Tuesday, August 24, 2010

Long Term View: Sealegs Corp Ltd

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

Sealegs Corp Ltd [SLG.NZX] has been poor investment for shareholders since its 2004 listing at 10c per share* . Numerous capital dilutions; 1:3 rights issue in 2005, share issue to professional investors (PI) with 5% dilution in 2006, share issue to PI with 10% dilution in 2007, 1:5 rights issue in 2008, share issue to Avenport Investment Corp in Aug 2010 with 30% dilution, gives SLG (see NZX chart above) a minus 25% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 7 year listing of SLG an annual net return of minus 3.57%.

This compares to an annual return from the average of all NZX indexes of 7.14%.

* adjusted price when SLG listed in a back-door listing in 2004.

Long Term View Series

Auckland International Airport

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Sealegs Corp Ltd @ Share Investor

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c Share Investor 2010