sharetrader
Page 53 of 113 FirstFirst ... 34349505152535455565763103 ... LastLast
Results 521 to 530 of 1130
  1. #521
    Guru
    Join Date
    Aug 2012
    Posts
    4,663

    Default

    A relative has shares in Scott. Her broker does not know much about Scott Tech. She is a long term portfolio investor and did not participate in the rights issue. If she continues to hold the shares (and does not voluntarily participate in the scheme of arrangement) are there any drawbacks (tax or otherwise?) I read the scheme booklet and quickly realised I was out of my depth due to lack of comprehension skills! Cheers.

  2. #522
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,223

    Default

    Quote Originally Posted by Bjauck View Post
    A relative has shares in Scott. Her broker does not know much about Scott Tech. She is a long term portfolio investor and did not participate in the rights issue. If she continues to hold the shares (and does not voluntarily participate in the scheme of arrangement) are there any drawbacks (tax or otherwise?) I read the scheme booklet and quickly realised I was out of my depth due to lack of comprehension skills! Cheers.
    The choice about whether or not to participate in the 'scheme of arrangement' (aka takeover by stealth) was made at the last AGM. All shareholders will now participate, and no more decisions on this by shareholders are required. There will be no further calls for more money. Nothing to do for your relative but to sit tight now.

    SNOOPY

    PS participating in the rights issue at the time was a 50/50 call, because SCT shares were avialable 'on market' at or below the rights price.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  3. #523
    Member
    Join Date
    Oct 2010
    Posts
    284

    Default

    Quote Originally Posted by sb9 View Post
    Dipped my toes on this one today, let's see how it plays out.
    You chose a good day!! Up 11% from 152 to 169.

  4. #524
    Investor
    Join Date
    Jul 2014
    Posts
    5,643

    Default

    Quote Originally Posted by Under Surveillance View Post
    You chose a good day!! Up 11% from 152 to 169.
    Yeah, paid bit more than the open though. Still quite happy and I reckon this is one of dark horses on NZX at the moment. Extra funds they got thro' JBS should give big boost to their expansion plans in Europe and US.

  5. #525
    Guru
    Join Date
    Jul 2004
    Location
    Bolivia.
    Posts
    4,855

  6. #526
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,223

    Default

    Quote Originally Posted by Sideshow Bob View Post
    I was interested to see Hopkins say that the as yet unamed European acquisition will allow them to take their meat industry robotics into Europe. Given Scott's have a good five years of solid work just automating JBS Australia, I wonder if new majority shareholder JBS will allow the distraction of putting meat industry robots into Europe? This is shaping up as a test to see if Scott's managment really will remain independent, as they claimed they would after the JBS takeover (whoops 'scheme of arrangement') was approved by shareholders.

    SNOOPY
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  7. #527
    Investor
    Join Date
    Jul 2014
    Posts
    5,643

    Default

    https://nzx.com/companies/SCT/announcements/280517

    Another formality completed, high court approval of scheme of arrangement with JBS.

  8. #528
    Investor
    Join Date
    Jul 2014
    Posts
    5,643

    Default

    Divvy paid into the bank a/c, sweet...

  9. #529
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,223

    Default

    Quote Originally Posted by sb9 View Post
    https://nzx.com/companies/SCT/announcements/280517

    Another formality completed, high court approval of scheme of arrangement with JBS.
    The Scott Technology shareprice has had a rocket under it in recent days. Even today the price is up 7.1% so far. Bidders are above the last sale price of $1.80 already.

    According to the NZX website, SCT is - despite the recent price rises - still only on a PE of 10.7. Superficially that looks cheap for a (now) debt free exporter with strong interests in the international markets of industrial automation.

    However, I am fairly sure that this 'modest' PE does not take into account that there are now 74,680,754 shares on issue. Not the 45,473,890 that were on issue before the high court approved controlling stake takeover by JBS Australia.

    SCT have issued new shares several times over the last few years as a result of business acquisitions. But this time no new business has been acquired. Just more capital to expand the existing business. So suddenly all of SCT's profits must be spread over a lot more shares. This means the real historic PE on the market today is not 10.7 but:

    10.7 x (74.7/45.7) = 17.5

    Even 17.5 is not a hugely demanding growth multiple for a well funded growth company. But any scaling up of the meat industry robotics division will not be instant. Furthermore, the traditional 'appliance line manufacturing' operating business appears to be in one of their periodic lulls. And the mining assistive technology business is flatlining.

    I will be very happy to be proved wrong. But I think 'earnings' will be down, and particularly 'earnings per share' will dip significantly for FY2016. And that means those buying in at $1.80 or more today might not be getting the bargain they think. Be careful out there in this market!

    SNOOPY

    discl: hold SCT - not a seller, but not a buyer either
    Last edited by Snoopy; 27-04-2016 at 11:45 AM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  10. #530
    Member
    Join Date
    Oct 2010
    Posts
    284

    Default

    [QUOTE=Snoopy;617592] I will be very happy to be proved wrong. But I think 'earnings' will be down, and particularly 'earnings per share' will dip significantly for FY2016. And that means those buying in at $1.80 or more today might not be getting the bargain they think. Be careful out there in this market!

    Whether $1.80 or so represents a bargain could depend on the depth of one's vision. For those looking short term, say as far out as the FY 2016 announcement, there might be no compelling bargain. Those looking further ahead, mindful of the difficulty of easily picking up shares in an illiquid company if/once profitability bounces, might be paying very sensible prices.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •