Would I be right in thinking that a goodwill impairment to realistic levels would get them in a bit of strife with the financiers and bring compliance with NZX into question?
Would I be right in thinking that a goodwill impairment to realistic levels would get them in a bit of strife with the financiers and bring compliance with NZX into question?
Financiers might look a bit less willing next tiem when they discuss an extension of their loans. Balance sheet might look quite sad if they have to write off goodwill - and I think they will need to. Not sure, though what you mean re NZX compliance?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
I'd like to see them cut the dividend for 2 years to get debt down towards $50m and be ready to compete in the changed market conditions. 4-5cps in divis is pointless if there solvency becomes an issue - just pay down the debt!
I agree. The whole basis of the valuation of goodwill has changed and the current figure in the balance sheet is grossly excessive in my view. If they don't take a proactive approach to changing their business model...
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I reckon some of you are a bit mean spirited in writing Metro off completely so quickly ...some to the extent of almost calling their total demise.
This business has essentially been operating for well over 50 years (maybe even longer). It’s always been the market leader and has seen off the competition in all those years. Some old competitors no longer exist and some new entrants have come and gone.
Viridian (once Pilkingtons) been around a while. The great CSR bought them and were going to kill the likes of Metro. Metro won that battle and Viridian after never making much money have apparently been put up for sale.
A new entrant will no doubt have some impact on Metro but possibly not to the extent you guys think. Glass guys are pretty resilient - just count how many fingers they’ve lost.
Worst thing going for Metro is thats it’s listed company and shareholders (esp fund managers) being the impatient greedy lot they are maybe will hinder their efforts in fighting off this new entrant.
At the top of every bubble, everyone is convinced it's not yet a bubble.
I am guessing the ex CEO is still holding his chunk of 5.1M shares and he is not part of this carnage- I mean dumpling some last week. That can be seen as a positive... and if he is selling then there is an issue here...so far no SSH notices...
I am guessing the ex CEO is still holding his chunk of 5.1M shares and he is not part of this carnage- I mean dumpling some last week. That can be seen as a positive... and if he is selling then there is an issue here...so far no SSH notices...
Rigby not a SSH and no longer an employee so no disclosures needed ...unless he goes over 5%
Did you look at share register recently?
At the top of every bubble, everyone is convinced it's not yet a bubble.
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Originally Posted by bull....
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