MFB - My Food Bag

[winner69]

Businessdesk report -

My Food Bag chief executive Kevin Bowler says the meal-kit company is likely to outperform the growth targets outlined in its initial public offering documents,

Of course they well. Report full year in May and they’ll say beat PDS forecast ...whoopee ....and say F22 started well and sales will exceed forecast ....double whoopee

And share price will soar past $2.30

[Habits]

If any business keeps capitalising marketing & promotional spend as intangibles (brand & building up goodwill), the business will be profitable from an accounting viewpoint but cashflow wise?

Ah ha ... some justification I suppose in capitalising marketing costs. Would reduce any potential divvies

[winner69]

If any business keeps capitalising marketing & promotional spend as intangibles (brand & building up goodwill), the business will be profitable from an accounting viewpoint but cashflow wise?

I don’t think theirs been any capitalising off market and promotional spend

It seems that goodwill etc has been created when My Food Bag Group ‘acquired’ My Food Bag Holdings when Waterman came on board (nztx mentioned this as well). Waterman obviously though what they paid was a good price - the goodwill etc just the difference between what they paid and MFB Holdings was worth on paper. Usual practice.

The amount doesn’t seem excessive in light of earnings and cash flow generation (after allowing for interest and jiggery pokers things PE companies use). Any company that acquires other companies has large intangibles - TRA, HGH, GXH etc etc

To me the emotion shown around intangibles is just that....some seem hung up on intangibles being evil.

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks

[Balance]

https://www.stuff.co.nz/business/opi...od-for-thought

An ‘On the one hand but on the other hand’ opinion piece on MFB.

[nztx]

I don’t think theirs been any capitalising off market and promotional spend

It seems that goodwill etc has been created when My Food Bag Group ‘acquired’ My Food Bag Holdings when Waterman came on board (nztx mentioned this as well). Waterman obviously though what they paid was a good price - the goodwill etc just the difference between what they paid and MFB Holdings was worth on paper. Usual practice.

The amount doesn’t seem excessive in light of earnings and cash flow generation (after allowing for interest and jiggery pokers things PE companies use). Any company that acquires other companies has large intangibles - TRA, HGH, GXH etc etc

To me the emotion shown around intangibles is just that....some seem hung up on intangibles being evil.

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks

Any goodwill much on HLG's books ? - look where they're going ...

The % of Intangibles to Total Assets is the issue IMO ..

Current Assets / Current Liabilities - in any other world .. looks well perhaps Unwell - ask your friendly bank manager

Is it solvent (based on 30 September 2020 figures)

What are Solvency Tests for paying dividends ?

Perhaps the same for Equity Repurchase - Hello - By George dont say that !

At the same time - ask about Equity being withdrawn / bought back while the BS looks that way and paid for
out of new borrowing - with Negative NTA.. a large dallop of existing debt too

[winner69]

Any goodwill much on HLG's books ? - look where they're going ...

The % of Intangibles to Total Assets is the issue IMO ..

HLG have never acquired anything so no goodwill ...maybe there was centuries ago.

If Winner Inc acquired them at a premium to current prices then there would be half a billion of goodwill booked by Winner Inc.

Turners doing OK with huge amount of intangibles eh

[nztx]

HLG have never acquired anything so no goodwill ...maybe there was centuries ago.

If Winner Inc acquired them at a premium to current prices then there would be half a billion of goodwill booked by Winner Inc.

Turners doing OK with huge amount of intangibles eh

MPG & EVO doing well too after a similar Smart Money hatchet job & years of pain following ?

Wasn't Intueri another one ?

Not to forget the the Carpet Outfit .. Feltex

[Balance]

MPG & EVO doing well too after a similar Smart Money hatchet job & years of pain following ?

Wasn't Intueri another one ?

Not to forget CAV

Don’t forget Orion Health & CBL!

[nztx]

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks

Good point too - $448 Million give or take what the market says

and that's after the pre-IPO extraction exercise in first half - what was it $5m or $6m Equity repurchase ?


76.3% of Total Shares (after Cap Raise portion included) is being put on the block in this IPO



##### Me - I'm in the wrong business - how many ways can you turn a screwdriver to get paid big, each time ..

[winner69]

Think short to medium term guys ...the opportunity is 20% and maybe even more gains...it will go to $2.35/$2.50

When share price goes below a buck is the time to say I told you so.