VIL - Veritas Investments Limited

[winner69]

Naughty Sharetraders mentioned in article

"The Veritas board are aware that confidential details of the purchase have been discussed in share trading forums," the company said.


http://www.stuff.co.nz/dominion-post...or-1-8-million

[Harvey Specter]

Another acquisition : http://www.nbr.co.nz/article/veritas...es-jump-165051

Whats their plan. I dont see any synergies with their purchases unless they are planning to get efficiencies on the supply chain side of things. Or are they just empire building.

[boofters]

this is bizarre...or is it clever vertical integration?!....these guys have kahoona's, and the BBC owners will have nice new boats

[BFG]

Perhaps Mr Darrow plays SimCity/Age of Empires/Command & Conquer a wee bit too much

[noodles]

The AGM dealt with FY15 earnings on pg.27
eps=15c-16.66c. Assuming Nosh is zero profit in FY16, then the uplift comes from the BBC acquisition. If we take the midpoint (15.8c) and current share price of 1.25, we end up with a pe=7.9.
However, that does not tell the full story because those estimates are for just 7 months of BBC. Now if if annualise the BBC eps, we end up with an eps=.185, pe=6.75

If they continue to pay 70% dividend, we would end up with a net div yield of 9.6% (take note BIRMANBOY)

FY16 should see the addition of "material earnings" from Nosh.

Can someone find me another stock on an annualised pe = 6.75 and and div yield = 9.6?

[percy]

The AGM dealt with FY15 earnings on pg.27
eps=15c-16.66c. Assuming Nosh is zero profit in FY16, then the uplift comes from the BBC acquisition. If we take the midpoint (15.8c) and current share price of 1.25, we end up with a pe=7.9.
However, that does not tell the full story because those estimates are for just 7 months of BBC. Now if if annualise the BBC eps, we end up with an eps=.185, pe=6.75

If they continue to pay 70% dividend, we would end up with a net div yield of 9.6% (take note BIRMANBOY)

FY16 should see the addition of "material earnings" from Nosh.

Can someone find me another stock on an annualised pe = 6.75 and and div yield = 9.6?

I note VIL share price has not performed since they listed.
Do they have a record of achieving their projections?

[noodles]

I note VIL share price has not performed since they listed.
Do they have a record of achieving their projections?

Well they technically made their FY14 forecast, BUT
1. This was aided by the acquisition of Kiwi Pacific. The excuse was high red meat prices affecting Mad Butcher
2. They failed to meet the number of new stores opened
3. On the plus side, they did beat dividend

[percy]

Well they technically made their FY14 forecast, BUT
1. This was aided by the acquisition of Kiwi Pacific. The excuse was high red meat prices affecting Mad Butcher
2. They failed to meet the number of new stores opened
3. On the plus side, they did beat dividend

A bit of a mixed bag then.
Running an up market tucker supplier and a number of bars may take a great deal more expertise.They haven't exactly proved to be great operators at their core business "The Mad Butcher,"
Will they "franchise" the Nosh shops, and the bars?

[noodles]

A bit of a mixed bag then.
Running an up market tucker supplier and a number of bars may take a great deal more expertise.They haven't exactly proved to be great operators at their core business "The Mad Butcher,"
Will they "franchise" the Nosh shops, and the bars?

Percy,
I understand that Michael Morton was initially managing Nosh, but they have now hired someone. Currently there is one franchised store, but they are yet to state their future operating model.

The bars are continuing to be managed by the former management team. They have taken VIL shares as part payment. This gives me some comfort. I don't think this is really a franchise opportunity.

Their takeover of Kiwi Pacific seems to be gong well. They have won a contract to supply Carls Jnr. Have you seen how big those patties are?

[percy]

The Carl's Jnr supply contract should provide growth as Carl Jnr expands.
The bar's management team taking VIL shares as part payment must be positive.
Just can't help but thinking of when Michael Hill tried shoes.!!