JWI - Just Living Group (Just Water International)

[percy]

JLG....Just Living Group.


https://stocknessmonster.com/announc...lg.nzx-357576/
Interesting result.
I note Phil Norman has joined the board.
The company is now known as Just Living Group.
89,348,271 shares on issue giving a market cap at 52 cents of $46,866.498
eps 2.68 cents
PE 19.4
NTA 21 cps
Dividend 3.2 cps
Yield 6.15%.[gross 8.715%]

I made good money at Just Water's IPO.
So am having another go.Only a small holding brought at 52 cents this morning.

[traineeinvestor]

JLG....Just Living Group.


https://stocknessmonster.com/announc...lg.nzx-357576/
Interesting result.
I note Phil Norman has joined the board.
The company is now known as Just Living Group.
89,348,271 shares on issue giving a market cap at 52 cents of $46,866.498
eps 2.68 cents
PE 19.4
NTA 21 cps
Dividend 3.2 cps
Yield 6.15%.[gross 8.715%]

I made good money at Just Water's IPO.
So am having another go.Only a small holding brought at 52 cents this morning.

I've looked that this one several times without actually pulling the trigger (which has proven to be a mistake). However a couple of queries:

1. is the dividend yield actually 6.15%? When the interim result and dividend was released back in February the announcement said:

"Over the last 3 years the directors have declared an annual dividend in the range of 2.0 to 2.2 cents per share. As indicated at the December 2019 Annual Meeting, the directors intend to split the 2020 dividend payment into an interim and final dividend. In line with common practice, the intention is to pay the final dividend at a higher rate than the interim dividend."

It looks to me as though the 6.15% yield which is what shows on the NZX webpage, is based on the sum of the interim 2020 dividend and the full 2019 dividend (which was paid as a single final dividend). (I didn't see any reference to the final dividend in the more recent announcement - if I missed something, I apologise).

2. the unaudited results announcement which came out a few days ago mentioned a capital raising. These days capital seems to be raised through placings which are always dilutive and value destroying for shareholders. Would it be better to wait until this happens before jumping in?

[percy]

My figures for dividend we just taken from Direct Broking and NZX sites so you are right.
Well Phil Norman just joining as a director, and also having Ian Malcolm as a director made me take an interest.
I can not see Norman wasting his time.
Capital raisings happen for one of two reasons.
1] To stay in business.
2] To fund expansion or a takeover.
As they do not need more money to stay in business No.2 looks more likely.Perhaps that is why Norman came onboard.
Usually a capital raise is only available to existing shareholders , who are on the share register before it is announced.
That is why I brought.Even a small holding entitles you to take part in a SPP or whatever,should it stack up.

[percy]

JLG Just Living Group.
Well today's announcement has shot the share price up 11.5% to 58 cents.Buyer now 59 cents.
https://stocknessmonster.com/announc...lg.nzx-358743/

But wait.....there's more....
Last sale 61 cents up 17.3% today.
Yes there is now a buyer at 64 cents...

[percy]

Up 29.5% today to 79 cents.

[percy]

Hang on.
Make that up 34.4% today to 82 cents...lol.

[Balance]

Wonder how those who sold out at 15c in the takeover offer now feel?

Well, they certainly cannot complain that they were warned not to fall for the low ball offer.

[percy]

Hang on.
Make that up 34.4% today to 82 cents...lol.

Now up 42.6% today to 87 cents.
Will update again in an hour's time...lol

[Davexl]

Now up 42.6% today to 87 cents.
Will update again in an hour's time...lol

I don't know how you got your timing so impeccable Percy,
poetry in motion!

[Balance]

http://www.stuff.co.nz/business/6348...r-meanspirited

Just Water offer 'mean-spirited'
TIM HUNTER
Last updated 16:39, November 24 2014



Share
'MEAN': A takeover offer for the water cooler company could shortchange minority shareholders, a broker says.
'MEAN': A takeover offer for the water cooler company could shortchange minority shareholders, a broker says.

Sharebroker Colin Giffney has described a takeover offer for NZX-listed Just Water International as "mean and mean-spirited", saying it undervalues the company.

Just Water, which provides water coolers for offices, is subject to a 15c a share takeover bid from interests associated with its founder Tony Falkenstein.

The unconditional offer values Just Water at $14m and falls at the low end of a valuation from KordaMentha of 14.7c to 16.8c a share.

Since making the offer on November 14, Falkenstein's bid vehicle Harvard has moved from 71 to 73 per cent ownership, but has run into opposition from some minority shareholders.

This afternoon Just Water shares changed hands at 16c, indicating some investors think the price could go higher.

Giffney, whose firm Giffney and Jones was lead manager of Just Water's float in May 2004, said he had wanted to mail his thoughts on the offer to other shareholders, but had been denied access to an electronic version of the share register.

"I didn't want to go to the media, I wanted to go to shareholders, but they're forcing me basically."

Valuation could only ever be a matter of opinion, he said.

"All I'm doing is trying to communicate an alternative view. I'm not saying mine's right."

Giffney said in his view Just Water had good cashflow and in the last four years had repaid $13 million of debt, with borrowings falling from $26m in June 2010 to $13.1m in June 2014.

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"At moment you've got companies floating that haven't made a dollar and haven't done anything, selling on multiples to earnings.

"This one shareholders are being asked to give up at 4.4 times [earnings before interest, tax, depreciation and amortisation]. I'm sorry there's a disconnect somewhere."

He said the offer was "mean and mean-spirited to loyal shareholders who have supported the company through the tough times."

Giffney said because the offer was unconditional, which meant all purchases through the takeover were final, shareholders should not accept until it was clear what the large shareholders are doing.

"I'm pretty disgusted with the way they're behaving."

Falkenstein could not be reached for comment this afternoon.

A reminder of what Falkenstein attempted to do but was stopped by those of us who saw through his skulduggery and refused to sell to him at 15c.