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  1. #1
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    Default Is SKC a bargin at present

    Have a feeling it is getting to that point....

  2. #2
    Reincarnated Panthera Snow Leopard's Avatar
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    Default The ebb and flow

    Occaisionally someone comes up with that great piece of financial wisdom "A rising tide lifts all boats". Which is true except for those boats that spring a leak.
    Although I have never heard it, presumably someone somewhere (it could me me, here) has also said "A falling tide drops all boats, except for the ones where they finaly fix the holes up and pump out, and the ones that hit the bottom which obviously don't sink further though they may get stuck in the mud...."

    Where was I? Stuck in the mud, right.

    Anyways, as the NZX sinks so does most of the companies listed on it, despite the fact that a number of them remain very good companies. If SKC city is hitting bargain category then I am sure there are a number of better bargains.

    Actually given their performance, levels of debt etc I never understand why SKC trades at such a high price, is it the cash flow?

    regards
    Paper Tiger
    om mani peme hum

  3. #3
    Reincarnated Panthera Snow Leopard's Avatar
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    Talking Who'se a good tiger then?

    ...and I did not mention Mainfreight once .
    om mani peme hum

  4. #4
    CEO Butch Analytics Ltd winner69's Avatar
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    Quote Originally Posted by Paper Tiger View Post
    Occaisionally someone comes up with that great piece of financial wisdom "A rising tide lifts all boats". Which is true except for those boats that spring a leak.
    Although I have never heard it, presumably someone somewhere (it could me me, here) has also said "A falling tide drops all boats, except for the ones where they finaly fix the holes up and pump out, and the ones that hit the bottom which obviously don't sink further though they may get stuck in the mud...."

    Where was I? Stuck in the mud, right.

    Anyways, as the NZX sinks so does most of the companies listed on it, despite the fact that a number of them remain very good companies. If SKC city is hitting bargain category then I am sure there are a number of better bargains.

    Actually given their performance, levels of debt etc I never understand why SKC trades at such a high price, is it the cash flow?

    regards
    Paper Tiger
    Very good PT

    I also agree with you that SKC is pretty highly priced.

    The paper said a cheeky bid at $5 might be coming soon. Cheeky because it less than the $6 everybody thought would be coming a few months ago

    Put youself in the place of a private equity investor ..... even at current price he would need to fork up with $2 billion for the SKC shares and take on SKC's $1 billion of debt ...... thats $3 billion ...... all for a $250M operating cash flow (before capex)

    And just imagine would levels of debt a purchaser would have if the purchase was even only moderately leveraged

    SKC still think it may happen ..... you never know it just might .... funnier things have before

    So redzone might be on to something .... SKC might be a good buy at the moment .... but like PT if this is the case prob better opportunities

  5. #5
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    Is SKC a bargain at present?
    Answer: No.
    metro / Sky Tower

  6. #6
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    Default

    I was looking at a price between $3.90...$4.10 to dip my toes ...might just get there this week....looking to the fed to drop rates by .5 this week also...

  7. #7
    Senior Member Nitaa's Avatar
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    Quote Originally Posted by metro View Post
    Is SKC a bargain at present?
    Answer: No.
    why do you think?

  8. #8
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    Quote Originally Posted by Paper Tiger View Post
    Occaisionally someone comes up with that great piece of financial wisdom "A rising tide lifts all boats". Which is true except for those boats that spring a leak.
    Although I have never heard it, presumably someone somewhere (it could me me, here) has also said "A falling tide drops all boats, except for the ones where they finaly fix the holes up and pump out, and the ones that hit the bottom which obviously don't sink further though they may get stuck in the mud...."
    Warren Buffett has a saying that goes something like - "You only find out who is swimming naked when the tide goes out"

  9. #9
    CEO Butch Analytics Ltd winner69's Avatar
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    Aussies have written of the chance of a takeover

    Casino bid looking like pie in the sky
    http://business.smh.com.au/casino-bi...0114-1ly9.html


    Prob means one will be announced this or next week ..... at $6 ... yeah right

  10. #10
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    the cheaper the stock price gets the stronger the case becomes....the company has been put on the block ...it is for sale...just how much is someone willing to pay is the question...I did dip my toes in yesterday and will drip feed from here on in if it continues to fall...there is one big seller...and has a few left to sell by the looks of it....cant see much further down side really...maybe 3.90 bottom....where are the charts guys???

  11. #11
    Guru Dr_Who's Avatar
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    I am keeping a close on eye on SKC. There will be a time to buy this pup. Waiting for it to form a bottom on the graph.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt either directly by abolishing large slabs of it, or indirectly by inflating it away.

  12. #12
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    the eye never lies

  13. #13
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    Quote Originally Posted by Dr_Who View Post
    I am keeping a close on eye on SKC. There will be a time to buy this pup. Waiting for it to form a bottom on the graph.
    Check your graph!

  14. #14
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    Default

    over the last 3 years approx its formed a head and shoulders with the neckline just above 4
    should it break 4 then I reckon it could easily find 3

    looking at shorter time frame view it should have found support at 4.5 (and it did try ) but it failed. so not looking good imo.

    This is a TA perspective but one using different method from Phaedrus.
    For clarity, nothing I say is advice....

  15. #15
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    The only reason to hold this stock is the chance of a takeover. And this is getting slimmer by the week. Recently I read they were having to cut back costs involving personnel layoffs.
    That tells you it is in a cash cow mode with negative horizons. Add in todays news and who would bother.

    Far better pickings on the other side of the ditch.

  16. #16
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    Test that statement by buying some Cujo..........

  17. #17
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    Quote Originally Posted by cujodog View Post
    This company looks doomed doesn't it?

    Wouldn't be surprised to see this at $2 within a couple of months.
    A company owning a monopoly on NZ casino gambling will only be doomed if it self destructs which it certainly has tried to recently

  18. #18
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    today is the day for me...earnings will surprise...

  19. #19
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    I've held SKC since the placement prior to the float so have had a good run over the years and have partially sold down in the last year or so.
    The biggest concern has always been the heavily geared balance sheet and in these days of tighter and more expensive credit this takes on greater importance. Fortunately, the biggest chunk of debt is from US private investors and doesn't fall due until 2012 - 2020. A lot of it is subject to re-pricing long before that, of course.
    Given the company's recent poor operating performance and corporate "hiatus" I don't see it making much of a SP recovery, regardless of the state of the market in general.

  20. #20
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    Default

    I might be tempted at $2

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