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Thread: Kathmandu IPO

  1. #16
    A BEARISH BULL winner69's Avatar
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    Dr .... plenty of insto with their heaps of Kiwisaver money they have to just invest in something .... anything thats going

    Paper said as long as the vendors leave something the instos will have a go eh .... and then the vendors can respectably sell down twhat they keep

  2. #17
    Guru Dr_Who's Avatar
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    Only mugs would invest their money with managed funds.
    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.

  3. #18
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    Quote Originally Posted by Dr_Who View Post
    It seems to me like no one on this forum is applying for any shares in the IPO, so begs the question, who will they pitch this to? Are the mums and dads who lost out in Blue Chip, Bridgecorp etc spend their last dime on the Kathmandu IPO?
    A bit too early to write this off, I think.

    We need to see what the financials look like; what price and prospective P/E it's pitched at; what debt it will be carrying; how much skin the vendors are leaving in; plans for the future; who the directors and executives are; and a host of other things.

    Then we'll probably decide to give it a miss!


  4. #19
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    As far as IPO's are concerned, these days I tend to remind myself that I read somewhere that Warren Buffet shies away from investing in them. Admittedly that policy means that I have foregone isolated opportunities like RAK and BGR, but there are numerous others that went the other way - often after an initial little uptick during the post-listing period when the promoters "manage" the price.
    And an IPO coming out of a Private Equity fund is a reason for double caution.

  5. #20
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    Not sure why people are bagging this company so much. Strong brand and one of the small number of kiwi retailers that have successfully expanded into Australia and into UK. They are probably a quiet achiever in terms of what they have managed to achieve.

  6. #21
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    Rif Raf they were reasonably sucessfull But when a private equity firm goes and makes an offer for something that was not for sale & the owner says thank you very much. they have paid far to much. So how much is the private equity firm prepared to lose I would not value it at much more than 30% of what they payed for it. In the current economic climate.
    Possum The Cat

  7. #22
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    For the same reasons as many have previously posted I would'nt go near anything floated by private equity.Another thing to consider is that since the private equity outfit brought the business how much money have they invested into it while owning it.I bet there's been hardly a dollar put in to developing new technologies,products etc.They would have stripped out the costs to make it look good and will leave it loaded up with debt.Now they want there money out.

    Watch the brokers who are involved in the float promoting it to the mum and dad investors.Then you know it's a dog.

  8. #23
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    dear rif....you have missed the point completley....the company itself is virtually irrelevant ...its a bit like mcdonalds..the food stuff ...is totally irrelevant....ITS THE MARKETING.....mcdonalds could sell bags of fresh air.......

  9. #24
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    yeah, just like Coca Cola could sell bags of water.
    Oh...they do already.
    Last edited by tobo; 22-08-2009 at 09:19 AM. Reason: typo

  10. #25
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    Personally, I think they'd be better off waiting to float for another 5-ish years.

    Not exactly a "seller's market" investment climate.

    At the coal-face/anecdotal level, everyone I know who spends considerable time camping/tramping/mountaineering.....Kathmandu has a pretty lousy reputation for quality.

    Macpac, Fairydown, Swazi, Ridgeline are all well respected.....Kathmandu is really a fashion retailer disguised with an outdoorsy vaneer.

    I think Kathmandu's value proposition to the customer is in some cases far inferior to it's New Zealand competition.

    Just my 0.02c

  11. #26
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    Arrow Opinions only..

    ALL this crap talk about a float that has not happened YET..

  12. #27
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    Quote Originally Posted by troyvdh View Post
    dear rif....you have missed the point completley....the company itself is virtually irrelevant ...its a bit like mcdonalds..the food stuff ...is totally irrelevant....ITS THE MARKETING.....mcdonalds could sell bags of fresh air.......
    I undertand and agree with what you guys are saying about being careful of anything private equity floats in terms of saddling with debt etc.
    The point I'm trying to make is regardless of what financial trickery the vendors do, the underlying business has carved out a very successful value proposition and brand which is more than can be said about most other kiwi retailers that have tried to take their brand global.

  13. #28
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    I am having some difficulty reconciling the $60 mil EBITDA with the $8 mil profit. There is $20.9 mil debt servicing on a debt of $187 mil, but where is the other $32 mil of EBITDA?

  14. #29
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    J R Ewing I always thought the T in EBITA stood for Tax so this needs to used in your calculations
    Possum The Cat

  15. #30
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    Quote Originally Posted by POSSUM THE CAT View Post
    J R Ewing I always thought the T in EBITA stood for Tax so this needs to used in your calculations
    Plus the Depreciation and Amortisation components represented by "DA".

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