Is that a good thing?
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It's in the timing of the turnsound in sentiment.
Have a look at GPG closer, Ratkin.
It went seriously out of favor (and deservedly so due to the gross mismanagement by Ron and his piglets) but since middle of last year, offshore institutions (starting with Soros) started buying off local institutions.
Stock has put on 50% in 8 months.
Good enough for me.
I have received a research report from one of the major brokers with a valuation above $5.
Fully expecting the broker to give this stock a big push in Australia and Asia where investors love gambling stocks.
Sold mine at a reasonable profit six months ago, because as a smalltime gambler, (yes can afford it )have noted that the free spins and payouts of all pokie machines has declined over last 12months . now find TAB a better return......speaking to others who enjoy a night at the pokies the payout is shocking...
Yes Dividend is good....but will the joe blogg punter keep playing when they do not have a fun reasonable run for their money....instead of spending e.g.$100 for a couple of hours entertainment they will spend $40.00 and walk away...we did....If every punter thinks the way we do its a diminishing form of entertainment, guess the tax take has diminished the returns...Pleased we sold when we did...
Looks like breakout will be on the upside.
Looks like BlackRock is paying up now so only one way to go.
Next stop $3.90, and if that breaks, me thinkth SKC will easily go to at least $4.50.
BlackRock is the world's biggest asset and fund manager - US$4,096,000,000,000 (yes, US$4.1 trillion) of funds under management, and 20% of SKC is but a flea bite.
Not sure if you can extrapolate your own experience to what happens to everyone else. If what you are saying is true it means that SKC has changed the payout ratio on their pokies. There has been no reason for them to do this. As far as I am aware the goverment tax take on pokies has not changed on a per machine basis. Tax equivalence seems to be the main issue with profitability of casinos. This is what has made Adelaide casino a dog for so long. There has been much crowing over the last few months as this issue has been 'fixed'. I suppose that SKC management could be paying out more larger jackpots and less smaller jackpots. But I imagine you can 'choose' this yourself by choosing the kind of machine you play (1c or $1 for instance). All gambling dens must strike a balance between retained bets and payouts. If the perceived payout is too low, then ultimately customers will not come in the door.
Revenue for the Auckland casino (excluding the high rollers) was listed at $213.5m for the half year ended 31st December 2013 , verses $213.1m for the half year ended 31st December 2012. Almost no change. Is there any evidence, apart from anecdotal, that SKC are creaming off more revenue to the bottom line? I am genuinely interested!
SNOOPY
discl: hold SKC
The latest half year result is out and this time I want to have a little grizzle. It was a bit disappointing to see it lower than the prior comparable period, but that is not my main gripe.
Much of the decline can be attributed to the NZD/AUD exchange rate appreciation. That cuts down AUD profits and revenues in NZD terms. We all know this. Yet Morrison is quick to try and normalise his results, with reference to what would have happened if the NZD/AUD currency exchange rate had remained constant. See second slide of the half year presentation "1H14 Result Overview–Normalised Result." I don't buy the argument that the currency effect does not influence revenue. If the cost of visiting a country goes down, due to a weaker currency, you are liable to get more tourists coming in as they perceive your tourist destination as "better value". To emphsise what would have happened if the exchange rate had not moved is like looking at a theoretical marketplace for gaming that never existed.
The other reference comparison that I don't like is what would have happened if Asian investors had a 'normal' win rate in the high roller rooms. Why can't Morrison get over the fact that luck goes up and down and investors should not be thought of as idiots who do not recognise this?
The problem with reporting 'normalised high roller winnings' is that one day a high rolling investor is going to have a really big win. Morrison will come out and say:
"Well if he hadn't had that big win then our result would have been good."
The fact that he did have that big win and the result was a real cash outflow for SKC shareholders doesn't seem to register with Morrison.
SNOOPY
Fair point, Snoopy.
"Normalising" the exchange rate to something more acceptable, ie last year's! would only make sense if there was a strong expectation that it will revert to those levels fairly quickly. In fact, there is good reason to believe that won't happen and that it is more likely that rates around current levels will be "normal" for the current financial year.
Was rather surprised when filing away my interim dividend paperwork to see that SKC did not attach any imputation credits to it. Yet if you were Australian the same dividend was fully franked! That struck me as really strange for a company that purportedly makes most of its profits in NZ (p25 Interim Report)!
Digging a big further, Nigel Morrison states that the 'normalised' (there's that word again) profit was $66.4m (p5 interim report). Yet in the "Statement of Comprehensive Income" (p12), the actual profit for the period $61.061m has shrunk to $35.955m. A big jump in the "exchange differences on translation of overseas subsidiaries" up to -$24.116m (c.f. -$3.260m in the pcp) has done the damage. So I have to ask the question. Has Morrison being doing his own speculation on the exchange rates to the extent that all of the NZ profit for the period has effectively been spirited away?
SNOOPY
https://www.nzx.com/companies/SKC/announcements/249635
Another 6m shares bought by BlackRock - these guys have the deepest pockets in the investment world so $4.50 by June now looks like it's going to happen.
Powering ahead.
Local fund managers starting to worry about under performance after going underweight?
$4.50 by end of June now brought forward to end of May.
Should have let mr Cortes kept playing .....seems like he was a very unlucky punter
http://www.stuff.co.nz/national/crim...t-very-unlucky
Skycity...you beauty...hope you get another "business excellence award'.
Been watching Campbell Live Troy??
Ive been watching this one, has anyone else? - it dropped down from about 4.20 to a low of 3.70 over the last few weeks. I have though this is a good long-term hold, even though its facing some headwinds re high kiwi dollar eroding earnings and current low growth enviroment. However increased asain tourism, Auckland convention centre and its exclusive deals in australia should provide a good future even if growth is low over the next few years + a nice 5% div
Anyway I have been watching for 2 months and picked some up last week for 3.71 - see if I managed to time the bottom... for once...
Would like to know others thoughts?
Another option is CWN on the ASX
I got this stock right after its IPO and what I learned from it over the years is you won't go wrong buying it below its historical P/E of 18 (if I am not mistaken) which your purchase at 3.71 is just about there. It has been a very good provider all these years that I don't think I'll care anymore even if it loses its monopoly hold on casino gambling. But still, DYOR.
There are a couple of negative factors that could be weighing on this share.
The Port Elizabeth closure of Holden will surely create a negative jobwash through South Australia in general and that includes Adelaide, and our SKC casino on the riverbank. But that 'news' is over six months old, so it could only be that fiurther downstream effects are now being priced into the South Australian consumer market that would cause the latest share price weakness. However, if we go by what happened with the decline of not so smart manufacturing in Auckland over the last fifteen years, I am not so sure the Auckland casino was affected. So I am guessing that Adelaide won't be either, in the long term.
Last week I got hold of a Morningstar report, datede 1st July 2014, that recommended Australians sell their SKC shares. However, the report stressed this was not because of any deterioration in the outlook of the company. It was because SKC was not going to be modelled by Morningstar any more in their new super duper computer system. If Australians are that fickle, I see it as my duty to relieve them of any SKC shares that come to market as a result.
The annual result is out this week and the SKC share price has been weakening in anticipation of nothing special. I expect the share price to bounce or stabalise when the annual results are released. I am with you NZ Silver and added to my holding last week.
SNOOPY
It's a pretty sick chart at present. I'll wait for the announcement.
So so result but must be disappointing.
NPAT reported as $98m is a lot less than last years $127m isn't it
Love the way they say if we had made as much as we expected from our international business we would have made $15m - so lets normalise it eh and call it profit anyway.
What a rort. Surely in the gambling game you win and you lose. Those naughty punters winning more than they meant too and we spent. Fortune on entertaining them as well. Ironic in that 'the house' not winning as 'expected'
I'll run with the real number. SKC really push the boundaries of this "normalised profit" stuff. Maybe indicative of the culture involved with glamour and gambling
Not a good result - even normalized is below most analysts' expectations.
2 thoughts :
1. Sp has been falling steadily on volume so expectations are for a poor result.
2. Suspect Blackrock is not fazed by the result and they have been accumulating.
We will know within a few days, I guess!
Well said mate and looks like a real sign of desperation to paint a slightly less grim picture. As for a massive expansion into Australia when the south Australian states are starting to implode with the imminent complete collapse of the Australian motor vehicle industry and the hundreds of associated small business component manufacturers leading to record unemployment...this is one of the worst timed business decisions you can imagine. $50B Federal deficit in Australia this year which won't be solved anytime soon either. Massive capex in Australia the panacea for a negative growth environment in New Zealand...I don't think so !! Frankly if you want to have a punt on this puppy, I think your odds are better inside one of their casino's than owning shares in them !!
Broke the key 360 support yesterday indicating bear territory..next support 340
Depth holding up well with this mornings announcement, around 355c ...
bad news already factored in?
Hi Roger..
your above quote applies to all stocks that have suffered recent multiple TA sell signal breaks recently...good news is that at some point in the future they will trigger multiple buy signals...but in the meantime before those buy signals you don't want to be in any of those stocks..eh?
Hi Hoop,
LOL fair comment, I'll see you down at the Hamilton Casino this afternoon then :). I should have ditched my AIR when they crossed the 100 day MA...oh well, hopefully they'll have a ripper annual result and special divvy like PGW yesterday.
Quite why the market for some reason seems to like this SKC result and market them up a bit this morning, go figure ? Surely people don't buy that very creative accounting of normalising international win ratio, or do they ?
Even if this creativity is somewhat believable its still an awful result in my opinion. Quite why a company would invest hundreds of millions into further development in a rapidly cooling Australian economy...the mind boggles...
Is it just me or does the report (under the slide final dividend of 10c per share) DELIBERATELY use the CURRENT SHARE PRICE to get the yield? Surely if the report is to the end of the year June 30 then the share price at THAT time should be used to define a dividend yield?
A moot point, benjitara. The market will be most interested in the yield at the current SP and, of course, prospects for the future. Commentators will focus on that. Not a great result but clearly the market was expecting something worse.
Yes, well I am aware that the dividend will be paid after that point obviously but for their own "goodwill" businesses should surely be open to portraying the most accurate information. sigh ..
A funny company to assess for mine. A few "moat" aspects to the business but what sort of premium should we put on that. I'd be keen on seeing the sp down towards $3 before my money goes on...
Huge volume still going through - looks like BlackRock is happy to stand there and take whatever the sellers are prepared to sell.
So who has the bigger pocket?
Another big volume day with sp steadily recovering lost ground.
Very clear buyer (s) are very happy to take out all sellers around current levels.
Watch the institutions back off selling as a recovering sp will hurt their performances if they are underweight the stock.
It makes sense to me given they're in the gambling industry - they're going to be prone to statistical variance. Normalizing for win-ratio (expected value) is sensible for mid-long term profit projections.
It would be interesting to see if they exceed their expected win ratio, whether they normalize profit downwards too. If not, then it's definitely convenient and creative accounting.
It's a nonsense, maknz, as far as I am concerned because normalization is to take out one-offs (used to be called abnormals) to show underlying performance.
Presumably the accounting standards these days allow this nonsense but as they say, an accountant will ask you what profits you want to report and adjust accordingly to achieve!
I think you have it wrong Winner.
Rather than implicitly criticising Nigel Morrison, you should be praising the theoretical Nigel Morrison. I am talking about the one that booked the theoretical high roller win rate for Sky City IF those dice had landed according to how statistics said they should have landed. In theory those high roller profits should have been real. And the least you could do is give some theoretical praise for the theoretical Nigel Morrison who did book those statiscally expected 'normalised profit's if the dice had landed the right way, at least in theory.
SNOOPY
As I predicted the share price did bounce on the profit announcement. Ok at $3.62, it is still a few cents below the $3.65 I paid last week. But a few cents is neither here nor there taking the long view. Dividend is steady. The real engine of the company, the Auckland casino, probably going a little better than expected. Good luck to those waiting for a $3 entry price.
SNOOPY
Great comedy today :laugh: :laugh:
Those international guys laughing all the way to the bank over the last six months
Full year difference to expected wins was $15.4m
At the half year it was $1,9m
Goodness gracious those guys have had the luck on their side beating the stats by $13,5m in the last six months of the year
All this stuff is evil and I have only spent 10 minutes in the Auckland den of inequity so don't know how it all works but SKY said this in the H1 report "for a number of players, the IB win rate was well in excess of the theoretical 1.35% and for these players that lost significantly and therefore earned less
commission, we paid a higher level of complementary expenses"[/I]
Does that mean if you win more than you should you keep the money but if we win more than we should we'll give you a meal and champagne and a bed for the night so you come back the next day to win more than you meant to
Maybe I misunderstand all this stuff. Maybe even the assumption that punters win more than they are meant to is even wrong .... but that's how I read the reports anyway
how normal is normal
I think your friend Nigel better do his sums again.
FY12 was $4.2m and FY13 $2.3m and this year the $15.4m
Past years the bulk of it may have been shouting the losers but this year it looks like the punters did beat the odds at the table
I have sent Nigel an email asking him how it works but probably Nigel has more important things to do than explain this to me. Maybe he will pass it on to that new communications guy they have taken on from Fairfax
I'm pretty sure I recall a few months back a segment on CNBC that eluded too rumours of a bunch of big rolling hounds doing the rounds of Asian and pacific casino's who were experts at card counting, anyone else heard this ?
I've never been in the high rollers room but certainly on the main floor most if not all of the blackjack tables now have card shuffling machines which effectively negate anyone's ability to count cards but not so sure about the high rollers room. Anyone been in there ?
Analysts pleased - that's all that matters
Goldman Sachs really +ve about the future - Curley is forecasting $145 million net profit after tax for the June 2015 year and has a buy rating on the company, saying the company was exposed to two high-quality projects in Adelaide and Auckland. Doak (Mcqauries) has a $4.68 valuation on the shares, which closed up 7c yesterday at $3.62.
Good eh Balance
Maybe we should look at the Australia perspective more often
Bell Potter "A quick way to look at the SkyCity result is [Australian dollars] normalised [earnings before interest, tax, depreciation and amortisation] is up 8 per cent over the last year, yet the [Australian dollars] share price is down 9 per cent - this is an anomaly that we believe is unwarranted and today's result highlights why SkyCity has been oversold recently,"
Remember it is these guys (and Blackrock) that drive the shareprice
Gaynor not impressed with SKC performance but in defence of SKC it just shows that analysts are useless at forecasting earnings. I've always discounted valuations / targrts by 20% to reflect reality
But heck increasing those being paid over $700k by seven in a couple of years is amazing, esp as profits go backwards. Must e the place to work.
http://www.nzherald.co.nz/business/n...ectid=11312951
Extract -
Sky City's performance has been particularly poor as its net earnings have declined for two consecutive years and the company's 20 cents dividend is well below the 26 cents it paid for the June 2006 year.
The casino operator continues to underperform relative to analysts' forecasts as follows:
• After the June 2012 year result analysts had an average June 2013 year forecast of $145.6 million but the company achieved only $136.3 million.
• After the 2012-13 result the average analyst forecast was $142.8 million for the June 2014 year but the actual outcome was just $123.2 million.
• The average net earnings forecast for the June 2015 year has been cut from $168.7 million after the June 2012 year result to $163.1 million after the 2012-13 year announcement to just $132 million at present.
• Meanwhile the number of SkyCity executives earning $700,000 or more a year has jumped from none in 2011 to five in 2012 and eight in 2013.
It will be fascinating to see how many executives were paid $700,000 or more in the June 2014 year as there doesn't seem to be a close correlation between performance and executive remuneration at SkyCity.
Winner, I am very disappointed to see you highlighting the actual quotes by the outlier Brian Gaynor as regards Sky City. Of far more significance are the theoretical quotes that a normalised Brian Gaynor would have made had all of those analyst expectations been satisfied. You need to open your mind to the possibilities and not get too hung up on reality with Sky City. Believe in what could happen and all of those positive theoretical quotes just write themselves.
SNOOPY
Nicely put.
SKC have had well-below-average 'win rates' for the past two years - maybe longer. SKC normalise their profits to account for their 'bad luck' - i.e. restates them _as if_ they'd had the theoretical win rate.
I wonder if they are being robbed by professional gamblers or cheats.
How many years of low win rates would it take before SKC did something?
Is this company badly managed?
Notably, director Treacy sold 70,000 shares at $3.78 on 1/9/14, and the stock is weak in a rising market.
Might sell mine too - copying the directors' trades is a proven successful strategy.
BTW my dividend-flow valuation (c) is 3.63.
The argument is that if enough gamblers gamble long enough, the return will revert to the statistical odds. However, your point is an interesting one Bunter. I must trawl back through the actual results and see how far behind SKC are in their theoretical win rate.
Lots of crowing about how good the 'normalised' performance of the Auckland casino is in the annual report. But if you add on the high roller earnings to the Auckland property (assuming most high roller activity is actually in Auckland) , the real performance is actually negative.
The other point that worries me is that SKC consistently seem to pay less tax than the 28% company tax rate would imply.
Sky City are transforming themselves from an 'income' play to a 'growth' play according to the annual report. So no worries, everything is on track. That is the message from 'our Nigel'.
SNOOPY
Well, what's the answer to the question? Is SKC a bargin (sic) at present? $3.50! Hasn't been here since July 2012.
I know an experienced TA guy who just sold out --if thats any help
Doesn't look too bad. I guess the key is whether Blackrock continue selling.
https://nzx.com/companies/SKC/announcements/256534
Good to see the high rollers are being screwed at last --- winning lot less than they can
Crowne et al in Aussie seem to be the targets of these big punters this time around
Hope they stay away for shareholders sake
PS = I take it we don't 'normalise' earnings when wins are ahead of theory
Stupid woman, doesn't she realise that she is just a commodity and a resource that is needed to line the pockets of the rich. She needs to realise that SKC is not some benevolent society.
Fancy bringing her tears to a shareholders meeting, they wouldn't get it either. they only worried about earnings per share and managing resources like people is part of that equation.
Bet you Morrison and his mates just took this as a minor interruption and maybe even joked about over the champagne later on.
But one day they will get their comeuppance. The poor will one day continue their uprising against greedy corporates run by self centred fat cats with obscene pay packets who have no real sense of The real world. Maybe this brave lady might be that trigger
http://www.nzherald.co.nz/business/n...ectid=11344363
Nice bounce today :)
Moneymen control the world - that's the cold hard truth.
Look at the mess made by the *ankers and financial players with the GFC but they are back after being bailed out by governments and taxpayers - bonuses are bigger than before and new products are being churned out to lay the foundations for even bigger bonuses and even bigger messes.
Gotto join them, get your share and do good with your share.
WOW - Major blowout in the estimated cost of constructing the convention centre. With this and other major capex shareholders don't need to gamble with their funds it appears SKC are doing that for them:eek2:
http://www.sharechat.co.nz/article/2...by-a-fifthhtml SKC morphing into the ultimate punters stock ?
"...Morrison said. "However, the Crown and SkyCity will work constructively to identify additional options to address the funding of any costs over and above *SkyCity’s $402 million contractual obligation*"
Could be bad news for the taxpayer and good news for Sky.
Sky seems to have capped its expense contractually at 402m.
I wonder too if Sky quietly increased the specification, hoping the government would wind up paying for it.
Any way you slice and dice this that's more uncertainty hanging over the stock and we all know Mr Market doesn't like uncertainly. Even before this announcement and possible extra SKC cost there's far too much capex coming up for my liking. I'm not convinced the balance sheet isn't going to be a bit stretched and that's leaving aside as a separate issue whether they'll get an adequate return on new funds invested. I'll avoid until the dust settles after all capex complete.
SKC saying that convention centre blow out should be paid by the NZ taxpayer. About $100mill blowout. Here is an idea Nigel don't pay a dividend for a year. The 2014 dividends of $95 mill should plug the funding shortfall. Why should the NZ taxpayer stump up funds so Nigel can keep paying dividends to the shareholders. It is called investing and the return on the investment will pay back the shareholders in the future. SKC & Nigel Morrison starting to sound like scabby bludgers to me. Welfare for those who need it I say.
Disclaimer don't currently hold SKC shares and my opinion would be a lot different if I did.
Yes SKC have no moral fortitude and typical of what's wrong with the world and yes shareholders are greedy. SKC also have it made with a neo liberal government running the country as well. Their comeuppance will come one day.
Best summed up by Balance a few weeks ago -
Moneymen control the world - that's the cold hard truth.
Look at the mess made by the *ankers and financial players with the GFC but they are back after being bailed out by governments and taxpayers - bonuses are bigger than before and new products are being churned out to lay the foundations for even bigger bonuses and even bigger messes.
Gotto join them, get your share and do good with your share.
Heard a commentator the other day saying that he has never known a Quantity Surveyor to come in below budget, usually way on the conservative side, that is adding a few extra $ here and there round it up etc etc..
So maybe not as much as they think and/or is Nigel trying to see how far he can push the envelope
Good share to be out of at present me thinks
http://www.nzherald.co.nz/nz/news/ar...ectid=11378108
Shaping up as a messy bun-fight.
As an Auckland ratepayer I for one am sick and tired of paying for facilities I never use. I suggest Joyce and Brown tell Morrison to fund it themselves or pull the plug and revoke the extension to SKC gaming licence and facilities at the same time. I honestly reckon with all SKC's other capex they could do without this convention centre and I'm not convinced Auckland needs it anyway. There's enough of then around already. To those that argue that Auckland needs a world class convention centre I say why ? central Auckland is over-crowded already.
Yes, it's the "keeping up with the Jones" syndrome, Roger. Sydney, Melbourne etc have first class big conference centres and the fear is that Auckland won't attract the business without one. Rationalised, of course, by extravagant estimates of all the business and jobs that would be missed out on.
Disc: I hold SKC so am a bit biased - but still far from convinced either way.
Hi macduffy,
You've nailed it. Its all about keeping up with best international standards. I am so over the B.S. trotted out by Brown about having a "world class city". All most ratepayers want is reasonable infrastructure and a city they can afford to live in !! The giant amalgamation experiment has gone horribly wrong as far as costs are concerned and to add insult to injury we were all told it would result in significant rates efficiencies, what a bloody joke. Our rates in our beautiful Titirangi home used to be just under $1,800 in 2001 incl of wastewater and inorganic collection. Now they'll be $4,000 plus another $500 for wastewater ($4,500 total) and we don't get an inorganic collection anymore. We're paying 2.5 times the rates we were 13 years ago and general inflation in that period is only up about 30% !!
I'm sorry but as far as I am concerned SKC can stick their convention centre right up their own....you know where and while they're at it Brown can stick his pet rail link project there too.
Exactly the reason why SKC should walk away from starting the convention building too. I'm not faulting its management on the way they would want to go out from this deal. Better for the Auckland ratepayer to say, "we don't want it" because they can accept that rather than management admitting "we ****ed up our cost analysis". Gut feel, SKC wants out really from this.
Disc holding a lot of it but finding it now to be expensive based on its historical P/E
Hi RGR367 Yep, to be honest although not a SKC shareholder at present, (have been at times in the past), I can't see the business case for it from SKC's perspective. That and I think their balance sheet would be quite stretched if it goes ahead considering all their other capex.
http://www.nzherald.co.nz/nz/news/ar...ectid=11378528
Auckland Revolts against Sky City. I think Winston Peters absolutly nailed it with his comment.
Interesting (from Morningstar)
http://www.nzherald.co.nz/business/n...ectid=11384141
I had been undecided to hold or sell for a while .... finally decided to sell and get out for now.
does anybody know what's the HY report going to be next week?
Will probably include P&L, balance sheet and some comments on the outlook.
Have been wondering whether to sell or not. The price has just been churning for the past year.
Random speculations...
1) The HY report will be disappointing
2) Once again, the win percentage will be below average.
3) SKY don't mind in the CC goes ahead or not - if it doesn't I suspect they are sitting on a nice no-risk capital gain on the land they bought.
...and this afternoon Deutsche Bank says sell.
http://www.nzherald.co.nz/business/n...ectid=11395891
So I did.
yeah, that's my feeling that the profit will be disappointing..
NPAT down 10% but normalised only down a fraction
Those horrible greedy (sneaky / smart) international punters still winning more than they should. A $10m adjustment shown in their reconciliation between reality and theory
Love it
Shareholders still should be happy that the dens of iniquity make heaps of money
Oh sorry I don't get it ...like the new set of ads tell the are really into the feeding / dining business .....and do heaps of good stuff for the community in an attempt to say they good guys.
Another mediocre result with low win%, as predicted.
The 10c div is fully unimputed.
So the gross div is the same as 2014, and less than 2013.
If SKC can't do well now, when will they?
Glad I sold.
Woof woof, the dividend hounds will be barking mad that there's no imputation credit and only 25% imputation planned for the 2015 final divvy. A little while back SKC were touting themselves as a good yield story. Talk about a kick in the guts. Paying out 10cps unimputed when real EPS, (before all their creative excuses) is only 9.3 cps when the company has a massive amount of capex coming up looks like a really questionable dividend policy to me. Who are they trying to kid and what's the point of previously touting yourself as a yield investment knowing imputation credits were running out. Tut tut, poor form by the Directors in my opinion.
This was interesting
"...Actual win rate for the month [Jan] of 3.84% resulting in a win rate of 1.50% for the seven months ended 31 January.."
Have SKC spotted a problem and fixed it? Or is it just a random fluctuation.
Would like to know what the month-to-month win rate is (SKC seem to know).
In the 'watch' pile for now.
First quarter win rate from memory was outstanding so second quarter must have been a real shocker. January, who knows...any way you slice and dice this thing with expected "unfiddled" EPS of about 20 cps for the year that puts this no present growth and very low prospective growth sin stock on a forward PE of about 19 with massive capex to come and a slightly stretched balance sheet...what's to like ?...any wonder the brokerages have a sell rating on it !!
http://www.sharechat.co.nz/article/4...estors-sayhtml
SKC taking the biggest punt of all with shareholders $800m ?
Snoopy, you done heaps of work n Sky City over he years
Been stuff all / no earnings growth for some time now.
Do you ever think they will make more than $130m / $140m again. This year looks like $125m. In other words is current level of profitability, where it has been for a few years now, there lot in life.
All normalised earnings of course
The differences between normalised and reported NPAT since 2009 have been $4m / $8m / $2m / $9m / $4m and the latest half year close to $10m
All adverse of course
Begs the question what really is abnormal?
Management says normalised best reflects the underlying performance of he business ...looking forward of course. But if there are always abnormals why bother **** your self wih his 'normalised' stuff.
Perhaps indicative of the sin business they are in.
http://tvnz.co.nz/national-news/skyc...h-plea-6235224
SIN City have been forced to back down. I for one am very pleased that the ratepayers and public revolted against SKC's arrogant demands.
By my reckoning this is a public relations disaster for SKC..and this coming from a company that's trying its best to fool us that it's a good corporate citizen and something completely different from its root business that is nothing more than owning multiple den's of iniquity that's a blight on society. Pure SIN stock in every sense of the word aptly illustrated by the way they grossly mismanaged this fiasco.
Were SKC being arrogant or just trying to interpret the contract or agreement they had entered with the Crown?
sin=religious (or moral) transgression
SKC = gambling = possible addiction
AIR=Pollution possible disease and injury and oil demand which often leads to wars (ie killings)
HNZ= usury, depending on your interpretation & religion
etc.
Disc:Holdings in HNZ, AIR, SKC
Well said Roger, I wonder how many people have taken their own lives through their involvement with this place and how many families have been ruined? One of the only stocks I will never touch, a place that's made out as fun when in reality as you say is just a den of iniquity.
Why not a rights issue for expansion plans like any other company? Nigel Morrison or oliver twist?
Emotive vilification of NZ listed companies is nothing new of course. Den of iniquity. Emotive stuff. The TAB and Lotto encourage iniquity in NZ? Are all the other companies legally operating in NZ without "sin" with their product (mis-used or not) causing no-one harm or suffering? Or is it a arbitrary decision according to whatever "scale" is currently being used? If you are looking at the operations and product which can cause problems whether used to excess or mis-used then the sin-bin will be pretty full. However I do applaud you if you do have a strict moral/religious code and apply it consistently and without exception when making your decisions. That you have only been involved with or funded companies that have never caused heart-ache, suffering and family discord. Then you can cast as many stones as you wish with clear conscience.
Isn't this exactly why SKC has a so called "moat" because it's the only type of sin being on "gambling"? And that moat which will be expanded up to almost infinity because of the deal on building an eyesore has made me got into it in the first place. Am I wrong? Don't think so. But on PR matter, yes, this was a bomb that came back to SKC to further expose how much of the lousy sin it got.
"All modern commerce is a swindle" - George Orwell
Most I reckon. Wouldn't be many stocks left to pick if you left out the ones that lie for money.
Accept it and deal with it.