GXL Greencross Limited/ Veterinarians

[Chaowee88]

Yes they have had a hammering NZ SIlver. I also own these 3 shares and believe that they have been all oversold.GEM is another one I own and has taken the same flight path.

Good news yesterday however at last with a good base now to work from.Up 15 % yesterday and now also up 4% today.
http://www.asx.com.au/asxpdf/2015081...2q2q5z621z.pdf. Cheers

Picked some up a couple of days ago. Couldn't ignore it as 2016 looks set to deliver approx 20% revenue growth which will equate to approx 770 million, so predicted NPAT for 2016 is 40 - 45 million? Equates to eps of 36 to 40. P/E of 11 - 12 times with room for further growth, I see good value but chart looks horrible.

[winner69]

Picked some up a couple of days ago. Couldn't ignore it as 2016 looks set to deliver approx 20% revenue growth which will equate to approx 770 million, so predicted NPAT for 2016 is 40 - 45 million? Equates to eps of 36 to 40. P/E of 11 - 12 times with room for further growth, I see good value but chart looks horrible.

Might just follow you one day

Months ago i said i might e interested in low 600's ....but has been steadily declining since eh. What is it now - yes $4.69

Still need to prove the business model so still full of risk.

If/when price recovers plenty of time to get on the bus. I would like to see a more positive looking chart before getting on board .....maybe with a 3 in front of it.

[BlackPeter]

Picked some up a couple of days ago. Couldn't ignore it as 2016 looks set to deliver approx 20% revenue growth which will equate to approx 770 million, so predicted NPAT for 2016 is 40 - 45 million? Equates to eps of 36 to 40. P/E of 11 - 12 times with room for further growth, I see good value but chart looks horrible.

Not so sure about this share. Might be really successful (if they manage to grow ad infinitum), but on the other hand - their balance sheet looks in my view quite sick. I reccon the market just feels they paid too much for their recent acquisitions in order to keep the growth going. Remember TTK? Different industry, but similar problem. Small company buying big company for a too high price.

Anyway - GXL has more than $500m intangibles on the balance sheet (most of it "goodwill"). Take that away and they are technically bankrupt. Now - ask yourself - is their name really worth half a billion dollars? I guess what they do is not rocket science (i.e. hardly any moat) - every supermarket can sell pet food (and they do) and independant Vets are as well plenty around. As well, little barrier to leave the nice GXL Vet who always tries to sell you on top for their service the overpriced dog rolls - and go back to your previous supplier.

Maybe still too much hype in the share price ...

[Chaowee88]

Not so sure about this share. Might be really successful (if they manage to grow ad infinitum), but on the other hand - their balance sheet looks in my view quite sick. I reccon the market just feels they paid too much for their recent acquisitions in order to keep the growth going. Remember TTK? Different industry, but similar problem. Small company buying big company for a too high price.

Anyway - GXL has more than $500m intangibles on the balance sheet (most of it "goodwill"). Take that away and they are technically bankrupt. Now - ask yourself - is their name really worth half a billion dollars? I guess what they do is not rocket science (i.e. hardly any moat) - every supermarket can sell pet food (and they do) and independant Vets are as well plenty around. As well, little barrier to leave the nice GXL Vet who always tries to sell you on top for their service the overpriced dog rolls - and go back to your previous supplier.

Maybe still too much hype in the share price ...

Mainly worried about it debt and Cashflow. Also wondering how long they can keep the momentum in growth going. Otherwise quite happy with the pick up. Maybe one day will trade like Domino's on a P/E of 50X?

[Leftfield]

Not so sure about this share.

Anyway - GXL has more than $500m intangibles on the balance sheet (most of it "goodwill"). Take that away and they are technically bankrupt. Now - ask yourself - is their name really worth half a billion dollars? ..

Agree…. IMHO the chart says it all…. stay away till the downward trend changes.

[Chaowee88]

Agree…. IMHO the chart says it all…. stay away till the downward trend changes.

http://www.afr.com/street-talk/finan...0151214-glniuv

Boom 25% gain, lucky I picked another lot yesterday. Can have another fat lunch today.

[winner69]

http://www.afr.com/street-talk/finan...0151214-glniuv

Boom 25% gain, lucky I picked another lot yesterday. Can have another fat lunch today.

Well done mate, hope you had heaps

Betcha even you didn't see that happening ......but when things get cheap you never know do you

[Chaowee88]

Well done mate, hope you had heaps

Betcha even you didn't see that happening ......but when things get cheap you never know do you

I won't sell yet as I believe there is still value to be had here, potentially this is the start of a bidding war.

I'm actually a bit disappointed in myself as I didn't have the conviction to go big.

I think $6 is still below it real worth which should be above $6.50

[winner69]

Greencross chatter on NZX made me look at Greencross AU

Price hasn't done much since it collapsed from its highs 18 months ago

Might have another look at but doesn’t seem to be compelling story here.

[winner69]

Greencross shareprice continues to drift down ....hard to believe it was 10 bucks not that long ago.

Still make decent profits but market a bit worried about what Amazon might do to them ...even though an online outfit called Pet Circle is apparently putting a big dent in their retail sales.

Commentators say taking over Pet Circle is the answer but it would cost them heaps and probably eps dilutive. Way the share price is going might be a takeover target themselves again.

Still keepin an eye on