GXL Greencross Limited/ Veterinarians

[BlackPeter]

Greencross shareprice continues to drift down ....hard to believe it was 10 bucks not that long ago.

Still make decent profits but market a bit worried about what Amazon might do to them ...even though an online outfit called Pet Circle is apparently putting a big dent in their retail sales.

Commentators say taking over Pet Circle is the answer but it would cost them heaps and probably eps dilutive. Way the share price is going might be a takeover target themselves again.

Still keepin an eye on

Just another company with too much elusive goodwill on their balance sheet. They did grow by acquisition and paid in my view ways too much for City Farmers, weighing now heavily on their balance sheet.

They harvested in their purchasing spree a long time ago all the low hanging fruit - everything they now can buy would only further dilute their EPS.

Sure - they look still cheap if projecting past growth rates into the future, but if we assume that any growth from here will only reduce the EPS - what are they really worth? The current PE of 13.7 is probably still a bit dear ... and that's not even taking amazon's arrival into account.

Discl: used to watch, but never got myself to buy into.

[Filthy]

trading update today. https://www.asx.com.au/asxpdf/201805...k0fq0d4nvh.pdf

massive overreaction by market - down 20%

probably a v good entry point for those looking to BUY both for a short term trade &/or for the long-term

[BlackPeter]

trading update today. https://www.asx.com.au/asxpdf/201805...k0fq0d4nvh.pdf

massive overreaction by market - down 20%

probably a v good entry point for those looking to BUY both for a short term trade &/or for the long-term

Take care ... while markets tend to overreact - there is not guarantee that all bad news are now out for this company. They clearly lost their way and ways overpaid for many of their more recent acquisitions. From memory - there is a huge amount of quite questionable goodwill on their books. Allow this to disappear and they operate with negative equity.

[winner69]

So FY EBITDA about $100m .....means a shocker second half ...no wonder share price down 20%

Commentary says the old way of doing things has been wrong and no longer relevant and we need to do things a new way ....and we will organise all this in the next 3 months ....and FY19 will be honky dory

Yeah rate mate

I predict a series of not so good market updates over the next year ...or so

Punters go for it ....today’s price might be the low ...who knows

[winner69]

This paragraph says it all -

Mr Hickey noted “Given structural changes in the pet sector, we need to review our previous capital-intensive model of renewing the physical layout of stores and clinics and instead focus on customer centricity and profitability of the existing fleet. We will continue to backfill veterinary and other services into retail stores in strong catchments and to grow our footprint where we identify synergies with our existing network. However, going forward our immediate focus will shift more towards integrating technology into our existing offering in areas including omnichannel development, digital assets and data analytics, optimising our store and clinic footprint and improving the customer experience. As a result, the previously flagged high capital cost “store of the future” re-fit program is no longer a priority and has been cancelled.”

Will an already disenchanted market (shareprice drifting from $10 to $4 odd says so) believe All those buzzwords and rhetoric and think a quick turnaround is possible?

[kiora]

This paragraph says it all -

Mr Hickey noted “Given structural changes in the pet sector, we need to review our previous capital-intensive model of renewing the physical layout of stores and clinics and instead focus on customer centricity and profitability of the existing fleet. We will continue to backfill veterinary and other services into retail stores in strong catchments and to grow our footprint where we identify synergies with our existing network. However, going forward our immediate focus will shift more towards integrating technology into our existing offering in areas including omnichannel development, digital assets and data analytics, optimising our store and clinic footprint and improving the customer experience. As a result, the previously flagged high capital cost “store of the future” re-fit program is no longer a priority and has been cancelled.”

Will an already disenchanted market (shareprice drifting from $10 to $4 odd says so) believe All those buzzwords and rhetoric and think a quick turnaround is possible?

NO I DON"T!A ship more than half sunk is incredibly hard to turn around including staff morale.Staff will be very demotivated about now in my view.Sad tale.

[Filthy]

no disagreement that it was a bad trading update. 97-100 rather than guidance of 107-110.

various impairments, labour & OPEX review. & yes might still be more to come

....was it -20% bad though? pointing out that there was still moderate sales growth in the ann.

new CEO just clearing the decks and stamping his mark eh.

will take a look at goodwill - TY BP

[winner69]

Hasn’t recovered much has it

Greencross now a pariah of the ASX .....punters given up on them I reckon

Only one way share price can Head now over the next few months

[Filthy]

up 9% from the low though

[Leftfield]

up 9% from the low though

Don't get your hopes up.... chart looks v ominous. Death cross and all. GLH.
(Disc not holding just observing.)