Forum Archive Index - April 2004

["Cristine Kerr" <criskerr@optusnet.com.au>]

CBD Energy Update

 

I recently spoke with one of the Directors as I was concerned with the time frames quoted: I was assured (verbally, I admit) the placement and director options would occur before the 50:1 consolidation and that Directors will do everything possible to ensure share value is not compromised. (Not surprising considering their personal holdings.)

 

Also must apologise - I accidentally left out important info from my earlier post - See Item 3 which has been added below.

 

Regards,

Cris

 

________

 

Hi all,

Good news all round.

1) Good News: CBD has signed a contract to purchase O.P. Industries for $7.5M which represents an annual multiple of 2.4 times EBITDA and 2.7 times EBIT - in the opinion of the board the purchase price is fair and reasonable - represents a natural extension of current business activities - greater visibility with major corporates, developers and builders (NB hence notice of capital raising).

Mr Earl Sakareassean has agreed to continue in his role as MD of O.P. Industries (for the next 3 years) and has been invited to join the board of CBD as Executive Director.

Mr Sakareassean - "... Long identified as an area offering growth, CBDE will provide the products, services and knowledge necessary for O.P. Industries to credibly approach their existing and prospective clients with energy saving possibilities. Certainly we are seeing the demand. Tenders are increasingly seeking energy efficient alternatives ... '

Mr Wayne Rudland, CBDE's Chief Operating Officer - " ... complementary and overlapped skills ... far better market coverage ... vertical integration possibilities ... cost advantages - fabrication capability ... "

O.P. Industies have operations in Melbourne, Sydney, Wangaratta, Albury and Ballarat with each providing a 24/7 service support capability - 220 employees - major supplier to hospitals - approved tender for mechanical services to Safeway/Woolworths, Melbourne Univ, Telstra - significant works for other corps including Aust Post, The Age, RMIT, Coles/Myer, GMH, Toll Logistics, Visy, and Pfizer. Top clients over past 5 years (>$20M of business include Probuild Constructions, Multiplex, Telstra, Leighton Contractors, and Hooker Cockram. Settlement for the acquisition is scheduled for 14.5.04.

2) Re 50:1 share consolidation - More Good News - Shares acquired/owned by Bay Terrace Pty Ltd and Directors are subject to the same escrow restrictions as set out in CBD's ASX Announcement dated 30.6.03, namely voluntary escrow until 30 June 2005.

Broadly, the escrow restrictions preclude directors of CBD Energy Limited from selling any shares in the company on market (other than by way of special crossings), and directors must provide the Chairman with at least 3 business days written notice of any intention to sell shares off market (including special crossing).

Holdings Follow:

A) Non-Exec Director: Nick Kephala - continued to acquire late 2003
- holding 142,480,823

B) Non-Exec Director: David Hood - has acquired 4,132,333 (direct) & 750,000 (indirect) in total

C) Major Shareholder: Bay Terrace Holdings Pty Ltd - holding 919,845,892 (45.6% control of voting power)

D) Chief Financial Officer: Robert Edis - new - nil holding to-date

E) Non-Exec Chairman - Gerry McGowan (assoc TRW Holdings Pty Ltd) - new - nil holding to-date

3) Re Share Issue to raise $10M - Again, Good News:

A) ' ... Directors have agreed that the capital raised may only be utilised to fund acquisitions that result in positive earnings per share for the Company as a whole. ... '

B) ' ... It is envisaged that the funds will be raised by placements to institutions and sophisticated investor clients of stockbrokers once a proposed acquisition is nearing completion. The company is only raising funds for acquisition purposes. ... '

C) ' ... at an issue price of at least 90% of the weighted average market price of the Company's fully paid ordinary shares over the preceding 5 trading days before the day on which the issue is made, and in any event, not less than $0.011 per share[U]. ... '

 

---

 

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Tuesday, April 06, 2004 10:26 AM

Subject: Re: [sharechat] Cris' Current Watch List & CBD Energy

CBD Update

 

ASX Announcement - CBD - CBD Energy - 6.4.04

 

Appointment of Gerry McGowan as Non-Exec Chairman

 

' ... is pleased to announce that the Board of Directors has unanimously agreed to the appointment of Mr Gerry McGowan as the Non-Executive Chairman of the Company.

 

Mc McGowan is the Executive Chairman of TRW Holdings Pty Ltd which has substantial investments in both the energy and aviation industries. Mr McGowan has a particular interest in energy efficiency and green energy initiatives, and the Board is of the view that he will add significant strategic value to the Company's growing energy management business.

 

Mr McGowan has advised the Board that he intends to acquire shares in the Company in the coming weeks. ... '

 

----- Original Message -----

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Friday, March 26, 2004 12:24 PM

Subject: Re: [sharechat] Cris' Current Watch List & CBD Energy

Nice support building for CBD.

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Thursday, March 25, 2004 11:35 AM

Subject: Re: [sharechat] Cris' Current Watch List & CBD - CBD Energy

ASX Announcement

CBD

8:30 AM

!

$1.5m contracts for subsidiary Parmac

 

Highlights:

 

CBD Energy's recently acquired subsidiary, Parmac, has secured two significant contracts - awarded by Aust Property Network (APN) - engineering validation, delivery & commissioning of air conditioning, mechanical services installations - for two APN Melbourne projects, Emmy Monash Nursing Home & Liverpool Street Apartments.

 

Parmac completed the $6M mechanical services contract for APN's 380 Latrobe St, Melbourne late last year.

 

These APN contracts come 'hot on the heels' of significant refurbishment work for RMIT and Coles Myer, and along with their general tenancy and servicing work puts Parmac well on target to exceed our internal revenue and earnings forecasts.

 

' ... since acquiring Parmac on 15 January 2004, the order book has been gradually strengthening. ... '

 

 

 

----- Original Message -----

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Sunday, March 14, 2004 2:15 PM

Subject: [sharechat] Cris' Current Watch List

Hi All,

 

As a fairly regular poster, I thought I'd share some of the more promising from my present (evolving) watch list on the understanding it may be different again tomorrow.

 

NB A good prospect today can be a bad prospect tomorrow and vice versa depending on world events, good/poor business planning and execution, changes in key executives (eg KAZ last year), etc, etc, etc.

 

I consider all of the following to have high growth potential. I'm reasonably sure all of these have been summarized at varying times.

 

CBD - Maintain a vigil for best entry price
INL - Wait a while for it to settle down again
IVN - May take a while
MIC - Await confirmation of BioGold acquisition
MUL - Great today, tomorrow, etc, etc (I researched this one following an excellent tip from 'Oski' who posts occasionally to an Ozzie forum.)
NLX - Hoping it will drop a little more to make it worthwhile
PDR - Promising a return of capital to shareholders
SKG - Market has grown a little bored with SKG of late
VSG - Long overlooked - ticking time bomb
WAL - Great buy today, tomorrow, etc, etc
ZYL - Wait until it settles after Rights Offer period.

 

All the above notations are naturally subject to change of circumstances.

 

These shares have what I consider to be high growth potential which usually goes hand-in-hand with high risk. I minimize risk via research and tracking.

 

These shares are suited to a patient, long-term hold. Time frames will be dependent upon market trends and factors.

 

As always, I like to share info that may bring benefit to someone else.

 

Regards,
Cris