SKC - Sky City

[Biscuit]

Banks, investors gear up for SkyCity funding plan


The equity deal, should it be finalised, is expected to take the form of a share placement, however sources said the board had yet to decide exactly how much

https://www.afr.com/street-talk/bank...0200611-p551i1

Yeah, and this is a company that a couple of months ago was flat out buying its own shares. That didn't work out too well (for shareholders). Seems to me there is a need for more prudence in some of our boardrooms.

[Balance]

Yeah, and this is a company that a couple of months ago was flat out buying its own shares. That didn't work out too well (for shareholders). Seems to me there is a need for more prudence in some of our boardrooms.

And a few months ago, there was no Covid-19 lockdown just as there was no earthquake in Christchurch in 2009.

[Waltzing]

the last ten years there does seem to have been a lot of rather big events occuring that have caused some big falls in global markets. We have all been hit by these events and there may be more to come on this one. Have a plan in case this happens is always good in the rear view mirror. SKC is a stock that will go higher in the long run.

[Biscuit]

And a few months ago, there was no Covid-19 lockdown just as there was no earthquake in Christchurch in 2009.

Yes, a few months ago there was, to paraphrase, no covid19, no earthquake, no Global Financial Crisis, no Asian Recession, no 2nd Gulf War, no Twin Towers, no Cuban Missile Crisis, no Suez Crisis, no World Wars, no Great Depression, no... (I could go on forever, history repeats over and over). That is why prudence is useful. When there isn't a crisis, that is the time to bolster your defenses for when, inevitably, there is a crisis. There are several reasons why that is a better way to manage a business long term: 1) you avoid the risk of falling off a financial cliff in really tough times; 2) you avoid spending shareholders hard-earned money on over-priced shares; 3) you are in a better financial position to take advantage of buying opportunities that cyclically occur whenever there is a crisis or even just at the bottom end of a business cycle.

[Waltzing]

over priced? in the long term? maybe the management team look at the long term and in their OP they decided it was not. Its up to you to view it glass half full.. or empty..i do agree that share buy backs are supposed to return more to share holders in the long term but the other view is that a special dividend is more in order if cash cant be reused to say pay down debt which is in my view how such money should be used in SKC case.

[Waltzing]

capital raise.....trading halt...no div for over a year...

[sb9]

capital raise.....trading halt...

2.50 a piece, not bad...

[Biscuit]

2.50 a piece, not bad...

I bought them for a whole load less than that a few months ago, sold them for a bit less than that and I'll take the risk that I'll buy them back for less than that in the near future.

[Waltzing]

yes its a trade for sure... but i dont know how many chances you will get to buy less than that. A lot of very big action on the vaccine front with the big pharma not waiting for all phases. 3 years time and i would be surprised if it doesnt re pass 4.0. After all they have a government backed asset generator. If you could have seen them line up to get into hamilton at level 2 it was an eye opener! Level 1 and the new very comfortable seats at the bar food lounge and i was astounded..If they get there act together in AUS and the convention centre and hotels will be packed...sports bar and bowling.. its a place people go..new concert centre being developed and the golden triangle will grow. People will try to leave china again within 3 years.

[Biscuit]

yes its a trade for sure... but i dont know how many chances you will get to buy less than that. A lot of very big action on the vaccine front with the big pharma not waiting for all phases. 3 years time and i would be surprised if it doesnt re pass 4.0. After all they have a government backed asset generator. If you could have seen them line up to get into hamilton at level 2 it was an eye opener! Level 1 and the new very comfortable seats at the bar food lounge and i was astounded..If they get there act together in AUS and the convention centre and hotels will be packed...sports bar and bowling.. its a place people go..new concert centre being developed and the golden triangle will grow. People will try to leave china again within 3 years.

Interesting comment regarding punter lining up to get in at level 2. I've always had difficulty understanding why anyone goes in there at all, but obviously they do. SKC is a long term hold for me, with a bit of re-positioning along the way. I think there is a lot of water still to flow under the bridge before we are out of the woods regarding covid and I won't be taking up the share placement, hopefully it is tradable rights?