Scales Ipo poll

[noodles]

The ipo documentation is out. Lets have a poll.

The links to the documents:
http://scalescorporation.co.nz/wp-content/uploads/Investment-Statement.pdf
http://scalescorporation.co.nz/wp-content/uploads/Prospectus.pdf

[horus1]

Not interested , top mof the market

[traineeinvestor]

Wildly unexciting - I will pass.

[arc]

Wildly unexciting - I will pass.

Page 2 of the Investment Statement; Scales is currently 84% owned by Direct Capital, with the balance held by management team members and other minority Shareholders

Is Direct Capital just hoping to offload a struggling industry.? Does anyone here know if the international apple market is contracting?.

[Harvey Specter]

Page 2 of the Investment Statement; Scales is currently 84% owned by Direct Capital, with the balance held by management team members and other minority Shareholders

Is Direct Capital just hoping to offload a struggling industry.? Does anyone here know if the international apple market is contracting?.Food in general would be expanding I would think. And who doesn't like apples? Billions more people that in the past and the same amount of land to grow it on.

Disc: not planning on investing.

[traineeinvestor]

An short article from NZ Herald: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11278890

One of my specific concerns:


Private equity sell-downs typically draw caution from the investment community as they tend to happen at the top, or near the top, of the company's business cycle

The sustainability of the premium pricing for NZ apples is also an issue for me ad I would prefer to see management retaining all their shares rather than selling down 30%.

All that being said, the profit margin is high, the forecast dividend yield is attractive, the balance sheet is attaactive and they have what looks like a reasonable size so there should be enough liquidity in the secondary market for a small investor like me. It might help add some diversity to the portfolio but I just can't seem to find the conviction to buy.

[macduffy]

Not for me. Too many promoters and proprietors jumping off via a booming sharemarket for my liking. (Although I might have a look at Orion Health if that IPO comes to fruition.......)

[MAC]

Not one for my portfolio at $1.60, might have been interested in 2009 at $0.60.

http://www.scoop.co.nz/stories/BU1407/S00198/scales-to-sell-shares-at-160-bottom-of-range-in-ipo.htm

IMO the investment env is not great right now for cyclical investment in a market where cyclical’s are fully valued, but I wish them well as a going concern. At a slightly discounted $1.60 they may get some interest at IPO, but I don’t see a high degree of forward sustainable growth and during the next market dip investors may do even better, there may well be better entry points to come.

Disc: Not investing