AFF Member Stock Discussion

[sinophile888]

Have made it to Sydney last night after several failed attemts to escape the kingdom of Western Australia. Mrscove is coming over tonight.

You may need to make some changes to your plans.

 

[cove]

Not so far as we both escaped from the Western Kingdom before midnight tonight.
Went shopping at Sydney Town Hall Woolworths tonight just in case of a lock up and was tempted to sell our Woolworths shares based on that experience.
Mrscove should be testing the Maggie Beer little choc wedge as her Qantas dessert. Two masks for a trip from Perth. Now Mrscove still has the original shares from when Qantas first listed on the ASX.

 

[moa999]

shopping at Sydney Town Hall Woolworths tonight just in case of a lock up and was tempted to sell our Woolworths shares based on that experience.

It's a very weird store. Many years ago the WOW head office was above, now in NW Sydney.
But the City of Sydney owns the building and has been threatening to demolish it for years for a Town Square project, so the store just hasn't been invested in...

Head out to Double Bay if you want a quality store (actually two plus a DMs). Or even the new small format Metros in the CBD

 

[cove]

I found the newish IGA specialty store at 388 George Street in Sydney and it is designed like the New York Little Italy. It is downstairs and a bit hard to find. Can leave the wrecking ball for that Woolies store to others.
Those Woolies shares are back safe.....
Have share issues for Genesis and Elixir to look at.
Could have bought Maggie Beer shares cheaper on the market.
Trying to get some Finbar shares at 0.83 based on following directors buying. FRI apartment sales are pretty strong and should have profits ahead.

 

[cove]

The Clinical Labs pricing feels high so we need to check what others think. Priced at more than their gross income. It is a fund that bought it and now pricing it at about 6 times what they paid Healthscope for it. Sure they fixed it but that price is for perfect....They are number 3 in that market.

 

[cove]

Checked with an advisor and they have decided not to go for Australian Clinical Labs which will be ACL.
It is private equity taking a pretty good profit.
We bought some UWL and 5GG. Should be some good growth in high speed internet. Pentanet has a gaming app that seems to be causing a good stir.

 

[cove]

Ok ACL has reached its target so it will get listed shortly. We won’t be there but some stags may do ok. With private equity it is always difficult to know.

 

[Freq Flier 2013]

Acl looks fully priced to me when I read all the docs. Will see what happens when it hits the market.

 

[cove]

Yes @Freq Flier 2013 we thought that too. With CSL being regarded so highly can a number 3 clinical lab get rated that way too. We don’t have CSL and nor are we chasing ACL.
Latitude has now sunk below their issue price.
We managed to average down on Plenti so we are now doing ok with that one.
Hoping to catch up with Ophir today. Their OPH units are now higher than their net asset value.
Long Short Fund is still about 10% below their net asset value. We did well buying them while they were way below $2.

 

[Mr_Orange]

Latitude has now sunk below their issue price.

Ha, no surprises there!

 

[Dr Ralph]

I'm on IAG today. If my recent form is any indicator, I expect that IAG will be down again on Monday!

3 trading days later Im out having made a quick 4%.

 

[cove]

Trying to get a fix on the Pepper Financial float which is doing the rounds. Read the AFR article today if you need more input.
Chemist Warehouse seems to be making a move to list.
Back from Sydney now and have to wear masks until Friday night if we go out.
Disappointed with Calidus share price yesterday and pleased with 5GG which is Pentanet.

 

[Mr_Orange]

Trying to get a fix on the Pepper Financial float which is doing the rounds.

I'm pretty sure that this is private equity selling out for a profit.

Pepper was taken over and delisted a couple of years ago. We owned shares at the time.

No doubt it got asset stripped and now it is being flogged back to the unsuspecting punter.

Caveat emptor!

 

[Kerrodt]

I'm pretty sure that this private equity selling out for a profit.

Pepper was taken over and delisted a couple of years ago. We owned hares at the time.

No doubt it got asset stripped and now it is being flogged back to the unsuspecting punter.

Caveat emptor!

Agree @Mr_Orange. When was the last time that PE ever sold something that wasn't stripped bare and not for an over inflated profit? If we were heading into a sweet spot in the credit cycle then these businesses like Pepper and Latitude would be held for a bit longer to squeeze them a bit more.

Caveat Emptor indeed!!

 

[cove]

Have today put in for Pepper as the management and business is regarded highly. The prospectus will be issuing next week from what we have heard.
Pepper to us is way better than Latitude as they don't lend to the riff raff.
This one may cause Resimac to get re-rated and they are going great in that market space too.

 

[Mr_Orange]

he management and business is regarded highly.

By who? No doubt the very people who want you to buy in.

I think you are skating on thin ice going anywhere near this. Your choice though.

 

[Kerrodt]

Have today put in for Pepper as the management and business is regarded highly. The prospectus will be issuing next week from what we have heard.
Pepper to us is way better than Latitude as they don't lend to the riff raff.
This one may cause Resimac to get re-rated and they are going great in that market space too.

Really depends on how you define riff raff. Peppers website boldly declares that they lend money to people that the banks won’t touch.

One thing the prospectus will never tell you is how their portfolio will mature over the next 2 to 5 years. A term loan booked today, whether by a bank, or Pepper or Latitude or whoever else, will only start to go sour in 18 months to 5 years after drawdown.

Their internal models will tell you how much lower they have dialled down their minimum thresholds to attract more business and pump up new lending volumes to make the books look good for the IPO but this will never be disclosed in the prospectus. It’s these much lower quality loans that will be a problem in the future.

 

[cove]

Turns out Commsec have some of the Pepper float.
We took up DNK @43 which is Danakali and bid for a parcel of BRU @15 which is Buru.
Our 5GG Pentanet and NOV which is Novatti both had runs today.
With Pepper and Resimac RMC they have a small piece of the mortgage pie and are having no issues with their funding. Both of these businesses are writing lots of good business from what we hear.
Thought you would like the riff raff comment.....a tester for you.
Aurora IPO is now open for wholesale investors...covering some mental health might make them a mini Ramsay Health.

 

[cove]

We decided to bid for some Aurora today. Naturally we don’t like price earnings at 20 or more unless there is a growth path for the company that is profitable. Mental health will probably be that growth path unfortunately. Covid-19 has affected lots of people with lockdowns, masks, job losses and business closures.

 

[cove]

Received a note from a share registry saying they had a dud Bank account to send us a dividend. Turns out it is for a company doing their first dividend in years so we updated our details.We haven’t changed banks since 1983 so that was a bit unusual.
Those shares are up almost three times so nothing to be unhappy about it.
After our first purchase at a wrong price we loaded up at less than half our entry price.
On the other hand Australis fell after we took some at 5 cents. Not sure whether the bottom price will be 4 cents or zero. That code is ATS.
in April we tipped out Bub and Nuchev as both were finding sales to be difficult. We didn’t have many but zero would have been better.
So far taking up Maggie Beer share issue at 35 cents has not been an instant winner. We could have bought them cheaper on the market.
Took up some Elixir shares @36 cents in their share purchase plan. That code is EXR.
Every time we look at COG there is a wall of sellers but the share price is slowly rising. We like their numbers but clearly there are quite a few sellers who want to get out.That is Consolidated Operations Group.