uptake, looks like most will get what they applied for.

[Balance]

Final price for SPP $2.38 with 91% uptake, looks like most will get what they applied for.

Underwriters to get $4m worth so looks like full allocation up to $50k for anyone who applied.

[tango]

Underwriters to get $4m worth so looks like full allocation up to $50k for anyone who applied.

Yes! I didn’t think it would be fully subscribed.
I’m happy with the price

[mfd]

Looks like I was wrong - well undersubscribed so should be some extras floating around. Punt has paid off.

[RRR]

Damn..I should have applied for more..

[tango]

I doubt there will be high demand from retail investors

I like it when my predictions are correct but now wonder if I should have applied for more :)
However, there are other good opportunities out there and I already have a large stack of SKC. Onwards

[NOCASH]

What does it mean for me with 2 Sky City shares, I will get the Full $17,000 That I applied for?

[sb9]

What does it mean for me with 2 Sky City shares, I will get the Full $17,000 That I applied for?

Might be your lucky day :)

[tango]

What does it mean for me with 2 Sky City shares, I will get the Full $17,000 That I applied for?

Yes. Which goes to show how ridiculous these SPP offers are

[RRR]

I like it when my predictions are correct but now wonder if I should have applied for more :)
However, there are other good opportunities out there and I already have a large stack of SKC. Onwards

There are only 6000 retail shareholders approximately - I should have looked at this statistic before making a decision.
90% of shares are owned by 83 large institutions. Retail shareholder had an advantage here over large shareholders in increasing their shareholdings
I will get 10K worth of shares I applied for.

[tango]

There are only 6000 retail shareholders approximately - I should have looked at this statistic before making a decision.
90% of shares are owned by 83 large institutions. Retail shareholder had an advantage here over large shareholders in increasing their shareholdings
I will get 10K worth of shares I applied for.

Yes. You will get all that you applied for.

I just think that most retail investors appetite for risk is very low at the moment. There have been so many SPP lately that many will be running low on funds. I’ve put 6 figures into SPP and buying opportunities in the last couple of months. You have to draw a line somewhere.

I think mom and pop investors don’t want to take risks. New (younger) retail investors and the sharesies crowd are being seduced by the biotech and software companies at the moment although clearly there are a few sharesies investors jumping in here too with SKC

[RGR367]

Did not apply personally as I'm already hitting the tip of my ML limit, as well as SKC is already over 5% of my personal portfolio. But applied I did for maximum, on our other account trading as a company. Just to balance that other portfolio. All is just good for the spp price.

[Waltzing]

lock down in aus might have some downward pressure.

[Balance]

lock down in aus might have some downward pressure.

SKC has no casino in Melbourne.

Adelaide and South Australia are fine where its casino is situated.

[sb9]

SKC has no casino in Melbourne.

Adelaide and South Australia are fine where its casino is situated.

Absolutely, moreover they've already announced that Adelaide casino and hotel facilities will be fully open by 29th Jun, which we're pas that date now.

[Waltzing]

thanks for reminding me wrong state. I dont visit that land much , cousins reside there so i better pop over again one day not to soon. im just jealous at all those retail investors who got one of the best deals on the market in a long time...:) DISC: Hold but at a higher price.....:sleep: from last year. The man with 2 shares did well. Best strategy ever....deserves applause.:t_up:

[dubya]

I'm a pretty happy camper too. I managed to get a decent parcel at $2.39 when Blackrock sold down at close last week. Had to pay a bit of commission tho.
Possibly more good luck than good management :)

[NOCASH]

thanks for reminding me wrong state. I dont visit that land much , cousins reside there so i better pop over again one day not to soon. im just jealous at all those retail investors who got one of the best deals on the market in a long time...:) DISC: Hold but at a higher price.....:sleep: from last year. The man with 2 shares did well. Best strategy ever....deserves applause.:t_up:


Thanks man, should sell tomorrow morning or hold until $3.00 before end of year.. or will SKC hit $3.00 in august...

[sb9]

I've got allocated what I applied for, all of $15k worth :t_up:

[NOCASH]

I've got allocated what I applied for, all of $15k worth :t_up:

That's great to hear, there is going to be a lot of people offloading there shares today? we might see $2.4x..... ?

[Waltzing]

Well im not warren buffet but i would not sell any of the newly allocated share for 5 years at least if your average price is under 2.50. Snoopy and others might disagree but i see is has stated he was going to "full his boots". Not often snoopy is so bullish on a stock. Check his statements here over the last 5 years or so.

[dubya]

Well im not warren buffet but i would not sell any of the newly allocated share for 5 years at least if your average price is under 2.50. Snoopy and others might disagree but i see is has stated he was going to "full his boots". Not often snoopy is so bullish on a stock. Check his statements here over the last 5 years or so.

I'm not a Warren Buffet either :mellow: but I can see a gradual rerating slowly back towards $4 and eventually some dividends along the way too.

[NOCASH]

I'm not a Warren Buffet either :mellow: but I can see a gradual rerating slowly back towards $4 and eventually some dividends along the way too.

Excellent, I won't sell and hold on for another year or two...

[dubya]

Excellent, I won't sell and hold on for another year or two...

Pretty good long term chart I reckon (covid excluded)
11757

[Norwest]

I got my full allotment allocated today as well.


I'm not a Warren Buffet either :mellow: but I can see a gradual rerating slowly back towards $4 and eventually some dividends along the way too.

Absolutely agree with your statement.

[Waltzing]

Yes dubya i hope you are right and they had put much nicer seats in at the bar in hamilton, very comfortable now. I dont gamble on the machines but sometimes i think i might gamble a bit on stocks but i usually only trade the boring ones with a good balance sheet and pay a dividend and i leave the growth to younger generation. Most of our time is spent on software anyway not stocks.

[bottomfeeder]

Have to work on those headings, maybe relevant in 2006, maybe relevant now. Had to think a bit. Dont like to do that much these days.

[hogie]

I got my full allotment allocated today as well.

How do you know what you've been allocated? I presume they will be sending email communications?

[Norwest]

If you login to to the registry, it will show your newly allocated shares already.

They have not sent email communications and won't until Monday 13th.

[NOCASH]

Is anyone panicking? The share price has been dropping in the last 3 trading days in a row... are we heading back to $210's ? Oh no..... i'm playing with Revolving Credit mortgage money :(

[tango]

Is anyone panicking? The share price has been dropping in the last 3 trading days in a row... are we heading back to $210's ? Oh no..... i'm playing with Revolving Credit mortgage money :(

Nope. Not panicking at all. Shares rise and shares fall. I’m a long term holder

[Waltzing]

This is why i did not take up the cap raise. DISC: hold in 2 portfolios. About to prehaps start trading this soon in another company portfolio... Its doing exactly what i hoped it would... perfect and right on que.

[Norwest]

Good to see Rob Campbell getting his full allocation in the NZX DISCLOSURE OF DIRECTORS AND SENIOR MANAGERS INTERESTS announcement today.

I knew Rob wouldn't let a good buying opportunity like this SPP go astray.

https://www.nzx.com/announcements/356231

[sb9]

Good to see Rob Campbell getting his full allocation in the NZX DISCLOSURE OF DIRECTORS AND SENIOR MANAGERS INTERESTS announcement today.

I knew Rob wouldn't let a good buying opportunity like this SPP go astray.

https://www.nzx.com/announcements/356231

Big vote pf confidence by Board and Management to partake cap raise. Now that it tested SPP price level and bounced off from there, I'm picking upward moves from here.

[King1212]

My gut feeling said....SP will stay at current level or even lower...till at least early next year. As we don't see any international tourism....as Qantas cancelled all international flights till March 2021.

The only revenue stream is from casino depand on locals n online. F n b....just to cover or break even. Hotel... mostly school holidays...events...all companies are cutting Costs.

Recent headline said.... redundant staffs are angry because SKC applied extended wage subsidy.


So yeahh....long journey ahead

[NOCASH]

My gut feeling said....SP will stay at current level or even lower...till at least early next year. As we don't see any international tourism....as Qantas cancelled all international flights till March 2021.

The only revenue stream is from casino depand on locals n online. F n b....just to cover or break even. Hotel... mostly school holidays...events...all companies are cutting Costs.

Recent headline said.... redundant staffs are angry because SKC applied extended wage subsidy.


So yeahh....long journey ahead


Hi King,

What do you think the share price will be in 5 years (2025) time?

[King1212]

Well....if one can storm it up n put it on the drawer then would be fine......

but how how many can do that....looking at your stock under the water....especially the world is uncertain

[Waltzing]

in 2025? im expecting well over 4 dollars. If you look at eh GFC graph SKC i think was one of the slower climbers out of the great recession. Im expecting a very slow climb back. But there were plently of people on the first nights of level one in hamilton enjoying the food and the bar for a night out.

[King1212]

I was in hospitality sector before....let me tell u....the margin of hospitality business is little....u might see busy but making little 2 to 4 percebt of total revenue if u lucky

[Waltzing]

I agree with KING , the climb for skc will be even slower than GFC due to the big spending international party crowd for auckland and tourism is not there for the next 24 months?

[Balance]

My gut feeling said....SP will stay at current level or even lower...till at least early next year. As we don't see any international tourism....as Qantas cancelled all international flights till March 2021.

The only revenue stream is from casino depand on locals n online. F n b....just to cover or break even. Hotel... mostly school holidays...events...all companies are cutting Costs.

Recent headline said.... redundant staffs are angry because SKC applied extended wage subsidy.


So yeahh....long journey ahead

Did not stay down long?

[peat]

looks like it could rise a bit here from that wedge
but the pattern is overbearing on it

11784

[NOCASH]

Thanks for the graph, I got out at 2.55 today. Uncertainly times brings uncertain sell, I hope i don't regret it when Xmas comes around.. if the share prices goes over $3.00 before during or before Xmas Silly Season, i will be sad :(

[King1212]

I think you made a good decision Nocash. Refer to SKC chart.even during the tourism booming n dividend paying ....the SP was hoovering around $3.80 to $4.

I am really tempted to buy on too...but considering with bleak forecast tourism sector .....I don't think SKC is a good place to put your money

[NOCASH]

I think you made a good decision Nocash. Refer to SKC chart.even during the tourism booming n dividend paying ....the SP was hoovering around $3.80 to $4.

I am really tempted to buy on too...but considering with bleak forecast tourism sector .....I don't think SKC is a good place to put your money

King, what stock will you put money in at the moment? term deposit is only paying 1.75%...

Z energy will be dying when EV cars takes off..

FBU looks solid back to normality, but unsure...

[King1212]

King, what stock will you put money in at the moment? term deposit is only paying 1.75%...

Z energy will be dying when EV cars takes off..

FBU looks solid back to normality, but unsure...



Me....i am at $5 love you long time....

any stocks that down, buy...up ....sell.

But OCA is long love. Too volatile at the moment to hold any for long

[tango]

Updated guidance from SKC

https://www.nzx.com/announcements/358329

“ SkyCity’s normalised earnings results for FY20 are expected to remain within, and be at the upper end of, the previous guidance ranges.

Reported earnings will be higher than previous guidance as a result of higher estimates for the insurance proceeds for the damage to and reinstatement costs for the New Zealand International Convention Centre and Horizon Hotel arising from the fire. Offsetting this increase in reported earnings, and as previously advised, SkyCity proposes to recognise an impairment of Adelaide Casino’s book value of A$150 million (NZ$161 million).

SkyCity will release its full FY20 financial results on 3 September 2020.

FY20 Results ($m) Previous Guidance
Reported EBITDA 440-480(1)
Reported NPAT 330-360(1)
Normalised EBITDA(3) 185-205
Normalised NPAT(3) 52-67

FY20 Results ($m) Updated Guidance
Reported EBITDA 346-349(2)
Reported NPAT 234-236(2)
Normalised EBITDA(3) 199-202
Normalised NPAT(3) 65-67

(1) Before any potential impairment of Adelaide Casino’s book value.
(2) Includes the proposed impairment of Adelaide Casino’s casino licence value.
(3) For an explanation on SkyCity’s approach to non-GAAP adjustments, refer to SkyCity’s result presentations at https://www.skycityentertainmentgroup.com/investor-centre/financial-information/reports-presentations/.”

[peat]

surely you cant give guidance with an estimated insurance claim?? insurers are notorious for whittling away unsettled claims

[Scrunch]

surely you cant give guidance with an estimated insurance claim?? insurers are notorious for whittling away unsettled claims

You could if you had a multi part claim and the insurers had only accepted some parts of the claim then accept another element of the claim.

[dubya]

A good solid rise today, up almost 9%.

Great to see. Hopefully the start of the long haul back towards $4.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/359193/330024.pdf

[sb9]

A good solid rise today, up almost 9%.

Great to see. Hopefully the start of the long haul back towards $4.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/359193/330024.pdf

Yep, top of leader board so far, market seem to like the result. First target is to break $3 mark in the medium term..

[Norwest]

Good result all things considered.

Interesting to note that SKC temporarily crossed over the 50% fib level in intra-day trading, this is first break in over 2 months, last time this happened it went to $3 pretty quick.

It should be noted that it did close under 50% so it may be a false break out, will be interesting to see what happens tomorrow.

[Scrunch]

Good result all things considered.

Interesting to note that SKC temporarily crossed over the 50% fib level in intra-day trading, this is first break in over 2 months, last time this happened it went to $3 pretty quick.

It should be noted that it did close under 50% so it may be a false break out, will be interesting to see what happens tomorrow.

Particularly after mid-day.

Before the Australian market opened at mid-day, SKC looks to have traded in a tight range around 255-258, up slightly on recent trading and yesterday's close but nothing particularly unusual. Between mid-day and 1pm the price took off and reached 275 before slowly heading down for the rest of the day and getting down to around 263 then closing at 267. Certainly looks like those over the ditch liked the result more than their kiwi counterparts. Where the price goes may depend on which market has more price setting power.

[Balance]

Particularly after mid-day.

Before the Australian market opened at mid-day, SKC looks to have traded in a tight range around 255-258, up slightly on recent trading and yesterday's close but nothing particularly unusual. Between mid-day and 1pm the price took off and reached 275 before slowly heading down for the rest of the day and getting down to around 263 then closing at 267. Certainly looks like those over the ditch liked the result more than their kiwi counterparts. Where the price goes may depend on which market has more price setting power.

NZX is a non-event when it comes to NZ dual listed stocks. ASX now determines where their sp go.

Just have a look at the anaemic turnover on the NZX until the ASX opens at noon (NZ time).

[Waltzing]

thats always been the case with sky city. It never used to do anything until well into the afternoon with HK coming on line ... silly aussie punters did not read the bottom line.... the profits will stay down for another 6 months at least..

the hamilton sky city champagne bar is shut except for special hired events.. there are no champagne drinker in hamilton , best bar ever built in hamilton and its basically always shut or empty..

used to be a great place to take your german or swedish french visitors... well there are still some nice outdoor country places... hamilton gardens cafe looking a bit sad these days..

[sb9]

Investors Mutual Fund were busy buying y'day....

https://www.nzx.com/announcements/359269

[Waltzing]

Aussi looks to open lower.. the local sharies people probably dont know the price is set from this point on from the overseas exchanges

big dif today between NZ and AUS /250 over and 2.76 here

should have bought there and sold here..

sharies people driving it up here? amazing

[sb9]

Does not seem to have much impact though, currently NZ 2.75..

[Balance]

Does not seem to have much impact though, currently NZ 2.75..

Have a read of the outlook commentary. It becomes clearer then I suspect as to why institutions are buying back in.

[Balance]

Have a read of the outlook commentary. It becomes clearer then I suspect as to why institutions are buying back in.

Powering ahead - looks like market pricing in resumption of dividends next year and SKC's status as a high yielding stock.

[Waltzing]

yes very disappointing it did not sell off... still our other holdings will benefit when div resume..a 2025 story for return to 4.50 prehaps or sooner.

DISC: holding well under that thank goodness... never hold a casino for long... its a trading stock.

[dubya]

I'm not much of a chart follower, and it's probably a pretty simplistic view. but the 5 year chart excluding covid is pretty damn steady. Plus the dividends along the way.

I think it'll get back up there, maybe not super quickly, but I've been wrong many times before. :)

It's got to be a good yield stock going forward (surely?) and the company finances are in great shape following the capital raise(s) and the insurance payouts coming to some fruition.

11923

[Baa_Baa]

That chart says this is not a growth share but a reliable cash engine, Casino's aren't going out of fashion and should return to normal SP in what, a year or so? The yield is on offer now, for those who don't mind the ethical investment thing, or the long burn no growth with reliable returns. Personally I wouldn't buy a sideways forever share, even for the dividend. Not sure about the ethics of investing in peoples frailty either.

[Waltzing]

"no growth" i think with the new developments they have slow growth!

If the get back to 3-50, 4 dollars in 24 months its a range trade.

If you rebought at 2 dollars well done.

Yes it has certain ethic questions but it not weapons development and its similar to horse betting i think.

we only trade this one , when it returns to our cost price..we will be selling as usual. Banks also are trading stock always. air line as well now unfortunately...

in the mean time we will be extending the back office software its a time to develop for the new future.

[winner69]

That chart says this is not a growth share but a reliable cash engine, Casino's aren't going out of fashion and should return to normal SP in what, a year or so? The yield is on offer now, for those who don't mind the ethical investment thing, or the long burn no growth with reliable returns. Personally I wouldn't buy a sideways forever share, even for the dividend. Not sure about the ethics of investing in peoples frailty either.

Chart reflects long term financials

Revenues flat best over the last year ...even before virus ...and so is eps

So yes, not a growth company

[Balance]

Chart reflects long term financials

Revenues flat best over the last year ...even before virus ...and so is eps

So yes, not a growth company

It’s a yield play.

Then there’s the long delayed NZCC and Adelaide Casino developments to kick in.

[dibble]

Personally I wouldn't buy a sideways forever share, even for the dividend. Not sure about the ethics of investing in peoples frailty either.

Fair enough. A lot of punters seem happy to tie money up for 7 years in a low yield, no growth bond (that is not risk free) these days. If I were inspired to put a few k away for 7 years to generate a little revenue I'd prefer something whose yield might at least match inflation (and that is easy to trade). Not sure if SKC is ideal but would prefer it to latest SUM bonds.

[Biscuit]

...we only trade this one , when it returns to our cost price..we will be selling as usual.

As a trading strategy that seems ... pointless?

[winner69]

As a trading strategy that seems ... pointless?

I'm glad I'm not the only one a bit bemused with that strategy ......probably misunderstanding

[dubya]

I'm glad I'm not the only one a bit bemused with that strategy ......probably misunderstanding

Yeah think he means target price :). I had a bit of a chuckle too.

Up another 4.2 % today tho. Good rises over the last couple of trading days.

[Norwest]

Good result all things considered.

Interesting to note that SKC temporarily crossed over the 50% fib level in intra-day trading, this is first break in over 2 months, last time this happened it went to $3 pretty quick.

It should be noted that it did close under 50% so it may be a false break out, will be interesting to see what happens tomorrow.

Stellar 3 trading days since I posted this, almost at $3 as expected, ending at $2.96 today.

[Waltzing]

nasdaq about to start selling off.. the market will go down on options the DOW and SP will get downward pressure. It should provide some vol in all stock indexs including the NZX..

[sb9]

$3 on the horizon...

[Waltzing]

Stock is pricing next years dividend. If you study this stock over a long period of time and i mean long you will see its one of the most tradeable stocks on the NZX.

last 5 months has been the best trading market in living memory.

The 3 weeks fabulous, yesterday perfect and today well , it just cant get any better than this can it?