Forum Archive Index - September 2003

["James Sherbert" <james_sherbert@hotmail.com>]

Ok, so maybe i was a little harsh on the NZX. It is getting better.

What is dissapointing about this float is how it is being managed. Dont get 
me wrong, i like the business concept, there is definitely a place for them 
in the spirits market, and they (the founders) will probably do alright out 
of it. I also hear from people who have tried it that the vodka is pretty 
good (i dont usually go for the posh stuff myself, i'll have a speights, 
thanks).  But to go to market now with that balance sheet and $60m ($85m 
with the warrants) valuation is just ludicrous.

Dorchester's max liability appears to be about $4m. The $10m nderwrite only 
kicks in after 10m shares have been sold (@ 50c) and they are getting a fat 
underwriters fee of close to $1m.

I hope the independent directors know what they are getting themselves in 
for...

J


>From: "Richard Hooper" <hoop@ihug.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] 42 Below IPO
>Date: Thu, 25 Sep 2003 21:59:01 +1200 (New Zealand Standard Time)
>
>Hi
>If you look back a couple or 3 years ago on sharechat achives, I was quiet
>vocal about NZSE wild west, and rabbits diving for cover, and mentioning
>that NZSE were just as good if not better investment than advisors telling
>us to invest overseas companies especially the Dow. Time has proven me
>correct.(patting myself on the back. NZSE 2000 wild west ...yes.  NZX 2003
>wild west ......not so sure.
>oop
>
>-------Original Message-------
>
>From: sharechat@sharechat.co.nz
>Date: Thursday, September 25, 2003 14:07:00
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] 42 Below IPO
>
>The NZX is not referred to as 'the wild west' for nothing. Ahhh, the heady
>days of the mid '80s. And to be able to have free reign with other peoples
>money, the founders must be in heaven. Unfortunately there are a few listed
>companies on the NZX that would do better to be taken private (a bit like
>the magazine of the same name).
>
>There is a place for speculative companies with no historical earnings
>(mining and biotech) but it is with professional investors and speculators,
>not Joe Public.
>
>Cheers,
>
>J
>
>
>
> >From: "Fiona Phibbs" <fibz@xtra.co.nz>
> >Reply-To: sharechat@sharechat.co.nz
> >To: <sharechat@sharechat.co.nz>
> >Subject: Re: [sharechat] 42 Below IPO
> >Date: Thu, 25 Sep 2003 12:39:10 +1200
> >
> >Hi James
> >
> >The only ones that will be getting rich here are the original owners who
> >get
> >free shares for a company whose liabilities are greater than its assets!
> >The price to sales multiple is off the scale, can't value it with a PE as
> >they have no earnings! And I thought it was 2003 not 1986 - must be in a
> >time warp. The only worrying thing for me is that I own shares in DPC who
> >own the subsidiary underwriter and promoter, Direct Broking and who have
> >stated that there is "considerable interest" in the float. Joe public 
>must
> >be drinking too much of the companys product.
> >
> >Cheers Dean
> >
> >----- Original Message -----
> >From: James Sherbert <james_sherbert@hotmail.com>
> >To: <sharechat@sharechat.co.nz>
> >Sent: Thursday, 25 September 2003 11:50
> >Subject: Re: [sharechat] 42 Below IPO
> >
> >
> > > Just finished reading the prospectus. What a great read ;0)
> > >
> > > I would love to know if anyone has an opinion on it.
> > >
> > > In short, I like the business; premium product with a great branding
> >story
> > > and potential to put NZ on the map; but am very skeptical that any new
> > > shareholders will ever make a return on it.
> > >
> > > 121m shares + 48.3m warrants @ 50c = EV of $84.7m. Assume a rough
> >revenue
> > > muliple of 2 then they need annual revenues of $42.3m to support this.
> > > Propsectus forcast for next year; $4.4m revenue.
> > >
> > > Wonder what Michael Erceg thinks of it??
> > >
> > > James
> > >
> > >
> > >
> > > >From: Robin Benson <rob@hammerheadmedia.co.uk>
> > > >Reply-To: sharechat@sharechat.co.nz
> > > >To: sharechat@sharechat.co.nz
> > > >Subject: [sharechat] 42 Below IPO
> > > >Date: Tue, 23 Sep 2003 20:27:13 +0100
> > > >
> > > >Good morning
> > > >
> > > >Gaynor on 42 Below float, just in case anybody is seriously 
>considering
> >it
> > > >:O)
> > > >
> > > > http://tinyurl.com/oedn
> > > >
> > > >Robin
> > > >
> > > >
> > >
> >
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>.

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