42 Below - Beyond the IPO...

[The Doctor]

maybe now they can approach Disney direct...and install...'MICKEY MOUSE'...as a director!!:D

[Footsie]

i have to admit even as an ardent ftb fan, it does seem to be stretching the envelope a little bit appointing this guy.

[spector]

quote:Originally posted by Footsie

i have to admit even as an ardent ftb fan, it does seem to be stretching the envelope a little bit appointing this guy.




I think the complete opposite Footsie. Sounds like the guy is hooked up enough to get 42 Below product placement in TV shows, movies and events right through Hollywood. I think this guy has way more to offer than Dalton or Walker.

[spector]

42 Below taps Hollywood
29 May 2006
By ADRIAN BATHGATE

Vodka maker 42 Below has signed up a Hollywood executive to its board.

California-based Rich Frank, who served in senior roles with Walt Disney Television, Walt Disney Studios and Paramount Television, will take up a role as non-executive director, effective immediately.

42 Below chief executive Geoff Ross said Mr Frank brought a wide array of entertainment industry contacts and could get 42 Below noticed through movie premieres, television shows and the like. "We think that's a better way of getting our brand message out there than buying truckloads of television time."

"There wouldn't be many as connected as he is to that whole area."

Mr Ross met Mr Frank's son, Paul Frank, while marketing the 42 Below brand in California. From there he met Mr Frank Sr and found a lot of common interests. Mr Frank owns a vineyard and has knowledge of marketing alcohol in the United States.

42 Below has so far been present in only four US cities: New York, Miami, Las Vegas and Los Angeles. Mr Ross said 42 Below was looking at several more states for expansion this year.

[Placebo]

I very much like that he is called "Rich":D

[The Doctor]

hate to think how 'old' he is!...wrinkled up ,jurassic 42below promoter!!!

[BRICKS]

PRICE now 51 cents just about crash below 50 cents "BUY" boys and save the COMPANY who`s got the support MONEY hands UP.. [8D]

[Snow Leopard]

Certainly not a good time for those who hold warrants bought on market.

[Placebo]

c'mon Bricks climb aboard, it's a bargain.

Go on, we love ya. We really do![:X]

[BRICKS]

quote:Originally posted by Placebo

c'mon Bricks climb aboard, it's a bargain.

Go on, we love ya. We really do![:X]


AS the ship mite sink and you may be one of the crew remember your last night statements do the RIGHT thing and go down with a 42 bottle in the hand & KISS your REAR .. [8D]

[marinesalvor]

I love rum - Pacific Dark rum released tomorrow!! woohoo

[barnsley bill]

has anybody seen the rum yet? if so is it any good?
They have been very quiet for a while now. b warrants coming up and they have a sell at six bid at three on them.
This must be the longest spin free period since list, maybe they are saving it all up for warrant time!

[danchop]

quote:Originally posted by barnsley bill

has anybody seen the rum yet? if so is it any good?
They have been very quiet for a while now. b warrants coming up and they have a sell at six bid at three on them.
This must be the longest spin free period since list, maybe they are saving it all up for warrant time!
im glad i sold mine for 42 cents(warrants that is)and no pun intended

[Toddy]

FTB SP back to 50 cents.

Its crazy that the warrants are not trading at par-ish so close to exercise date.

[danchop]

quote:Originally posted by Toddy

FTB SP back to 50 cents.

Its crazy that the warrants are not trading at par-ish so close to exercise date.


they should be at a discount relative to head price now,so the warrant holders should be offering at least a cent to people who would take them off thier hands

[Toddy]

quote:Originally posted by Toddy

FTB SP back to 50 cents.

Its crazy that the warrants are not trading at par-ish so close to exercise date.




Correction - SP at 49 cents.

[blackcap]

quote:Originally posted by danchop


quote:Originally posted by Toddy

FTB SP back to 50 cents.

Its crazy that the warrants are not trading at par-ish so close to exercise date.


they should be at a discount relative to head price now,so the warrant holders should be offering at least a cent to people who would take them off thier hands


Dont be stupid, id take your warrants off you happily. In fact give me your addy, and ill send you some pre filled transfer forms. There is plenty of time value left.....

[danchop]

i havnt got any left blackcap i sold them last year,but dont they expire end of october

[Phaedrus]

FTB has now made a new 21 month Low, breaking below a support level that had held since September 2004. This is the seventh in a series of Sell signals that began in February 2005. Those using even the most rudimentary TA would have been out of this stock a long time ago. Only "true believers" will be holding now.
http://img.villagephotos.com/p/2006-2/1151662/FTB628001.gif

[blackcap]

quote:Originally posted by danchop

i havnt got any left blackcap i sold them last year,but dont they expire end of october


They do they do, but that still gives 4 months odd - makes them worth more than 0 cents thats for sure...

[Placebo]

Phaedrus all I can say is you have waaaay too much time on your hands to waste your time with this lemon

[Phaedrus]

Placebo, You'd be surprised at how little time that sort of post takes. Having posted the first 6 signals, the chart was already set up. It automatically updates itself so all I had to do was add the arrow, the number 7 blob and a few clever-dick comments!

[BRICKS]

quote:Originally posted by Placebo

Phaedrus all I can say is you have waaaay too much time on your hands to waste your time with this lemon


NOW you say its a LEMON,, WOW.. [8D]

[Bling_Bling]

Has this company made a profit yet?

Whats taking them so long? Too many parties burning up the cash?

[Placebo]

quote:Originally posted by BRICKS


quote:Originally posted by Placebo

Phaedrus all I can say is you have waaaay too much time on your hands to waste your time with this lemon


NOW you say its a LEMON,, WOW.. [8D]


Yes Bricks. I am happy to admit to my mistakes. buying FTB in the IPO was one of them.

[Footsie]

This has been one of my worst investments to date

unfortunately when the stock was trading at 80c and for much of 2005 i was travelling in Europe not watching my investments and missed the opportunity to sell ( i'd technically put all my NZ investments in the bottom draw for 12 months)

in hindsight i would have bailed.

now im stuck with these worthless warrants and a stock that is below ipo 3 years later !

[danchop]

quote:Originally posted by Footsie

This has been one of my worst investments to date

unfortunately when the stock was trading at 80c and for much of 2005 i was travelling in Europe not watching my investments and missed the opportunity to sell ( i'd technically put all my NZ investments in the bottom draw for 12 months)

in hindsight i would have bailed.

now im stuck with these worthless warrants and a stock that is below ipo 3 years later !you could always help out in times like this,buy a bottle and get tanked on the memories

[StainlessSteelRat]

Is it just me, or is Baker's "foray" into Viking reminiscent of the cosy "arrangements" that were seen before the 87 crash?

[The Doctor]

quote:Originally posted by StainlessSteelRat

Is it just me, or is Baker's "foray" into Viking reminiscent of the cosy "arrangements" that were seen before the 87 crash?


you're on to it!...80's 'dudcorps' revisited...42b and Charlies perfect examples of 'wealth re-distribution'...vehicles!:D...42b under 30 cents by xmas...has a prescence in ONLY 4(four)cities in the U.S!![xx(]

[barnsley bill]

these boys are too slick to let the sp stay so low with warrant time coming. the spin machine must surely be fired up soon so the founders can buy another year of cashflow[:0]

[barnsley bill]

new rum website......................
www.seventiki.com



not loading properly.................
just like the sp:D

[marinesalvor]

I love rum - most pick up some for the boat

[lanenz]

quote:Originally posted by marinesalvor

I love rum - most pick up some for the boat
Keep that up and you wont be a marinesalvador for long[:0]

[marinesalvor]

my leisure boat Lane - not my workboat - thats a dry ship!

[The Doctor]

I guess the sp 'support' should come from an announcement re Panache AND distribution 'initiatives'....after all 10 million shares were dumped...and this was the 'plausible' reason ....offered![:o)]

[The Doctor]

and another 'vote of confidence'...Baker dumps nearly 3 million more![:0]

[rmbbrave]

Cheeky bride ad leaves bad taste
10 July 2006

A vodka promotion offering a free trip to Moscow to find a Russian bride has copped an arctic blast from the Advertising Standards Complaints Board.


But Gareth Hughes, marketing manager for 42 Below Stil Vodka, has no regrets about the cheeky campaign, which he reckons has helped sell liquor worth more than $90,000.

Bottle tags for the "Find-a-bride" promotion proclaimed "Russian Women are awesome! They don't care if you watch cricket on Valentine's Day. Hell! They don't even care if you're short and fat! It's almost too good to be true."

This drew a complaint from K Salviera, who said it was insulting, disgusting and disrespectful of Russian culture, and portrayed Russian women as commodity goods.

42 Below claimed the spirit of its lighthearted promotion was that Russian brides had an excellent reputation for making life partners.

There were lots of respectable agencies in New Zealand and Russia helping people to find love, it said.

The humour hit the right note with a minority of board members.

AdvertisementAdvertisementBut the majority were sour on it, saying it insulted and demeaned women, and Russian women in particular. Taking into account generally prevailing community standards, it "was likely to cause serious offence".

Mr Hughes said 42 Below had not created the concept of the Russian bride. "There are plenty of Russian women advertising themselves on the Internet as potential brides and there are thousands of men looking for that sort of thing – we're just a catalyst for bringing them together."

The competition was always designed to be a bit of a laugh and to push the boundaries without going too far. It was bound to get a reaction, he said.

The prize went to a Queenstown man, Grant Dillon, who was planning to fly to Russia at the end of the month.

[The Doctor]

GETTING DESPERATE NOW...'REHEATING' STALE ....'NEWS'!

[barnsley bill]

even more incredible is the name of the marketing manager. anybody who worked with that plum at empower will know what I am talking about.
GB still looking after his boys..

[Wiremu]

The 42 BELOW web adverts used to be funny. Now they appear tired, without humour sufficient to balance the crudidity, a bit like school playground humour which you quickly grow out of.

The only way these would be humorous would be after one or two bottles of their fine product, by which time you wouldn't be able to turn your PC on, let alone anything else.

http://mediaonenetwork.net/m1g3demo/demo.htm?id=1084&ws=0

http://mediaonenetwork.net/m1g3demo/demo.htm?id=1085&ws=0

[winner69]

Jerry Collins at the Matterhorn recipe:

42 Below Feihjoa vodka (45 mils)
Elderflower Cordial (15 mils)
Fresh lime juice (20 mils)
Soda water
.... but th barman says he might change the recipe .... like crouching down behind the bar and replacing the vodka with urine

Does the fijoa stuff taste that bad that punters wouldn't notice?

http://www.rugbyheaven.smh.com.au/articles/2006/07/11/1152383731069.html

[Footsie]

who else thinks FTB's 2nd half of FY07 will be profitable...

I think first half will still be a loss but not in the 2nd half.

[barnsley bill]

quote:Originally posted by Footsie

who else thinks FTB's 2nd half of FY07 will be profitable...

I think first half will still be a loss but not in the 2nd half.


I agree............. with a proviso.
If the options takeup is poor (which the current sp will ensure if they are unable to spin the price up)then the spending will slow thus helping profitability.
If the options takeup is good then the spending will increase while they look to offload to a larger liquor co, thus driving down the chances of a profit.

And they are not as likely to get lucky on forex wins again are they.

[rmbbrave]

A shot to crack the big league
03 August 2006
By GARETH VAUGHAN

Hollywood superstar Cameron Diaz sipping 42 Below vodka? It could happen now that Rich Frank, chairman of Diaz's management company The Firm, is on the Kiwi liquor company's board.


"We represent a lot of big talent and have connections with a lot of talent, so there's ways to try to have a star have a picture taken while they're sitting next to a bottle of 42 Below or have them order it," Mr Frank said yesterday ahead of 42 Below's annual meeting in Auckland tonight.

"It doesn't necessarily have to be with our clients, it could be with a rock band, it could be in a film."

Such a move could have a "giant" impact on 42 Below, Mr Frank, appointed a director in May, said.

The Firm's clients also include film director Martin Scorsese and rapper Snoop Dogg. Mr Frank is a former chairman of Walt Disney Television, former president of Walt Disney Studios, and was vice-president and president of Paramount Television.

He met 42 Below chief executive Geoff Ross about a year ago.

"He's really smart and a great marketing guy and he was working in all the areas that interest me," Mr Frank said.

He said he had a lot to learn about 42 Below, after just meeting his fellow directors this week. As a new, small company in a competitive market full of big players, 42 Below needed to fight them on its own turf. This could be in "new media" areas such as the internet, broadband or iPod downloads.

"It (advertising) is not just about buying a 30-second spot anymore," Mr Frank said.

42 Below, which posted March year sales of $17 million and a $3.3 million loss, is described by one fund manager as the most overvalued company on the stock exchange.

After listing at 50 cents a share in 2003, 42 Below yesterday traded at 54c, valuing it at $82 million.

ABN Amro Craigs analyst Selwyn Blinkhorne noted 42 Below's management valued liquor brands per cases of liquor sold.

Of 11 major international liquor takeovers between 1998 and 2005, the average price paid per case was $942.

Based on the $942 price, 42 Below was worth $88.1 million, Mr Blinkhorne said.

Mr Blinkhorne said 42 Below aimed to expand sales rather than earnings in the next three to five years and eventually receive a takeover bid.

"42 Below shares are an interesting albeit speculative investment," Mr Blinkhorne said.

Mr Frank, though believing Mr Ross did not launch 42 Below just to try to "flip" it, said: "Isn't it the hope of every entrepreneur that ever starts, that one day they'll be the biggest or one day somebody will buy them out

[BRICKS]

THIS is the case flip it [good one] these so called amounts of money NZ are in there heads in EU a Vodka in a bar $1.00 @ nip so drink UP.. [8D]

[Bobby_Fischer]

Que?

[Bling_Bling]

Someone is having a great party and it aint the shareholders.

[barnsley bill]

one more cent and the next lot of options are at break even, will be interesting to see if the six month figures are released before exercise date. First six months are usually the worst and probably no currency fluke to make it look good this time.

[The Doctor]

'the MOST OVER VALUED COY ON THE SX'...at least one fund manager has worked it out....wheres the big capital expenditure by Panache?...the excuse used when 10mil shares were dumped!Hoping someone will buy them out?dream on ...dreamers!

[barnsley bill]

quote:Originally posted by The Doctor

'the MOST OVER VALUED COY ON THE SX'...at least one fund manager has worked it out....wheres the big capital expenditure by Panache?...the excuse used when 10mil shares were dumped!Hoping someone will buy them out?dream on ...dreamers!

Panache is mckillen... why would he spend any money??

[The Doctor]

quote:Originally posted by barnsley bill


quote:Originally posted by The Doctor

'the MOST OVER VALUED COY ON THE SX'...at least one fund manager has worked it out....wheres the big capital expenditure by Panache?...the excuse used when 10mil shares were dumped!Hoping someone will buy them out?dream on ...dreamers!

Panache is mckillen... why would he spend any money??


supposedly the reason he dumped all those millions of 42b shares was to fund marketing expansion in the U.S!?

[barnsley bill]

perhaps the Tui tag line after that statement would fit

[Bobby_Fischer]

SP seems to be perking up again.

[barnsley bill]

yes it is, and on very low volumes... Methinks lots of b options holders all buying 5 at a time to avoid putting options on spike in the little room.:D

[barnsley bill]

Drinks giants target Absolut as Swedish voters ponder sell-off

1.30pm Sunday August 27, 2006
By Abigail Townsend


The multi-billion dollar sale of Vin & Sprit (V&S), the owner of trendy Swedish vodka Absolut, is once again on the cards.

V&S is owned by the Swedish government, which has always been steadfast in its refusal to sell.

But the country is holding elections next month and the opposition leader has confirmed that, should his party come to power, it would privatise some state-owned assets.

The Swedish authorities own a swathe of companies and is the country's biggest single owner of businesses.

But Fredrik Reinfeldt, the head of the Alliance for Sweden party, was recently reported as saying: "We believe that the state has another role to play: to provide regulations and legislation, and not be an actor in the marketplace itself."

His comments have therefore raised hopes that, should the popular Alliance for Sweden be successful in its bid for power, V&S will be one of the assets sold off.

The biggest brand owned by V&S is Absolut.

The vodka is extremely popular globally and has become the world's third-largest premium spirits brand in just 10 years.

Although V&S has only the one global brand, a number of leading drinks companies would still be keen to get their hands on the business.

"It's one brand, but Absolut is the largest premium vodka brand in the world," said a drinks analyst at a leading investment bank.

"It sells 5 million or so cases in the US and it would be seen as being attractive to a lot of players out there."

The business, should it be sold, is likely to be floated. That way, the Swedish government could retain a stake. But most believe it would be snapped up soon after its market debut.

"It would be picked up quickly," said the analyst.

"However it goes, you just know the brand will be sold soon after, and the usual list of candidates will be involved."

The analyst said that average earnings before interest and tax at V&S were around USUS$200m ($314m).

When it comes to valuing the business, many believe it could be sold on a multiple of the mid- to high teens, making it worth around US$3bn to US$4bn.

Premium brands such as this are in high demand: two years ago, for instance, the family-owned Bacardi splashed out US$2bn for Grey Goose, the leading premium vodka in the US.

Those likely to be interested include Pernod-Ricard, the French drinks group that acquired Allied Domecq for £7bn ($20.7bn) last year, and Diageo.

Although the British drinks giant owns Smirnoff, analysts feel that it could still be a potential bidder as long as it offloaded some of its lesser brands.

However, there is still a long way to go before a sale.

The Alliance in Sweden party has been leading the polls in recent weeks, but it still needs to win the elections on 17 September.

It would then need to include V&S in its pledge to sell state-owned assets.

There have also been many false starts before, with the industry regularly hearing rumours that the current Social Democrat government, which has been in power for 12 years, was considering selling the business.

To date, however, the Swedish authorities have always dismissed such speculation.

Founded in 1917, Stockholm-based V&S has operations in 10 countries, employing around 2500 employees and selling in 125 markets.

Group sales in 2005 came in at SK9.8bn ($2.12bn).

Until 1995, the business was solely focused on the Swedish market but then decided to start exporting Absolut.

Now only a sixth of V&S's sales are made in Sweden

[Footsie]

This stock is about to go on another run

RTD's in the pipeline and Insto's now on the buyside in the high 50's

would be suprised to see it back at 80c by the time of option expiry

[leanmeanfightingmachine]

this stock reminds me of frucor and all the talk of V drink.

i think 42 and charlies will pull together.

LMFM



quote:Originally posted by Footsie

This stock is about to go on another run

RTD's in the pipeline and Insto's now on the buyside in the high 50's

would be suprised to see it back at 80c by the time of option expiry

[biker]

[quote]Originally posted by leanmeanfightingmachine

this stock reminds me of frucor and all the talk of V drink.

i think 42 and charlies will pull together.

LMFM


[quote]

And then watch Charlies go.

[Footsie]

glad to be long both FTB and CHA

[The Doctor]

it must be 'comforting' to know 42below has had a man of the calibre of Plus SMS man Grant Baker...'involved'!:D[:p]:D

[barnsley bill]

quote:Originally posted by The Doctor

it must be 'comforting' to know 42below has had a man of the calibre of Plus SMS man Grant Baker...'involved'!:D[:p]:D


as anybody who has worked for him would agree.
Or as we used to call him.. you get a lawyer and I will get two.....

[minimoke]

For a Super Premium brand I am not sure I would be expecting to see the FTB range advertised in a product line which includes $9.99 Canterbury Cream, Cleanskin Chardonnay and Vat 49 Scotch. Not only this, but heavily discounted FTB down from $40 to $32.99. Well, one way of shifting product is through the bulk liquor barns, but not a great image!

[marinesalvor]

well well well - 77c

[Toddy]

Another kiwi company GONE.

42 BELOW to become global super brand, within Bacardi's family
Founding shareholders to accept and board anticipates recommending offer from Bacardi

Listed vodka company 42 BELOW is set to become New Zealand's first global super brand with an all cash offer to purchase the business from Bacardi Limited for NZ$138 million.

42 BELOW listed on the New Zealand Stock Exchange almost three years ago with a market value of NZ$60 million.

The offer equates to 77 cents per share and represents a premium of 35 per cent more than yesterday's share price of 57 cents. For shareholders who bought at the initial public offering the offer price represents a total return of 68 per cent over three years due to the warrants they received.

Bacardi is a world leader in super premium spirits with brands such as Bacardi, Bombay Sapphire, Grey Goose, Dewar's and Martini in its stable. Bacardi has immense respect for the iconic New Zealand company and has plans to invest heavily in 42 BELOW products world-wide.

Bacardi plans to bring to bear the resources of its global marketing and distribution infrastructure to accelerate the presence of 42 BELOW from 25 to more than 130 countries and cement its New Zealand status in a global economy.

42 BELOW was founded by current Chief Vodka Bloke Geoff Ross in a Wellington garage only seven years ago. Mr Ross says the offer represents a "great story for New Zealand, for our shareholders and for the brands".

"I think we as New Zealanders should be pretty rapt to see a Kiwi brand become an icon in the luxury goods world. The brand has always been unashamedly New Zealand and now with Bacardi's help our country's vodka brand is set to become a major global force," Mr Ross says.

"There is no spirits company I respect more than Bacardi. That company's intimate knowledge of premium brands and global muscle encompasses more than 130 countries meaning there is no better network on which to build our brand from here in New Zealand."

42 BELOW founding shareholders Grant Baker, Geoff Ross, Stephen Sinclair, and substantial shareholder, David Wright, together representing 53 per cent of shares and warrants issued, have committed to the offer by way of irrevocable lock-in agreements.

An independent committee of the board of directors of 42 BELOW has been appointed to consider the offer and report to shareholders.

The details of the offer include:

o 77 cents per share (a 35 per cent premium on yesterday's share price);
o subject to general conditions, including the approval of the Overseas Investment Office and minimum acceptance of 90 per cent;
o the formal offer is expected to be mailed to shareholders in early November, to enable time for Series 2 Warrants to be exercised;
o the offer is for the complete company, including brands 42 BELOW, SOUTH Gin, SEVEN TIKI Rum, STIL Vodka, TAHITI DARK Rum and 420 Spring Water;
o all production to remain in New Zealand - important in maintaining the brand's credentials;
o the entire 42 BELOW team to continue building the brands within the international network of Bacardi.

Bacardi President and Chief Executive Officer Andreas Gembler says: "In 42 BELOW we are acquiring exciting young, premium brands with long term growth potential in the growing category of premium spirits. The team at 42 BELOW has done a fantastic job in growing its brands. Bacardi plans to invest heavily in the 42 BELOW brand portfolio and supporting infrastructure to really get it on top of the world stage."

Geoff Ross adds: "This is evidence of what a new New Zealand business can achieve, a positive result for all those shareholders and team members who have built 42 BELOW."

42 BELOW has won gold medals at every major spirits show, including best of show in London and winning gold three years running at the World Spirit Awards in Brussels.

Bacardi has been provided with due diligence data in respect of 42 BELOW. In anticipation of a possible offer, the independent committee appointed Grant Samuel to provid

[gisborne_gold]

quote:Originally posted by Toddy

Another kiwi company GONE.


Or another way to look at it, another excellent outcome achieved by a kiwi startup that has created wealth in a brand and monetized it for founders and shareholders.

May there be many more stories like this one in years to come.

[croesus]

So much for the doom merchants and glass half empty pessimists

[The GrandMaster]

where's The Doctor

Disc: happy holder

[minimoke]

I’ve been sceptical in the past but congratulations to all concerned. Great to see a company actually deliver significant upside to its investors.

[redzone]

Im sure we will see more NZ companies disappear from NZ over the next few years.....FPH...FPA...SOE just to name a few

[leanmeanfightingmachine]

I picked it, sold off shore by christmas. Mine gone at 77 cents i think. Off to giltraps.

LMFM




quote:Originally posted by redzone

Im sure we will see more NZ companies disappear from NZ over the next few years.....FPH...FPA...SOE just to name a few

[peat]

strikes me as a little lacking in ambition for the major shareholders to accept this offer ....

[Placebo]

Yahoo!! My FTB strategy has been realised!!

Hey Doctor, see my middle finger?? It's just for you!
[:p][}:)][:p]


:D:D:D:D

[barnsley bill]

quote:Originally posted by peat

strikes me as a little lacking in ambition for the major shareholders to accept this offer ....

are you kidding... The founders had less than 1c per share exposure. This is another enormous triumph for Grant Baker.:(
The company is a cash burner that needs bacardis deep pockets to get it profitable.
Congrats to all here who made on this.

[peat]

but BB
tho the returns arent bad for the IPO investors they dont quite match the expectations of world domination etc that all the hype built up.....
I dont quite understand what you mean by "founders having 1c exposure"- does this mean their shares only cost them 1c.

[redzone]

correct

[The Doctor]

absolutely amazed...what's the real return for holders for nearly 4 yrs?...still congrats to the 'faithfull'..relistically this was the only way this brand could survive..and a triumph of 'perception over reality'...this share got as high as 80-90 ,did it not.?[:I]

[BRICKS]

quote:Originally posted by The Doctor

absolutely amazed...what's the real return for holders for nearly 4 yrs?...still congrats to the 'faithful'..realistically this was the only way this brand could survive..and a triumph of 'perception over reality'...this share got as high as 80-90 ,did it not.?[:I]


DON`T worry Doc miracles happen on the stock exchange all the time that's what keeps the MOB coming back for MORE.. [8D]

[peat]

quote:Originally posted by redzone

correct

thanks for that..... so its really great for some but only average for others , thats what inspired my comment.

[biker]

quote:Originally posted by The Doctor

absolutely amazed...what's the real return for holders for nearly 4 yrs?...

The announcment says 68% over 3 years (including warrants).Not to be sneezed at.
Charlies may well do a lot better. It would make sense for some of the returned capital from FTB ending up in CHA.
Bacardi will own 4.7% of CHA. It will be interesting to see what they want to do with that.

[barnsley bill]

quote:Originally posted by peat

but BB
tho the returns arent bad for the IPO investors they dont quite match the expectations of world domination etc that all the hype built up.....
I dont quite understand what you mean by "founders having 1c exposure"- does this mean their shares only cost them 1c.

have a look at how much money had been invested pre IPO.
they have done extraordinarily well from this. In an earlier post i mused on who would buy and for how much. They got double what I and many others predicted. So well done.

[rymndchn]

Don't know about others, but for me the takeover doesn't seem to stack up for most holders.

Given the risk taken since startup (esp. for those holding from IPO), its not a huge return. Especially given that 42 Below has now almost broken even.

Not sure what the directors are doing selling into the lock-in arrangement.

[pierre]

I think it's bloody fantastic - a mini TradeMe - and shows the power of brands.

I only held 5000 shares as a spec play and haven't made much from the deal, but I don't care. It's brilliant marketing coup for New Zealand and I say good on you to Geoff Ross and his team for having the guts and the gumption to put the business together and to clean up in the way they have.

There have plenty of people on here and in the market who continually saw the bottle as being half empty - I bet it's overflowing tonight!

[spector]

quote:Originally posted by rymndchn

Don't know about others, but for me the takeover doesn't seem to stack up for most holders.

Given the risk taken since startup (esp. for those holding from IPO), its not a huge return. Especially given that 42 Below has now almost broken even.

Not sure what the directors are doing selling into the lock-in arrangement.


The result is a brilliant one for me, and I'd like to point out that this has been done without 42 spending hardly anything on marketing and having difficult distribution networks. Now imagine what will happen once Barcadi put the might of their marketing budgets and distribution networks behind the brand... I don't think this ride is over yet... In fact I think it's only just begun! (for the brand I mean)

[redzone]

sure this is a good deal for a few but once again another NZ company gets sold out just as it was starting to hit its straps....sad that shares werent offered in Barcardi in leiu of TBL shares so that all shareholders could enjoy the ride.(I do know they are a private company)
Management would have been given huge packages to stay and will no dout get huge bonuses in the future...mean while those of us who have funded the company once again miss the cream...good luck to the guys and well done to you...

[Footsie]

Doc

you have been proved wrong once and for all........

but hey your loss

68% in under 3 years is a good return

CHA get long doc and make up for your doomsday theories.:D[8D]

[spector]

quote:Originally posted by redzone

sure this is a good deal for a few but once again another NZ company gets sold out just as it was starting to hit its straps....sad that shares werent offered in Barcardi in leiu of TBL shares so that all shareholders could enjoy the ride.(I do know they are a private company)
Management would have been given huge packages to stay and will no dout get huge bonuses in the future...mean while those of us who have funded the company once again miss the cream...good luck to the guys and well done to you...


And there you have the problem with the NZ sharemarket in one. Ever since 42 listed there's been nothing but negative posting about the company, scaring would be investors away, and dragging the share price down... and as soon as FTB sells we have all these people come out of the woodwork saying the company sold too early and it wasn't fair to shareholders?!

If people had been a little bit more open minded about 42 and looked at the year on year sales figures instead of worrying about how a company that had no USP could possibly be worth 68 million... then maybe the share price would be higher... forcing Bacardi to offer a better buy out price.

You have no one else but yourselves to blame for Kiwi companies getting bought out by overseas outfits. Because all we do as a nation is try and cut down our own tall poppies.

[Base Trader]

The IRR is between 15% (4 years) and 24% (3 years) - depending on when cash flows.

You can make your own mind up as to the returns on the investment.

[Nevl]

agree with spector. The doom and gloom merchants though have have a tough few months. WDT getting a 40mill investment, MSL getting a sweet reverse takeover deal and now FTB. Some companies are worth investing in for their potential for the future not for their performance in the past. All 3 of these companies are not making money but all valued at over 40mill despite sales of all 3 companies being less than 20 mill.

I will ignore PLS as that was self obvious and noone here ever really supported it but hey 3 out of 4 aint bad. Any VC fund would be happy.

Well done Geoff.

[The Doctor]

quote:Originally posted by Footsie

Doc

you have been proved wrong once and for all........

but hey your loss

68% in under 3 years is a good return

CHA get long doc and make up for your doomsday theories.:D[8D]


I actually 'made '$5000 on this coy...just never got paid!:D

[rymndchn]

quote:Originally posted by spector


quote:Originally posted by redzone

sure this is a good deal for a few but once again another NZ company gets sold out just as it was starting to hit its straps....sad that shares werent offered in Barcardi in leiu of TBL shares so that all shareholders could enjoy the ride.(I do know they are a private company)
Management would have been given huge packages to stay and will no dout get huge bonuses in the future...mean while those of us who have funded the company once again miss the cream...good luck to the guys and well done to you...


And there you have the problem with the NZ sharemarket in one. Ever since 42 listed there's been nothing but negative posting about the company, scaring would be investors away, and dragging the share price down... and as soon as FTB sells we have all these people come out of the woodwork saying the company sold too early and it wasn't fair to shareholders?!

If people had been a little bit more open minded about 42 and looked at the year on year sales figures instead of worrying about how a company that had no USP could possibly be worth 68 million... then maybe the share price would be higher... forcing Bacardi to offer a better buy out price.

You have no one else but yourselves to blame for Kiwi companies getting bought out by overseas outfits. Because all we do as a nation is try and cut down our own tall poppies.


I agree entirely. From my point of view, 68% over 3 years is not a huge amount to make for funding a startup. I would expect 20% ROI per year given the risk taken. Its not exactly a blue chip stock.

You say that Barcardi would be offered a better buy price if the stock traded higher. Well, the same thing can be accomplished by not selling into the takeover offer. Barcardi have only got 53% so far, so they're a far way off from compulsory acquistion. Look what happened in Carter Holt Harvey and Mike Pero.

Realistically, I think the takeover is a foregone conclusion though given that the market price = takeover price and independent report is almost certainly going to recommend to sell.

Disc: Hold FTB and won't sell unless a better price is offered or Barcardi get over 90% of the shares.

[thereslifeafter87]

I can't believe the price they are paying, and can't believe how lucky FTB holders have gotten.

The company is ridiculously overpriced. It's never even made a profit, and was never likely to before being acquired without a much greater investment of capital.

This stock was never a buy. What worries me is that people will have done well out of this and think that it's the way to go about investing in shares.

Startup companies with no earnings and bugger all assets are a huge no no.

[ratkin]

Branding just as important as a profit these days, dont knock it

[ratkin]

Im still peeved that frucor gave themselves away so cheap

[COLIN]

I don't know a great deal about this company - and don't drink vodka if I can help it. But it is obvious that it is all about image, perception, presentation, lifestyle. I remember hearing once that the contents of a bottle of expensive Christian Dior perfume cost about 25 cents - the rest of the costs are made up of marketing, public relations, packaging, etc., and huge mark-ups. Seems to me that FTB's products are in this category. Bacardi are buying a concept which has grabbed their imagination, and they have the experience, muscle and network to make it hum. Its pretty pointless trying to apply normal criteria to assessing a "fair" price for a share like this, so forget about FA, DCF and anything else in the analytical a r s e nal. I'm of too conservative bent to invest in shares of this nature but I'm happy for those whose imagination and fortitude is rewarded.

[lambton]

quote:Originally posted by thereslifeafter87

I can't believe the price they are paying, and can't believe how lucky FTB holders have gotten.

The company is ridiculously overpriced. It's never even made a profit, and was never likely to before being acquired without a much greater investment of capital.

This stock was never a buy. What worries me is that people will have done well out of this and think that it's the way to go about investing in shares.

Startup companies with no earnings and bugger all assets are a huge no no.


Why not chuck a few bob into coys like this? If you are aware of the risks why is it a huge no no? Or is this NZ advisor speak for "bloody hell how did I miss that rip"?

[boatie]

Perhaps a good comparison for investors may be between the innovation and energy exerted at 42B for their shareholders, versus the results for shareholders in Telecom and Feltex from the armies of six figure salary earning bureaucrats living in comfort off those corporates.

Let's recognise what 42B achieved. If only NZ (and the NXZ) had a thousand or two more like them...

[rymndchn]

I believe NZX needs more companies like these as well.

Sure it is a startup company and it hasn't yet declared a profit, but to have a great capital market, we need more companies in different stages of their lifecycle, not just mature companies.

I don't recommend anybody invest in a company like FTB unless they are willing to take a medium to high risk investment, but for those who are, having the opportunity to do so on a listed market is great.

[Placebo]

TLA87 I think it is all about your personal risk profile. For me with a portfolio full of utilities, monopolies etc this was an acceptable risk to take on a reasonably small scale. If it went belly up, yes I would have lost money but it wouldn't have been the end of the world. I guess you could say it was a gamble... but with better odds than most punts, in my view.

Never risk more than you can afford to lose...;)

[Base Trader]

Have I got the date right? It perhaps should be September 2000 and we are talking about a dot com. No cash flow to speak of but a great "concept".

Concepts without substance remain high risk and when they come off should return multiples.

The problem is not bashing "ideas" and "innovators" but sometimes we focus in the wrong areas. PPL is by far the best company to emerg in terms of converting brand and it is this company that should receieves focus and praise.

[redzone]

trader you are correct there....there is also one NZ company working in your patch...SOE.....Just visit your local dentist an inquire...I did when I was there earlier this year...did quite a bit of research on them while there ,came home and bought heaps at 90 cents..$1 ...NZ have quite a few nice little companies just starting to find their feet ...interesting times for them all...just hope they get a better chance to expand than 42 did...

[Bob C]

Any thoughts on the volume of trades since the takeover announcement? Just over 1.5 million shares traded today, the majority at $0.76. It seems unlikely that buyers would be willing to buy at $0.76 (plus brokerage) to then sell at $0.77 in a couple of months time?

Is somebody buying to acquire a large enough stake to block the takeover and drive up the $0.77 per share offered?

Bob C

Disc. Hold FTB

[blackcap]

Well i certainly wouldnt be buying for the 1 cent in 2 months, so maybe someone is building a blocking stake?

quote:Originally posted by Bob C

Any thoughts on the volume of trades since the takeover announcement? Just over 1.5 million shares traded today, the majority at $0.76. It seems unlikely that buyers would be willing to buy at $0.76 (plus brokerage) to then sell at $0.77 in a couple of months time?

Is somebody buying to acquire a large enough stake to block the takeover and drive up the $0.77 per share offered?

Bob C

Disc. Hold FTB

[Tyke]

It's a little bit condescending too suggest that "people" will think that this is the way to buy shares and on the back of this result will throw themselves lemming like off the financial cliff. I am sure that the vast majority of shareholders were well aware of the risks when they invested. They are to be congratulated on appreciating the potential power of branding. Good on them.

As far as it being a no no in investing in non profitable startups what about Microsoft, eBay and Yahoo to name a few.

The key IMO is to take a few punts like this as long as you commit only a small part of your portfolio and are prepared to lose the lot. It adds a little spice and sometimes pays off big time.




quote:Originally posted by thereslifeafter87

I can't believe the price they are paying, and can't believe how lucky FTB holders have gotten.

The company is ridiculously overpriced. It's never even made a profit, and was never likely to before being acquired without a much greater investment of capital.

This stock was never a buy. What worries me is that people will have done well out of this and think that it's the way to go about investing in shares.

Startup companies with no earnings and bugger all assets are a huge no no.

[thereslifeafter87]

quote:Originally posted by lambton


quote:Originally posted by thereslifeafter87

I can't believe the price they are paying, and can't believe how lucky FTB holders have gotten.

The company is ridiculously overpriced. It's never even made a profit, and was never likely to before being acquired without a much greater investment of capital.

This stock was never a buy. What worries me is that people will have done well out of this and think that it's the way to go about investing in shares.

Startup companies with no earnings and bugger all assets are a huge no no.


Why not chuck a few bob into coys like this? If you are aware of the risks why is it a huge no no? Or is this NZ advisor speak for "bloody hell how did I miss that rip"?

Because there are much better opportunities elsewhere with a much greater margin of safety.

If you invest in companies like FTB,you will lose a lot of the time. Also, the upside isn't that huge - 60% over almost four years? That's not a fantastic return for the amount of risk you're taking by investing.

I'd much rather invest in a company at 10x earnings with good growth prospects.

[thereslifeafter87]

quote:Originally posted by Placebo

TLA87 I think it is all about your personal risk profile. For me with a portfolio full of utilities, monopolies etc this was an acceptable risk to take on a reasonably small scale. If it went belly up, yes I would have lost money but it wouldn't have been the end of the world. I guess you could say it was a gamble... but with better odds than most punts, in my view.

Never risk more than you can afford to lose...;)


No matter what your personal risk profile, gambling on a stock like FTB is not the way to go about investing. Your upside is limited where you have a company with an already sky high valuation.

Sure, FTB isn' quite in the PLS category (it actually has revenue). But whenever you buy into a company with a high valuation and no earnings, you are asking for trouble.

Just because it worked out this time with a takeover offer, doesn't mean it will next time.

Remember also that greater risk doesn't necessarily mean greater reward.

[Bob C]

Another 230,000 shares traded in the first minute of trading today.....

[thereslifeafter87]

quote:Originally posted by Tyke

It's a little bit condescending too suggest that "people" will think that this is the way to buy shares and on the back of this result will throw themselves lemming like off the financial cliff. I am sure that the vast majority of shareholders were well aware of the risks when they invested. They are to be congratulated on appreciating the potential power of branding. Good on them.

As far as it being a no no in investing in non profitable startups what about Microsoft, eBay and Yahoo to name a few.

The key IMO is to take a few punts like this as long as you commit only a small part of your portfolio and are prepared to lose the lot. It adds a little spice and sometimes pays off big time.




quote:Originally posted by thereslifeafter87

I can't believe the price they are paying, and can't believe how lucky FTB holders have gotten.

The company is ridiculously overpriced. It's never even made a profit, and was never likely to before being acquired without a much greater investment of capital.

This stock was never a buy. What worries me is that people will have done well out of this and think that it's the way to go about investing in shares.

Startup companies with no earnings and bugger all assets are a huge no no.



This is totally the WRONG attitude to have.

If you follow the approach I'm advocating you may miss out on the Microsofts and eBays of this world. But you'll also miss out on the hundreds of hot air and dreams IPO's that went tail up. Who's to say you would have picked the three winners out of all the losers? and even if you had picked the winners, would your profits have made up for your losses?

The answer would have to be no IMO.

[Caesius]

quote:Another 230,000 shares traded in the first minute of trading today.....

10:01:14 44 shares, value $33.44
10:01:56 44 shares, value $33.44
10:04:00 44 shares, value $33.44

Each trade is followed by another "large" one within the same second. Cool pattern.

[redzone]

FTB had earnings of only $17mil and never made a profit....bought out for $138mil huge ammount for the brand.(whats the p/e here )...look the only people who made real money on this company were those who paid 1 cent per share...the owners....all other shareholders ,sure might have made profits but they all will miss out on the cream....I wonder if the owners were offered shares in Barcardi...I hope so.

[Enumerate]

I suppose the issue for Bacardi was: "If we are developing new brands for asia - do we create something new, can we leverage our existing brands or can we buy something?".

I'd suggest that the 42B purchase represents an acceptable answer to their problem.

Consider the advantages:

- they leverage the considerable investment in the NZ "brand", in asia, that the gov't and Fonterra promote and invest in.

- NZ is a premium but lowish cost manufacturing base close to asian markets.

- they buy (to exploit or to kill) the ability to control the 42B brand in the US and Europe.

- the buy price is trivial compared with "ground up" brand development and the potential of the brand, in asia, as a "blockbuster".

Of course, for retail investors, the deal is a complete crock. The return, for the risk, is completely unacceptable - if you paid 45cents. However, if you paid 1cent - I am sure the reward, for the risk, is completely acceptable. (Also factoring in the nice corporate jobs with Bacardi that the founders will also land).

Not a good outcome for the retail investor - but at least it is not a PlusSMS ....

[redzone]

totally agree

[Snow Leopard]

I have had a thought, which is surprising enough in it's own right, and the thought starts along these lines:
Grant Baker swapped some three million of his FTB shares for VIK equivalents in June...
I will let you know if I achieve further progress on this one :D

[Snow Leopard]

Might come back to that original thought or might not because I have had another and different thought, unbelievable I know, but once all those FTBWB's are converted then there will quite a lot of cash (NZ$20m+) sloshing around the company.

[COLIN]

quote:Originally posted by Paper Tiger

I have had a thought, which is surprising enough in it's own right, and the thought starts along these lines:
Grant Baker swapped some three million of his FTB shares for VIK equivalents in June...
I will let you know if I achieve further progress on this one :D

Do we know what price Viking paid Baker, King and any others for their 42B shares? Maybe some of us have been a little too cynical about the Viking thing.

[Snow Leopard]

SSH Notice From Grant Keith Baker, Donna Jean Baker and Paul An..
(http://stocknessmonster.com/news-item?S=FTB&E=NZSE&N=133288)
received a consideration of $1,466,667 in the form of 5,866,668 fully paid ordinary shares in Viking Capital Limited issued at a price of 25 cents per share (with attached warrants, plus founder warrants) in return for transferring to Viking Capital Limited 2,943,489 ordinary shares in 42 Below Limited.

[Mr_Market]

Re Viking startup. Looks like it was a nice way to leverage the success of FTB in order to raise new capital for future projects.

[StainlessSteelRat]

I've been one to bag FTB since it's inception, but it's probably timely to note that the founders have done the perfect job here - build something from nothing and sell it at a huge profit to a lumbering corporate.

This may remind a few people of another company that has done a similar thing recently, and should serve as a lesson to us all that the real money isn't to be made by poking around buying and selling (or holding) a few shares here and there.

[rymndchn]

Does anybody know of a website where you can find the number of shares traded and the price they traded at during the day.

I have been trying to find a site I saw a while ago with the information but can't find it anymore.

[Tyke]

You may well be right but it wouldn't be so much fun; remember I am talking about play money only here. Sure, to throw your money into any old start up is not too clever but in this case a marketing company (that is what it is, not a liquor company) run by a group of proven practitioners was a reasonable bet and well done to all involved.

I agree that a companies selling at 10 times earnins with good growth prospects are the ideal investments but I can't think of too many of those.



This is totally the WRONG attitude to have.

If you follow the approach I'm advocating you may miss out on the Microsofts and eBays of this world. But you'll also miss out on the hundreds of hot air and dreams IPO's that went tail up. Who's to say you would have picked the three winners out of all the losers? and even if you had picked the winners, would your profits have made up for your losses?

The answer would have to be no IMO.

[/quote]

[Bob C]

Rymndchn - try http://stocknessmonster.com/

[rymndchn]

Thanks Bob.

That was the site I was actually looking for. I saw it a while ago but forgot the name of the site.

[spector]

quote:Originally posted by The Doctor


quote:Originally posted by Footsie

Doc

you have been proved wrong once and for all........

but hey your loss

68% in under 3 years is a good return

CHA get long doc and make up for your doomsday theories.:D[8D]


I actually 'made '$5000 on this coy...just never got paid!:D



Actually Doc, the one that never got paid from our wager was me. I proved you wrong with actual figures at every turn and you STILL haven't come back with any actual figures to justify your position. And I'm still waiting...

[nottiger]

Doctor, SS-Rat, and Barnsley B,... may have had to eat a little of their words
- but me too
........................and.............I have been a [u]supporter </u>of FTB (- being a founder of a brand orientated company it is natural for me -) [u]but NOW I am a bit confused </u>

FTB has made a lot of progress ........... and has sold out - OK money eases the "pain" for shareholders/founders, but it seems to me there is a lot of unfinished business [u]that the present team could have acheived</u>

Yes they have probably got a buy out benefit like Trademe, and will be around a while, and NZ will certainly benefit from the extra grooooowwwth Bacardi will spark......... but still [u]I would like to see one NZ company go ballistic globally and not sell out:D</u>

There I have had my grizzle[xx(], and I still have to say "- Well done Geoff et al - Congratulations! "

PS
byebye Navman,byebye 42Below, byebye F@P Healthcare (soon - too widely held).....next?

[Stranger_Danger]

You'd like to see it, sure, but I bet the founders of those other companies would like to have seen it too.

Trouble is, we all want to see *someone else* repeatedly turn down large wads of cash.

When a large cheque and an early retirement to the pastures of luxury and choice is offered, very few people say no when they're the one in the hot seat.

Go to see any strip club or brothel to see the exchange of dreams for cash at its most basic.

Now add a string of zero's to the dancers dollars, visualise a founder or CEO (not naked, please!) and ask yourself, are they really that different?

Human nature.

[boatie]

The quote was "still I would like to see one NZ company go ballistic globally and not sell out"

Another way of writing this could be....still I would like to see one employer build up skilled staff in the NZ employment law and conditions, NZ legal compliances, NZ legal system, NZ tax, NZ holiday conditions - incl sick, maternal, funeral et al - and compete financially with all those out there with more money and less of these on the back".

We all would. But think about it. AND notice - the advocates of the above never try it.....

[tapman]

Pumpkin Patch could well be one company that will go globally ballistic.
I can't see it selling out........for a while..:D

[nottiger]

quote:Originally posted by Stranger_Danger

You'd like to see it, sure, but I bet the founders of those other companies would like to have seen it too.

Trouble is, we all want to see *someone else* repeatedly turn down large wads of cash.


Fair call

However - if one of these companies gets past the stat -up phase and gets to the growing cash cow pahse then there may be very little motivation to sell - hey you can't eat money

I suppose Trademe got to seriously cash positive ..... and yet still sold!

[Stranger_Danger]

Regarding trademe, didn't Sam Morgan list trademe (only half kidding) on ebay for a million bucks fairly early on?

After that, once it had grown it was "available at the right price" for several years. He was plainly in no hurry to sell, but knew the value of what he had created and took the opportunity when someone agreed.

Personally, I think trademe is a classic example of how to create wealth from a business - and none of this bubble crap either, he just did the job, insisted on profiting from doing so, and exited at the right point.

And who can blame him? Good stuff I say.

The cold hard fact (and referring to your other thread) is that once a NZ business is of a certain size, and its founders of a certain wealth, off overseas they go, normally to London (the biggest tax haven of them all!).

The Hell Pizza guys are selling their NZ stores and setting up overseas ones whilst resident over there. You think they just like the scenery? You think Eric Watson just likes the girls better in London?

For one to dedicate their entire life to build up a multi billion dollar NZ business, one would need to be passionate not just about business and profit, but about the long term direction of the country and those leading it.

At the end of the day, too many NZ'ers now have an economic interest via interest free student loans, working for families, state sector employment etc in maintaining the status quo - and you thought vote buying was illegal?

To bet 100% on NZ is, in my view, a scary bet, as much as I love the country.

The government - and the bulk of the people - are for redistribution, and against excessive individual wealth.

In a benign environment, thats fine, but in my view, the "national psyche" is such that I wouldn't want to be the totally tied down "Zimbabwaen farm owner" when the masses move their redistribution eyes from just wanting a cut of the income, towards looking at the farms themselves.

[Caesius]

In response to sycoh's new 42 Below thread:

quote: ARE there enough shareholders who want to ride the growth story for a few more years?

I would like that to be true; however I very much doubt it will be the case. I can understand your wanting for this outcome: 77 cps seems little reward for the support shareholders gave to a company that never made a profit and many people on this forum bashed.

I always thought the point of "taking a punt" on companies such as 42 Below was to expose yourself to a large amount of risk in the hope that the company will become (very) profitable in the future and the rewards had.

Shareholders have exposed themselves to risk. 42 Below will be profitable in the future. The rewards will be had; not by the (post-IPO) shareholders however.

[marinesalvor]

how long does it take to get the money out of bacardi - knew I should have read the offer docs

[Futurz]

quote:Originally posted by marinesalvor

how long does it take to get the money out of bacardi - knew I should have read the offer docs


Probably not until the offer goes unconditional i.e. 90% acceptance.

From Bacardi today...

"We encourage remaining 42 BELOW shareholders to accept the offer in respect of their shares as soon as possible, as our offer is conditional on achieving a 90 percent shareholding and payment will be made within three business days of the acceptance, after the offer is declared unconditional," said Atul Vora, vice president of business development of Bacardi Limited."

[marinesalvor]

wow - at this rate they will be lucky to get 90% by waitangi day

[The BOWMAN]

Say they get 90% in the end and I have not accepted their offer, what is going to happen to my shares? Will I get a cheque just like those who accepted the offer? Or in a different approach that I may end up paying a small broker's fee?

[blackcap]

quote:Originally posted by The BOWMAN

Say they get 90% in the end and I have not accepted their offer, what is going to happen to my shares? Will I get a cheque just like those who accepted the offer? Or in a different approach that I may end up paying a small broker's fee?

Just sell your shares on market if you cant be bothered waiting.

[The GrandMaster]

quote:Originally posted by The BOWMAN

Say they get 90% in the end and I have not accepted their offer, what is going to happen to my shares? Will I get a cheque just like those who accepted the offer? Or in a different approach that I may end up paying a small broker's fee?


yes Bowman, you should just get sent a cheque if they achieve the 90%

TGM

[The BOWMAN]

Chears, TGM. I won't accept their offer. "It can't be that easy", right?

[spector]

The only thing is Bowman, if Barcardi can't get 90% then there is still the prospect of them withdrawing their offer.

[The GrandMaster]

quote:Originally posted by spector

The only thing is Bowman, if Barcardi can't get 90% then there is still the prospect of them withdrawing their offer.


or increasing it....

[spector]

quote:Originally posted by The GrandMaster


quote:Originally posted by spector

The only thing is Bowman, if Barcardi can't get 90% then there is still the prospect of them withdrawing their offer.


or increasing it....

I doubt increasing the offer price would make people more inclined to sell... If they did increase the offer I'd actually hold on longer to see if they increased it again. Wouldn't you?

[ratkin]

If i held i would sell in a flash.

If bacardi did withdraw their offer 42 would be screwed, they already fallen out with the distributors

[Steve]

quote:Originally posted by The GrandMaster


quote:Originally posted by spector

The only thing is Bowman, if Barcardi can't get 90% then there is still the prospect of them withdrawing their offer.


or increasing it....

Unlikely to be increased, as the offer is already above the indicative valuation?

[The BOWMAN]

One thing I know for sure. If they can't get 90% before 15th Dec, they won't withdraw it. I am interested to see their next movement. A lot of money and effort had been spent to launch a take over action. If you have ever been in this kind of game before, you will know often it costs more to withdraw than to pay a few more cents. Fellow share holders, relax and enjoy.

[lewinsky]

Steve,

Ii assume you are referring to Grant Samuels valuation of around 73 cents per share? They also valued Metlife if I recall correctly at around $3.75 when Macbank tried to take it over.
The shares are now trading at $6.70. The forecasts they used were way off beam.I am hugely sceptical about valuation models culled from some MBA course.
Rather than Investment Theory 101 I think this is more anout Psychology 101.
I agree with BOWMAN sit back and enjoy.
If they increase the offer you win. If they don't you have a Global Brand pushing the product. I wouldn't see them withdrawing based on the comments they have made about 42below to date.
Thinking of buying some today.

[Steve]

quote:Originally posted by lewinsky

Steve,

Ii assume you are referring to Grant Samuels valuation of around 73 cents per share? They also valued Metlife if I recall correctly at around $3.75 when Macbank tried to take it over.

You make a valid point there...

[minimoke]

After indulging in a bottle of 45 South over the weekend I was reminded of this offer and what it is that Bacardi are buying and I am still not sure.

While the 45 South bottle was a great design the gin, while smooth, was IMHO nothing special. Being a little surprised at how quickly the bottle went down I noticed it was only 700mls but appeared larger – which will create challenges for shelf stocking. So compared with other Gins on the market I’ll stick to the Bombay Sapphire. I enjoyed FTB’s Vodka, but not being a vodka drinker probably wouldn’t buy again. Haven’t reviewed the rum or water yet but how solid can a brand be when it is being diluted by a variety of products – particularly with FTB’s famed low marketing budget.

So where is this leading – well I don’t think Barcardi are buying a product because I don’t think it has the endearing features that will last the test of time. It can’t be the sales networks or volumes because Barcardis would be hugely superior. So I am left with the brand being the target which means FTB have been successful in positioning their brand but I am still not convinced there is a great deal of substance behind it. The sizzle is there but a Breakfast Sausage isn’t much to run on.

So, if I was a holder of FTB I wouldn’t be holding out for a significant improvement in offer price from Bacardi – now might be the time to make the money and run.

[ratkin]

You could of taken the money and been making profits with it elsewhere. I suspect a few holders moved into charlies, a company with a very similar philosophy of brand building

[Placebo]

Or elsewhere. Plenty of good quality companies with growth opportunities -- FTB has none!

F&P Health; Rakon; Mooring Systems; Pumpkin Patch....

Where to park that cash&gt; [8D]

[spector]

Agree with you on your Rakon call Placebo. I wouldn't mind having a sniff at that when my money comes out of FTB. Any idea when the cut off date for the Barcardi offer is?

[rymndchn]

The closing date for 42B is 15th December. Of course, that's assuming they don't extend the offer. Might be a little hard getting to that 90% mark at the rate they are going at the moment.

[The Doctor]

if you don't take the offer ...you must have 'rocks in your head'!...a perennial lossmaker being bought out at super premium to fundamentals!..the 'new generation' of a family coy ...doing his best to destroy it![xx(]

[The BOWMAN]

quote:Originally posted by The Doctor

if you don't take the offer ...you must have 'rocks in your head'!...a perennial lossmaker being bought out at super premium to fundamentals!..the 'new generation' of a family coy ...doing his best to destroy it![xx(]


:D:D:D:D
You gotta be kidding!!!

[spector]

"New Zealand Vodka company 42 Below and suitor Bacardi have been forced to pay $16.2 million to terminate a marketing agreement with American importer Panache International.

Bacardi launched a $137 million takeover bid last month for 42 Below.

It was subject to 90 per cent acceptance.

Acceptances had stalled at about 75 per cent, ahead of the offer's December 15 closing date.

Panache owned the United States distribution rights for 42 Below, and was granted an interim injunction in the High Court at Auckland on October 31, preventing 42 Below from divulging any commercially sensitive information to Bacardi.

Panache owner Shane McKillen owned 6.9 per cent of 42 Below, and was refusing to sell till the agreement had been reached, potentially making it difficult for the bid to reach its 90 per cent acceptance condition.

Fellow Panache owner James Dale also held an unknown number of 42 Below shares.

Under the termination deal, 42 Below will pay Panache US$9.8 million (NZ$14.3 million). The founders of the company, Geoff Ross, Grant Baker and Steve Sinclair, will pay the remainder from their personal funds.

The payments to Panache do not contain a premium and do not provide its owners with any additional benefits or result in the founders of 42 Below receiving a reduced amount under the takeover offer.

In return for the deal, Mr McKillen and Mr Dale have accepted Bacardi's takeover offer at 77 cents a share, taking acceptances to 81.14 per cent.

Mr Ross said he was confident that the 90 per cent threshold would have been achieved without Panache."





looks like it's all going to go through on the 15th. Anyone know how long to wait before the payout comes?

[Bobby_Fischer]

Bacardi offer now unconditional.

[spector]

awesome. cheers BF

[gisborne_gold]

Payments for those accepting the Bacardi offer appear to have gone through last night. At least mine did.

[Placebo]

So, next question, where are you going to park the cash?

I've gone for a small punt on Charlies and the rest on Pumpkin Patch. Anyone else keen to disclose where they have disposed of their good fortune? :D

[spector]

Long on CHA
Mid on BIO
Mid on KFL
Short on RAK
The End.

[living2]

Along with the HQP I will park it into paying off my overdraft,wait for interest rates to rise more and the market to turn down again or is that just wishfull thinking???
Do you know whwn the FTB is being paid out?

[pietrade]

quote:Originally posted by Placebo

So, next question, where are you going to park the cash?

I've gone for a small punt on Charlies and the rest on Pumpkin Patch. Anyone else keen to disclose where they have disposed of their good fortune? :D


Into NZOOD for me. The Tui series has begun -- yeehaa.

[gisborne_gold]

quote:Originally posted by Placebo

So, next question, where are you going to park the cash?


It was NZOOD for me too.

[CJ]

if you missed out with 42 Below, you may get another shot:

http://www.nzherald.co.nz/small-business/news/article.cfm?c_id=85&objectid=10686076

[kiora]

OR you could try this one http://www.moabeer.co.nz/

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