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.