Trade Me (TME)

[whatsup]

Fairfax is not considering selling Trade Me. The suggestion was made in a broker's report about what Fairfax could do to boost their s.p. Fairfax has called the report "pure speculation".

A pump and dump exercise if ever I saw one!

Belg, if yoiu read my heading "Trade me COULD be an IPO". says it all . !!

[whatsup]

Fairfax is not considering selling Trade Me. The suggestion was made in a broker's report about what Fairfax could do to boost their s.p. Fairfax has called the report "pure speculation".

A pump and dump exercise if ever I saw one!

Belg more chatter from Fairfax about releasing some cash , down to .99 c now from $4.00 5 years ago, watch this space.

[Mr Tommy]

I think we all sat up when Sam Morgan and others did the deal with Fairfax, and thought "Why aren't we that smart?".

Yep they sold for 750m, and now its worth over double that. No wonder Gareth Morgans kiwisaver is one of the worst performers.

[LeBOJ]

Yep they sold for 750m, and now its worth over double that. No wonder Gareth Morgans kiwisaver is one of the worst performers.

I don't follow your logic. THEY MADE 750M off a much smaller capital investment! The return on capital must be staggering. You are quibbling over the extra increase in value, but how much does a person need? If you are calling them stupid, where is your 750m company? lol.

[LeBOJ]

Trademe is a fairly mature business. Where will the revenue growth come from? There is a limit to the amount of product development they can achieve, and they can't move into another country. Maybe they will crank up auction fees? I guess you will need to hold shares as a regular user to offset the inevitable increases in fees! I might be wrong, but I'll be happy to steer clear of this one. I bet mum & dad investors will flock to the brand though.

[winner69]

Trademe is a fairly mature business. Where will the revenue growth come from? There is a limit to the amount of product development they can achieve, and they can't move into another country. Maybe they will crank up auction fees? I guess you will need to hold shares as a regular user to offset the inevitable increases in fees! I might be wrong, but I'll be happy to steer clear of this one. I bet mum & dad investors will flock to the brand though.

Will take off ..... Trade Me members get preferential treatment ... just liek Myer they will sign up in droves before others get a go .... whoops - forgot most of the populationare already members

[lou]

Looks like an IPO price of $2.70. This is at the top end of its $2.30-to-$2.70 indicative range.

What are your guys thoughts on the price. Too high? just right? Will still see excessive demand?

[POSSUM THE CAT]

Lou to expensive for this cat

[Hoop]

Looks like an IPO price of $2.70. This is at the top end of its $2.30-to-$2.70 indicative range.

What are your guys thoughts on the price. Too high? just right? Will still see excessive demand?

Hmmm... without the propectus (due to get registered today I think) the book build at the high end suggests demand,,so it will be keenly sought after.
Fairfax have cleaned out the cupboards with a generous dividend to themselves (maybe equivalent to 50c/s div)..so no family silver left for the future shareholders.
Without much data and working on deductions which could be totally wrong...a back of the envelope approx calculation by me suggests
about 400M shares issued.. one third of which is to go public = 135M shares
Profit 69.7M / 400M shares = Earnings / share = 17.4c/s
PE 15.5 @ share price $2.70
Dividend 17.4c/s lets say they pay out 70% = 12c/s === 4.5% yield.

so I would have these figures in mind before I get to see the Propectus......Its priced about right...so atm using rough figures it doesn't seem to offer any stag potential..does it?

Feel free to correct my deduced figures if in error...or have exact figures

EDIT: update ...134.6M shares to be floated representing 34% of total issued
http://www.nzherald.co.nz/business/n...ectid=10764598

[Balance]

Hmmm... without the propectus (due to get registered today I think) the book build at the high end suggests demand,,so it will be keenly sought after.
Fairfax have cleaned out the cupboards with a generous dividend to themselves (maybe equivalent to 50c/s div)..so no family silver left for the future shareholders.
Without much data and working on deductions which could be totally wrong...a back of the envelope approx calculation by me suggests
about 400M shares issued.. one third of which is to go public = 135M shares
Profit 69.7M / 400M shares = Earnings / share = 17.4c/s
PE 15.5 @ share price $2.70
Dividend 17.4c/s lets say they pay out 70% = 12c/s === 4.5% yield.

so I would have these figures in mind before I get to see the Propectus......Its priced about right...so atm using rough figures it doesn't seem to offer any stag potential..does it?

Feel free to correct my deduced figures if in error...or have exact figures

EDIT: update ...134.6M shares to be floated representing 34% of total issued
http://www.nzherald.co.nz/business/n...ectid=10764598

When it comes to valuing IT companies, NZ investors have as much clue as Winston Peters does about the word "No".