Have a feeling it is getting to that point....
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Have a feeling it is getting to that point....
Occaisionally someone comes up with that great piece of financial wisdom "A rising tide lifts all boats". Which is true except for those boats that spring a leak.
Although I have never heard it, presumably someone somewhere (it could me me, here) has also said "A falling tide drops all boats, except for the ones where they finaly fix the holes up and pump out, and the ones that hit the bottom which obviously don't sink further though they may get stuck in the mud...."
Where was I? Stuck in the mud, right.
Anyways, as the NZX sinks so does most of the companies listed on it, despite the fact that a number of them remain very good companies. If SKC city is hitting bargain category then I am sure there are a number of better bargains.
Actually given their performance, levels of debt etc I never understand why SKC trades at such a high price, is it the cash flow?
regards
Paper Tiger
...and I did not mention Mainfreight once ;).
Very good PT
I also agree with you that SKC is pretty highly priced.
The paper said a cheeky bid at $5 might be coming soon. Cheeky because it less than the $6 everybody thought would be coming a few months ago
Put youself in the place of a private equity investor ..... even at current price he would need to fork up with $2 billion for the SKC shares and take on SKC's $1 billion of debt ...... thats $3 billion ...... all for a $250M operating cash flow (before capex)
And just imagine would levels of debt a purchaser would have if the purchase was even only moderately leveraged
SKC still think it may happen ..... you never know it just might .... funnier things have before
So redzone might be on to something .... SKC might be a good buy at the moment .... but like PT if this is the case prob better opportunities
Is SKC a bargain at present?
Answer: No.
I was looking at a price between $3.90...$4.10 to dip my toes ...might just get there this week....looking to the fed to drop rates by .5 this week also...
Aussies have written of the chance of a takeover
Casino bid looking like pie in the sky
http://business.smh.com.au/casino-bi...0114-1ly9.html
Prob means one will be announced this or next week ..... at $6 ... yeah right
the cheaper the stock price gets the stronger the case becomes....the company has been put on the block ...it is for sale...just how much is someone willing to pay is the question...I did dip my toes in yesterday and will drip feed from here on in if it continues to fall...there is one big seller...and has a few left to sell by the looks of it....cant see much further down side really...maybe 3.90 bottom....where are the charts guys???