SKC - Sky City

[macduffy]

Yes, it's the "keeping up with the Jones" syndrome, Roger. Sydney, Melbourne etc have first class big conference centres and the fear is that Auckland won't attract the business without one. Rationalised, of course, by extravagant estimates of all the business and jobs that would be missed out on.

Disc: I hold SKC so am a bit biased - but still far from convinced either way.

[Beagle]

Yes, it's the "keeping up with the Jones" syndrome, Roger. Sydney, Melbourne etc have first class big conference centres and the fear is that Auckland won't attract the business without one. Rationalised, of course, by extravagant estimates of all the business and jobs that would be missed out on.

Disc: I hold SKC so am a bit biased - but still far from convinced either way.

Hi macduffy,

You've nailed it. Its all about keeping up with best international standards. I am so over the B.S. trotted out by Brown about having a "world class city". All most ratepayers want is reasonable infrastructure and a city they can afford to live in !! The giant amalgamation experiment has gone horribly wrong as far as costs are concerned and to add insult to injury we were all told it would result in significant rates efficiencies, what a bloody joke. Our rates in our beautiful Titirangi home used to be just under $1,800 in 2001 incl of wastewater and inorganic collection. Now they'll be $4,000 plus another $500 for wastewater ($4,500 total) and we don't get an inorganic collection anymore. We're paying 2.5 times the rates we were 13 years ago and general inflation in that period is only up about 30% !!

I'm sorry but as far as I am concerned SKC can stick their convention centre right up their own....you know where and while they're at it Brown can stick his pet rail link project there too.

[RGR367]

Hi macduffy,

You've nailed it. .....................

I'm sorry but as far as I am concerned SKC can stick their convention centre right up their own....you know where and while they're at it Brown can stick his pet rail link project there too.

Exactly the reason why SKC should walk away from starting the convention building too. I'm not faulting its management on the way they would want to go out from this deal. Better for the Auckland ratepayer to say, "we don't want it" because they can accept that rather than management admitting "we ****ed up our cost analysis". Gut feel, SKC wants out really from this.

Disc holding a lot of it but finding it now to be expensive based on its historical P/E

[Beagle]

Hi RGR367 Yep, to be honest although not a SKC shareholder at present, (have been at times in the past), I can't see the business case for it from SKC's perspective. That and I think their balance sheet would be quite stretched if it goes ahead considering all their other capex.

[Beagle]

http://www.nzherald.co.nz/nz/news/ar...ectid=11378528

Auckland Revolts against Sky City. I think Winston Peters absolutly nailed it with his comment.

[theace]

Interesting (from Morningstar)

http://www.nzherald.co.nz/business/n...ectid=11384141


I had been undecided to hold or sell for a while .... finally decided to sell and get out for now.

[Beagle]

Interesting (from Morningstar)

http://www.nzherald.co.nz/business/n...ectid=11384141


I had been undecided to hold or sell for a while .... finally decided to sell and get out for now.

First time I've agreed with Morningstar for a very long time. Like I said earlier, it appears if you're a SKC shareholder you no longer need to gamble as well, SKC are doing that for you !!

[babymonster]

does anybody know what's the HY report going to be next week?

[bunter]

does anybody know what's the HY report going to be next week?

Will probably include P&L, balance sheet and some comments on the outlook.

Have been wondering whether to sell or not. The price has just been churning for the past year.

Random speculations...
1) The HY report will be disappointing
2) Once again, the win percentage will be below average.
3) SKY don't mind in the CC goes ahead or not - if it doesn't I suspect they are sitting on a nice no-risk capital gain on the land they bought.

[bunter]

...and this afternoon Deutsche Bank says sell.

http://www.nzherald.co.nz/business/n...ectid=11395891

So I did.