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19-01-2021, 09:02 AM
#331
Junior Member
I'll be interested to see if they bring their div back. Would have thought it would have been a really good season last winter for flu jabs given COVID. Would have also thought their retail division would have benefitted from the rush to buy hand sanitiser, masks and general stocking up from COVID panic etc - but they actually have blamed COVID-19 despite the fact pharmacies were essential and kept open.
The half year update in November of revenue of $277m doesn't support that - it looks fairly steady relative to pre covid (not really a winner or loser of Covid) when I look at the full year results in 2020.
The amount they also put on intangibles to goodwill kind of makes me uneasy too - wasn't ABA similar on that? I can't see how it means too much when Chemist Warehouse is sucking up all them off the best kind of loyalty gainer - low prices for similar or even better result.
Disc: unhappy holder - I bought them as a newbie investor when they were on the way up at $2.20 back in 2015 when I did not properly DMOR and was pretty much investing on 'health company with strong tailwinds from aging population' - I know better now and might offload if they do make it back to $2
Last edited by Vesper; 19-01-2021 at 09:03 AM.
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19-01-2021, 09:10 AM
#332
Originally Posted by winner69
I noticed GXH’s NTA is negative 3 cents ....some investors don’t like that
Not always good ......esp if the $132m intangibles need to be written down.
Mmh - not sure about the negative 3 cents, but hey, you are the accountant, aren't you? I am just an engineer :
You are however correct that their NTA is minimal. FY20 balance sheet shows $134.7m net assets and $133.5m intangible assets. Should still be a positive NTA, but not by much.
They just don't own a lot of property (which could make them arguably as well more nimble). Sure - write offs are always a risk, but as long as they earn their keep (at the moment they do) would I think the risk is bearable.
How do they say - "pobody is nerfect" ...
Last edited by BlackPeter; 19-01-2021 at 09:12 AM.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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19-01-2021, 09:23 AM
#333
BP - NTA is Net Tangible Assets
You need to allow for liabilities as well
Hence the negative NTA GXH has (I got the -3 cents from NZX)
”When investors are euphoric, they are incapable of recognising euphoria itself “
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19-01-2021, 09:33 AM
#334
Member
You and me, both, Vesper.
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19-01-2021, 10:00 AM
#335
Originally Posted by winner69
BP - NTA is Net Tangible Assets
You need to allow for liabilities as well
Hence the negative NTA GXH has (I got the -3 cents from NZX)
OK - though your reasoning is not quite right (the liabilities are obviously already deducted from the Net assets which I used as a starting point, no need to deduct them again), but I found what I missed in Note 8 to the balance sheet:
GXHNTA.JPG
Obviously - I need to deduct not just the intangibles (which I did), but as well the deferred tax from the net assets to reach the NTA.
Black Magic ...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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19-01-2021, 10:10 AM
#336
Originally Posted by BlackPeter
OK - though your reasoning is not quite right (the liabilities are obviously already deducted from the Net assets which I used as a starting point, no need to deduct them again), but I found what I missed in Note 8 to the balance sheet:
GXHNTA.JPG
Obviously - I need to deduct not just the intangibles (which I did), but as well the deferred tax from the net assets to reach the NTA.
Black Magic ...
Sorry - I apologise for missing the word 'some' out of my post (ie some liabilities)
Anyway we got there
”When investors are euphoric, they are incapable of recognising euphoria itself “
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20-01-2021, 05:40 PM
#337
Member
Originally Posted by Vesper
I'll be interested to see if they bring their div back. Would have thought it would have been a really good season last winter for flu jabs given COVID. Would have also thought their retail division would have benefitted from the rush to buy hand sanitiser, masks and general stocking up from COVID panic etc - but they actually have blamed COVID-19 despite the fact pharmacies were essential and kept open.
The half year update in November of revenue of $277m doesn't support that - it looks fairly steady relative to pre covid (not really a winner or loser of Covid) when I look at the full year results in 2020.
The amount they also put on intangibles to goodwill kind of makes me uneasy too - wasn't ABA similar on that? I can't see how it means too much when Chemist Warehouse is sucking up all them off the best kind of loyalty gainer - low prices for similar or even better result.
Disc: unhappy holder - I bought them as a newbie investor when they were on the way up at $2.20 back in 2015 when I did not properly DMOR and was pretty much investing on 'health company with strong tailwinds from aging population' - I know better now and might offload if they do make it back to $2
Im in the same boat as you bought in at $2.12 for same reasons, doubled down at $1.02 a while back but doesn’t seem to want to advance past $1.14 hope maybe get back to my average for grandchildren one day.
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21-01-2021, 11:36 AM
#338
Member
No matter how much you buy at this price, the disgusting selling order at $1.14 will block the SP heading towards north, just like it did at $1.04/1.05 before. Someone tries to control the SP. Another year, another year, have to wait.
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16-02-2021, 06:14 PM
#339
GXH was heading towards a buck and I thought I better fix that by rubbishing GXH again to give it a boost
No need ...GXH one of the stars of the NZX today
”When investors are euphoric, they are incapable of recognising euphoria itself “
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16-02-2021, 06:56 PM
#340
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