Bremworth BRW

[percy]

Is this a net net?

At half year they had $10m cash on balance sheet and no debt.
They have received $35 million so far from the insurance payout with more to come.

So maybe $45m in CASH ON THE BALANCE SHEET and no debt and market cap is $33M???

By the sounds of it the flooding and subsequent insurance payout has been a blessing for the company as they can source yarn from overseas and some local and it works better for the business.

I like the story. I like new CEOs coming in changing things and then you see it working, in this case much better margins. I did very well with MHJ and following their new management and watching their margins increase nicely. Could be a similar story here.
New CEO now has lots and lots of cash to invest in Aussie. Very tough market and execution risk obviously.. but with a clean balance sheet and some promising signs in recent performance i am along for a ride.

Operating cash flows slightly negative by $1m but that is put down to the investments and build out of network in Aus.

Could be a multi bagger here.

DYOR enjoy

Certainly looks interesting.Still have my doubts about wool carpets.
I looked at it a few weeks ago,but think I was concentrating on another company [2cc] at the time.
ERG in Aussie is the same,ie having more cash on hand than their market cap.
However HMY's announcement made me put in a buy order to top up.

[Rawz]

Certainly looks interesting.Still have my doubts about wool carpets.
I looked at it a few weeks ago,but think I was concentrating on another company [2cc] at the time.
ERG in Aussie is the same,ie having more cash on hand than their market cap.
However HMY's announcement made me put in a buy order to top up.

I was late to the party too because my attention was with 2CC. However on it now and seems like some deep value here and SP is in a nice uptrend. I have read all the recent reports etc and really like the direction they are going in. What makes it super attractive and low risk investment for me is the huge insurance payout that seems to be one of those events that is a huge blessing. From what i can tell the business just got a whole lot more capital efficient not having to run and maintain this plant

[Rawz]

And credit to Haewai. Seems to be the first punter to highlight the deep value at 29cent sp level. well done!!

Sharetrader is amazing. If I didn't have sharetrader it would be impossible to be across every company on the NZX and find these interesting investments opportunities.

[Rawz]

For the SP to get to the Rawz guess of cash on balance sheet it needs to get to $0.64 per share or 34% above todays price.

$45,000,000 cash/ 70069425 no. of shares= $0.64

And then it is only trading half its revenue. A lot to like

[haewai]

I might be undermining my own investment in this post, but it's inevitable that BRW has incurred a lot of expense in recovering from the cyclone, including clean up, equipment and plant replacement, staff support and redesign of input channels and operations. Let alone impact on revenue from reduced offerings. There's a lot of uncertainty in valuation as a result.

[Rawz]

I might be undermining my own investment in this post, but it's inevitable that BRW has incurred a lot of expense in recovering from the cyclone, including clean up, equipment and plant replacement, staff support and redesign of input channels and operations. Let alone impact on revenue from reduced offerings. There's a lot of uncertainty in valuation as a result.

You spooked the market

But yes all fair points.

Looking forward to see next result update and seeing how much cash is on the balance sheet.

FY24 earnings per share forecast to be 0.046 as per Jarden website so trading on a forward P/E of 9.85. Excluding the cash its error?

[winner69]

You spooked the market

But yes all fair points.

Looking forward to see next result update and seeing how much cash is on the balance sheet.

FY24 earnings per share forecast to be 0.046 as per Jarden website so trading on a forward P/E of 9.85. Excluding the cash its error?

No worries ……all back on track with share price

Prob one of those ‘profit takers’ yesterday

[haewai]

Annual results out. Gabrielle hit to production, revenue and normalised NPAT is nowhere near as bad as I was fearing. Crazy amount of cash held ($0.56/share) with potentially >$100m more to come from insurance. New business model seems to be working well and offering flexibility, Napier staffing issues resolved.

[Rawz]

Yes this has a market cap of $28m and cash on hand of $39m.

And they say: “ Smith says the company has $271.3m in material damage and business
interruption insurance cover for the Napier operation and is anticipating
significant further payouts. An independent assessment has placed the
estimated cost of remediation of buildings and plant and equipment at between
$112.7m and $162.0m. Claims under the business interruption policy are
expected to occur in FY24 and into FY25”

Does that mean another $100m+ cash to come. Wtf

[Dlownz]

Annual results out. Gabrielle hit to production, revenue and normalised NPAT is nowhere near as bad as I was fearing. Crazy amount of cash held ($0.56/share) with potentially >$100m more to come from insurance. New business model seems to be working well and offering flexibility, Napier staffing issues resolved.

Napier staffing issues resolved.....
The basically made everyone redundant.
The offered redundancy then those that didn't take it were let go. Doesn't sound like they are planning on reopening Napier at all