Long story short they wanted $45 million of a company that they valued at $60 million.
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Long story short they wanted $45 million of a company that they valued at $60 million.
What I find curious is they that tried to float at the same market cap as Xero, but with a more established business in terms of revenue, market share, proven concept etc.
Rightfully, we're all laughing at this IPO, but not at the other one. Amazing what hi-tech and a few famous blokes on your board will do ey?
They should get sam morgan on the board and put a "Buy now" price and order online with reserves, that will put a boot up the sharepriceQuote:
quote:Originally posted by Stranger_Danger
What I find curious is they that tried to float at the same market cap as Xero, but with a more established business in terms of revenue, market share, proven concept etc.
Rightfully, we're all laughing at this IPO, but not at the other one. Amazing what hi-tech and a few famous blokes on your board will do ey?
i'd pay 20c a share for it...
look to see the share price hit <50 cents...
i also noticed some analyst's putting, not a buy, sell or hold but an 'avoid' haha
upside_umop at 20c your buying the cash at cost presuming they hold at that level and get a share in the company for free, i have put a bid below current quotes, not sure if it will get to that level meaning i'm buying the cash and assuming a 6.5 mill value in the francise system will see how i go at that level. talking to my broker today they said that a quote will only show up at no lower than 25% below the previous close hence the .75c showed, tomorrow anything from .60c and above will show. Wonder how many lower bidders there are ?Quote:
quote:Originally posted by upside_umop
i'd pay 20c a share for it...
look to see the share price hit <50 cents...
i also noticed some analyst's putting, not a buy, sell or hold but an 'avoid' haha
Hell Pizza New Zealand had store wide sales of around $50 million and as a franchise company sold for $13 million. There is your bench mark.
Watch this share plummet if only the bids could be listed.
Do you know the profit for Hell's Pizza?
Also check out
http://www.burgerfuel.com/shares/app...ccounts_pop_up
Caveat emptor.
No Bling Bling but good enough for Tasman Pacific Partners to pay $13 million for. Their royalty is 5%? so I suppose they have revenues of $2.5 million less franchisor costs.
Well OTM,
Looking at the latest accounts (as per your link above)I'm sure even you would agree that your broad statement:
"A lot of the current stores are being propped up by the vendors" is not so accurate after all.
A total of 4 (20%) franchisees have been provided finance to START their business - This is common practice with plenty of Franchise systems giving good franchisees a hand up at the beginning of their relationship.
However, it would be a lot more concerning if there were
(a)lots of franchisees needing a hand up
(b)if franchisees that had had a hand up weren't reducing their loan
(c)if loans to "established" franchisees started to appear in the Franchisors balance sheet.
Fortunately for BFW none of these scenarios seem to be happening.
At this stage I still stand by my opinion. BF is a sound business with good growth potential. BUT the owners value it way too highly and have taken the listing option too early.
Let's hope they learn from the whole listing experience!