sharetrader
Page 89 of 97 FirstFirst ... 3979858687888990919293 ... LastLast
Results 1,321 to 1,335 of 1445

Thread: Kathmandu IPO

  1. #1321
    A BEARISH BULL winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    26,582

    Default

    Quote Originally Posted by sb9 View Post
    Rod said thanks but no thanks for the offer.
    Rod probably needs that $30m elsewhere

    He’ll have to live with the dilution eh ...19% becomes a lot less.
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  2. #1322
    2019 NZ Stock Picking Winner silverblizzard888's Avatar
    Join Date
    Oct 2013
    Posts
    684

    Default

    Rod's too much of a prudent business man to risk what he has for more.

    Briscoes has $67 million cash on the balance sheet, with 18.9% shareholding even for this raise Briscoes would have to put in $33 million to maintain their currently holding, never mind a takeover.

  3. #1323
    Legend Balance's Avatar
    Join Date
    Feb 2003
    Posts
    12,518

    Default

    Quote Originally Posted by silverblizzard888 View Post
    Rod's too much of a prudent business man to risk what he has for more.

    Briscoes has $67 million cash on the balance sheet, with 18.9% shareholding even for this raise Briscoes would have to put in $33 million to maintain their currently holding, never mind a takeover.
    His was a script offer from memory? So no cash will be used.

  4. #1324
    Member bottomfeeder's Avatar
    Join Date
    Oct 2016
    Location
    Mount Maunganui
    Posts
    387

    Default

    SP will track closer to the issue price. That is the most common way issues go from my experience.

  5. #1325
    Member
    Join Date
    Jan 2020
    Posts
    84

    Default

    Quote Originally Posted by sb9 View Post
    Rod said thanks but no thanks for the offer.

    don’t think he was impressed at all with rip curl purchase

  6. #1326
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    16,192

    Default

    Quote Originally Posted by silverblizzard888 View Post
    Rod's too much of a prudent business man to risk what he has for more.

    Briscoes has $67 million cash on the balance sheet, with 18.9% shareholding even for this raise Briscoes would have to put in $33 million to maintain their currently holding, never mind a takeover.
    He would have been approached under the $30m placement at 50 cents for sure so would have had ample time to carefully consider this capital raise already. Arguably the smartest man in retail in N.Z. That he has declined to participate at just 50 cents gives all shareholders of KMD and other retail companies a valuable insight into the seriousness of challenges he foresees ahead. Hope the underwriters have deep pockets.
    Last edited by Beagle; 01-04-2020 at 02:08 PM.
    No butts, hold no mutts, (unless they're the furry variety).

  7. #1327
    Legend Balance's Avatar
    Join Date
    Feb 2003
    Posts
    12,518

    Default

    Quote Originally Posted by Beagle View Post
    He would have been approached under the $30m placement at 50 cents for sure so would have had ample time to carefully consider this capital raise already. Arguably the smartest man in retail in N.Z. That he has declined to participate at just 50 cents gives all shareholders of KMD and other retail companies a valuable insight into the seriousness of challenges he foresees ahead. Hope the underwriters have deep pockets.
    Rather telling indeed - unless he wants the sp to really tank during and post the capital raise and then, make his move then?

    Not taking up his 'entitlement' means the underwriters are already in the gun for around $35m of the $177m rights issue.

    Looks like sp could drop to 51c - 53c with that kind of overhang!

  8. #1328
    always learning ... BlackPeter's Avatar
    Join Date
    Aug 2007
    Location
    Canterbury
    Posts
    6,028

    Default

    Quote Originally Posted by Balance View Post
    Rather telling indeed - unless he wants the sp to really tank during and post the capital raise and then, make his move then?

    Not taking up his 'entitlement' means the underwriters are already in the gun for around $35m of the $177m rights issue.

    Looks like sp could drop to 51c - 53c with that kind of overhang!
    Wouldn't you expect SP to drop after the event below CR-price? It often does unless the company is financially very strong.

    45 cents - here we come :
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  9. #1329
    Legend Balance's Avatar
    Join Date
    Feb 2003
    Posts
    12,518

    Default

    Quote Originally Posted by BlackPeter View Post
    Wouldn't you expect SP to drop after the event below CR-price? It often does unless the company is financially very strong.

    45 cents - here we come :
    Net debt after capital raise will drop to around $80m vs SHF of $780m - so should be okay.

    Only problem is that bulk of balance sheet consists of $635m intangibles!

    No question in my mind that this is a bank forced capital raise.

    Thank goodness KMD has got underwriting in place.

    We do not want another Pumpkin Patch - NZ needs our home grown brands.

  10. #1330
    A BEARISH BULL winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    26,582

    Default

    Quote Originally Posted by Balance View Post
    Net debt after capital raise will drop to around $80m vs SHF of $780m - so should be okay.

    Only problem is that bulk of balance sheet consists of $635m intangibles!

    No question in my mind that this is a bank forced capital raise.

    Thank goodness KMD has got underwriting in place.

    We do not want another Pumpkin Patch - NZ needs our home grown brands.
    The word ‘covenant’ was mentioned a few times eh ....that’s the signal
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  11. #1331
    Junior Member
    Join Date
    Mar 2020
    Location
    Wanaka
    Posts
    28

    Default

    Quote Originally Posted by winner69 View Post
    The word ‘covenant’ was mentioned a few times eh ....that’s the signal
    Get your popcorn out and enjoy the show, volatility, halting, CR, historic announcements and bailouts, today's market has it all!

  12. #1332
    A BEARISH BULL winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    26,582

    Default

    At least shareholders who want to make a real killing Can also apply for some of Rod’s shares
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  13. #1333
    Senior Member
    Join Date
    Nov 2013
    Posts
    797

    Default

    I had a good look at this stock today. I'm not a shareholder and it's my first post in this thread.

    Three companies come to mind. Billabong, Surfstitch and Pumpkin Patch. It's a reminder of how things can go from bad, to worse, to a disaster, and then to complete catastrophe.

    It's the branding and image of these types of companies that are responsible for their success. They rise fast and become highly profitable because of it. They obtain a certain type of "panache" in the market. Customers are willing to overpay for items and have extreme loyalty. The lesson is to look past the brand and image and to see it for what it fundamentally is - a clothing retailer.

    The opposite happens in a downfall. The retailer reduces marketing and starts to discount stock. News starts to spread via social media, especially to the cool people and trend setters. Customers have this sixth-sense about these things and begin to pick up on the fact that they are in trouble. It doesn't seem to matter what management does, once this cycle starts it's impossible to stop.

    It appears that the Rip Curl acquisition was poorly timed and a huge mistake as it could leverage the downfall even more. Also, (as a user above pointed out) Kathmandu is more exposed because of it's close association to travel. The downturn could be prolonged.

    Regardless of all that, the bottom line everybody wants to know is, is 50c a buy or sell? On first look it does seem extremely cheap but just ask anybody who invested in Billabong, Surfstitch or Pumpkin that same question. It's likely things will get worse before better, if at all.

  14. #1334
    A BEARISH BULL winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    26,582

    Default

    Captain Kirk’s biggest challenge since the 87 Rugby World Cup

    Hasn’t always tasted success though ...a bakery he was involved in went bust

    He made a few bob out of Bailador Tech though.

    Good guy though

    .
    Last edited by winner69; 02-04-2020 at 08:28 AM.
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  15. #1335
    A BEARISH BULL winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    26,582

    Default

    At least they being up front with those who are going to put heaps in


    » In addition, the Group’s trading performance once stores reopen may be worse than anticipated, whether due to demand being slower to return than anticipated, margins being reduced due to the activity of competitors or the need for greater discounting than usual to attract customers, cost reductions having a negative impact on the Group’s ability to recommence operations quickly and effectively or other unforeseen factors. If these factors arise, they may have a material adverse effect on the Group’s financial position and performance
    “Just consider that maybe the probability of you being wrong is higher than you think.”

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •