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Thread: Metro Glass IPO

  1. #1
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    Default Metro Glass IPO

    We'll have to wait for the Investment Statement to get a better idea but does anyone else think that this rash of IPO's is starting to sound like a faint warning bell?

    http://www.nzherald.co.nz/business/n...ectid=11285704

  2. #2
    Legend Balance's Avatar
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    Where's the growth?

    A company in trouble, bought cheap by private equity, financially engineered now to sell into a strong market?

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    Hopefully they've learnt from the Hirepool debacle and come up with a reasonable offering
    Last edited by nextbigthing; 02-07-2014 at 07:41 AM.

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    The real winners were the owners who got $366m in 2006

    Good blokes those guys .....laughed all the way to bank

    Just shows you how stupid this years were .....PE paying inflated prices for anything with a cash flow.
    Last edited by winner69; 02-07-2014 at 08:13 AM.

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    Quote Originally Posted by Balance View Post
    Where's the growth?

    A company in trouble, bought cheap by private equity, financially engineered now to sell into a strong market?
    Revenue wise not much

    They will tout that at proposed prices lower multiples Han the likes of FBU and STU

    Must be a bargain then

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    Quote Originally Posted by winner69 View Post
    Revenue wise not much

    They will tout that at proposed prices lower multiples Han the likes of FBU and STU

    Must be a bargain then
    Snrs.
    No touch with as you say "barging pole". Yes?

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    Gets a mention in today's Chalkie column.

    http://www.stuff.co.nz/business/opin...-conflict-soup

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    From what I know they must have grown big time in the last 2 to justify a $300m market cap

    Also be looking at how much debt gets left behind in the company ($80m odd in last accounts)

    Prospectus will be interesting - after the market they are in is booming big time .....Christchurch CBD is going to be full of spanking new buildings endowed with glass

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    A couple of months ago we broke an upstairs window, and as a frugal one does I duly measured it all up and popped down to smith and smith for a replacement pane. Didnít even bother with a call out in Christchurch anticipating backlog.

    Not really to my surprise I was told that their glaziers were all busy and that I would have to wait three days.

    Thatís three days for an across the counter sale, wish I had shares in smith and smith I thought.

    When I offered, tongue in cheek, to go out the back to cut it myself, the shop assistant looked at me blankly for a few seconds in quiet contemplation but decided rightfully that it was not an option.

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    Another private equity company bringing a company with a chequered history to the market when the market is currently priced at 22 year high's on a forward PE basis.
    Yes this rush of IPO's is strategically timed and NO companies such as this which have cyclical earnings should not command a PE of early teens in anything other than an irrational market.

    Hirepool Mk2 anyone ? YAWN...

  11. #11
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    Quote Originally Posted by Balance View Post
    Where's the growth?

    A company in trouble, bought cheap by private equity, financially engineered now to sell into a strong market?
    Indicative pricing says earnings $19m (current or next year I don't know but that's what the PE ratio mentioned gives)

    2013 profit was $8m on $140m odd sales

    So $8m to $19m is real growth eh Balance ....there's the growth

    And all those glass towers in Christchurch to come

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    Might have been more interested a couple of years ago in Metroglass earlier in the macro economic cycle.

    There is some growth on the horizon but they donít have a particularly high proportional exposure to the Christchurch market, in similar fashion to FBU and STU.

    Not for me at $1.70, there are better propositions in the market right now.

    http://www.scoop.co.nz/stories/BU140...70-sources.htm

    Disc: not investing

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    Quote Originally Posted by winner69 View Post
    Indicative pricing says earnings $19m (current or next year I don't know but that's what the PE ratio mentioned gives)

    2013 profit was $8m on $140m odd sales

    So $8m to $19m is real growth eh Balance ....there's the growth

    And all those glass towers in Christchurch to come
    At least it is an easy to understand business. As double glazing is now and standard practice in new building an most almost replacement glass for door or windows have to be strength glass isn't it?

    So more or less it is depending on property cycle and new building consents.

    I am wondering who else in NZ is producing glass panels and what is the chance that these glass panels could come in from over sea. I know that some kitchen panels are from Germany.

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    The Wolf of Sharetrader
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    Quote Originally Posted by dino4abcoach View Post
    who are their competition and will they be up against imported glass from china that is now duty free under our FTA
    Metro import it from China themselves...

  15. #15
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    I see them having strong growth during FY 15, 16 and 17 but flattening off and possibly even negative growth post Chch rebuild.

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