KMD - Kathmandu

[silverblizzard888]

Its not a bad acquisition esepcially for diversifying the company and aiming for a global position for the long term.
The brand itself is a ebstablish but slow growing one, so the acquisition is really about utilising debt and trying to sell Kathmandu products on a global stage using the channels Ripcurl has already established.

Number wise it adds:
$169 million in new equity, $231 million in new debt ($400 million nzd total).
$52 million in ebitda added.

The timeline of Ripcurl is what interests me, showing a truly global reach that Kathmandu wants:
1990 - Expanded its licensee base in theUS, France and Argentina
1997 -Acquired a wetsuitmanufacturing facility inThailand
2000- Established a jointventure with a Brazilianlicensee, acquiring themsoon after
2005 - Acquired full Indonesianoperation from the company’slong term licensees
2011 - Acquired Ozmosis andWaves surf retail chains
2015 - EstablishedJapanese subsidiary

[LAC]

Interesting, at least now they will have something to sell in Summer

[Beagle]

Its not a bad acquisition esepcially for diversifying the company and aiming for a global position for the long term.
The brand itself is a ebstablish but slow growing one, so the acquisition is really about utilising debt and trying to sell Kathmandu products on a global stage using the channels Ripcurl has already established.

Number wise it adds:
$169 million in new equity, $231 million in new debt ($400 million nzd total).
$52 million in ebitda added.

The timeline of Ripcurl is what interests me, showing a truly global reach that Kathmandu wants:
1990 - Expanded its licensee base in theUS, France and Argentina
1997 -Acquired a wetsuitmanufacturing facility inThailand
2000- Established a jointventure with a Brazilianlicensee, acquiring themsoon after
2005 - Acquired full Indonesianoperation from the company’slong term licensees
2011 - Acquired Ozmosis andWaves surf retail chains
2015 - EstablishedJapanese subsidiary

Good post. Wider distribution of Kathmandu and Oboz products appears to be where the real juice is with this deal but that's a lot of debt they're taking on.

[bull....]

three great surf brands rip curl , billabong and quicksilver. 2 went bust in the last few yrs ... says it all

https://www.smh.com.au/opinion/what-...10-gjjctb.html

[Beagle]

http://www.sharechat.co.nz/article/6...r-retailerhtml

[Sideshow Bob]

http://www.sharechat.co.nz/article/6...r-retailerhtml

I see will run as separate entities. Was wondering what they would do as Kathmandu and Rip Curl are incompatible in terms of branding.

[winner69]

I assume Briscoes will participate in cap raise

Who would ever of thought of Rod / Briscoes owning about 20% of a surfing gear company ...even though some attachment to Rebel Sport

But Rod is an Aussie after all so might have some affinity

[winner69]

The strong initial enthusiasm this morning for Kathmandu’s big bet seems to be waning a bit after lunch

[winner69]

About $1.2m for Xavier

Suppose deserves every penny of it

http://nzx-prod-s7fsd7f98s.s3-websit...066/314074.pdf

[BlackPeter]

I know - the sky is falling in and all these things, but still nice to do some routine tasks. One can't just buy BBOZ all the day, can you? In my quest to assess the quality of analyst forecasts I look today into KMD.

In February 2019 the KMD share price peaked at $2.54. At that stage the combined mental power of 3 share market analysts forecasted that over the 12 months to February 2020 the KMD shareprice will rise to $2.99 (consensus), i.e. they predicted a 18% share price appreciation.

KMD actually did rise up to $3.60 (I know, February seems now to be so long ago ), i.e. it's share price did rise by 42% instead of by the predicted 18%. According to the rules this is a FAIL (of the forecast ).

Looking into the consensus buy recommendation - it was in February 2019 a straight "OUTPERFORM"(7.5/10) - i.e. analysts said that the share will outperform the NZX. NZX went up by 21% and KMD went up by 42%, i.e. the analysts have been right in this regard, this is a clear "PASS"

I am doing this exercise as well with other NZX listed stocks - the overview is here:
https://www.sharetrader.co.nz/showth...arket-analysts

15 stocks checked so far (checking for each consensus and buy recommendation);
Consensus shareprice forecasts correct: 2/15; analyst hitrate: 13.3%
Consensus recommendation vs NZX50 correct: 5/15; analyst hitrate: 33.3%