VIL - Veritas Investments Limited

[JAX]

https://www.nbr.co.nz/article/nosh-g...comment-758848

Wonder what potential liabilities are lurking behind the scene for VIL.

No wonder sp is down to 19c, a far cry from the 32c post the announcement of sale of Nosh, and a far far cry from the $2.50 price reached in 2013 when this company went on its 'acquisition & growth' strategy.

Its a good question, it seems that out of nowhere almost at the last moment some buyer with no background in the industry and a somewhat unusual back story, came in picked up the business for a surprising large amount (especially in hindsight) including responsibility for the liabilities - immediately struggled just like you would imagine they would with no background and a troubled business - then ended up in receivership pretty quickly, wiping out their own equity most likely and with all the liabilities to the creditors that existed before - seemingly still unpaid.

Kudos to VIL for finding a buyer willing to throw away millions of dollars in such a short time I guess , but you do wonder if there wont be some comeback from the debtors who seemingly now will miss out through VIL passing the problem on in a definitely at the very least ethically questionable way. Is VIL just very very lucky or is this luck engineered. But if I was a creditor, I would be investigating how I am left holding the bag, while VIL actually got a payout.

[Balance]

All a little too convenient for Veritas imo.

Something smells very very badly.

[hardt]

On-going operations, even with the current debt load, are worth a fair bit more than what the market is affording VIL.
Now that Nosh is done, we have to decide whether management will make the same mistake again with their next investment... but yes, it is a dog and most people including myself will avoid.

VIL.NZX	FY16A	FY17F	FY18F
Operating Revenues	56.5	29	28.5
Operating Expenses	49.3	21.5	21
EBITDA	7.2	7.5	7.5
*per share	$0.166	$0.173	$0.173
*EBITDA multiple	0.9x	0.87x	0.87x
FCF Received	2.4	2	2
*per share	$0.055	$0.046	$0.046
*FCF multiple	2.73x	3.26x	3.26x
Adjusted NPAT	3.7	3.5	3.5
*per share	$0.085	$0.081	$0.081
*PE multiple	1.76x	1.85x	1.85x

I always wanted a dog though, If I was drinking, I would probably end up with an unwanted VIL holding.

[janner]

[QUOTE=

I always wanted a dog though, If I was drinking, I would probably end up with an unwanted VIL holding.[/QUOTE]

I think it is KW's advice.. Don't drink and invest .. Something like that.. :-))))

[Beagle]

I think it is KW's advice.. Don't drink and invest .. Something like that.. :-))))

$1,800 buys you a pure bred beagle puppy and you get dividends every single day with the happiness it'll bring you.
Buying a poorly managed pup of a company infested with fleas however, probably just leads to tears...

[percy]

$1,800 buys you a pure bred beagle puppy and you get dividends every single day with the happiness it'll bring you.
Buying a poorly managed pup of a company infested with fleas however, probably just leads to tears...

Think I get more pleasure daily with 1,000 HBL shares.....lol............

[Snow Leopard]

$1,800 buys you a pure bred beagle puppy and you get dividends every single day...

Remember to use a plastic bag to pick them up and dispose of them appropriately

In transit
PT

[Beagle]

LOL I was talking about the cuddles and patting but yeah I guess there's downsides to every investment

[couta1]

Think I get more pleasure daily with 1,000 HBL shares.....lol............

I wouldn't swap my wire haired foxy for 10000 HBL shares, some things exceed monetary value.

[percy]

I wouldn't swap my wire haired foxy for 10000 HBL shares, some things exceed monetary value.

Glad to hear it.....lol.