Trade Me (TME)

[winner69]

.......unload shares from which existing owners have taken all the profit and which approach stagnation or decline onto eager ignorant suckers egged on by the news media.

and whose selling ....the news media

[Stranger_Danger]

For the record, I disagree with the vast majority of you and am trying to get as many as I can.

I agree with a lot of you on a 10 year outlook (growth slowing etc), but what I see is a great business, that throws off cash and requires very little investment, at a so-so price, in a sharemarket (NZX) that has very few quality companies.

I expect the share price to be a fair bit higher than the IPO price in 12 months time.

Past that, I have no idea, and I accept there are real risks - especially if the shares do up, and, cut loose from Fairfax, the managers feel they have a mandate for fast growth and do something stupid.

Fairfax get 66% at a free carry, and the rest of their business is bad and they still have lots of debt. (If the Trade Me price got truly silly one day, I'm sure Fairfax would have an open mind on selling the rest) The managers now have free reign and perhaps (don't know yet) stock options etc. The thing is underpinned by a quality, proven business.

There is every incentive to make this fly for a year or two. If there is a problem, it'll come after that.

[winner69]

Well commented on SD

Looks like I'll have to take my chance with any allocations going ....

The 'chance for the 2.8 million Trade Me community to participate on a preferential basis' is a bit misleading ... only those who buy or sell heaps gualify .... our rating of 300 odd is not enough .... OMG we have bought more than 300 things on Trade Me over the last few years ... whats happening to the world .... and maybe that is the secret of the Trade Me model

Even if one has to buy on market post IPO probably a few bob to be made in the next year or so .... heck even a dog like PPL saw its shareprice rocket after an IPO .... and I love that word iconic

Bet the prospectus is a littler beauty .... one that will make punters salivate

And one other point IRD is gearing up 'to take an interest in those individuals who sell their shares soon after the float' .... pub talk says they are getting quite excited about it

[winner69]

The head honcho at Trade Me says (NBR) We really wanted members to be able to participate directly in the IPO – they‘ve helped build Trade Me over the years and remain very important for us," Mr MacDonald said.

But only 28,000 qualify out of the 2.8 million community that has helped build Trade Me up over the years .... well done Mr MacDonald - you hark on about the community being able to particapate but leave 2,827,333 (active members less 28,000) out of the equation .... that is one way to piss off the community .... funny how that 1% sahre in the spoils while 99% get left out .... bugger another reason to Occupy Dunedin or wherever

[ratkin]

I reckon the growth is with trde me jobs and the dating service.
The auction buisness i reckon is now as good as it gets.

Many things are now unsold and can be bought cheaper elsewhere , especially with a high NZ dollar.
One example is books , with amazon UK now having free postage to NZ its cheaper just to buy new from them

They have already raised their commision costs , its now quite expensive to sell , once all the cost
of photos etc and commision are taken into account. Dont see much more room to increase charges there.

[waikare]

I registered with Direct Broking indicating I would like to invest around $5000, today they have informed me due to scaling down they are now unable to meet my request. So I’ll guess I just have wait and see what happens in mid December when they list.

[winner69]

I registered with Direct Broking indicating I would like to invest around $5000, today they have informed me due to scaling down they are now unable to meet my request. So I’ll guess I just have wait and see what happens in mid December when they list.

Thats not scaling mate .... thats the polite way of saying you are way done of their list of preferred clients ... prob a cheapskate who only does the internet stuff eh

[Grimy]

Thats not scaling mate .... thats the polite way of saying you are way done of their list of preferred clients ... prob a cheapskate who only does the internet stuff eh

Yeah-me too......

[Grantas]

http://ipo.trademe.co.nz/

Prospectus

[Animeart]

I certainly would not pay $2.70 for TM. It's been a while since any major listing so TM is generating a lot of interest, hence the oversubscription and the high price. Similar to the Air NZ bond I reckon. Don't feel bad if the price keep going up to over $3 in a short time as it's unsustainable in my opinion. When it does drop it's likely to drop big time. I'm not too keen on new listing as the management team is still a big unknow and the prospectus only tells you so much. I would rather wait a year for the first annual result to make a decision on whether to invest in a new company or not.

Quite important to have a strong board as well, rather than one that's only focused in giving itself a pay raise (yesterday's article in NZ Herald re xxx company).