And it seems a blessing in disguise based on managements previous commentary. Looks like they can exit manufacturing with a handsome payout and focus on retailing.
With GP margins around 30% something needed to change
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This has got to be a takeover target surely
Big story in media rawz
Only a matter of time before a raider comes along …pockets the cash, sells the stuff in Napier and then sells the remaining Wanganui business at which seems to be a pretty solid business ….something like that
Seems worth a punt …..as long as you view it as a punt and not an investment we’ll be OK
Yes a pretty good punt. Cant lose buying potentially $140m? cash for $30m... and get the business for free
they did make a profit last year. and their explanation for the negative cashflow (investing and building out the aussie market) is acceptable for now.
I think its one of those, very small downside but very large upside bets
Yep it's a asymmetric bet.
Another possibility is that they continue with the hybrid supply option. The return on asset is terrible so I cannot see how they will set up new plants. So potentially the insurance payout distributed as a special div.
Stop buying for a while rawz and let others get in cheap …you pushing the price up too fast
Still cheap W69, have to update my thinking from these posts earlier in the month. Potential for another $100m+ cash payout = $1.42 per share in cash to hit the balance sheet. Plus the $39m cash already on the balance sheet which is $0.55 in value.
Total cash something like $2 in value. and get the business for free. wow
Hey Rawz, you mentioned a few months back that you had insurance experience.
Do you have any special insight regarding the insurance payout. They have given a range.
The cyclone was bad for the community. But this is truly is a positive random event for the company.