Wynyard Group capital raising?

[crabs]

I'm happy to .. and having money in the outcome. Could be happier of course but holding longer term. Also, pleased to see Deloittes name on contract.

I am not sure I understand your investment strategy.
Why would you want to be holding shares in a company that is in a high growth sector yet consistently misses forecast by wide margins, managers shareholder funds poorly,has slowing growth, has a widening loss and we await news of what could be confirmation of the same continued performance when there are companies to invest in that are in high growth sectors and are proven to meet growth forecast and exceed them, manages shareholders funds well, still have rapid growth, have positive earnings per share and there is no indication that we will not get confirmation of continued success.

[trackers]

I am not sure I understand your investment strategy.
Why would you want to be holding shares in a company that is in a high growth sector yet consistently misses forecast by wide margins, managers shareholder funds poorly,has slowing growth, has a widening loss and we await news of what could be confirmation of the same continued performance when there are companies to invest in that are in high growth sectors and are proven to meet growth forecast and exceed them, manages shareholders funds well, still have rapid growth, have positive earnings per share and there is no indication that we will not get confirmation of continued success.

Because of statements such as this:

http://www.nbr.co.nz/article/will-be...eo-th-p-185329

"This will be the last time", says Wynyard CEO. No more capital required after this rights issue; profits to flow in 2017.

And if they execute that, well that is awesome, but I would say extremely doubtful based on the information available to the market

[crabs]

Because of statements such as this:

http://www.nbr.co.nz/article/will-be...eo-th-p-185329

"This will be the last time", says Wynyard CEO. No more capital required after this rights issue; profits to flow in 2017.

And if they execute that, well that is awesome, but I would say extremely doubtful based on the information available to the market

hmmmmmm very bold statement, not sure of the timing as your link is locked content but will take an educated guess and say it was said prior to the rights end date to encourage take up.
In any case, at this stage and in all fairness, I will have to pass judgement on that sort of statement based on how reliable/accurate other statements from the company have proven to be.
Share price is performing in line with companies performance.

[sb9]

Well seem to be going only one way currently....DOWN

[winner69]

Well seem to be going only one way currently....DOWN

Reminds me of how to approach a run chase in cricket

Get below a 100 to get then knock them off 10 at a time - like 90 then 80 then 70 then 60 then 50 ........better stop there eh

[sb9]

Reminds me of how to approach a run chase in cricket

Get below a 100 to get then knock them off 10 at a time - like 90 then 80 then 70 then 60 then 50 ........better stop there eh

With advent of T20 anything's possible, better hope not for sake of holders....

[lche059]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

[blackcap]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

Well I guess if they cannot cover wage costs and if contracts do not come in.... another capital raise will be on the cards. But who will/would support that?
On the other side, if contracts come in and they can fund wages from income then all is well.

[blobbles]

A dangerous time to be in WYN. Unknown if they will be supported in their next capital raise, at least 1 more required (maybe 2?) before profitability happens, if ever. Investors know this so are exiting.

At the same time they have stalwart key shareholders who are propping the company up during previous capital raises. Will this continue? Meanwhile, buying shares now you are asking for massive future dilution (50c cap raise for 100m shares maybe?) with no end of losses in sight.

Dangerous indeed, but companies have turned such ships around before. For me, if you buy now, you are betting entirely on management. The product is good, it is in demand and they don't have a lot of competition at their level (there are some BIG players but their software is expensive and far too massive to install/maintain). If you believe in management, buy up. If you doubt them, get out. Personally management have not instilled enough confidence in me for me to expect mid term positive results. Short term, its a blood bath.

Meanwhile, announcements are NOT coming thick and fast. I would be expecting/hoping for one a month. Only 2 this year (putting the 27m one into next year, as they have!) and we are almost halfway through. Not good.

This could be the next Xero (Sam Morgan), or it could be the next zero as people have noted on this thread. Choose wisely and remember that 65c could be worth 40c in 2 months, 1c in 6 months... with the shape of the NZX graph, there are better places to put money while you wait for a turnaround which is surely at least a year away.

[blobbles]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

Not sure you can accurately say "not much liquidity". There has been quite a lot of shares swapping hands since their 27m cannot recognise this year oopsy. Probably around 20m. A decent enough floating amount of shares. Don't be fooled by Bid/Ask screens showing volume ahead values, there are a lot of people waiting in the wings, possibly on both sides.

Bankruptcy will only happen if they run out of cash and their large shareholders bail on them. A distinct possibility given the size of their losses which are being worn by their large shareholders.