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23-08-2018, 10:18 AM
#991
Originally Posted by RTM
Can someone help me out ? I'm not a financial wiz.
Why / how can the NTA/Share be negative ? See below for EBOS. -56.47 cents
Is this a reflection of the level of borrowings that a company has.
Sorry if this is a dumb question. Data from ANZ Securities.
EBO.NZX - Ebos Group Limited Ordinary Shares
Total Issue:
152,539,304
Market Capitalisation:
$3,203,325,384 (@2100)
Earnings/Share:
92.53 cents
Price/Earnings Ratio:
22.7
NTA/Share:
-56.47 cents
Dividend/Share:
NZD 66 cents
Dividend Yield:
3.14%
1-Week Range (Low - High):
2039 - 2100
4-Week Range:
2000 - 2100
26-Week Range:
1730 - 2100
52-Week Range:
1700 - 2100
They had to pay a great deal for goodwill and intangibles when they brought out other companies.
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23-08-2018, 10:21 AM
#992
RTM not a dumb question
The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)
Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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23-08-2018, 10:27 AM
#993
Originally Posted by winner69
RTM not a dumb question
The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)
Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.
Thanks Winner and Percy,
I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?
I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."
Last edited by RTM; 23-08-2018 at 10:41 AM.
Reason: Addiitonal info added
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23-08-2018, 10:47 AM
#994
Originally Posted by RTM
Thanks Winner and Percy,
I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?
I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."
Yes it accounts for loans.
You obviously with ANZ. They like people understanding things like NTA and in their Education Dept they have this little article
https://www.anzsecurities.co.nz/dire...spershare.aspx
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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23-08-2018, 11:14 AM
#995
Originally Posted by winner69
Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM
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23-08-2018, 11:56 AM
#996
Originally Posted by RTM
Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM
I wouldn’t worry about NTA at all ....to me it doesn’t mean much at at all.
I’d say you would be better off looking Book Value which is the same as Shareholder Equity. This gives you a far better guide to what the net assets of the company are (from an accounting point of view)
For EBOS that’s about $8.00 per share. The market is valuing that at $20 plus which means everyone is expecting the company to continue to make decent profits ....ie create value
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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23-08-2018, 02:10 PM
#997
The result was not what I was looking for.
Have sold.
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23-08-2018, 02:21 PM
#998
Originally Posted by percy
The result was not what I was looking for.
Have sold.
Aaaah you know u will just re-enter at a higher price in future U always do
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23-08-2018, 02:26 PM
#999
Originally Posted by LAC
Aaaah you know u will just re-enter at a higher price in future U always do
Yes if there is good reason to I will.!!...lol.
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23-08-2018, 05:30 PM
#1000
Originally Posted by percy
The result was not what I was looking for.
Have sold.
Looks like EBO is suffering from the law of large numbers. As issued capital and NPAT grow it gets harder and harder to post similar percentage increases as those when the company was much smaller. My biggest concern is whether becoming more reliant on the pharmaceutical business in Australia - which isn't yet reflected in results - exposes EBO to greater governmental/regulatory risk than in previous years.
I sold a few in July but EBO is still one of my biggest holdings.
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