Friday, October 12, 2012

Moa Beer IPO: A Closer Look

I have to admit, I haven't drunk it but Ive heard so much about it I just have to try a drop - if my wife will let me - Moa Beer Ltd [MOA.NZX

If you can get past the hilarity of the first half of the prospectus - it has an advert for a car in it? - you can get down to the meat and potatoes - the facts and figures.

Moa Group's chief executive, Geoff Ross, yesterday announced the IPO was going ahead on November 13, but had already been over-subscribed by four institutional groups and retail "mum and dad" investors, so expect the deal to be done and dusted already.

The $6.1m brewery extension project is a vital step to take the company's Blenheim-based brewing and bottling capacity from 14,000 to 50,000 cases a month in under a year, which shouldn't be too hard considering the popularity of the drop.

They will offer 38.4 per cent of the company to the public at the price of $1.25, with another 3.6 per cent already having been allocated to existing shareholders who include Ross' Business Bakery, Pioneer Capital, Allan Scott Wines and company executives.

I never really understood the value of such company's it does not seem to bare any relationship to the profit or sales.

Moa sold almost 50,000 cases, mainly across New Zealand, Australia and the United States, in the 2012 financial year and has shifted 35,000 cases in the first six months of the 2013 financial year, so all looks to be on track for a good 2013.

In their healthy looking prospectus - it has a picture of a naked woman in one - the company expects to sell 97,496 cases in the full 2013 year, rising to 195,100 in 2014. However it will still not be running at a profit in that time frame.

The new brewery has been meticulously planned by Scott and his head brewer, Dave Nicholls, who worked at Heineken, alongside Ross and a board committee.

He is not taking the sharemarket float lightly - it was his aim since before he met brand-builder Ross over 2 years ago.

"It's great to see it grow because there was no way I could ever grow a company like this, this quickly," he said from Blenheim.

Scott's "executive brewer" role has been to develop the brand's presence and distribution overseas, under the guidance of Ross who sold his vodka brand 42 Below to Bacardi for $138m in 2006 and we all know well he is noted for that.

The prospectus puts revenues at $2.4m for the 2012 year to March 31, with negative earnings before interest, depreciation and amortisation at minus $2.8m.

The company made a net loss of $2.8m. The company forecast revenues of $4.3m for the year to the end of March 2013 - leading to a $3.5m overall loss.

Its all immaterial anyway, set your gun to off and target someone else this ones for fun, and it just might well do it.

I will be having a word to my broker about setting some aside - a 1000.

Moa @ Share Investor

The Prospectus
Talk Moa Beer @ Share Investor

c Share Investor 2012

Thursday, October 4, 2012

ASB Securities rejects my contract

Can somebody tell me why this contract was cancelled and what I should do about it?

Account 724645 Mr D G Rickard

We have SOLD for you 5000 shares in MFT - Mainfreight Limited Ordinary Shares at NZD 13.5000

Details are as follows:

Consideration: 67,500.00

Brokerage: NZD 202.50

Total Credit NZD 67,297.50

Settlement Instruction: Cash Management Account

Settlement Date: 09/10/2012

A Contract note with full details of this transaction will follow

This email message and attachments is sent for the personal attention of the intended recipient. If you have received this email in error, please advise the sender immediately and destroy this email and any attachments. If you are not the intended recipient, you are notified that any use, distribution or copying of this e-mail or attachments is prohibited.

Where the contract note differs from this notification the contract note will prevail. In some circumstances ASB Securities may cancel this transaction. We will notify you of any cancellation.

Please phone us immediately on 0800 272 732 if you have any queries regarding this order. Thank you for using ASB Securities.

Kind Regards

More Banking Madness @ Share Investor

ASB Bank: Customer "Service"
Bryce the Banker: The Final Insult
Banks not participating in Recession
Bank Guarantees: Time for banks to return the favour
The Return of Bryce
Banking Madness!

Discuss this topic @ Share Investor Forum

c Share Investor 2012

C-Span: Presidential Debate on Domestic Policy: University of Denver, Denver, CO

Presidential Debate on Domestic Policy: University of Denver, Denver, CO

Presidential Debate Coverage: Live at 7pm (ET) (video will start automatically)

President Obama and Mitt Romney meet for the first of three presidential debates starting at 9pm ET from the University of Denver. The 90-minute debate will be moderated by Jim Lehrer. C-SPAN Live coverage begins at 7pm ET.

Tuesday, October 2, 2012

Time for retirement 2 ?

Metlifecare Ltd [MET.NZ] is now an interesting little stock. It has spent many years languishing at around $2.30 due to its high ownership of shares in a small group. But now it has been released from that grip and looks like it will now florish on its own.

It all happened in July and now places the company in direct competition with Ryman Healthcare Ltd [RYM.NZX] and Summerset Group Holdings Ltd [SUM.NZX].

What do we make of the share price then ?

At $2.95 at close of business yesterday it makes this share the second cheapest and Summerset the next followed by Ryman.

Net asset backing is $3.04 for Met which makes this star, $1.10 for Summerset and $1.30 for Ryman. Clearly the leader by a long shot is Met which still hasn't reached its NTA.

As far as returns go it is only Ryman paying a paltry 2.05% that is turning over. Demand for its scrip has recently seen it shares rise to record highs.

You know me I like a bargain so if you prepared to wait a long time you might get Ryman for a steal, I think it will go down from here, but if you want get in right now you might want to consider getting in with the Met overall its the best bet.

Good luck!

Disclosure : I own RYM shares in the Share Investor Portfolio.

MET @ Share Investor

Stock of the Week: Metlifecare Ltd
Stocks on My Watchlist: Metlifecare Ltd
Stock of the Week: Ryman Healthcare Ltd
Time for retirement?

Discuss Metlifecare @ Share Investor Forum - Register free

Summerset IPO @ Share Investor

Summerset IPO: A Closer Look
Summerset Prospectus

Discuss Summerset Heathcare @ Share Investor Forum - Register free

Ryman Healthcare @ Share Investor

Share Price Alert: Ryman Healthcare Ltd 2
Ryman Healthcare Ltd: 2011 Half Year Profit Review
Gordon Macleod on Ryman Healthcare's Australian Expansion
Share Investor Q & A: Ryman Healthcare's CFO Gordon MacLeod
Ryman Healthcare: Interview sneak peak
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss Ryman Healthcare @ Share Investor Forum - Register free

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