For everyone looking to get in on the ground floor and go long I highly suggest billabong under 0.50 and yes I dod buy some today for 45cents... with all the new appointments of a new ceo and new financing I think for anyone that holds long your in for some real profit. For anyone who doesn't think so its fine we all have our own opinions and this is mine. cheers
Got no opinion but have you worked out the dilution of the recap deal announced yesterday ? All new shares are being issued to the consortium at 41c retail holders will be offered shares at 28c in a rights issue but doesn't say when or what the cutoff date for participation in the rights issue will be
Not one for me I'm afraid. A company that sells $5 tee shirts for $50 isn't likely to do well during a sustained economic downturn.
We will just have to see where it goes. And yes ive taken in all avenues. . Which is what everyone should do before they invest in a business. And to willrocks.. hmm good point not sure how armani, gucci, ralph Lauren maintain there business in this economy. Think about things before you accuse a business of over pricing. Oh and don't forget summer in australia is coming soon... which will definately boost sales and help recovery. . But we will just have to see the share price. . Just dont delete ur comments if the business does do a big turn around just as I wont if it drops. cheers
^^^ that's pretty much every fashion label. G-Star, Ksubi, Esprit etc. They pay about $1.50 for a t-shirt and sell it for $50+. Pair of jeans? $12-$18 and sell them for $120+ Unfortunately in Aus excessive rents, high wages and many other expenses means that profit margin drops significantly. It might look like a $45 profit per t-shirt but net profit on each would easily be as low as $10.
Not for me - might be a basement level or two under the "ground floor". Why take the risk I reckon - plenty else that's less risky, has no debt and still has speculative appeal. What have they done but show they can lose squillions in the last couple of years? Recovery if it happens should be slow. Doubling the amount of shares. The A$386m 'New Term Debt' is secured (against company's assets) and is priced at 11.9% pa The renounceable rights issue is at 28c so there'll be profit taking from above that level = 'overhang'; plus the placement shares will be a selling threat Above 50c there's the threat of the options exercisable @ 50c ex. Says there are 42m BBGAO @ 50c and almost 30m free options proposed to be issued to Cam/Oaktree consortium at 50c. Over at Skaffold the optimist(s) have currently chalked in .06 eps FY16 but the pessimist(s) only .003 eps. So called 'consensus' eps only .029 eps FY16. So called consensus intrinsic value FY16 = only 8c! Seven analysts participating. For FY15 the pessimist(s) reckons still an earnings loss. Doubt that Skaffold has caught up with the new Cambridge/Oaktree offer
I bought at .55 or thereabouts. Looking medium-term, hoping for a reasonable return in 12 months or so. Didn't buy much though so as long as it's above .25 I'm not concerned. Generally not a big fan of consumer realted stocks
renounceable and non-underwritten In theory if you bought today at 45c you could buy more at 28c in the rights issue and average down, but they might come out and say the rights are only available to holders as at 19th Sept (yesterday) K11TS00bullion: I'm not offering an opinion either way - haven't had much of a look These days as soon as I see a company struggling with debt I just walk away and don't look any further I'm sure that leads to missed opportunities but I've been burnt too many times in the past
Some of the liabilities on their balance sheet do raise serious question marks. Their retail business model isn't exactly inspiring either.
The difference being that Billabong attempts to cater to the mass market, whereas armani, gucci, ralph Lauren all specifically target the very wealthy (or the less well-off idiots who will happily part with money in an attempt to appear wealthy). During a sustained economic downturn the mass market always tighten their belts. Whereas the wealthy - they'll always have money to burn.
Yuck chart after Friday's action, and anticipating a down day on Monday for the ASX. Closed on its intraday low with highest volume for a month momentum: RSI might have failed to cross above neutral, MACD failing to cross positive Worse to come should it close below 41c imo
The high end brands will fare better than the mid range IMO. The rich will always have money. It's the middle class that are being fleeced, remember.
Ground floor for this stock was when it was priced in the early teens and low 20's when the debt restructure was first announced a few months ago. At 40-50cents im sitting on the fence, what worries me the most about this company is that they have sold off a few of their crown jewels. For instance one of their successfil sub brands 'Nixon' is a popular watch brand which was secretly sold off. This brand was an asset that previously contributed almost 30 per cent of operating earnings for the group!!!! http://www.theaustralian.com.au/bus...n91v9q3-1226723994113#sthash.Umo0Lgoq.dpufwas Nice designs but they are seriously large watches.... way too chunky for my liking imo, but that's the fashion these days.
