And it continues :)
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And it continues :)
We can apply for extra - p22 of the Explanatory Memo refers - but I wouldn't expect many to come out of that, considering the attractiveness of the issue and the fact that rights will be tradeable.
Otherwise, still ploughing thru the "book".
Have a look also at p79, EBOS risk profile after the acquisition.
In passing, FN Area had this today re Sigma, one of the major competitors referred to in Northington Partners' report:
SIP - SIGMA PHARMACEUTICALS LTD
Citi rates SIP as Downgrade to Sell from Neutral (5) - Sigma shares have enjoyed a strong rally but Citi analysts believe it's all a bit too much, too soon. Instead, they counter the company is still facing ongoing risks associated with a weak retail environment, competitive industry dynamics and ongoing regulatory scrutiny of PBS funding.
Also, Listed NZ company, EBOS, has acquired 60% of Symbion, but Citi doesn't see a material impact on Sigma for the foreseeable future.
Downgrade to Sell. Rolling forward the valuation methodology has pushed up the price target by 1c to $0.70.
Target price is $0.70 Current Price is $0.82 Difference: minus $0.115 (current price is over target). If SIP meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in January. Citi forecasts a full year FY14 dividend of 4.20 cents and EPS of 5.00 cents . At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.30."
I agree ,bloody ridiculous. Would have had time to buy a few too. Sounded too good to be true and i confess i had succumbed to utilising the paper gains already. Sparky?
So with the rights now trading the EBOS share price has settled around $9.42, a little ahead of the $8.57 calculated from the pre-announcement share price.
Wondering whether to sell my rights, expecting to buy shares on market at a later date for a lesser price.
Best Wishes
Paper Tiger
Apologies in advance for a real newbie question!
Say I was of a mind to acquire a holding of X shares in EBO over the next few weeks, and presuming that EBO will pretty much follow EBORC + $6.50, what is the advantage - if any - of buying X no of rights then paying the $6.50 rather than buying X EBO shares directly on the market? Is it just a saving in brokerage or what am I missing?
Thanks
BB
Thanks PT
much appreciated
BB
It's no surprise that EBO shareholders vote overwhelmingly for the Symbion merger.
http://www.stuff.co.nz/business/indu...e-Symbion-deal
.....but leave a few for the rest of us, percy!
:cool:
Yeah right>>>!!!!
Don't think there will be many to spare,but worth a try.Can only tie up our money for a few weeks at worst.
ps.macduffy you did alert me to the fact we could apply for more.I was speaking to my Craigs broker,who couldn't believe that EBO were encouraging shareholders to apply for extra.Laugh,he said sounds like Wellington Drive>>!!!!
Story on the TV News said they would be the 3rd largest company on the NZX by revenue after the takeover - behind Fonterra and Telecom.
Wow!!!
Yes very much Wow!!!
I think the next two or three years are going to be very exciting and rewarding for EBO shareholders.The combined business will be able to cross sell products.Sales and distribution will result in better use of staff,buildings, stock,systems and management time,and capital.There will be large savings made.They will go on to become even bigger, and as always with EBO, better. The animal health area should be just, or even more exciting,both here and in Australia..
There will only be 146.6mil shares on issue.With Zuelig holding 40% any intos wanting to buy a holding will drive the share price up.As you point out it will be NZ 3rd largest company by revenue, and any index fund will be buying.Being health sector I think we will see overseas funds buy into it.I expect Australian funds to be keen particulary when the list in Australia.Maybe Zuelig will sell down some time,but I expect there will be plenty of buyers.Existing holders will be loath to sell any shares.Very tight share register.
Of note in today's news, more to acquire yet:
http://www.stuff.co.nz/business/indu...e-acquisitions
I believe the meeting on Friday was standing room only.
I can't put a value on EBO,but I know the next two or three years were are going to see HUGE eps growth.
I think any one reading the "explanatory memorandum" will see this.The future projections are very modest,[ I think they are understated ].
Am filling in application form ,will be taking up my rigghts . Is it worth applying for new shares?
Suppose it cant do any harm, what do you guys think are the chances of getting any ?
Yes, I'll be applying for a few more, too. But EBO is already my biggest NZ holding and I'll need to sell a few rats and mice to take up the issue at $6.50! A nice problem to have - a sort of forced rationalisation of an over-diversified portfolio.
:cool:
Wish EBO was my biggest NZ holding!
High finance here today.Both Peter and Paul got paid.Even paid my GST,and Visa.Cleared the deaks.!
What was left [not as much as I wanted] was spent on applying for additional shares,as well as the new shares accepted.
Surprised I managed to pay both wife's and mine on line.Had to put computershare as someone I regularly pay, as could not pay them as a one off payment.Then dusted off the fax.Now I join others for the wait and see.
A friend rang compuershare and asked them what chances he had of getting extra shares."well a lot of shareholders will be overseas and willn't be able to organise in time,while there are a great number of shareholders who do not open their mail,or update their addresses!"
Were are in with a chance fellas.!!!!! lol.
Those of you that applied for shares, has your money been withdrawn yet?
Mine has not
I did it the old-fashioned way and sent a cheque - which has been presented.
i thought i paid mine lasst week ,but today checked balance and it never went.
Had to resend, i asked if they had recieved my form , she replied that they get 1000s and only look at ones that have the money.
Hard to understand her though, think she was in india somewhere
I have just internet banked to direct transfer the monies.
Now I just have to get the form that someone scanned & emailed to me and which I then got printed so we could sign it, scanned again so I can send it to Computershare via an online fax service.
With the ASX if you do an electronic transfer of the funds with the right reference number then it is a done deal, why all the frigging paper New Zealand?
Best Wishes
Paper Tiger
OneLink preferred:
http://www.stuff.co.nz/business/indu...supply-company
EBO issue oversubscribed. No surprise there but I wonder to what extent?
http://www.stuff.co.nz/business/indu...oversubscribed
Really, I can actually get some additional? Didn't think that would actually happen when I deposited more money to their account. :-)
Well, "Thursday's" been and gone and no news on the over-subscription allocation. Perhaps today?
In their offer doc it stated 5th July "offer settlement and allottment of New Shares." So I would expect news today as well.
Check the registry for your updated holding, mine is showing.
I've unfortunately missed all of this and now waiting on the sidelines for a good point to jump in.
On top of the entitlement quota I have received about 13% of the additional new shares I applied for :(
Best Wishes
Paper Tiger
I appear to have received about 20% of the additional shares I applied for - or put it another way, +6.7% over my entitlement.
Not complaining.
:)
Mine worked out at 7% over the entitlements. A whole 37 shares. Pleased I got that tho!!
I phoned Computershare and asked what formula was used to calculated the amount of shares investors got for their oversubsciption.
The guy I talked to would not tell me although I was quite persistant. This information is surely public???
Anybody else knows how it was worked out?
I very much doubt it.Quote:
This information is surely public???
Companies retain the right to issue oversubscriptions at their discretion. Although you can be sure that the formula takes account of such criteria as the absolute amount sought, the relationship to the entitlement, proportion of the amount sought etc, the last thing that they want is to enter into a debate with anyone as to the "correct" numbers to use in these calculations.
Thanks macduffy for clearing that up, my logic of having such financial matters available to the owners of the company is not everybodies logic.
I hope it was done fairly to all share holders :(
When are they repaying the excess loot?
Not shown up in bank account yet
It's usual for the interest to accrue to the issuing company; Computershare would pick up their handling fee with processing the refunds, as per a dividend distribution I would think. More rewarding for both parties that way than the alternative of juicing up the entitlement ratio to achieve the same result!
Sorry about that but my cynical streak's showing today!
Refund in my bank this morning.
I'm not complaining but EBO up 29c (3%)! this morning.
Too much of a good thing?
Seems that the froth is subsiding rapidly.
Best Wishes
Paper Tiger
It'll be ok again soon tiger ...I finally sold out earlier in the week
Great run since masterpet came on board but my reason for investing no longer valid
If they buy something else that excites me will have another go at them
Hang in there Percy ......your type of investment ....prob be 20 bucks in 10 years time
EBOS DELIVERS AGAIN says the headline
But profit wasn't that much than last year ...must have read it wrong
I only hope they don't do a Nuplex .....keep on buying the world and don't make any more money ....in Nuplex case many are still waiting
Off course EBO won't be like that
Good to see a positive outlook from EBO in contrast to the mainly cautious comments from many companies at this time. Let's hope that they're justified.
Their history of over 20 years is to make acquisitions work.Mark Waller has never not delivered on what he said he would do.
When he uses words like "game changer",opportunities for further growth,leveraging the strengths of Ebos and Symbion,shareholders can expect the share price to continue of its upward trajectory.
To think EBO could do an NPX shows a complete misunderstanding of EBO's business and people.
Had a look at the segment analysis to see how my beloved Masterpet were doing. Made $12.5m on sales of $169m so a good contributor. What was a concern was the H2 performance where sales were up 24% on last year but NPAT was DOWN 13%. They sold $18m more stuff but made a $1m less - WTF is going on Percy?
I was then curious as to how Healthcare was tracking in NZ. Hard to say because they have added 1 month of Symbion into the numbers but the notes say this produced $4.687m of NPAT so working backwards it looks like Healtcare in NZ NPAT was $26.2m - DOWN 4% on last year. Like Animals H2 was pretty dismal with NPAT DOWN 10% after being ahead in H1
OK after leaving out the acquisition costs and the 1 month NPAT from Symbion they profit is up 5.7% for the year. That's $1.6m extra profit but after H1 they were $3.4m up so in H2 they were $1.8m down.
So from the all the numbers and leaving out those acquisition costs and Symbion for 1 month they made $1.6m more than last year. Healthcare was down $1.1m, Animals were up $4.1m and HO (Corporate) spent $1.6m more. The concern is that the Animal increase of $4.1m is solely because this was the first full year with EBOS and there were 5 or so extra months this year.
Wish I hadn't looked at the segment stuff but I do love Masterpet for boosting the EBO shareprice so much last year. But one would have to say this is a pretty poor result ..... just as well they have all these other stories to tell
They say that if the Symbion thing had been for the full year (ie they had taken over on July1 2012) this years NPAT would have been $90m. On a market cap of $1.4 billion that is a PE of 15 odd ....... umm
Be interesting to see how it all turns out
Just concentrate on what Mark Waller has said.
He will make it happen.
Twenty six years of being right.
Look out for more acquisitions here and Aussie for the Pet businesses.
Give them a year before passing judgement.
"Today someone is sitting in the shade,because years ago someone planted a tree."
Mark Waller is like you, a great tree planter.! lol.
Past headings for FY announcements
2005 EBOS GROWTH CONTINUES
2006 Milestone for EBOS
2007 EBOS Makes Quantum Leap
2008 EBOS DELIVERS ON GROWTH
2009 EBOS REPORTS ANOTHER RECORD RESULT
2010 OUTSTANDING FULL YEAR RESULT & POSITIVE OUTLOOK FOR EBOS
2011 EBOS GROUP CONTINUES EARNINGS GROWTH
2012 GROWTH MOMENTUM CONTINUES FOR EBOS
and then this year (they forgot the upper case)
2013 EBOS Delivers Again
Great story over many years
But 2013 not one of the best with profit increase only coming from a full year Masterpet. Just sraped in they did
But they used QUANTUM in 2007 .... with profits going from $30m to $100m in 2014 Mark already thinking up the heading .... maybe he will give us a clue in the half year what the word is
This latest deal is just as/or even more significant than the PNZ acquisition which gave the QUANTUM result.
I think we see hear clues at the AGM and half year,but real results will take a year or more.
I expect a lot of developments in animal area,as it is so more profitable than human health area.
I also expect to see further bolt on acqusitions.They certainly want to get closer to vets. [Bigger animals need bigger doses. Think cattle and horses,working dogs,rather than small cats and dogs]
Waller has certainly planted the seeds for exciting future growth.I think we will look back in 3 years time and see what a "game changer"the Symbion deal was.
Nice presentation pack they put together
Bit inconsistent .....like they do a 'normalised' view of the business but when they talk about Healthcare they (conveniently) forget about 'normalised' and put the full result in, ie boosted by a few weeks of Symbion
For heritage business H2 was not good ...profit less than than last year
Maybe with all the excitement of acquisitions they have taken the eye of the ball locally .....so better make Symbion work eh .....game changer yes ....one way or the other
Waller and the team have kept their eye on the BIG BALL, which will drive the small balls to bigger balls.
At the end of the day we will end up with GREAT BALLS.!! lol.
A headline in the AFR today states that EBO
" ......is closely examining two further acquisitions here as it accelerates plans for an ASX listing."
I'm not a subscriber so can't follow the article any further. Can anyone help?
http://www.stuff.co.nz/business/indu...n-acquisitions
Might help MD
Thanks for the links.Exciting times ahead.
From this year's Managing director's Review;
Exciting Times Ahead.
Last paragraph" Healthcare and Animal care are key sectors of the economy and as such provide a wealth of future opportunity."
Certainly agree with that statement.!!
As someone who is 30, a huge amount of my friends are spending large money on pet bills. First houses are unattainable, and because of this the 'family unit' seems unachievable. A first step towards this however is getting a pet, sometimes several 'practice babies' or 'fur babies' if you will.
Its an interesting market, those people that treat these animals like children, because for them in a way, they are. And maybe unlike a developed family where the kids come first, pets a clear second, they might spend a lot more money on keeping them alive.
I had some friends shell out $3,000 before deciding the cat they loved so dearly wasn't meant to live and had too many problems. But up until this point they bought all the care/meds products they could ... because for them it was their first 'child' as a couple.
I don;t get it myself, but that's one element of this crazy industry.
I think that's part of it as well to be honest. Where before it may have been stigmatising for people (either single or a couple) not to have children, now its a lot more acceptable for people to chose not to, and everyone loves company, so perhaps those people will now buy pets ... and spend oodles on them.
Looks as though Milford join us ,so we are all now 'well positioned.'
Wonder when they will join "the smart money" at HNZ? lol.
Well the AGM went off well.All directors re-elected.Speeches by Chairman Rick Christie and MD Mark Waller were excellent.Symbion acquisition is proving to be a great fit.Same customer driven culture as EBO.
Everything on track.Looking to make the projected figures,NPAT $48.7mil.EPS up 13% to 33cents.Net Cash Surplus $42.7mil from operations.Net debt low at $383mil.
Presentation included a video of the Greystone plant in Sydney.Collating orders electronically was awesome.
Growth will come from cross selling opportunities.
Animal health area,EBo intend to expand into veterinary wholesale in NZ.
EBO are working with HBL [HealthBenefits Ltd].This is govt company set up to supply all NZ hospitals.Like Pharmac.
Really Mark Waller summed up the presentation by saying "EBO is incredibly well placed."
As I have pointed out before;EBO share price will double.The question is;will it take two,three or four years?
Does not worry me,as I am a long term shareholder.[Been there over 20 years,and think the next 20 will be even more fun!!]
Some time ago some one asked where the shares for the Australian listing would come from? I asked both Liz Coutts and chairman Rick Christie this question.Both gave the same answer;"They will have to come from NZ."
Christie did wind me up by saying some could come available should they issue shares for their next Aussie acquisition.!!!!!!I think my cheesed off expression made him laugh more.!!!
Thanks for that Percy
Sounds like you had a great time at the meeting revelling in all the good news and mixing with all those famous wealthy and knowledgable people.
So we need to wait to hear what next acquisition is and another call on shareholders eh
Hear from you soon about hnz asm
Yes, thanks, Percy. Always good to get the goss from someone with a stake in the company!
Bit surprised the rich and famous talk to me.!!!
EBO have walked away from the two acquisitions they were looking at when they brought Symbion.
A lot for cross selling opportunities with EBO/Symbion.
The HBL deal is very important.
Next acquisition which they are in no hurry for will most probably be Vet wholesale.
I learn so much from these meetings.
You can read the annual reports,read presentations,etc,but nothing compares with hearing it from the horse's mouth.
Don't know whether it is body language,or how they say things,or the throw away lines,or their sense of excitement.
We have shares in a great company.The next 5 years are going to be fantastic.Aussie health market is being reorganised more like NZ model.Pharmac type buying will see a lot of multi nationals leaving Aussie.EBO/Symbion will pick up agencies and opportunities.
The Australian listing is about to happen.NO more shares issued.EBO have been doing presentations to Aussie's.Most of EBO's turnover is now in Aussie.So I expect the Aussie's will push up the SP once they start buying.Not a lot of shares on issue.
Big take up of dividend reinvestment.
Looks like the EBO share price could use a little support at the moment.
Come On EBO, You can do it !!
Best Wishes
Paper Tiger
I bought a bit a couple of weeks ago, does that help?
Reported in Australia this morning that EBO will list on the ASX this Friday, 29 November.