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30-01-2015, 07:32 AM
#351
Banned
No mention of the capital raise they've been talking about, this announcement or last.
Debt is 32.6m, or 40% of total assets of 40.6m (estimates allowing for Madison second payment of $6m and repayment of some debt from current period surplus.)
With strong trading figures, maybe they're planning to repay debt from earnings now instead of a capital raise?
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30-01-2015, 08:08 AM
#352
Yes I would like to see an announcement on the capital raise.
Either do it, and move on,or say they will repay debt out of earnings.
It has been hanging over the share price for too long.
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30-01-2015, 08:58 AM
#353
I think they did mention they were comfortable paying it from cashflow but no official announcement .
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30-01-2015, 10:44 AM
#354
Banned
Originally Posted by percy
Yes I would like to see an announcement on the capital raise.
Either do it, and move on,or say they will repay debt out of earnings.
It has been hanging over the share price for too long.
I'd like to see them lock in some cheap long-term debt and chip away at the debt over the next few years, aiming to reduce debt to a third of assets, and applying what's left to dividends.
Getting debt down to a third of assets would take thee years by my calculations.
'What's left' , at current profit levels and recent growth, should still be enough to boost dividends by around 12% each year.
My system value is $4.29, but it probably deserves a decent discount for small size, and illiquidity.
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30-01-2015, 10:49 AM
#355
Originally Posted by bunter
I'd like to see them lock in some cheap long-term debt and chip away at the debt over the next few years, aiming to reduce debt to a third of assets, and applying what's left to dividends.
Getting debt down to a third of assets would take thee years by my calculations.
'What's left' , at current profit levels and recent growth, should still be enough to boost dividends by around 12% each year.
My system value is $4.29, but it probably deserves a decent discount for small size, and illiquidity.
I do not really have a strong view on the possible cap raising.
Just wish they would make up their minds and move on..
Liquidity is a problem,but so is the board's dithering !!
In fact it may not be the board,more likely the major shareholder.
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30-01-2015, 11:01 AM
#356
Banned
Originally Posted by percy
I do not really have a strong view on the possible cap raising.
Debt is relatively cheap just now - so why not use it instead of raising equity?
Say they lock in some debt now.
There's a chance interest rates could go a little lower - no great harm done.
There's also a chance they could go a lot higher - possible big gains.
AWF aren't in the business of interest rate speculation but all the same debt seems better than equity just now.
OTOH - if they did a small cap raise - they'd be free to increase the div payout a lot, which these days should be very good for the SP.
So after all that, I have to agree with you! Either decision is good, indecision isn't.
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30-01-2015, 11:06 AM
#357
Originally Posted by bunter
Debt is relatively cheap just now - so why not use it instead of raising equity?
Say they lock in some debt now.
There's a chance interest rates could go a little lower - no great harm done.
There's also a chance they could go a lot higher - possible big gains.
AWF aren't in the business of interest rate speculation but all the same debt seems better than equity just now.
OTOH - if they did a small cap raise - they'd be free to increase the div payout a lot, which these days should be very good for the SP.
So after all that, I have to agree with you! Either decision is good, indecision isn't.
We are in agreement.
"After all said and done,there's more said than done."!!!!!!!!!!!!!!!!! lol.
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23-02-2015, 10:16 AM
#358
1:4 rights issue @ $ 2.10 ,
Also an update out if anyone has missed it .
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23-02-2015, 11:14 AM
#359
Originally Posted by stoploss
1:4 rights issue @ $ 2.10 ,
Also an update out if anyone has missed it .
I will be pleased to get it done and dusted.Been hanging over our heads for too long...
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25-02-2015, 03:41 PM
#360
You may have missed the retirement of huddleston. Simon Bennett will take over and as I recall he was a madison hire charged with getting madison on the nzx. I disliked MH so will now take more notice of awf
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