SBW - Expecting more from this one

[elZorro]

SBW disappointed with its news release this weekend - just when I was hoping for some stellar action, it just about pulled the whole market down with a terrible sideshow. Previously this share has been a great investment, so hoping for better results soon.

[minimoke]

Not so sure its been a great investment. I liken it to ECO or FTB - a company based on marketing rather than long term productive substance. When you look at the fundamentals it appears rock solid, perhaps even aspirational. But can their product offering stand the test of time and the somewhat fickel nature of their customer base who seem to quickly forget long held allegiances when switching to the new flavour of the day.

Also a bit reluctant to back the Board of SBW. Their attempt to diversify was a very risky ploy and in the end only rated a distraction rather than added substance to the bottom line. SBW may well have gotten the most out of the NZ market - I'm picking we'll see some offshore bids and a sell off again like FTB or perhaps a listing on a separate exchange like Cavotec / MSL.

I'm also picking we may have seen the end of SBW in our market, these are tough economic times. While we may have gotten over the worst of the hurdles I don't think now is the time for companies to rest on their laurels. Consumers will still tend towards companies with a proven long term track record who have the experience and enough in reserve to withstand current pressures. Though I may just hedge my bets - I'm not sure we have learnt from our finance company exposures in the past. You now, SCF may have had just enough in the tank to last out the Global Financial Crisis but it was decided to bring in the experienced Sandy Maier to make the most of a difficult situation. We may just see a fallback in support for one market participant and see SBW fill the spot. If so it will only be a short term fix which will inspire some public confidence but in the end have no impact on the end result.

[elZorro]

Cheers, thanks for that Minimoke. I have to confess to having done very little FA work on SBW, but have enjoyed its frequent run up the charts. Perhaps I should spread my investment a lot wider. Looking at ABs next.

[winner69]

SBW had a shocker last week .... needs more discipline methinks ... could have done terminal damage

SBW - Expecting more from this one - Sure am and pretty soon as well or else i think SBW might have new bosses

[winner69]

SBW had a shocker last week .... needs more discipline methinks ... could have done terminal damage

SBW - Expecting more from this one you ask (or state) - Sure am and pretty soon as well or else i think SBW might have new bosses

[minimoke]

Market announcement out today. SBW fallen out of the Top 15 index but retains positon in Top 22 Index.

Trading conditions in the near term expected to be challenging. Analysis of this Index against FRA Year End results shows the Index has out performed FRA 37 times to FRA's 12. In the past five Year Ends the Index has out performed 3 times to FRA's 2 times.

SBW could still get a spot in the Top 15, but it will take one in the Index to run low on reserves or take an unexpected hit to balance sheet.

[J R Ewing]

Interesting to note that SBW did not escape censure from the market regulators last week. Any continuation of unethical business practices could have an adverse effect on the index as a whole.

[winner69]

Minimoke - I'd be optimistic and say SBW will get included in the Top 15 for a while but worried where SBW goes from there

If performance doesn't improve dramatically maybe SBW would have done its dash and get included in the NRL again - esp if the rumour that QC and SBW might do some sort of partnership or merger but that might not be a good outcome for SBW as QC seems to have the lost the plot and seems rather directionless

[J R Ewing]

From market acion last weekend the proposed merger between SBW and QC appeared more like a hostile takeover!

[minimoke]

Interesting to note that SBW did not escape censure from the market regulators last week. Any continuation of unethical business practices could have an adverse effect on the index as a whole.
Word on the street is that there was a bottle of Heineken left lying around and that this wa not of sufficient motivation to take action when fridges with Champagne are a better target.

[Arbitrage]

SBW dropped out of the Top 15 index as it is all about short term impact rather than long term hold. I still haven't heard where the head office will be next year after the lease in Christchurch ran out and any new lease there would have been too expensive. Rumour has it that Hamilton or Auckland may be the new location.

[pierre]

I think the next results announcement will determine the outcome for this stock. SBW's performance for the trading period due to end this Sunday around 10.30pm will be crucial to its future survival in the NZ market.

If they report any further instances of unethical behaviour that will deter many supporters and with a likely change of Chief executive coming too, we could see SBW dumped pretty unceremoniously from the NZX.

It might have a future on the other side of the ditch or maybe could even contemplate a return to France - that country is bound to be looking for new listings next week.

[Jay]

All very entertaining
Good stuff

I understand SBW will only be listed for a max of 1 year on the index in any event and then it could come to what pierre says around the new Cheif exec

[THEONE]

Sonny Bill Williams?

[minimoke]

Sonny Bill Williams?
Where would you get that idea from - this is the NZX market forum. We try to keep things on topic here but since you raised the idea do you think he'll play Sunday?

(and a bit off topic - I've just had a call from a nice lady in India who has helped me fix my computer which was full of viruses and malware. Sorry - I was a bit negligent and should have got her number in case your PC suffers the same fate)

[winner69]

In these volatile times in the market SBW not one to hold over the weekend so i sold out yesterday ... it has had a good run and I believe SBW is now fully valued with all the good news built in.

A bit of bad news over the weekend and the market could collapse on Monday and SBW won't will go down with the rest of the them .... SBW might have all the attributes but market sentiment is a powerful force ... esp if punters leave the market in droves

Selling out in the good times .... yep prudent risk management methinks

[winner69]

Just realised the market is closed on Monday .... jeez if bad news comes out out over the weekend Monday could be a long miserable day waiting for Tuesday's market opening.

Worst news would be a downgrade for NZ (going down a notch or 2 in the ratings) with a upgrade for some European countries such as France

[winner69]

Sonny Bill Williams?

Whats this Sonny Bill Williams? ... can't find any mention on the NZX or the NZAX

Googled it and all I came up with was a guy from Allstar Strippers who strips off the chicks at hen parties and like .... how gross

[winner69]

After yesterdays market action looks like the rumoured SBW / QC takeover / merger won't be on the agenda for a while

QC price prob fall even further when markets open next week .... lets hope SBW not affected

[Financially dependant]

Chart-wise looking good for a big opening on Tuesday...break out!!!

3670

[percy]

Chart-wise looking good for a big opening on Tuesday...break out!!!

3670
Does the Blue breakout mean FRA will surprise on the upside.?
Does the red mean there is a change SBW may be put into another trading halt or face a suspension.?

[minimoke]

I suspect the value of SBW will be significantly influenced by the managements performance at the four yearly stockholders meeting which I understand, due to the large numbers of shareholders wishing to attend as they're expecting huge payback from the senior management, will be held at Eden Park.

Just a point of clarification: I gather it is the large holders, brokers and corporate official type people who wil be at the Eden Park meeting. For the "mum and Dad" holders there is a separate meeting which will have a video hook up at a venue somewhere on the Auckland waterfront. I don't imagine there will be a Rainbow Warrior repeat but there will still be a security presence

[Financially dependant]

Does the Blue breakout mean FRA will surprise on the upside.?
Does the red mean there is a change SBW may be put into another trading halt or face a suspension.?

Good points percy but IMHO it will depend on what news comes out over the weekend......

[RRR]

What is SBW?

[minimoke]

What is SBW?
As markets open again today, a very good question.

[elZorro]

As markets open again today, a very good question.

Agreed Minimoke, SBW posted dull results again during the weekend, from a brief corporate raid. Luckily the main group, Associated Business Services (ABS) came through with a market-bolstering performance when the sales department clinched a massive deal using Stephen Donald of Waiuku/ITM fame. Just shows the importance of having good staff at crucial times.