We'll have to wait for the Investment Statement to get a better idea but does anyone else think that this rash of IPO's is starting to sound like a faint warning bell?
http://www.nzherald.co.nz/business/n...ectid=11285704
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We'll have to wait for the Investment Statement to get a better idea but does anyone else think that this rash of IPO's is starting to sound like a faint warning bell?
http://www.nzherald.co.nz/business/n...ectid=11285704
Where's the growth?
A company in trouble, bought cheap by private equity, financially engineered now to sell into a strong market?
Hopefully they've learnt from the Hirepool debacle and come up with a reasonable offering
The real winners were the owners who got $366m in 2006
Good blokes those guys .....laughed all the way to bank
Just shows you how stupid this years were .....PE paying inflated prices for anything with a cash flow.
Gets a mention in today's Chalkie column.
http://www.stuff.co.nz/business/opin...-conflict-soup
From what I know they must have grown big time in the last 2 to justify a $300m market cap
Also be looking at how much debt gets left behind in the company ($80m odd in last accounts)
Prospectus will be interesting - after the market they are in is booming big time .....Christchurch CBD is going to be full of spanking new buildings endowed with glass
A couple of months ago we broke an upstairs window, and as a frugal one does I duly measured it all up and popped down to smith and smith for a replacement pane. Didn’t even bother with a call out in Christchurch anticipating backlog.
Not really to my surprise I was told that their glaziers were all busy and that I would have to wait three days.
That’s three days for an across the counter sale, wish I had shares in smith and smith I thought.
When I offered, tongue in cheek, to go out the back to cut it myself, the shop assistant looked at me blankly for a few seconds in quiet contemplation but decided rightfully that it was not an option.
Another private equity company bringing a company with a chequered history to the market when the market is currently priced at 22 year high's on a forward PE basis.
Yes this rush of IPO's is strategically timed and NO companies such as this which have cyclical earnings should not command a PE of early teens in anything other than an irrational market.
Hirepool Mk2 anyone ? YAWN...
Indicative pricing says earnings $19m (current or next year I don't know but that's what the PE ratio mentioned gives)
2013 profit was $8m on $140m odd sales
So $8m to $19m is real growth eh Balance ....there's the growth
And all those glass towers in Christchurch to come
Might have been more interested a couple of years ago in Metroglass earlier in the macro economic cycle.
There is some growth on the horizon but they don’t have a particularly high proportional exposure to the Christchurch market, in similar fashion to FBU and STU.
Not for me at $1.70, there are better propositions in the market right now.
http://www.scoop.co.nz/stories/BU140...70-sources.htm
Disc: not investing
At least it is an easy to understand business. As double glazing is now and standard practice in new building an most almost replacement glass for door or windows have to be strength glass isn't it?
So more or less it is depending on property cycle and new building consents.
I am wondering who else in NZ is producing glass panels and what is the chance that these glass panels could come in from over sea. I know that some kitchen panels are from Germany.
I see them having strong growth during FY 15, 16 and 17 but flattening off and possibly even negative growth post Chch rebuild.
Now, there's a surprise. MetroGlass issue oversubscribed!
http://www.stuff.co.nz/business/indu...day:dailybrief
you cant beat a continuation of the 11% pa revenue growth through to September 2015
And EBITDA to grown at 45% pa from FY12 to FY14 and will grow at 22% pa through to FY15
Pretty good eh
Sept NPAT forecast 12 months Sept 15 is $21.2m ..... so a PE of 15 future earnings
That based on NPAT -- not the NPATA that they seem to use in the prospectus
Mike doesn't get it one little bit. Probably wont be putting any Metro in his portfolio. He going to miss out then
http://www.chrislee.co.nz/market-news
Quote
Drafty? – Metroglass Tech (MGT) seems to be in a real hurry to float their shares on the NZX!
It’s almost like someone called in to report a broken window, its cold and the draft is cooling the home rapidly and MGT is on its way and hopes to have the situation resolved by sunset.
The media has reported that the share price will be set at $1.70 (a semantically important 5 cents above the $1.65 minimum) after discussions behind closed doors with institutional investors.
Behind closed doors… recall my comments from last week about the desirable alternative of transparent, all inclusive, public book builds using the easily developed, but steadfastly blocked, online service portals.
The vendor of MGT is…. one moment.. ahh yes, it is another private equity fund: Crescent Capital.
Private Equity ~ capital market development supporters?, leave value on the table?, transparency?
I have a view that MGT owners would be much better at selling opaque windows for a bathroom than clear windows for a sunroom.
Could it be that the marketing pitch for the current share price will include the high volume of building consents in Canterbury and Auckland plus the push to see councils accelerate further development?
What’s the rush?
Anybody having a go with Metro this week?