KMD - Kathmandu

[babymonster]

BGR down 10c today thought holders might have viewed the deal better, early days yet, another bidder may emerge.
I don't think it will be another bidder. Brisco has 19.9% so it can block any takeover unless the offer is very very good.

[silverblizzard888]

I vote reverse takeover! Or at least buy 19.9% of Briscoes then make them offer more for a takeover haha!

[winner69]

Will Aussies want shares in Briscoes, a tiddly little nz discount retailer?

Instos will get the big picture but retail unvestors?

Rod said most of the shares he got were from Aussie instos, the clever ones who took the opportunity to quit this dog at a good price -ang getting cash

[macduffy]

I vote reverse takeover! Or at least buy 19.9% of Briscoes then make them offer more for a takeover haha!

Now, that wouldn't be easy with Rod Duke holding over 78% of Briscoes - and I'm not selling mine!

;)

[winner69]

Give Rod his due to taking the opportunity to try and get Kathmandu for what many perceive to be a cheap price.

That's what happens when you stuff things up, have too much stock, borrow too much money and slash your margins like Kathmandu have done - you open yourself up to predators who think they can do it better and come and buy you out.

Jury out whether Kathmandu can sort out the problems themselves, maybe or maybe not. Can Rod and his team, he obviously thinks so and needs a bit of headroom (risk) to do it.

[Beagle]

KMD shareholders should count themselves very, very fortunate to be in the position they are...could have been much worse if Rod hadn't come along and turnaround targets weren't met....could easily have gone under $1.00 IMO.
Economy is hardly performing like a rock star is it !! (See latest dairy auction result overnight). Don't like BRG shares ?, take the money (low $1.70's), and buy something else.
You want to blame someone for your losses if you paid over $1.80 ?, blame management and directors.

[couta1]

I don't mind Briscoes shares its just I won't be getting enough of them under the proposed offer to get near breaking even on my KMD entry of $2.80 so will see what eventuates.

[TheHunter]

"At this stage Kathmandu is not in a position to comment further. The Board of Kathmandu will meet shortly to consider the takeover notice and draft offer in detail.
Until the Board of Kathmandu has given further guidance, shareholders are strongly advised to take no action in relation to Briscoe’s notice of intention to make a takeover offer.
Kathmandu is being advised by Goldman Sachs."

Well worth waiting to hear KMD's comments before taking on the offer. Will be intersting to hear what they have to say - a market update on current years earnings would be very helpful.

[winner69]

"At this stage Kathmandu is not in a position to comment further. The Board of Kathmandu will meet shortly to consider the takeover notice and draft offer in detail.
Until the Board of Kathmandu has given further guidance, shareholders are strongly advised to take no action in relation to Briscoe’s notice of intention to make a takeover offer.
Kathmandu is being advised by Goldman Sachs."

Well worth waiting to hear KMD's comments before taking on the offer. Will be intersting to hear what they have to say - a market update on current years earnings would be very helpful.

That update will come when it best suits them and when GS say so.

Been boom times in KMD methinks, stocks down and margins restored so H2 will save the year and it looks like $30m

If the first half had been nprmal the full year would have been $50m .....so take that and suck your eggs you Briscoe guys

[JayRiggs]

I'm not totally convinced of this offer.
Lets say we do get our 5 BGR shares for every 9 KMD shares, then there would be some share dilution involved?
I also hope the BGR share issue takes place after us KMD holders get our full year dividend. If not, then the next BGR dividend better make up for it.

[drcjp]

personally, 7/9 and 25cps for the next 40% is affordable for Mr Duke and he'd end up with 55-60% of both BGR and KMD. TBH, he also has to prove himself in the australian market where kmd is. kmd will be getting an independent valuation which on current data was $1.90 (morningstar). if 2h numbers are better then anything up to $2.50 is possible hence my numbers

[Xerof]

There is a two week Notice and Pause requirement before you get the actual offer

here's a reference guide on T/O's, for anyone who is interested in understanding what happens

http://www.takeovers.govt.nz/assets/Assets-2/4981-Takeovers-Directors-booklet-P5-hardcopy.pdf

[JayRiggs]

personally, 7/9 and 25cps for the next 40% is affordable for Mr Duke and he'd end up with 55-60% of both BGR and KMD. TBH, he also has to prove himself in the australian market where kmd is. kmd will be getting an independent valuation which on current data was $1.90 (morningstar). if 2h numbers are better then anything up to $2.50 is possible hence my numbers

Yeah 25cps cash sounds more reasonable. In case we miss the KMD full year dividend, it'll make up for it, assuming the dividend is at least 5cps, but as history shows, it would probably be 7c.
Rod Duke is just doing what he has to. Starting his bid low at $1.80.
I would be surprised if the KMD board accepted this. Let them bargain it out.

[Beagle]

This is good....we need a good takeover scrap to entertain those of us on the side-lines :D

[Harvey Specter]

Yeah 25cps cash sounds more reasonable. In case we miss the KMD full year dividend, it'll make up for it, assuming the dividend is at least 5cps, but as history shows, it would probably be 7c.
Rod Duke is just doing what he has to. Starting his bid low at $1.80.
I assume a dividend will be paid to allow the utilisation of tax credits. Though being hostile takeover, those details may not be know to be factored in.

[TheHunter]

There is a two week Notice and Pause requirement before you get the actual offer

here's a reference guide on T/O's, for anyone who is interested in understanding what happens

http://www.takeovers.govt.nz/assets/Assets-2/4981-Takeovers-Directors-booklet-P5-hardcopy.pdf

Cheers Xerof, much appreciated!

[babymonster]

We should have kmd management recommend early next week.

[winner69]

Just as well there is such things as 'Chinese walls'

Goldman been buying heaps of KMD lately / Goldman advising Kathmandu

And didn't Goldman do well at the IPO? Part owners they were with Were and Quadrant. Got more than KMD worth today they did.

Roger, those Quadrant guys pretty clever and know when to time exits eh.

[pennyacw]

The current offer results in KMD share holders taking the majority of the risk as to whether BGR is able to turn things around and continue their success in their current business. 20c cash is very low in my view. However, with BGR already paying around $1.8 (slightly lower if you count original build of 5%) they have used now the majority of their cash in their balance sheet. Although they don't have any debt they do have a whopping $106m in operating leases - will be interesting to see their willingness to issue debt to support the takeover.

I suspect the first offer is a low ball offer giving them room to move up. How much cash they are willing to offer will be of question. I think 40c is much more of an acceptable offer when taking into account the proportion of shares vs cash.

[Harvey Specter]

The current offer results in KMD share holders taking the majority of the risk as to whether BGR is able to turn things around and continue their success in their current business. I would have though the opposite. More than 50% of the risk is being passed to BGR and KMD holders benefit from the diversification of retail brands than BGR has.

Also, shareholders in KMD can either put their faith in a brand new CEO or in Duke who, while new to KMD, has significant experience in NZ retail.

[pennyacw]

I would have though the opposite. More than 50% of the risk is being passed to BGR and KMD holders benefit from the diversification of retail brands than BGR has.

Also, shareholders in KMD can either put their faith in a brand new CEO or in Duke who, while new to KMD, has significant experience in NZ retail.


Fundamentally cash offer = takeover company takes on risk synergy risk, while share offer = target company takes on synergy risk.

[winner69]

All quite on the western front.

Share price drifting down and quite a way off the 180. Probably following the BGR price down.

Market suggesting the takeover a non-event?

Or plenty of action soon.to get things going again.

[TheHunter]

Price could also be supressed due to some big players selling their stake e.g. National Bank of Australia.

I'm expecting a psotivie reaction when KMD board makes their comments.

[Harvey Specter]

Share price drifting down and quite a way off the 180. Probably following the BGR price down.Doesn't that suggest people think it will be successful as no arbitrage opportunity. If higher, then expect a better off or a competitive bid and lower suggests fail?

[Beagle]

Just as well there is such things as 'Chinese walls'

Goldman been buying heaps of KMD lately / Goldman advising Kathmandu

And didn't Goldman do well at the IPO? Part owners they were with Were and Quadrant. Got more than KMD worth today they did.

Roger, those Quadrant guys pretty clever and know when to time exits eh.

Those Quadrant boys are very clever...never get on the other side of a trade with them, you're the very short priced favourite to lose.
I think the drift down in the SP is recognition of a number of factors.
1. Market risk - Grexit
2. BGR shareholders underwhelmed and not convinced shareholders will be able to extract synergies very quickly and in sufficient quantity to make the offer worthwhile...e.g. while over time as N.Z. leases expire its quite plausible that Rebel sport could incorporate the KMD stores within their store footprint AKA a store within a store, there's far more KMD stores in Australia so how do they extract synergies there ?
3. KMD shareholders not impressed with the new proposed group structure and very low cash component, don't want a top heavy scrip offer and also not convinced regarding synergy execution
4. Downwards market bias
5. Take the money and run...so many other cheap shares out there
6. Unlikely to be a more compelling bid or full cash bid in this difficult market
All of the above.

[pennyacw]

One can only speculate, but I think the sell off is more of a reflection that the BGR offer is to low. Therefore, investors with a short-term focus are not wanting to hold.

If you look at the cost of creating a company similar to Kathmandu and also its Earnings Power Value (EPV) with a concervative WACC of 15%, while also taking out any potential for growth, I still get a price at around $2.

[silverblizzard888]

The reaction is the deal won't go through because the takeover offer is too low. Given they are being offered $1.72 given BGR share price today, the $1.60 is a big sign of sentiment that the deal won't go through and that everyone thinks the share price will head south when it blows over, thats what I get from the market sentiment anyway. It seems BGR shareholders aren't happy about the takeover in general cause that share price is heading way down.

[pennyacw]

Yes, it appears that Mr(s) Market needs to seek some counciling as he/she is likely to be diagnosed with schizophrenia. Selling something for less because it is worth more than offered is not something that someone with a stable mind would do.

[TheHunter]

I think your logic has gone a bit back to front & then front to back here Mr Blizzard - the take over is too low so the share price will head down if it fails? Hmmm. If it doesnt go through - it must be perceived to be worth more.

Think there are alot more factors playing on the current SP.

[macduffy]

I think your logic has gone a bit back to front & then front to back here Mr Blizzard - the take over is too low so the share price will head down if it fails? Hmmm. If it doesnt go through - it must be perceived to be worth more.

Think there are alot more factors playing on the current SP.

Indeed!

Current market sentiment, for one!

[silverblizzard888]

I think your logic has gone a bit back to front & then front to back here Mr Blizzard - the take over is too low so the share price will head down if it fails? Hmmm. If it doesnt go through - it must be perceived to be worth more.

Think there are alot more factors playing on the current SP.

Before the takeover the share price was drowning at the $1.30 end, what lifted it up was the takeover offer, if people perceived it to be worth more then it would not have gotten to that level in pricing in the first place. I'd say theres a split some think its worth more, some less. I'll leave it at that. Of course theres many factors doing a bit of suppressing from profit takers to the situation with Greece, but I'm not hopeful that things are better if the takeover is rejected.

[macduffy]

I think your logic has gone a bit back to front & then front to back here Mr Blizzard - the take over is too low so the share price will head down if it fails? Hmmm. If it doesnt go through - it must be perceived to be worth more.

Think there are alot more factors playing on the current SP.

Indeed!

Current market sentiment, for one!

[Hawkeye]

Before the takeover the share price was drowning at the $1.30 end, what lifted it up was the takeover offer, if people perceived it to be worth more then it would not have gotten to that level in pricing in the first place. I'd say theres a split some think its worth more, some less. I'll leave it at that. Of course theres many factors doing a bit of suppressing from profit takers to the situation with Greece, but I'm not hopeful that things are better if the takeover is rejected.

Your not hopeful?

[silverblizzard888]

Your not hopeful?

I sold out today to back ATM (I was gonna wait since I have done a bit of it already but thats just me being emotional), since I happen to have shares in 2 takeovers. I weighed up everything and considered I'd gain more benefit being with ATM and plus I'm not hopeful a deal will be done. I think KMD have really good long term value, but what I mean is short term wise I'm not hopeful its reflected in the share price the true value. Given I have many options to gain value its a matter of weighing up the ones that I find more beneficial overall. Its how I'm thinking anyway.

[Hawkeye]

I understand.

I have ATM and BGR and KMD shares, I only recently purchased KMD though. I intended to hold them longterm(or till I thought I should bail out as the sky fell in a worst case scenario) but I really like Rod Duke, and how he has transformed BGR and would like to see what he does with KMD, so im stuck wondering if I should take the offer and find out or hold out for a better offer that will never come leaving me to hope that the new CEO steps up and turns KMD around. This bitterly cold winter must be helping KMD though

[silverblizzard888]

I understand.

I have ATM and BGR and KMD shares, I only recently purchased KMD though. I intended to hold them longterm(or till I thought I should bail out as the sky fell in a worst case scenario) but I really like Rod Duke, and how he has transformed BGR and would like to see what he does with KMD, so im stuck wondering if I should take the offer and find out or hold out for a better offer that will never come leaving me to hope that the new CEO steps up and turns KMD around. This bitterly cold winter must be helping KMD though

Fair enough then, I think Rod Duke is a good businessman; hes really done well with BGR and if the KMD takeover does go through then it will be wonderful opportunity for BGR expanding over to AUS, but thats a if it goes through. I see so many good senergies happening that I might consider dipping in later on in the future. Yes this winter will definitely have helped KMD so profitability will likely be better than what people expect. As I was explaining to a friend yesterday how to make a hard decision. Its usually best to weigh up your opportunity cost and then going with the decision that you feel will benefit you the most. You should always decide if your a short term or long term investor and go with that. Never regret the decisions you make, only learn and move forward.

[winner69]

One can only speculate, but I think the sell off is more of a reflection that the BGR offer is to low. Therefore, investors with a short-term focus are not wanting to hold.

If you look at the cost of creating a company similar to Kathmandu and also its Earnings Power Value (EPV) with a concervative WACC of 15%, while also taking out any potential for growth, I still get a price at around $2.

Pennyacw, always interested in others who use the EPV concept

Getting $2 with WACC of 15% though implies you have a pretty high 'normalised earnings' figure

I assume that also implies things that need fixing at Kathmandu are capable of getting fixed to the extent that 'normal' going forward is achievable?

[tim23]

At least the way the offer is structured if you believe the offer is too light you get to share in the upside if you keep your BGR shares

[winner69]

This infectious spreading across Aussie should help Kathmandu

http://www.smh.com.au/comment/cut-fashiontragic-puffsuffs-some-slack-they-know-not-what-theyre-saying-20150710-gi8ct6.html

[winner69]

Global domination beckons

http://www.stuff.co.nz/business/industries/70100325/kathmandu-has-global-growth-potential-says-new-boss-xavier-simonet

An things all fixed ... as soon as the offer documents come through watch for that earnings upgrade .... maybe $35m this year

[pennyacw]

Pennyacw, always interested in others who use the EPV concept

Getting $2 with WACC of 15% though implies you have a pretty high 'normalised earnings' figure

I assume that also implies things that need fixing at Kathmandu are capable of getting fixed to the extent that 'normal' going forward is achievable?

Just the last 3 years of NOPLAT. Yes, agree but if you start speculating on the cost of fixing this, then you might as well use the dreaded DCF model.

[Hawkeye]

http://www.nbr.co.nz/article/baptism-fire-kathmandu-boss-xavier-simonet-cs-p-175452

[winner69]

http://www.nbr.co.nz/article/baptism-fire-kathmandu-boss-xavier-simonet-cs-p-175452

The PR machine in full flight .....story in Aussie papers as well

He some guy that Xavier

First of many feel good stories .....put the pressure on Briscoes

[winner69]

Go Rod

Decent of you to stop short of saying 'broken'

http://www.smh.com.au/business/retail/briscoe-group-confident-of-kathmandu-bid-success-20150717-gicx2c

[drcjp]

Go Rod

Decent of you to stop short of saying 'broken'

http://www.smh.com.au/business/retail/briscoe-group-confident-of-kathmandu-bid-success-20150717-gicx2c

Love your previous work Rod but you're not getting mine for $1.80 equivalent.
You're going to have to prove you can survive in Australia - and you've admitted to being scared to go there before.

[drcjp]

Go Rod

Decent of you to stop short of saying 'broken'

http://www.smh.com.au/business/retail/briscoe-group-confident-of-kathmandu-bid-success-20150717-gicx2c

Love your previous work Rod but you're not getting mine for $1.80 equivalent.
You're going to have to prove you can survive in Australia - and you've admitted to being scared to go there before.

[tim23]

Hes not taking BGR to Australia BGR are trying to buy KMD that have a number of Australian stores - I think there is a difference.

[JayRiggs]

Kathmandu board sure are taking their sweet time in getting back to shareholders. It's been 3 weeks since the takeover was announced and we're still yet to hear the board's guidance, besides "take no action".

Anyway, some recent news about Rod Duke. He reckons Kathmandu will release a trading update by August 1st.
http://www.theaustralian.com.au/business/companies/briscoe-boss-rod-duke-wants-some-answers-from-kathmandu/story-fn91v9q3-1227446402760

http://www.theage.com.au/business/briscoe-group-prepares-ground-for-asx-listing--in-enlarged-holding-including-kathmandu-20150720-gig4vw

[winner69]

Kathmandu board sure are taking their sweet time in getting back to shareholders. It's been 3 weeks since the takeover was announced and we're still yet to hear the board's guidance, besides "take no action".

Anyway, some recent news about Rod Duke. He reckons Kathmandu will release a trading update by August 1st.
http://www.theaustralian.com.au/business/companies/briscoe-boss-rod-duke-wants-some-answers-from-kathmandu/story-fn91v9q3-1227446402760

http://www.theage.com.au/business/briscoe-group-prepares-ground-for-asx-listing--in-enlarged-holding-including-kathmandu-20150720-gig4vw

They told you to take no action.

KMD waiting for the formal offer to come before saying much more. Need independent reports to justify their indignation at such a low offer.

Rod not 'expecting' an update - he pressuring them to make one (helps him maybe)

Of course there will be really good news from KMD. Goldman will tell them when to tell the world.

Maybe tomorrow, maybe not but be patient.

Jay, you surely not going to be guided by what your Board says are you?

[JayRiggs]

LOL, I'm just impatient. This is the first time I've been involved in a takeover, so pretty excited by it.
4yrs ago, I sold out of Charlies a few weeks before they got taken over by Asahi, so I was pretty gutted to miss out!

I just want to see any form of action by Rod or the Kathmandu board.

As for being guided by the board, not like we have much choice?
After the actual offer documents are sent out, we can accept the offer and sell our shares to Briscoes. Or sell our KMD shares on the market. Or do nothing - and miss out on everything.
Hmmm, leads me to think, what happens if you sit back and do absolutely nothing? What happens to your KMD shares?

[tim23]

If you do nothing and they get to 90% they take you out anyway if you accept you get the enjoy the BGR ride with the benefit of them part or fully owing KMD seems like a good plan givens BGRs record.

[kiwi_on_OE]

I wonder if the silence on this takeover is because of behind the scenes negotiations on price/terms? BGR will have known what they were prepared to pay, but maybe remaining big holders are saying no, Goldman Sachs in particular. Looks like BGR have 14-30 days to send takeover ie. 16 Jul to 1 Aug.

KMD also yet to have independent advisor appointed and approved by Takeovers Panel. Perhaps discussing whether or not Goldman Sachs is independent.

http://www.takeovers.govt.nz/assets/Assets-2/Takeovers-Directors-booklet-linked2a.pdf

[macduffy]

Relax everybody. Tuesday's AFR says the bidder's statement will be released "within a week".

Meanwhile, I might buy a few. Big fan of BGR and Rod Duke and have never quite shaken off the - often profitable - habit of buying into a takeover!

[blackcap]

If you do nothing and they get to 90% they take you out anyway if you accept you get the enjoy the BGR ride with the benefit of them part or fully owing KMD seems like a good plan givens BGRs record.

If you vote all your shares against the takeover even if they get to 90% you can invoke sections 110 and 111 of the Companies Act.... you could get more for your shares that way... or not.

[JayRiggs]

The takeover forms have been sent out.
https://www.nzx.com/companies/KMD/announcements/267426

Expecting some guidance from KMD board next week?

[JayRiggs]

KMD board have only said this so far.

At this stage, shareholders are advised to take no action in response to the proposed Offer.

Would be a huge waste of paper if no one accepts the offer!!!

[tim23]

If it succeeds you get to enjoy the kmd ride anyway

[huxley]

Hey this is possibly a newbie question but does anyone know the implications of the takeover offer on shares held by the passive investors (Smartshares etc). As they are just tracking the index do they just have to abstain?

[winner69]

If it succeeds you get to enjoy the kmd ride anyway

.......one way or the other

[longy]

Received the offer today... quite tempting really. But I think will sit on it for a little while as it does not close till 17 Sept 2015.

[couta1]

If it succeeds you get to enjoy the kmd ride anyway
I'd rather take my chances with KMD coming right on its own over time than realise 10k of paper loss by accepting this miserable offer.

[drcjp]

Agree couta. The offer is lowball and Duke knows it - thats why he's trying to pressure KMD to release FY2015 by Aug 1. We now enter the interesting phase.

[couta1]

Just got the nice glossy offer document from Briscoes in the post with that nice Briscoes lady on the front and back covers, although I like her smile its not worth 10k to me. Hopefully others will see through the smile as they say.

[macduffy]

This may encourage those reluctant KMD holders to accept the BGR bid.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11489208

;)

[Yoda]

I'd rather take my chances with KMD coming right on its own over time than realise 10k of paper loss by accepting this miserable offer.
If they come right, under briscoes, then that will improve briscoes aka kmd SP anyway wont it? I dont see that as a loss but a transfer of debt ..?

Im assuming if i do nothing and they do get taken over, i just receive the whole deal anyway. By default ? ...right?

[drcjp]

Reject recommendation including valuation data and unaudited FY2015 data.
Not surprising and imo a fair call.
https://nzx.com/companies/KMD/announcements/268006

The valuation fits with analyst predictions and I think the share price will go over $2 by year end anyway.

Your call now Rod.

[winner69]

Reject recommendation including valuation data and unaudited FY2015 data.
Not surprising and imo a fair call.
https://nzx.com/companies/KMD/announcements/268006

The valuation fits with analyst predictions and I think the share price will go over $2 by year end anyway.

Your call now Rod.

That presentation is the biggest load of **** I've seen for a while. Talk about strutting your stuff when you have stuffed up big time and think you have fixed things.

Never mind this could get nasty if Rod is keen. About time we had a decent hostile takeover with plenty of name calling and things like that. Could be fun.

Rod will give a bit more ---- but not any more than $2.20

KMD shareholders should be be thankful Rod came along .....wouldn't be anything near 170 today with Rod

[drcjp]

About time we had a decent hostile takeover with plenty of name calling and things like that. Could be fun.

lol. Bring back the Biff! :t_up:

[winner69]

lol. Bring back the Biff! :t_up:

Right on. Been too many of these friendly 'mergers' eh

Can't remember when we had a decent hostile one in NZ. thl many years ago wasnt that friendly.

[Balance]

Right on. Been too many of these friendly 'mergers' eh

Can't remember when we had a decent hostile one in NZ. thl many years ago wasnt that friendly.

Can't see Rod paying up. He is on record as saying he will not buy something unless he can 'steal' it.

He will be happy to sit back and have the market recognize the value of the 20% he already holds, and wait for KMD to come back down to him.

[Beagle]

I doubt there will be an improved offer either, especially on the back of recent business and consumer confidence survey's recently which have been anything but stellar.
For instance, I can't see too many dairy farmers and their wives and children updating their adventure and apparel gear in the foreseeable future.

[pennyacw]

A seasoned guy like Duke will not be worried about short-term impacts from consumer confidence and business cycle news. If anything this is often an opportune time to buy up businesses (hense KMD offer). Don't forget KMD is essentially an Australian business with NZ exposure and Australia's economic environment has been questionable for a while.

There is no doubt that this takeover offer is opportunistic and $1.80 is very much a low ball offer. With the recent struggles KMD have been through it puzzles me that people forget that only in 2013 was KMD being blamed for Snowgum's demise, indicating a very strong market position.

I agree that the business has perhaps suffered from over expansion in recent years, but the good news is that it has not been over leveraged and therefore the business still holds allot of flexibility going forward.

With all that said at the right price (closer to $2) the merger could provide a great deal of synergies for both businesses. This would provide the joint business with far greater leverage when dealing with suppliers in Asia, which is often a difficult negotiation process for smaller companies within the Asia Pacific (compared to much larger US and European retailers - Cabelas and Dick's Sporting Goods only to name a few). Essentially clothing retailers these days are brand managers and any opportunity to buy the products they sell at a cheaper price is a very desirable move - the story of value creation; operation efficiency and revenue growth.

With Duke owning 80% of BGR it is in his best interests to low ball KMD at the begining. Who would want a CEO excessively invested in the company he managers not trying to maximise his wealth through the business - I wouldn't! If this is truely the price he values the company then he was stupid to not start off lower.

[winner69]

Can't see Rod paying up. He is on record as saying he will not buy something unless he can 'steal' it.

He will be happy to sit back and have the market recognize the value of the 20% he already holds, and wait for KMD to come back down to him.

I am looking forward to rods 'formal' response .....hope plenty of agro pointing out to KMD shareholders how bad their company is and how all the good things that kmd say they are going to do are just hope.

Bring it on Rod.

[drcjp]

I am looking forward to rods 'formal' response .....hope plenty of agro pointing out to KMD shareholders how bad their company is and how all the good things that kmd say they are going to do are just hope.

Bring it on Rod.

You might get your wish winner. Messr Kirk gently unloading a little on Duke here. Handbag stuff but hopefully provokes an escalated response!
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11492934&ref=rss

[Harvey Specter]

You might get your wish winner. Messr Kirk gently unloading a little on Duke here. Handbag stuff but hopefully provokes an escalated response!
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11492934&ref=rssCriticism that he has no experience running a vertically integrated business. I wonder if that is Dukes plan? Why bother being fully vertically integrated (and the overheads associated with that) when there are plenty of other great brands you can sell.

[winner69]

Criticism that he has no experience running a vertically integrated business. I wonder if that is Dukes plan? Why bother being fully vertically integrated (and the overheads associated with that) when there are plenty of other great brands you can sell.

Exactly what I was thinking hs.

And KMD can't really say they are hat good at managing vertical integration anyway.

[Beagle]

Hostile it is !! Duke scoffs and talks in a fairly derisory manner and basically says "put up your dukes"

http://www.sharechat.co.nz/article/cc191476/duke-scoffs-at-kathmandu-projections-after-takeover-offer-rejected-as-too-low.html?utm_medium=email&utm_campaign=Duke+scoffs+at+Kathmandu+projections+ after+takeover+offer+rejected+as+too+low&utm_content=Duke+scoffs+at+Kathmandu+projections+a fter+takeover+offer+rejected+as+too+low+CID_ae86b6 8ec4fb1166f42cb90bebbc4ac3&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlecc191476duke-scoffs-at-kathmandu-projections-after-takeover-offer-rejected-as-too-lowhtml

Love it... stand back everyone, they have their gloves on and dukes up and we are in for a good battle here :)

[couta1]

Exactly what I was thinking hs.

And KMD can't really say they are hat good at managing vertical integration anyway.
KMD gear is excellent at vertical integration, have worn their gear in cold, wind and at high speed and it integrates very well. PS- Don't like the offer at all in case you forgot:cool:

[TheHunter]

I'm just gonna leave this here in regards to KMD boards response.... :t_up:

[winner69]

Go Team Briscoe, stick it to the dreamers at Kathmandu

Good response but not pointed enough,stronger language next time please. PM me and I'll point you to a real response rubbishing a crappy company defending a takeover

https://www.nzx.com/companies/BGR/announcements/268091

[macduffy]

Still just the preliminaries, winner.

Love a good takeover tussle. In the old days I made a habit of buying into these. Generally there were good odds on the first offer not being the last!

;)

[Beagle]

Go Team Briscoe, stick it to the dreamers at Kathmandu

Good response but not pointed enough,stronger language next time please. PM me and I'll point you to a real response rubbishing a crappy company defending a takeover

https://www.nzx.com/companies/BGR/announcements/268091

Entertaining stuff isn't it mate. For my money I'd back Duke's assessment of the situation any day of the week and twice on a sale day. I think Duke will get his boots filled and will have his hands very full turning around some intransigent management thinking in KMD. I wish him luck...if anything I think he's paying too much for a tired old brand with a cost structure that's simply too high for today's market. I won't buy either company at present prices.

http://www.sharechat.co.nz/article/ef0d04d7/duke-says-kathmandu-offer-fully-reflects-value-of-shares-target-s-forecasts-highly-optimistic.html

[winner69]

That guidance from KMD implies a Gross Margin of 67% of sales over the 2nd half of the year

Highest ever for any period ever by looks of it. First half of year was 55% but we know they stuffed up big time. Half 2 last year was 62.6%,

Astounding recovery .... if sustainable valuation should be $3 plus .... but then they stuff it all up by forecasting reduced margins next year .... go figure

hmm

[Beagle]

KMD directors are dreaming mate. Look where the currency is. Duke is dead right and KMD would be plumbing new lows if it were not for his offer. Probably lower than the lowest in the last 12 months which is $1.25. Maybe $1.00 without Duke's offer ? You never pay for value you create yourself, Duke knows that. KMD directors out too lunch ?

[couta1]

We will have to agree to disagree on this stock Roger, personally I believe it would only take a good year to bring it back to a $3 stock so not happy to sell for peanuts and take a loss.

[macduffy]

We will have to agree to disagree on this stock Roger, personally I believe it would only take a good year to bring it back to a $3 stock so not happy to sell for peanuts and take a loss.

Of course, you could always accept the offer and transfer your current paper loss to something with better prospects of recouping that loss - such as Briscoes/KMD. If you thought that had better prospects of success.

;)

[couta1]

Of course, you could always accept the offer and transfer your current paper loss to something with better prospects of recouping that loss - such as Briscoes/KMD. If you thought that had better prospects of success.

;)
Food for thought but unless Duke ups his offer I can't see this deal seeing the light of day.

[jmsnz]

Food for thought but unless Duke ups his offer I can't see this deal seeing the light of day.

With all due respect, what you paid for the KMD shares is not that relevant to what they are worth today, or might be worth in the future, or how you assess an offer of $1.80

The real question KMD holders should be asking themselves is, given their personal investment timeframes, which strategy is likely to yield the best return. Effectively that is a question of whether you think that the KMD board can define and execute a strategy better than Rod Duke can.

Personally, my money would be of Rod at the moment, and you would have to agree with his assertion that without his offer on the table KMD would not be trading anywhere near $1.80 today. I mean you could say that he has already returned KMD holders more that 25% since he made the offer.;)

(Discl. Long term BGR holder not 100% convinced I want to inherit KMD ownership)

[Beagle]

We will have to agree to disagree on this stock Roger, personally I believe it would only take a good year to bring it back to a $3 stock so not happy to sell for peanuts and take a loss.

Mate, get on the ANZ securities website and bring up a chart for the last few years of KMD and BGR and ask yourself this honest question.
Who has the runs on the board and has earned respect in the retail sector...anyone can talk, look who's actually delivered the results for shareholders.
KMD make good gear but its been a poorly managed company.

The ask yourself this question. What's going to happen to the KMD SP when Duke's offer has run it's course :eek2:

Final question...would you like more losses to go with your existing ones this year ? If not, back the man that delivers results, not the directors that deliver excuses.

This post can be summed up with the saying "Talk is cheap". Buy proven results, not B.S. promises and talk. The takeover will run its course and Duke will get plenty to add to his current 20% and there will be blood on the floor at head office with massive personnel changes, you mark my words.

[jmsnz]

Mate, get on the ANZ securities website and bring up a chart for the last few years of KMD and BGR and ask yourself this honest question.
Who has the runs on the board and has earned respect in the retail sector...anyone can talk, look who's actually delivered the results for shareholders.
KMD make good gear but its been a poorly managed company.

The ask yourself this question. What's going to happen to the KMD SP when Duke's offer has run it's course :eek2:

Final question...would you like more losses to go with your existing ones this year ? If not, back the man that delivers results, not the directors that deliver excuses.

This post can be summed up with the saying "Talk is cheap". Buy proven results, not B.S. promises and talk. The takeover will run its course and Duke will get plenty to add to his current 20% and there will be blood on the floor at head office with massive personnel changes, you mark my words.

Somewhat blunter than I put it.

In some ways, it would be fun to see the bid fail, and have Rod as a large KMD shareholder!!

[winner69]

Goldman (13%), Kinetic and Watermark Funds have 'publicly' rejected the offer as it stands

They have fallen for the Kathmandu story

Goldmans Chinese Walls working I presume - advisor to KMD as well as well as wealth management side involved (and they were part of the original IPO sell down)

C'mon Rod - make them suffer and wait - they prob only want another 10 cents

[LAC]

If Rod does not offer anymore and the bid fails. I would think the share price would head down again.... could he come again in 6-8 months time and offer even less say $1.75? Do you think in 6-8 months the SP would recover to more than 1.75?

[Hawkeye]

http://www.nbr.co.nz/article/kathmandus-mark-todd-resigns-chief-operating-officer-finance-director-b-176872

[Beagle]

Somewhat blunter than I put it.In some ways, it would be fun to see the bid fail, and have Rod as a large KMD shareholder!!

Subtle sometimes is effective, but apparently I'm no good at that...my parents should have shelled-out for private schooling and a Swiss finishing school, bloody misers lol


http://www.nbr.co.nz/article/kathmandus-mark-todd-resigns-chief-operating-officer-finance-director-b-176872

Blood letting commences. Best bit of hostile take-over entertainment we've had in years. Holders who don't take up Rod's offer are going to get a bath when it expires in my not so humble opinion.

[Apathy]

Subtle sometimes is effective, but apparently I'm no good at that...my parents should have shelled-out for private schooling and a Swiss finishing school, bloody misers lol



Blood letting commences. Best bit of hostile take-over entertainment we've had in years. Holders who don't take up Rod's offer are going to get a bath when it expires in my not so humble opinion.

Bloodletting or a realigning of personal interests?

[Beagle]

Bloodletting or a realigning of personal interests?

Well its an interesting point in time for a chief operating officer to chose to resign isn't it. Jump before Duke pushes you so it looks better for your career ?
One can only imagine that as this hostile takeover runs it's course Duke will end up with a minimum of 30 something percent, (already has 19.9% in the bag remember after institutional buy-up) so he's going to be in a very strong position to throw his weight around with the board and will no doubt want to use a brand new broom on their tired old floor.

[winner69]

Well its an interesting point in time for a chief operating officer to chose to resign isn't it. Jump before Duke pushes you so it looks better for your career ?
One can only imagine that as this hostile takeover runs it's course Duke will end up with a minimum of 30 something percent, (already has 19.9% in the bag remember after institutional buy-up) so he's going to be in a very strong position to throw his weight around with the board and will no doubt want to use a brand new broom on their tired old floor.

Obviously no golden parachute to be had if successfully taken over?

Was a director as well

[silverblizzard888]

Based on what I heard on RadioNZ today it seems like a stalemate, Rod Duke thinks hes paying fair value and won't budge; large institutional holders feel hes offering a low price and they don't really want to sell.

I do feel Rod Dukes comments have a fair view that 20 million for the financial year is a bit on the low end and KMD's optimistic 40% increase in underlying profit is pretty optimistic given the trend of its shops, but new management and a new direction could be the turn around it needed, who knows. Happy to watch and see how this pans out. I'm not a holder just a bystander with a word to say.

[winner69]

Go Rod
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11494994

Note that GS may change their mind about not accepting 'in best interests of clients'

Deutsche man on radio this morning says fair price ....and mentioned those record margins that have been forecast. Impact of going back to normal margins alone is quite a lot.

Th story also suggested Rod might just dump his shares if the bid failed.

[couta1]

Just got my 140 page target company statement plus 12 page interim report, the large document has Reject Briscoes offer in bold on front cover, gotta love that optimism, will be skim read only methinks.

[GoldenStag]

Well its an interesting point in time for a chief operating officer to chose to resign isn't it.

I wondered whether he has substantial shareholdings. If it were large enough, I personally would consider resigning which would allow me to sell shares without having to disclose to the market, whereas he cannot do this while a director. If he knows he is a goner anyway, then why not sell the shares - something he can't do while a director.

This musing I had in the shower seems a bit far fetched to me, but thought I'd put it out there.

GS

[emveha]

Just got my 140 page target company statement plus 12 page interim report.
What a waste of money to have all that paper printed. Online version http://www.kathmanduholdings.com/wp-content/uploads/2012/08/TCS-document-FINAL-05.08.pdf

[blackcap]

What a waste of money to have all that paper printed. Online version http://www.kathmanduholdings.com/wp-content/uploads/2012/08/TCS-document-FINAL-05.08.pdf

Believe it of not emveha, I still prefer paper versions of documents as they are way more user friendly and so much easier to browse, make notes on where appropriate and to toss to a mate to "check this bit out". So most of the company/annual accounts research I do is with paper.

[drcjp]

Go Rod
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11494994

Note that GS may change their mind about not accepting 'in best interests of clients'

Deutsche man on radio this morning says fair price ....and mentioned those record margins that have been forecast. Impact of going back to normal margins alone is quite a lot.

Th story also suggested Rod might just dump his shares if the bid failed.

GS are slippery aren't they? (checks dictionary definition of slippery....yep, picture of GS there) :-)

Person who wrote that story also needs head read; Rod would surely not be so stupid as to "dump" shares if bid unsuccessful? and blow millions as well possibly affect BRG shares?

I also note that most media commentators missed the fact that when KMD said reject, the shares of BOTH KMD and BRG rose 3-4%.

If Rod really wants KMD he's going to have to up his offer to at least $2 - he can still effect the changes he thinks necessary with 60% holding, just like he would have at BRG.

[Beagle]

Rod didn't come down in the last retail shower. He plays hard-ball and sticks to his guns. I reckon he just lets this thing run its course, he doesn't need any more than about 40% to make major changes and he'll get that in a canter. What's the bet he simply extends the offer when it expires in mid Sept with a repeat press statement that it represents fulsome value in this highly challenging environment.

No way there's another counter offer for this fiscally challenged company with pie in the sky dreams about how easy it is to grow their earnings in a tough economy...so no way Rod needs to up his offer. In fact quite the contrary, he may take whatever he gets in the first tranche and let the offer lapse and then watch the SP collapse back down to $1.25 or thereabouts for a while and then come back later with an even lower offer to mop up the rest. That would be what I'd do if I were him.

[macduffy]

Agree with that, Roger. Of course, a lot will depend on how Kathmandu, the business, performs over the next couple of trading periods.

[couta1]

Agree with that, Roger. Of course, a lot will depend on how Kathmandu, the business, performs over the next couple of trading periods.
I think you'll find that the KMD business is back trading on the upside which is another good reason not to accept the low ball offer from Duke.

[drcjp]

Just looked at BGR group 2014 AP. 39M profit on 500M turnover.
KMD is talking 20M profit on 400M turnover.
I would argue it wouldn't take that much to sort it - Rod could do it easily. But then so could someone else. Xavier just might.

Furthermore, BGR is at $2.95. And Rod is pushing for $1.80 on a company that will double his turnover o/n and he expects people to accept him to pay only 61% equivalent for that 100% increase?

Tell him he's dreamin.........

[albundy29]

Rod didn't come down in the last retail shower. He plays hard-ball and sticks to his guns. I reckon he just lets this thing run its course, he doesn't need any more than about 40% to make major changes and he'll get that in a canter. What's the bet he simply extends the offer when it expires in mid Sept with a repeat press statement that it represents fulsome value in this highly challenging environment.

No way there's another counter offer for this fiscally challenged company with pie in the sky dreams about how easy it is to grow their earnings in a tough economy...so no way Rod needs to up his offer. In fact quite the contrary, he may take whatever he gets in the first tranche and let the offer lapse and then watch the SP collapse back down to $1.25 or thereabouts for a while and then come back later with an even lower offer to mop up the rest. That would be what I'd do if I were him.

My read of the offer document is that it is conditional on hitting the 90% mark (Terms and Conditions Section 4). If the 90% of acceptances is not achieved then no acceptances are valid.

"Long time listener - first time caller"

[winner69]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11497421

Keep at it Rod .....they need fixing big time

If need be you could always ask how his little baking venture went a few years ago

[Beagle]

My read of the offer document is that it is conditional on hitting the 90% mark (Terms and Conditions Section 4). If the 90% of acceptances is not achieved then no acceptances are valid.

"Long time listener - first time caller"

Thanks mate and welcome to the forum. Yes good point and such conditions are quite common but I am sure, (without reading the full offer document) Rod retains the right to waive any conditions he chooses.
I guess much will depend on how well the company trades over the coming months. He probably has the right to extend the offer at least twice, (that's a common feature of these sort of offers), so he might exercise that right and play the long game and just see how KMD trades. I think people holding their breath for an improved offer better have a very strong pair of lungs :)
Any angle you look at this situation this is the best hostile takeover we've had on the NZX for years, complete with thinly veiled insults and all !!

[stoploss]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11497421

Keep at it Rod .....they need fixing big time

If need be you could always ask how his little baking venture went a few years ago

Very condescending from Kirk ....
This wasn't much of a success either ...any others ??

http://www.stuff.co.nz/business/749156/Fairfax-head-David-Kirk-quits

[winner69]

Very condescending from Kirk ....
This wasn't much of a success either ...any others ??

http://www.stuff.co.nz/business/749156/Fairfax-head-David-Kirk-quits

David a quiet polite chap and doesn't seem to have too much 'mongrel' in him. Probably his background. Even more credit for what he did as an All Black - after all for a long time he was the only AB captain to hold aloft the World Cup.

Rod a nice bloke as well but he has some mongrel in him. That's what needed to win in retail.

[Beagle]

I like mongrel...a few people have even implied that's a fit and apt description for me lately, lol
Mongrels are gritty and determined types and while its never pretty they're the ones that get the business done.

[macduffy]

Very condescending from Kirk ....
This wasn't much of a success either ...any others ??

http://www.stuff.co.nz/business/749156/Fairfax-head-David-Kirk-quits

He didn't exactly set the world on fire as CEO of PMP, either.

Rugby was more his thing!

;)

[drcjp]

Gonna lob a grenade here and bet my Kathmandu thermal undies that Rod's gonna have to a) extend or b) up his offer.
BGR now at $2.80 which would make an instant 3% loss for any takers. KMD is actually making money albeit not as much as it should.
Messr Kirk is well connected via his independent directorships on KMD and Forsyth Barr and will be working for best outcome.
Rod will get nastier (which is awesome) but I can't see it working at the moment.
The timing of the full year too will be influential given how skittery the market is at the moment.

My 2c anyway.

[winner69]

Gonna lob a grenade here and bet my Kathmandu thermal undies that Rod's gonna have to a) extend or b) up his offer.
BGR now at $2.80 which would make an instant 3% loss for any takers. KMD is actually making money albeit not as much as it should.
Messr Kirk is well connected via his independent directorships on KMD and Forsyth Barr and will be working for best outcome.
Rod will get nastier (which is awesome) but I can't see it working at the moment.
The timing of the full year too will be influential given how skittery the market is at the moment.

My 2c anyway.

Rod will keep you sweating for a while longer yet mate .... hope your thermals don't get too smelly

You'll end up pleading with Rod to take your shares ..... else down to 140 they go

[couta1]

Rod will keep you sweating for a while longer yet mate .... hope your thermals don't get too smelly

You'll end up pleading with Rod to take your shares ..... else down to 140 they go No chance of me pleading with Rod to take my shares, rather take my chances that KMD will improve on its own steam given time, let him stick to jugs and toasters and leave all the vertical stuff alone. PS- Changing your thermals regularly stops the smell.

[Beagle]

Rod will keep you sweating for a while longer yet mate .... hope your thermals don't get too smelly

You'll end up pleading with Rod to take your shares ..... else down to 140 they go

I was thinking $1.25. I'd like to have a bob or two on Rod telling all KMD shareholders to get stuffed and let his offer lapse. He's clearly unimpressed with the independent valuation and is calling B.S. on that score and I don't blame him. Consumer confidence survey out today and its at a three year low. Very tough retail environment for KMD directors to hit their blue sky targets for FY16...dreamers ?

[drcjp]

Rod will keep you sweating for a while longer yet mate .... hope your thermals don't get too smelly

You'll end up pleading with Rod to take your shares ..... else down to 140 they go

Don't think so, if the offer falls over and they tank to $1.40 then Rod loses $16M and he won't want to be selling one would think. Who'll be pleading then? Its clear that Rod is walking a fine line here - good luck to him and I like it a lot, but he doesn't need the lot to run the company. He can spend the same amount and get 60% (ie. 7/9 + 0.25 p.s.) and make it work. Hopefully sense like that prevails.

[winner69]

Don't think so, if the offer falls over and they tank to $1.40 then Rod loses $16M and he won't want to be selling one would think. Who'll be pleading then? Its clear that Rod is walking a fine line here - good luck to him and I like it a lot, but he doesn't need the lot to run the company. He can spend the same amount and get 60% (ie. 7/9 + 0.25 p.s.) and make it work. Hopefully sense like that prevails.

Rod doesn't mind losing money ...look at his investment in pumpkin patch

[couta1]

Roger your not tuned into the right circle, I hear sales have been very robust both here and in Aussie this winter, just need another good one next year aye, retail may be tough but snow/mountain and outdoors lovers have loose purse strings.

[winner69]

Wonder what Rod will come up with this week

Best quips so far

“…to be brutally honest I’m not sure that Dave is enough of an expert to make any comment at all.”

“Kathmandu’s board is asking shareholders to take a huge leap of faith in trusting them, with an untested management, to remedy a number of key issues and to drive the forecast 40 percent lift in earnings.”

Bold my doing

[winner69]

You can tell this written by a PR person, plenty of nice warm fuzzy buzz words. Probably double Dutch to the biggest shareholder - if he gets the gist I'm sure that big shareholder could have said it in less words and more succinctly as well.

Good stuff couts et al ....Xavier doing the stuff for you, I think it means this will result in more profit

KATHMANDU HOLDINGS LIMITED
ASX/NZX/MEDIA ANNOUNCEMENT
26 August 2015
Kathmandu Announces Structural Review
Kathmandu Holdings (ASX/NZX: KMD) today announced an immediate review of its Head Office structure.

The company will closely review costs and structures in recognition of a significant reduction in profitability in FY2015, compared to FY2014 and previous years.

Kathmandu expects the review may result in reduction of up to ten per cent of employees in its Australian and New Zealand Head Offices.

Kathmandu’s Chief Executive Xavier Simonet said the company was taking decisive action to address the recent underperformance in sales and profit and was looking at all areas of the business.

“I am confident the outcome of the review will enable us to continue to invest in our growth strategies and deliver improved results for our shareholders, “Mr Simonet said.
The company has already identified a number of key areas to improve performance, including:

• Increased efficiencies with cost reductions in all areas of the business
• Increased focus on innovative and distinctive products
• The optimisation of the existing store network
• The activation of Summit Club members
• Improved digital and social media communication, and omni-channel trading functionality
• Leveraging the capabilities of new systems and infrastructure
• The identification of international opportunities through a capital-light model and leveraging of the online platform

Mr Simonet said by focusing on these areas the future potential of the Kathmandu brand could be realised.

The review will be completed by the end of September.

Please direct media enquiries to:

Helen McCombie at Citadel
+ 61 2 9290 3073

[Beagle]

Wow a whopping 10% reduction in head office costs...yeah that'll make all the difference lol...Rod will be thinking its not too early for a couple of Tui's.
Yeah lots of buzz words...some of them meaningless. I especially like The activation of Summit club members. What's the bet you get absolutely bombarded with marketing e.mails so often its almost harassment already ? would I be right W69 ?

[winner69]

Wow a whopping 10% reduction in head office costs...yeah that'll make all the difference lol...Rod will be thinking its not too early for a couple of Tui's.
Yeah lots of buzz words...some of them meaningless. I especially like The activation of Summit club members. What's the bet you get absolutely bombarded with marketing e.mails so often its almost harassment already ? would I be right W69 ?

Hate to miss one of those last minute last chance final days clearance specials

You can tell Xavier went to Harvard to learn those words ....Rod only went to the University of Hardknocks

[winner69]

It was Price Sensitive as well

No wonder NSX reviewing what constitutes a price sensitive announcement

[macduffy]

I particularly like the "capital-light model" phrase. Havn't heard that one since Feltex went under - or was it Fortex?

;)

[winner69]

I particularly like the "capital-light model" phrase. Havn't heard that one since Feltex went under - or was it Fortex?

;)

The price sensitive part might be the $10k that Helen will add to her bill for changing around the words Xavier used to make more sense.

[Beagle]

The price sensitive part might be the $10k that Helen will add to her bill for changing around the words Xavier used to make more sense.

:lol: :lol: :lol: Too funny...I love your dry humour mate.

[winner69]

Gee, KMD up 10% today

Surely not on Helen's words I thought

No the share price had already gone up ...in Aust share price went down after the announcement

Wonder if Rod has worked out what it means yet, I have offered my services to him.

[jmsnz]

Gee, KMD up 10% today

Surely not on Helen's words I thought

No the share price had already gone up ...in Aust share price went down after the announcement

Wonder if Rod has worked out what it means yet, I have offered my services to him.

Sorry w69, I think he already has when he said in the Herald back in early August:
"We believe that Kathmandu is a great brand and has good products, but by its own admission is failing to execute basic retailing fundamentals.

"Nothing in Kathmandu's Target Company Statement provides confidence that management is able to deliver a turnaround and achieve its lofty earnings forecasts."

"By Kathmandu's own admission in the target company statement, its key failings relate to the fundamentals of retailing, including confusing pricing decisions and repetition of non-innovative promotional activities over key promotional periods in FY15, poor inventory management and operating cost overruns.

"It is these key pillars of effective retailing which are Briscoe Group's strengths and a key contributor to its strong performance over a number of years."

[couta1]

Gee this thread looks like its heading down the Peb route, full of knockers/downrampers and non holders, another waste of space coming.

[winner69]

Gee this thread looks like its heading down the Peb route, full of knockers/downrampers and non holders, another waste of space coming.

C'mon now couta - I am an interested party in all this

Even you would have to say that was a stunning announcement and worthy of discussion

Good that jmsnz did the right things and asked for a translation in a new thread. That might have been a waste of space on this thread (but worthy of its own for educational purposes)

[jmsnz]

Gee this thread looks like its heading down the Peb route, full of knockers/downrampers and non holders, another waste of space coming.
Couta1,

I assume that was aimed at my posting. I don't really know what the 'Peb Route' means. I am not a holder in KMD and never have been because I have always translated their pricing model as 'don't buy today, it will be cheaper tomorrow'. I am however a holder in BGR and therefore very interested in KMD and what its shareholders views are, given the recent events.

Regardless, in terms of the elegant and concise use of the English language, that KMD announcement was dreadful.

[winner69]

In the absence of any SSH notices I assume hardly anybody has sent the forms back (accepted the offer)

Rod, they are rejecting you. Come next week you need to stir things up a bit

[drcjp]

Indeed, Rod needs to front up now. There is limited chance KMD will initiate of their own accord. He can always extend but then he runs the risk of the sp getting away on him.
Mind you, given his sneak offer he could announce soon he has the instos sorted and could you get out of that chair please Dave......

[couta1]

Couta1,

I assume that was aimed at my posting. I don't really know what the 'Peb Route' means. I am not a holder in KMD and never have been because I have always translated their pricing model as 'don't buy today, it will be cheaper tomorrow'. I am however a holder in BGR and therefore very interested in KMD and what its shareholders views are, given the recent events.

Regardless, in terms of the elegant and concise use of the English language, that KMD announcement was dreadful. No not aimed at you specifically, more a general comment highlighting the fact that most of the posts on this thread are now from the type of people mentioned in my above post as the holders have all said pretty much all they have to say and believe the company will come right under its own steam without the help of Mr Duke. The Peb route is simply when most/all the valuable contributers stop posting and the thread basically becomes a Trolling outlet full of negativity.

[macduffy]

I'm not a KMD shareholder either but I do have a decent stake in Briscoes and therefore more than mildly interested in this takeover offer and the way it plays out. I suppose that makes me a troll by some definitions!

I'm sure there will be plenty to comment on as this situation develops. I guess we'll just have to wear the "Kathmandu troll" label!

;)

[couta1]

No macduffy your posts are definately Not in the T category, its all about attitude and motives at the end of the day:cool:

[winner69]

No macduffy your posts are definately Not in the T category, its all about attitude and motives at the end of the day:cool:

That's a relief for you eh macduffy ...

How do you see the takeover playing out?

[macduffy]

That's a relief for you eh macduffy ...

How do you see the takeover playing out?

Yes, feeling much better now, winner!

I can see this bid fizzling out. BGR will be left with a 20% stake and will have some influence in the KMD business. If there's no significant improvement there, the bid will be renewed at the appropriate time, probably on slightly different terms, and KMD shareholders may see the merits in going the Briscoes way. Or may not.

[pennyacw]

The words restructure = game changer.

Although one would expect these types of actions with a new CEO, the fact that a cost saving exercise is underway means that growth is off the cards. Two ways to create value 1) operational efficiency 2) revenue growth. I had previously looked at this stock as something close to $2 but now think it is more like $1.6. Their EBIT is not close to what it was and I can't see them increases this anytime soon. Still think $1.8 is a low ball offer for a well known brand and solid product offering if you take into account the ownership premium. Nevertheless, it is going to be a hard task to restructure are retail business like KMD, it is not like a finance or services company where distribution networks, store networks and decentralised staff numbers do not exist.

What puzzles me is their store positioning. In Melbourne they have a store just off swanson street and another one just around the corner. This is the same in other cities also. While this is obviously good in terms of cost efficiency with your distribution network it has made me think that KMD has fallen prey to IPO hype and store numbers leading executive decisions without strategic thoughts.

Might by back in if this stock falls low again, but sold out this morning at $1.7. Not going to play the takeover speculation game.

[sb9]

Note KMD is out of ASX 200, with S&P index rebalancing...

[Hawkeye]

http://www.nbr.co.nz/article/heat-now-kathmandu-board-briscoe-bid-falls-short-p-178628

[macduffy]

Yes, feeling much better now, winner!

I can see this bid fizzling out. BGR will be left with a 20% stake and will have some influence in the KMD business. If there's no significant improvement there, the bid will be renewed at the appropriate time, probably on slightly different terms, and KMD shareholders may see the merits in going the Briscoes way. Or may not.

Kathmandu shareholders rejecting Briscoes' offer. No surprises there but meanwhile BGR posts another record profit.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11512816

[Beagle]

And now that the takeover is certain not to succeed KMD SP is heading south @ a quick rate of knots...what a surprise (NOT). Hard to believe people didn't see through KMD directors optimistic "talk" Talking their position up to protect their position at the trough ? You be the judge.

[longy]

Does anybody know since the total take over may not going to take place and to those already sent in their acceptance form to Briscoe... Is that mean Duke have bought the shares from those sellers? Thanks.

[Beagle]

Clauses in the agreement mean any acceptance by shareholders is not binding on Duke unless he gets to the magic 90% to enable compulsory acquisition of the rest. Acceptances by shareholders normally once signed cannot be revoked.
It is possible Briscoe's may waive the 90% condition, their option, unfortunately not yours. I suspect those who have signed acceptances are going to be disappointed and when their shares are available to them to sell they may express their disgust by doing exactly that. I suspect the smart money got out when the SP was close to $1.80 as it has been pretty clear for a while the economy is cooling off and it would appear pretty obvious to everyone other than the directors of KMD that they'll really struggle to lift profitability by 50% in the prevailing economic conditions. My crystal ball says Rod Duke get's this company cheaper next year or 2017 after the directors get all sorts of egg over their faces in terms of non delivery of the promised recovery.

[Harvey Specter]

Does anybody know since the total take over may not going to take place and to those already sent in their acceptance form to Briscoe... Is that mean Duke have bought the shares from those sellers? Thanks.I could be wrong but I think the offer is contingent on a successful bid. He could lower the bid to a minimum 50% but he cant go for a % between 20% and 50%. Happy to be corrected. I am sure it would be set out in the offer doc somewhere.

Insto's normally leave it to the last minute but quite a few (ozzie ones) have come out and rejected it so it might be a mathematical impossibility.

Edit: Roger - is my statement correct. I also dont think he is allow to creep up above 20%. The creep provisions (5% per year) only apply above 50%??? So he would be required to do another full blown takeover.

[Crackity]

Does anybody know since the total take over may not going to take place and to those already sent in their acceptance form to Briscoe... Is that mean Duke have bought the shares from those sellers? Thanks.

The bid has a 90% minimum acceptance condition longy and currently closes on the 17th of Sept - it may possibly be extended by Briscoes but if not then you still own Kathmandu shares and Briscoes will not have bought them off you. Hope this helps!

[Beagle]

I could be wrong but I think the offer is contingent on a successful bid. He could lower the bid to a minimum 50% but he cant go for a % between 20% and 50%. Happy to be corrected. I am sure it would be set out in the offer doc somewhere.

Insto's normally leave it to the last minute but quite a few (ozzie ones) have come out and rejected it so it might be a mathematical impossibility.

Edit: Roger - is my statement correct. I also dont think he is allow to creep up above 20%. The creep provisions (5% per year) only apply above 50%??? So he would be required to do another full blown takeover.

Let's see what happens mate. I think he'll wait till the directors and the independent valuation are discredited and then take it over in due course for a lot less than $1.80.
I am not sure on the creep provisions but usually minimum acceptance conditions can be waived altogether is he chooses to do so ? Happy to be corrected if anyone has taken the time to read all the small print takeover clauses in great detail.

[longy]

Oh... I see. Yes should have got out @ 1.7. Never mind. Still a few more days to go.

[drcjp]

Ah well, sanity prevailed and thats all over: https://nzx.com/companies/BGR/announcements/270375
Could be quite good now though with Mr Duke as a 19.9% shareholder-agitator.
Wish the day-trading shorters who add nothing of value would bugger off though.

[winner69]

Dr clip, take solace your directors say your shares are worth well over 2 bucks

A 'merger' sometimes still on the agenda methinks

[Beagle]

Dr clip, take solace your directors say your shares are worth well over 2 bucks

A 'merger' sometimes still on the agenda methinks

Back down to $1.25 soon (as for-shadowed by myself earlier), unless directors can prove otherwise. if / when ? they can't they should all resign. This isn't a market that tolerates "talk". I sense we are entering a more sceptical stage for the market as a whole after the recent shakeout / correction. A market that absolutely demands results and will very severely and mercilessly punish stocks that don't deliver. If there isn't the promised recovery in earnings we could easily see this under $1.00 in due course IMO and shareholders will be absolutely begging Duke to join in with his highly profitable and successful empire. Just look the current SP. Already the market is highly sceptical of the new CEO's ability to deliver. In my view talk of a "whopping" 10% cost reduction in head office overhead is really quite trivial and borders on pathetic as far as proper restructuring goes. Duke's school of hard knocks retail expertise is exactly what this company needed and I believe shareholders will live to rue the day they turned Duke down.

[Master98]

Dr clip, take solace your directors say your shares are worth well over 2 bucks

A 'merger' sometimes still on the agenda methinks
if another "merger" happen,then the offer can only be less than $1.6.

[winner69]

if another "merger" happen,then the offer can only be less than $1.6.

Briscoes might "merge" (taken over) with Kathmandu - that would be interesting eh

[nextbigthing]

Apparently Kathmandu is going to make a counter bid to takeover Briscoes.

[Jay]

Those that sold to him at 1.80 must be pretty happy now and no doubt a few others wish they did!

[Lola]

Those that sold to him at 1.80 must be pretty happy now and no doubt a few others wish they did!

I wish I had but my broker said hang on. Now I see a common director. I guess not much will happen to KMD now until (well) after the RWC.

[couta1]

Those that sold to him at 1.80 must be pretty happy now and no doubt a few others wish they did!
Actually I'm quite happy I didn't sell, as I've said before give the company time to turn things around.

[Valleytrader]

Unfortunately for those that accepted Briscoes offer at $1.80, their transactions are void following the lapse of the offer period. Briscoes has reverted to their 19.9 percent holding of Kathmandu according to a notice filed with the NZ on Friday.

[Snoopy]

Those that sold to him at 1.80 must be pretty happy now and no doubt a few others wish they did!


Will they? Did the bid meet minimum acceptance conditions? If it didn't then Rod Duke will just give those customers their shares back.

SNOOPY

[Jay]

Yes I realise that Snoopy, those will get there money back. The ones that sold on market will be at present - as long as they bought below this figure and some that did not still could be happy.
They still could increase again, but not for awhile given current market conditions IMHO.

Discl: Only own one pair of shoes that I got on sale and paid the majority for with a voucher given to me and after all that I think the sale price was about what they were worth plus I did not want to be a sheeple in Auckland and join the (black) puffer jacket brigade, bought another brand and it is not black or a puffer looking jacket - needed one to go to Ruapehu in July :)

[Jay]

Duplicate post

[drcjp]

I will not be surprised if a "please explain" is issued by the NZX re recent trading for this stock. Depressed value is one thing: repetitive cycles is another thing altogether.

[Beagle]

Result out and its a shocker. I call B.S. on their projections for FY16, the whole basis behind the rejection of Rod Duke's takeover. Management face a monumental challenge. The market clearly doesn't like their prospects either and the institutions that were fortunate enough to be in a position to be able to take advantage of Duke's $1.80 cash bid must be laughing all the way to the bank.

I expect a re-test of the previous low of $1.25 in due course. All directors and senior management should fall on their own sword's in due course if they can't meet their ambitious, (flight of fancy ?) profit forecast for FY16.

[drcjp]

Good for you Roger...good for you.

[macduffy]

Result out and its a shocker. I call B.S. on their projections for FY16, the whole basis behind the rejection of Rod Duke's takeover. Management face a monumental challenge. The market clearly doesn't like their prospects either and the institutions that were fortunate enough to be in a position to be able to take advantage of Duke's $1.80 cash bid must be laughing all the way to the bank.

I expect a re-test of the previous low of $1.25 in due course. All directors and senior management should fall on their own sword's in due course if they can't meet their ambitious, (flight of fancy ?) profit forecast for FY16.

Unless, of course, the Duke beats them to it with a new, discounted offer?

;)

[trader_jackson]

I think at $1.30 this stock could be a buy, simply because if BGR come back with the same offer, I think it would be a 'cheap' entry into BGR shares plus a bit of cash on the side.

Just my very brief thoughts as I don't follow this stock particularly closely.

[Harvey Specter]

Does Duke get a seat on the board for his 20%. Means he would have inside info to time his next offer.

[Beagle]

Unless, of course, the Duke beats them to it with a new, discounted offer?

;)

I think the Duke is smart enough to wait until the management and directors have egg all over their faces and when shareholders are gagging for a renewed offer.

[Beagle]

Shareholders hoping the board can make good on their forecast for FY16 might want to consider currency and competition comments made by HLG and PPL today in their annual result presentations today. With weak consumer confidence and very strong currency headwinds its clear KMD management have their work well and truly cut out for them.

[macduffy]

From today's FN Arena:

"KMD - KATHMANDU HOLDINGS LIMITED
Macquarie rates KMD as No Rating (-1) - Kathmandu's result was in line with the company's August profit warning. FY16 guidance has been maintained but the broker has set its forecasts 5% below.
As the broker is advising with regard the takeover offer, it is currently restricted from making a recommendation.
Current Price is $1.30. Target price not assessed.
The company's fiscal year ends in July. Macquarie forecasts a full year FY16 dividend of 9.99 cents and EPS of 13.35 cents . At the last closing share price the estimated dividend yield is 7.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.74.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.3
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.1, implying annual growth of N/A.Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 6.4%.Current consensus price target is $ 1.72, suggesting upside of 31.9%(ex-dividends).Current consensus EPS estimate suggests the PER is 9.9.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources."

A bit odd, seeing that the takeover offer has lapsed!

[Tomtom]

I think the Duke is smart enough to wait until the management and directors have egg all over their faces and when shareholders are gagging for a renewed offer. Isn't it directors and senior managers who benefit most from avoiding a merger?

[blackcap]

I think at $1.30 this stock could be a buy, simply because if BGR come back with the same offer, I think it would be a 'cheap' entry into BGR shares plus a bit of cash on the side.

Just my very brief thoughts as I don't follow this stock particularly closely.

Duke's next offer may not be at $1.80 though :)

[sharp]

When do you think Rod's next will be. Next week? Next month?

[winner69]

When do you think Rod's next will be. Next week? Next month?

If Rod still interested he and Rosanne be quietly working with Kathmandu people convincing them that a combined outfit is the way to go ....and working on the 'merger' details to keep everybody happy (or reasonably so)

Probably the 'merger' be in the form of Kathmandu 'taking over' Briscoes in a scheme of arrangement. All agreed and signed off by both - shareholders won't have much say

All early next year methinks

[sharp]

If Rod still interested he and Rosanne be quietly working with Kathmandu people convincing them that a combined outfit is the way to go ....and working on the 'merger' details to keep everybody happy (or reasonably so)

Probably the 'merger' be in the form of Kathmandu 'taking over' Briscoes in a scheme of arrangement. All agreed and signed off by both - shareholders won't have much say

All early next year methinks

Thanks Winner.

Quietly hoping for a subsequent takeover offer before the year's end.

I wonder how Rod's finances are affected by his investment in Pumpkin Patch and whether this will have an impact on any forthcoming takeover offer.

[drcjp]

WTF on the KMD pricing by NZX? Second time on two weeks their closing value is nowhere near what it is. Today says 1.59 but actual is 1.55 (even after reconciliation). Tomorrow will be lower no doubt. Did the same two weeks ago 1.58 when was 1.53. Weird.

[Snow Leopard]

A lot of trade (260,797) at $1.59 at the close - the price is right.

Best Wishes
Paper Tiger

[winner69]

Fiasco over the CEO incentive Chairman Kirk quoted as saying "We don't want to throw out the whole scheme; the scheme works well," Kirk said."We just didn't twig, so now we realise we need to adjust those [targets]."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11546309

Now come on David, you not that dumb.

[iceman]

The Shareholders Association not impressed :
"The New Zealand Shareholders Association has given Kathmandu chairman and former All Black captain, David Kirk, a "yellow card" over the company's long-term incentive scheme for its new chief executive, Xavier Simonet."

[dobby41]

The We just didn't twig comment makes you wonder if they are actually looking at what they are doing.
Doesn't make you feel confident.

[macduffy]

The We just didn't twig comment makes you wonder if they are actually looking at what they are doing.
Doesn't make you feel confident.

It seems that CEO's write their own tickets these days - but boards should at least earn their fees by being ticket inspectors.

[winner69]

The We just didn't twig comment makes you wonder if they are actually looking at what they are doing.
Doesn't make you feel confident.

Rod Duke said on radio this morning the original scheme was presented to th board remuneration committee who signed it off ad then the full board signed it off ....without even doing the 'mathematics' (big word for Rod) to see if it made sense

And he pointed out that the two directors on the remuneration committee are standing for re-election today

Hope Rod lamb blasts them big time

[winner69]

It seems that CEO's write their own tickets these days - but boards should at least earn their fees by being ticket inspectors.
Apparently even under the new scheme KMD only has to make $37m for the CEO to get the full bonus

Heck in FY14 NPAT was $44m

Big joke eh - yes macduffy its all about feathering your own nest as they say

[dobby41]

Seems the directors are asleep at the wheel still.
Or mathematically challenged.

[winner69]

AGM preso - quick look through and hey who put that together went to Harvard

https://www.nzx.com/files/attachments/225217.pdf

I don't think it possible to cram any more buzz words into a presentation - most impressive

With all the optimising, rationalising, refining, reviewing, driving, converting, maximising, focusing, reinforcing, enhancing, leveraging, inspiring, enhancing, penetrating, omni-channeling, targeting, etc etc going on Xavier's bonus is a certainty I reckon. Can't go wrong with all that strategising

Hope he not over extending himself - bought a few (only a few for a laugh) just to keep in touch with progress. After all it is going to be in the top 25% of performers over the next few years (TSR that is)

Note: Bit puzzled about fatigue/dependency though. Must do some homework

[babymonster]

hopefully this can break the down trend

[winner69]

In spite of all the fuss Xaviers bonus passed with a resounding majority. Doesn't look like Rod even voted against it.

Now Xavier can get with implementing all these optimising, rationalising etc things with no distractions.

Made a few bob on Friday - share price next stop $1.80 and then $2.00 as the market slowly realises that optimising, rationalising etc are good things and that Xavier is an action man and not just a guy using flashy words.

[winner69]

Share price on fire - over 170 now

Instos just love strategies with those flash words literally scattered through it and are topping up knowing Xavier a action man

KMD will move from Dog of the NZX to STAR status over next year - share price possibly 300

[TheHunter]

300 with forecasted 30m earning? Hmm... Maybe in a few more years...

But agreed, undervalued at current price IMO.

[winner69]

300 with forecasted 30m earning? Hmm... Maybe in a few more years...

But agreed, undervalued at current price IMO.

That's the recent forecast ....this time next year HY be talking $40m plus after all that optimising, rationalising etc pays off.

Then 300 distinct possibility

After a roaring start today a bit disappointing the share price now.

[TheHunter]

Unless you trade daily... nothing to worry about.

I think confirmation of the interim result will be what pushes it over 200 or not. Just a waiting game.

[babymonster]

the Q&A transcript was interesting...

[drcjp]

the Q&A transcript was interesting...

It was. Messr Kirk still has a sense of humour. The NZSA seems to like Xavier, and it was made abundantly clear that his name is the same in English.

[drcjp]

Interesting spike in volume for the end of the week. Given the EFTPOS sales reported over Xmas/NY maybe some hope this translates for KMD and others.

[huxley]

Must be about time for a trading update? Find out if they sold any hiking boots over Christmas...

[drcjp]

https://nzx.com/companies/KMD/announcements/277070

There you are Huxley. Steady as she goes, but they have turned around last years Xmas issue it seems. Cautious but positive result.

[winner69]

https://nzx.com/companies/KMD/announcements/277070

There you are Huxley. Steady as she goes, but they have turned around last years Xmas issue it seems. Cautious but positive result.

Stunning really .....H2 will beat 'management execrations' by a long way I reckon.

Nearly 4% points margin improvement - tremendous - 4% of nearly $200m is a decent chunky increased profits. And no doubt it will continue into H2

[winner69]

https://nzx.com/companies/KMD/announcements/277070

There you are Huxley. Steady as she goes, but they have turned around last years Xmas issue it seems. Cautious but positive result.

Market likes result

When Auckland boys back to work tomorrow more FA boost I reckon

[Yoda]

50 MA over 120 MA and SP above both, KW would have said that was a positive sign too.......

[drcjp]

Somebody doesn't want KMD getting away on them just yet. International prices immediately knocked back by lowballers on low volume (third day in row). Interesting strategy as this is exactly what happened with ATM back on Sept-Oct 2015.

[drcjp]

1/2 yr results one week today. A sleeper? A goner? Market pretty quiet on this yet sp risen almost 10% in last few weeks. Personally, I think undervalued and if full year target still confirmed could be a good little runner over next few months. Analysts have at high 1.90s-low2.00.

[Kelvin]

Last couple of updates suggested well improved results and on track to meet the full year target. Just profit takers and general market weakness have kept the sp down until now.

[TheHunter]

Also the hunt for yield has helped given the OCR cut - similar reaction with HLG & other high divi stocks.

[JayRiggs]

If KMD can achieve their forecast FY profit of $30.2, that's about 15cps.
I expect them to pay 10c of dividends for FY2016 - same amount as 2011-2012.
Gross dividend yield of about 8.4% at current price of $1.65 - not bad for the yield.

On a personal note, I buy lots of things from Kathmandu - but only if it's on sale. Non-sale prices are ridiculously overpriced. I feel you need to be a Summit Club member to get the most value if you shop here alot.
The past few months, I've bought a head lamp, a running back pack, a drink bottle and a Nyos water proof jacket.
I'm generally quite happy with the quality of items I buy at Kathmandu. However on my last rainy outing with the jacket, water got into my arms. I was told the jacket is fully water proof and seam sealed. Hmmm, very questionable this Nyos jacket is fully water proof aye.

Disc: I'm an idiot and bought at $2.80

[TheHunter]

Disc: I'm an idiot and bought at $2.80

Better buy a few more jackets ;)

[huxley]

1/2 yr results one week today. A sleeper? A goner? Market pretty quiet on this yet sp risen almost 10% in last few weeks. Personally, I think undervalued and if full year target still confirmed could be a good little runner over next few months. Analysts have at high 1.90s-low2.00.


Yes it seems the market's expecting another positive result... I picked up a few at 150ish a few months ago - happy to see how this plays out.

[babymonster]

2nd half will be the determining factor.. i hope the winter is very cold

[winner69]

2nd half will be the determining factor.. i hope the winter is very cold

Easter sale is important - isn't it very HOT around the country at the moment

[huxley]

2nd half will be the determining factor.. i hope the winter is very cold


Yup it's all down to the 2nd half but the recent announcements are promising and todays report seems to confirm the trend. (Notice hedging may be an issue soon but otherwise looks good).

[babymonster]

Easter sale is important - isn't it very HOT around the country at the moment

aussie weather is more important...

[winner69]

aussie weather is more important...

Sydney high 20s / melbourne low 20s / canberra mid 20s over Easter

If Easter sale not too good lets hope winter is really really really cold

Got 6 thermal tops the other day at $9.95 each so I'm ok for later in the year

[drcjp]

bit of volume today with price holding, up slightly
guess a neutral to favourable response.

[huxley]

bit of volume today with price holding, up slightly
guess a neutral to favourable response.


Looks like the result was already priced in... interesting hearing the plans for international growth though - focus either on wholesale or franchising.

[drcjp]

Nice little run going on for this stock since mid-Feb. Skeptics maybe starting to turn believers.
https://chart.finance.yahoo.com/z?s=KMD.NZ&t=3m&q=l&l=on&z=l&a=v&p=s&lang=en-NZ&region=NZ

[winner69]

Needed a new pair of hiking boots and even though Easter sale over but there was a hike and trek sale for Summit Club menbers.

Liked these $220pair (reduced from some exorbitant ticket price) and they fitted really well and comfortable as. The nice sales guy seemed to know his stuff and was really friendly and helpful - he told me they have issues with that model and pointed out where they would split and where the soles might separate from the uppers and I shouldn't buy them

Ended up with another brand he recommended which felt just as good - cost $129.99 and when i paid the nice girl at the checkout gave me a voucher for $20 to take off my next purchase. Ticket price was $319 ha ha

Not often does get the down sell treatment (even though he tried the up sell to socks etc).

Hope Kathmandu margins are holding up

[huxley]

Needed a new pair of hiking boots and even though Easter sale over but there was a hike and trek sale for Summit Club menbers.

Liked these $220pair (reduced from some exorbitant ticket price) and they fitted really well and comfortable as. The nice sales guy seemed to know his stuff and was really friendly and helpful - he told me they have issues with that model and pointed out where they would split and where the soles might separate from the uppers and I shouldn't buy them

Ended up with another brand he recommended which felt just as good - cost $129.99 and when i paid the nice girl at the checkout gave me a voucher for $20 to take off my next purchase. Ticket price was $319 ha ha

Not often does get the down sell treatment (even though he tried the up sell to socks etc).

Hope Kathmandu margins are holding up



A couple of months ago I had to purchase a new rain jacket at the last minute for an impromptu trip to the tongariro crossing. Picked up an NGX jacket at what I thought was a pretty good price at the time but now see it retailing at $150.00! They're also selling their three layer goretex jacket for $450.00 on clearance... I guess they'll be clearing stock before the winter sale.

[Beagle]

Jeremy Clarkson was seen wearing a Kathmandu jacket in this weeks re-run of the best of Top Gear, maybe that will help ?

[percy]

Needed a new pair of hiking boots and even though Easter sale over but there was a hike and trek sale for Summit Club menbers.

Liked these $220pair (reduced from some exorbitant ticket price) and they fitted really well and comfortable as. The nice sales guy seemed to know his stuff and was really friendly and helpful - he told me they have issues with that model and pointed out where they would split and where the soles might separate from the uppers and I shouldn't buy them

Ended up with another brand he recommended which felt just as good - cost $129.99 and when i paid the nice girl at the checkout gave me a voucher for $20 to take off my next purchase. Ticket price was $319 ha ha

Not often does get the down sell treatment (even though he tried the up sell to socks etc).

Hope Kathmandu margins are holding up

I love great retail sales assistants who are good at up selling.
I had a very pleasant experience at Hallensteins Dressmart Hornby, where the proffessional assistant doubled the value of my purchase,by suggesting I add black dress woollen socks, at $5 a pair to my $10 pollo shirt.I went for them, and brought two pair.!!!.

[janner]

Jeremy Clarkson was seen wearing a Kathmandu jacket in this weeks re-run of the best of Top Gear, maybe that will help ?

Cough... Cough.. Yeah right ...

[janner]

I love great retail sales assistants who are good at up selling.
I had a very pleasant experience at Hallensteins Dressmart Hornby, where the proffessional assistant doubled the value of my purchase,by suggesting I add black dress woollen socks, at $5 a pair to my $10 pollo shirt.I went for them, and brought two pair.!!!.

A person of your stature perc in the public domain not having " Black Socks " !!!!!!!!!!!!!

Tut Tut....

I still retain my. Original " RED SOCKS " Just in-case Dirty Dennis wishes for a rematch.. :-)))

[percy]

A person of your stature perc in the public domain not having " Black Socks " !!!!!!!!!!!!!

Tut Tut....

I still retain my. Original " RED SOCKS " Just in-case Dirty Dennis wishes for a rematch.. :-)))

I only ever buy black socks,saves having to match a pair,does not matter if you lose one,or get a hole in one.!

[Lewylewylewy]

One of the goals I hope to attain from my share investing is to one day be able to afford socks with a pattern. I'm slumming it for now...

[percy]

One of the goals I hope to attain from my share investing is to one day be able to afford socks with a pattern. I'm slumming it for now...

I once had a pair of socks with a wonderful Teddy Bear pattern on them.
Received them from my daughters one Christmas.
I guess one daughter brought one,while the other daughter brought the other.

[dobby41]

So the story here is you don't have to be able to afford the socks - just the children to buy them for you.

[huxley]

So the story here is you don't have to be able to afford the socks - just the children to buy them for you.


If you can afford children they'll pay you sock dividends...

[percy]

So the story here is you don't have to be able to afford the socks - just the children to buy them for you.

No.
If you want patterned socks,don't have children.!!

[dobby41]

No.
If you want patterned socks,don't have children.!!

So you were just lucky that you got both?
I suppose you could have had them much sooner (the socks that is) without the children.

[minimoke]

One of the goals I hope to attain from my share investing is to one day be able to afford socks with a pattern. I'm slumming it for now...
Raise your aspirations LLL. I have a few pairs with a L and a R on each to help me decide which foot each should go on.

[couta1]

Raise your aspirations LLL. I have a few pairs with a L and a R on each to help me decide which foot each should go on. Yes mm we issue those ones to the elderly folk with circulatory issues so your in a special group of people.:cool:

[tim23]

Anyone know why wheels fell off last week?

[drcjp]

Anyone know why wheels fell off last week?Shenanigans. There was no company announcement but one of two things maybe: Easter sales bad, those in the know slowly getting out. Easter sales good and those in the know working to get premium price. SCL dropped suddenly because of staff disclosures so may be same happening here?

[drcjp]

there's your answer tim23: somebody wanted the price down and brokers duly obliged for the pickup early Mon AM. But its just the market you see......
Couldn't be more bloody obvious if they tried.

[drcjp]

Yup, real shenanigans in this stock at the mo imho. Takes a 10% dive last week for no reason and all of a sudden 1%of the stocks change hand in three days this week already. Will the NZX investigate or even care?

[huxley]

Yup, real shenanigans in this stock at the mo imho. Takes a 10% dive last week for no reason and all of a sudden 1%of the stocks change hand in three days this week already. Will the NZX investigate or even care?


It'll be interesting to see how the winter sale pans out though.. Some people must be looking at the warmer weather lately and perhaps reconsidering their positions… https://www.tvnz.co.nz/one-news/new-zealand/napier-eyes-27-degrees-and-its-nearly-winter

Maybe less people keen to up update their puffer jackets this year?

[Joshuatree]

It'll be interesting to see how the winter sale pans out though.. Some people must be looking at the warmer weather lately and perhaps reconsidering their positions… https://www.tvnz.co.nz/one-news/new-zealand/napier-eyes-27-degrees-and-its-nearly-winter

Maybe less people keen to up update their puffer jackets this year?

Need to think outside the puff.Being able to selfinflate your puff-er jacket with a small canister of hydrogen gives the bonus adaptability of becoming a Drone Alone, albeit with a Huhu grub look alike appearance.

[Hectorplains]

Need to think outside the puff.Being able to selfinflate your puff-er jacket with a small canister of hydrogen gives the bonus adaptability of becoming a Drone Alone, albeit with a Huhu grub look alike appearance.

Chch Central city "hub" store... Oh man talk about listen to the tumbleweed. I've a lot of respect for their fronting up to being part of "the rebuild" but how long are they gonna be hanging solo in the big empty here for?

[huxley]

Winter line up...
http://m.kathmandu.com.au/media/wysiwyg/The-Summit/KMD_W16_Summit_NZ_WEB.pdf

[Hectorplains]

Winter line up...
http://m.kathmandu.com.au/media/wysiwyg/The-Summit/KMD_W16_Summit_NZ_WEB.pdf

Yeah, man. Nice catalogue and all but when's winter gonna actually get here. I had a plague of freakin' FLIES this weekend - it's May - in the South Island - unheard of. I reckon all the clothing retailers will be on bended knees asking for frosts and then more... The longer this Indian Summer lasts the more screwed they're gonna be. Winter is the big season for Kathmandu and they may find others hit the sale button early... It all spells reduced earnings.

[huxley]

Yeah, man. Nice catalogue and all but when's winter gonna actually get here. I had a plague of freakin' FLIES this weekend - it's May - in the South Island - unheard of. I reckon all the clothing retailers will be on bended knees asking for frosts and then more... The longer this Indian Summer lasts the more screwed they're gonna be. Winter is the big season for Kathmandu and they may find others hit the sale button early... It all spells reduced earnings.


Good post, I agree entirely. They've done a pretty good job on the marketing but I just don't see where the demand is going to come from. Sure some people will need to purchase if they're travelling somewhere cold but domestic (either Aust/NZ) sales look risky. It will be interesting to see how this situation is managed given the company's recent history dealing with lacklustre winter sales...

[macduffy]

Good post, I agree entirely. They've done a pretty good job on the marketing but I just don't see where the demand is going to come from. Sure some people will need to purchase if they're travelling somewhere cold but domestic (either Aust/NZ) sales look risky. It will be interesting to see how this situation is managed given the company's recent history dealing with lacklustre winter sales...

All of which reminds us that shareholders had the chance to broaden their retail exposure by accepting Rod Duke's offer last year. Oh well, seasons come and go - or used to!

;)

[winner69]

All of which reminds us that shareholders had the chance to broaden their retail exposure by accepting Rod Duke's offer last year. Oh well, seasons come and go - or used to!

;)

What did Rod (Briscoes) offer again?

[longy]

$1.78, I thought.

[JayRiggs]

Rod's offer was:
Five Briscoe shares for every nine Kathmandu shares plus 20 cents cash for every Kathmandu share.

[macduffy]

$1.78, I thought.

Yes, the bid was valued around $1.78-$1.80 at the time.

[Schrodinger]

Bought some items recently online. Very impressed with the experience and the quality was pretty good. They could improve their overall presentation on the mail items but it was good overall.

The real gem is their online shop but I still think they need to "Amazon" the experience by building the feedback community for item reviews.