Hi Tim
Sorry my error - typo. Should have read 100%. My understanding was that they were trying for a take over?
-d
Printable View
I think they are okay with partial takeover it's not an aggressive play
Hi tim23
You are quite right - I think they are on record as being happy with about the remaining Todd share. It just reinforces my stance that they are wallying about - not quite sure what is best but shoot at anything that may move. Argument has been proposed that AK just wants the detailed research data and scans to leverage an advantage in Taranaki but I can't see any % held in Cue providing any data availability. Cue is a very minor player Maari included. So why would the other participants give the crown jewels to an opposition company NZO, allowing enhanced future competitive block bidding.
-dodgy
Discl: Current hold NZO and Cue.
Hi Guys
Looks like another top shelf governance / management decision. Buy back the punters $1.50 shares for 75c and then the market settles below $0.60. This was always on the cards. Buy backs of this nature are never that successful. About time some accountability? Maybe Digger could threaten tractor based mayhem. Threats seem to be the flavour of the day, milk to politicians and Kauri climbing. Seriously, this ship appears seriously rudderless. Where to from here?
Ideas?
-d
Discl: Current holding - too many for comfort.
Slightly off topic, but I hope that's not an issue. I have been loosely monitoring the Cue on market acquisition progress, and notice that the number of buyers at $0.10 fluctuates, and is now up to 8 (refer depth on ASB Securities site). But these 'other' 7 buyers are playing a futile game are they not? Doesn't NZO's bid at $0.10 take precedence if it was placed first, or is that not how it works? i.e. wouldn't NZO's full order have to go through at $0.10 before these other 7 got a crack at any shares offered for sale at $0.10 ?!?! im confused?! (easily done mind)
NZO gets kicked out of NZX50 at the end of next week
Best Wishes
Paper Tiger
PS: If the broker of a buyer at $0.10 has a seller at $0.10 I think he match up internally before going out to the market. So the NZO cheeky-bid may not get everything.
PPS: Don't quote me on the above - I am not totally sure of this for the ASX.
Yes, that applies during normal trading hours, but at the opening and closing auctions, you can queue-jump, e.g., if there is a seller at 0.10 in the auction for 100k shares, you can bid 0.11 for a lesser amount, and if everyone holds their ground until matching, you will get all you wanted at 0.10, with the balance going to the first in the 0.10 queue. Risk is, the seller disappears before the matching gets set, then you will pay 0.11 (if sellers are at that price) There is extensive explanation of how the matching works on ASX website somewhere (education?)
If a broker has both a buy and a sell, they will match internally and report it as a crossing - this is another way to queue-jump, but it is within the control of the broker (I have picked up shares on this basis quite a few times, to my surprise). I would think you would need to happen to be first in the brokers internal queue for it to occur.
loots like the got their objective
https://www.nzx.com/files/attachments/209613.pdf
Whats happened to the old guard, Digger and Balance? Your posts are missed.
-d
Fabs
You are so right - this is so painful that a well paid few can waste so much of other peoples wealth without serious questioning.
Regards
- dodgy (OWNER/shareholder)
Dodgy so you are inferring that the fall in share price is totally attributable to poor management rather than plummeting oil prices? If so that is an interesting theory. I assume then that your take on NZR's uptrend is because of great management rather than anyhow having anything to do with favourable exchange rates and said plummeting oil prices?
There are knockers and noggers.
It becomes very dodgy if you don't know where you belong.
Actually I like what management are doing-buying into cue cheaply is a good idea.
Giving back cash is also good
Buying more of tui cheaply is good.
Pateke will soon be increasing production which will help mitigate reduction in income due to the low oil price.
A share buyback is next on the agenda-it will give dodgy a chance to sell his shares at a better price,
Phew-I havnt even started talking about Indonesia yet.
Its far too nice a day to have anything but good thoughts.
I reckon nz is going to start to use lots of gas to generate electricity-hydro lakes are going to get very low if we don't see lots rain soon.
Kupe has just had its gas reserves revised up.
Hi barleeni
Fair point . However NZR (see my posts NZR) upswing is not only related to oil, exchange rates etc but many other factors of which management , and governance has been a good part. NZO on the other part is stuck with poor decision making at management and governance level in my opinion eg lack of sensible expansion plans - think Tripoli, poor investments - think Pike River or PPP to date , and now on a downward spiral into the sunset with desperate measures to secure further assets - including buying back shares at well over asset/ market value.
Hence my inability to endorse NZO's future after having an interest for over 20 years and watching it all unfold. Financially I wish it was otherwise, just as I think NZR is headed for, or over, $3 by next March (about 10%) . As a generalization I am not to keen on most management/governance in NZ as it is too closely linked,and treats minority owner/shareholders as a yearly inconvenience whom you caress, feed, water and put away quietly out of sight and mind. In the meantime I have to question the motivation of many decisions based on who will be the ultimate beneficiary.
-dodgy (owner/shareholder)
Hi Fish
Fair enough - all opinions, being just that, hold validity for their owner. Either way it is an investment , the sole purpose over time being to provide enhanced wealth. Maybe after all this time I am becoming impatient , but as you say its a great day today, and tomorrow is something to await. Have a good one.
-d
In fairness you probably have much more knowledge of past management performance as I have only been following for circa 12 months, so your opinion is likely far more informed than mine. I do feel for them a touch though, as they would seem to be stuck between a rock and a hard place at present. And yes I agree, NZR management seems to be doing everything right at present. My only suggestion for NZO is that I would have been very happy if they had brought back ALL of my shares for $0.75, my holding was small enough beforehand..... now its so small Its not worth selling at the current deflated value... sigh. Fortunately I do hold NZR which offsets the oil price fluctuation issues!
Hi team,
I noticed that NZO was always good for controverse opinions circling around each other ... and at some stage it felt like the predecessor of the (now somewhat silenced) PEB thread. However - despite a number of quite strong and quite negative views it seems there are lots of shareholders left. I guess somebody must hold these 337 million odd shares?
I plan to look a bit closer into NZO since it just for some funny reason appeared on my short list of investment candidates (based on long term P/E, analyst recommendations, income potential).
First impressions (next to a quite busy thread):
Great long term PE (well, at current SP)
Stock analysts seem to have a quite high opinion of NZO: Consensus opinion just upgraded from a straight "outperform" and now hovering between "Outperform" and "Buy".
Share price forecast are between 74 cents and 116 cents (with a median of 75 cents).
Looking into the balance sheet: 210 Million of oil & gas assets and roughly 52 Million of cash (after the capital return) - and this at a market cap of 188.6 Million (at 56 cents)?
Not so good are obviously a board and management team with a long track record of "bad luck", significant mistakes and oversights (I guess, there are not that many good boards around in NZ, but NZO made e.g. at PRC times some outstanding mistakes. Judging from that (just read the PRC book - sad story in anybodys account): hard to explain the observed board performance unless we assume they all have been intoxicated and fully asleep during the job (which I obviously don't imply - I am sure there is a very innocent explanation for the unfortunate chain of oversights). Be it as it may - it appears they have been in the past pretty useless in doing a good boards job, but they still require the usual maintenance.
Question: Any indications that they learned since PRC from their mistakes?
And yes - the oil price trend is obviously an unknown - but at this stage I am rather confident that over time it will recover ... and hey, they have significant gas reserves as well.
So I guess the question is - is this (at 56 cents) the "Buy of the century" ... or are management and board that effective in destroying shareholder value that the capital will disappear before the shareholders can benefit from it?
Any recommendations which wheels to kick before I commit to this share (or otherwise)?
SEEMS THE ONLY WINNER SO FAR ARE TODD ENERGY.
Being able to get rid of there holding for 10 cents plus, at what NZOs management assessed at 25% above NZOs stated value.
Yes hard to tell the future for a co. who has not won the investors trust or confidence for the last 7-9years.
As for the large no. of S/H most of which would have sold out long ago, but sitting trapped in this moribund co.
Yes if you are a risk taking gambler and get in for 56 cents or less maybe worth a punt, but i would guess the majority would have paid a great deal more and short or medium term outlook not looking flash.
But hey this is just my take on the Co. best to do your own post-research over along period, been in and out of this lot also over last 20 years,
Its just sad to see a co. that had so much going for it 7 years ago has not added any value over the same period, irregardless of some setbacks after all what is management for.
Most if not all of the present lot where not instrumental in discovery and development of Kupe & Tui so had it virtually handed to them on a platter and are also not even the operators, charming run and well paid too as there was always and still is plenty to feed on in the kitty.
Wish i was all wrong on this but that is where it is at now ---STILLLL
Hi Fabs
Well written - 100% on the money. All I ask right now is hack through the back room hangers on starting with Public Relations to lower overheads and preserve something while Tui is wound down and Kupe still has 14 or so years before extinction. Run it like an investment co (Knight should be better at that) whilst coat tailing on successful operators efforts by farming in if warranted. Resume divs to stabilize the share price at first opportunity. Don't expand PPP or Cue investments.
If only!! Otherwise a slow walk to the sunset and zip value for all.
Regards
-d (OWNER / SHAREHOLDER )
Excellent summary and is, I agree, bang on the money. I've just been reading a brokers report that values the company at 74 cents and rates the company a buy. There's one very, very important factor they overlook. If you discount their DCF model for the net present value of all future corporate overhead the company has very little value at all.
True, but at least two of them started with NZO board / management well prior to the catastrophe. What did they do to prevent NZO throwing good money after bad (remember the consistent demand of PRC for additional cash injections and credit - given their continuous history of delays)?
They could have saved not just significant shareholder funds, but even the lives of the 29 ... (even if NZO was at that stage just a "cornerstone shareholder" of PRC.
Recommend to read "Tragedy at Pike River Mine" by Rebecca MacFie, though very sobering reading if you believe in the value of NZO's and PRC's boards (admittedly - at the time) ....
NZO now owns 41.55% of Cue?? Is that correct? (referring to the 4th supplementary bidders statement)
I just had a look, seems it is correct.. almost 100,000,000 shares were picked up this morning by NZO. NZO's bank balance must be getting a bit dry!
The CUE site news shows NZO now holding 41.95% of the shares.
Despite all the negative sentiment towards NZO, and still not sure, whether they are at this price a good deal (well - I put a very small toe into the water ...):
I think a takeover of CUE would increase efficiencies for both organisations ... at least there would be an opportunity to rationalise management / administration and maybe even reduce the overall number of snouts at the board-trough.
Hi all
It would appear from Cue's latest statement that NZO has picked up most of its Cue shares from Todd Energy (which was expected) and as a complete surprise, Zeta, which also has about 20% of NZO. Which begs the questions why did Zeta sell their holding, and how much of this total affair has been initiated and driven by Zeta ? The balance of the smaller shareholders including a chinese oiler have only sold about 2% of Cue. As the offer theoretically expires on Friday will there be a selling rush or will the offer be extended in the hope of success?
- dodgy
holding both unfortunately
NZO picked up another 3.5m today - this might encourage them to extend the offer in the hope of cracking the 50.1%
After the offer closes then CUE sp will likely fall back to 8c or so fairly quickly - give it 6 months and NZO could initiate a share buyback @ say 8.5c, which effectively increases NZO stake and weakens the vote no camp.
Another view is that NZO do not extend the offer and the shareholders who were holding out might come with a big rush in the last hour of trading on Friday, because on Monday the sp may be lower than 10c
M
Pretty Bang-on.
And he has got his money out probably with a handsome profit to boot, with still as much if not more influence by is 20% holding in nzo over both, given the clueless rest of the board will be interesting to see who will end up better off, him or the S/Hs
Ideally would be both, RRRRIGHT????
Hi BlackPeter
I guess you must have noticed the share price decline since the 75c buyback 1:5 cancellation. NZO needs saving, unless you are happy to see your investment dwindle by the month. Needs new acreage and restore dividend . Just of note for Fabs - Zeta's original, substantial shareholder filing, showed an average of about $Aussie 12.75c if my maths is right. Selling for $A10c to NZO doesn't look like the sharpest of investments. So the plot thickens or are Zeta not as good as assumed?
- dodgy (reluctant owner/shareholder)
BlackPeter, you may ask why stay - answer, too cold a bath to take - might freeze me to death.
Thanks for that Dodgy,was wondering what they cost them, yes not smart.
Case of two halfwit-ed lots equal WHAT??
Well time will tell, maybe costly,certainly not looking promising atm. but then that's been consistent for far too long.
Fabs
I really can't even guess the NZO / Zeta end game . I do know that NZO will really struggle to get 100% of Cue without increasing the price, and Cue never pays dividends, so NZO has a large holding expense. Cue has stable but declining income, coming in part from gas production, which is not as volatile as oil, and a few not yet proved up prospects.
Waiting and wondering
Regards
-dodgy
nzo wants to delist cue? why? just a quick read with the latest ann..
Yes Roger that,
it seems that Todd & Zeta have been the only winners so far, able to unload there holdings thanks to a pliant nzo board.
Zeta may long ago realized that Cue not going nowhere slowly like nzo cut there losses, but still left with a finger in a fast disappearing Pie.
Good morning fabs
Maybe a not so white knight may be aiming with Zeta's backing to delist Cue then NZO itself. Current managements' experience is running an investment vehicle from what I understand and very well , so with Zetas' backing (cash and experience), this may be viable for NZO (an option that is well worthy of consideration in my opinion ), as you don't need the bloated overheads in this situation - farm in or subcontract expertise as and when needed, or accountability to a mass of listed shareholders. At present (after shelling a lump for Cue's bits without a full takeover and without access to their cash) I think NZO would be a good buyout and delist prospect. At 90c per NZO share I'm in, but fat chance at that price. PPP is probably on the radar as well depending on Vietnam?
Regards
-d
Interesting scenario and yes anything above 75 cents would be fairyland territory.
However doubt that Zeta or rest of our beloved management, have such altruistic intentions.
But always ready for unexpected surprises.
Here is hoping!
K/R
remember Zeta managed to extract cash from nzo with only 20% holding...what chance from Cue with 40 odd %.....some of Cue,s assets in Indonesia fits with Nzo holdings also so dont, bag them just yet..lets see what happens....do agree tho that what,s best for zeta is what will happen and Nzo shareholders come second
I guess 48%, maybe slightly under.
I think so. You'll never get all the other shareholders voting in one block (or vote at all), so 48% should suffice.
Also I cant see any reason why Zeta couldn't mop up a few shares cheaply to bring
the combined voting power over 50%.
The interesting consequence of that would be that NZOG would then not be obliged to extend the 10c offer
(which would have been the case had they achieved 50% today).
with 13m traded on Friday then nzo have fallen about 17m shares short of 50%
I guess the shares that were bought higher than 10c after the bid announced is the difference and the punters who bought in anticipation of making a profit may just hand there're shares until a better offer comes along
meanwhile if nzo do not extend the offer or increase it, then any support for the sp is lost
it will be interesting to see what happens now
nzo could do nothing for a year and then make another bid
with the au/nz$ almost parity, nzo have certainly made a well timed play with there're surplus funds
They could sell to SPC for 20c if that's what SPC think the share is worth
M
The 5th and latest takeover announcement states that nzo has plans to delist cue from the ASX .They want to save costs for all shareholders.
If this comes to fruition nzo could use cue in all sorts of ways.
If it doesn't it looks as if nzo will still have control over CUE but has to abide by ASX regulations.
I guess it will be like origin control over CEN.
It only takes a suggestion and the sp is hit hard.
Then Zeta can move in and pick up cheap shares
You've got to give NZO credit for how this takeover has been orchestrated. They've managed to get control very cheaply. Why they want to own CUE is another question.
Pateke is looking good-43000bpd achieved but of course production rate will be scaled back for long-term production
cant help but think Pateke might surprise on the upside with regard to size of reserviour...at this stage they seem cagey about "in line with previous estimates"...also read Bukit energy web site with regard to Kisaran wells in indonesia,,,,,,they sound very positive with words like discovery and 100 plus column of oil etc.....still not sure bout indo tho...once nzo gets all drill costs reimbursed by indo govt... the drill partners get 20% of well production and seeing as nzo has only 20 odd % of Kisaran joint venture...whats 20% of 20% worth
with only 2.4million bbls estimated in this field it wont take long to empty it.
with a bit of luck it might be 4million bbls
then there is the "double" drill cost ... what with the drilling balls up....
then there is the very low cost of crude today.......
nothing to get excited about.
sad really........ go back 10 years and most shareholders were discussing what colour Ferrari to buy.
Talk about seeing a glass 1/2 empty.
Personally I like what I have been seeing recently(apart from what is out of nzo control-the price of oil).
Article in the Australian "NZ Oil % Gas plans corporate revamp of Cue". NZO have 48.11%
Hi Fish
Fishes that swim against the tide drown. The tide (market) thinks otherwise - doesn't the share price reflect this?
My take on events is the head fish (CEO) must be tiring of the backward current and preparing to swim in another pool. Comments?
Regards
-dodgy (reluctant owner/shareholder).
Little fish are eaten by bigger fish-eg CUE
Fish that are efficient convertors of food sources into growth thrive -eg pateke-and take more than their share-24% !
Fish that find new food sources tend to be successful-?Indonesia, etc
NZO is a survivor in heavy seas
So far Zeta is steering nzo in directions I like.
Dodgy whats your opinion on future oil prices?
We can only speculate but I see them doubling sometime in this decade -cheap oil prices are leading to increased use-more industrial plant using oil,more cars etc.
Sooner or later market forces will drive oil price up.
The survivors in oil production-especially the predators who are eating distressed producers,should do well.
Morning Fish.
Nice answer. Obviously all speculation is no more than a crap shoot at best. I seriously think geopolitical/religious risk within Saudi/Yemen, middle east, Nigeria etc. may well bring the world a major step closer to conflict and this will result in supply restraints of crude and increasing price, even maybe above the previous peak. So I concur with your view. You have left one of my questions hanging - opinion?
Have a happy day.
-d
I like what Andrew Knight has done and havnt heard of him planning to move.
He has been a good catch
Tides always turn
Don't know if zeta are poisoning the water
Don't know if an attractive bait is being dangled in front of him
Hi Fish, I have not commented much lately. Just dosen't seem much point. The oil price will rebound in about the middle of 2016 for no other reason than that will be about how long it will take to defeat the poor cash flow companies and for world production to drop to meet demand. In the meantime I hope the only drilling we [NZO} do is on wall street so to speak. It is good to hear that the current management is looking in that direction. It could be risky and at the same time maybe profitable to go back into debt to fund more acquistions. Indonesia has yet to prove itself and I certainly will be watching that area.
Any thoughts on that one.
In the meantime I will just wait it out.
The unfortunate news is NZOG is living off the spoils of yesterday.
Kupe discovered in 1986
Tui discovered by their JV partner in early 2000's.
They have not discovered anything like this to replace these assets. Sure Kupe will keep chugging along, but those expensive NZOG offices, board and staff need paying in the meantime.
This company has promised a lot over the years but has failed to deliver time and time again. Most recently was after the GFC when they raised 150M on a rights issue off the back of Tui and then blew much of that money on bailing out Pike.
Now their big focus seems to be on SE Asia with their Indo assets, but they are a minority partner in a PSC deal which will see them make about 20c, so no material change to the business.
Now they have purchased 40+% of Cue. Now what? Is that going to be any better than their previous investments in Pike River and PPP?
As for the capital return, that clearly shows they have no idea what so ever what they are doing. If they truly were the explorers from NZ, then 60M would have got them some good drilling action. Generally that is the way you find oil.
Call me a cynic, but the results and continued trash talk from this company speaks volumes
Now, why would we call you that Notie?:)
[QUOTE=digger;567068]Hi Fish, I have not commented much lately. Just dosen't seem much point. The oil price will rebound in about the middle of 2016 for no other reason than that will be about how long it will take to defeat the poor cash flow companies and for world production to drop to meet demand. In the meantime I hope the only drilling we [NZO} do is on wall street so to speak. It is good to hear that the current management is looking in that direction. It could be risky and at the same time maybe profitable to go back into debt to fund more acquistions. Indonesia has yet to prove itself and I certainly will be watching that area.
Any thoughts on that one.
Good to see you post again digger.
I find it very difficult to take a position on when oil price will rebound.
Cheap oil is fostering increased demand-around 91m bpd a year ago to 93bpd now and the IEA estimating 95bpd in 12 months.
It is cheaper to buy companies who have found oil than it is to drill so I think we will see a big drop in exploration.
The Arab World is in turmoil and this will curtail investment and future production .I don't see iran increasing production by much even if sanctions are lifted.
So the oil price will rebound and in theory the longer we have depressed prices the steeper will be the rebound .
In the meantime I see nzog doing ok from long-term gas contracts and increased pateke production with a 24% share this time.Tapis quality oil that has a premium over Brent.
48% of cue at 10 cents per share looks a bargain-better than drilling
Indonesia I havnt researched-looks as if costs are recouped quickly then the Indonesians get 4/5.
?could this result in delaying tactics until poo rebounds.
Who is making a Take Over bid for PPP right now??????????????????
It is Zeta Energy
What is surprising is that at 5 cents it is just slightly over priced[no] .Also with this spirited offer it quite rightly does not rate a mention on the PPP thread. Did Zeta not pay 9 cents for their 19.9 % so they are saying they made a very poor decision buying in beforehand.
I should think they will get little acceptance at this low offer.
probably a shill bid on behalf of nzo. if the cue board have any balls perhaps they could make a slighty better offer. then it really would get interesting. right up TR s street.
I dont think they will find this quite so easy as cue.
Hi micket
I think TR is a bit past it - don't you think?
Regards
-dodgy (owner/shareholder)
Mega merger on the way? NZO/CUE/PPP = Zeta?
I'm expecting NZO to sell their PPP shares to Zeta
I have just over 2 million and while they were worth a lot more years ago they probably owe me nothing. The first lot came way back when NZO gave them to us. I then bought some more but they also gave us two lots of money one being a capital return. I could probably sell to Zeta and be in the black if you do not count capital cost time. My naturally greed wants a lot more than 5 cents but I am sure Zeta will find a few suckers---just be sure you are not one of them.
It looks a good strategy-
When the price of oil Is low and cue and ppp are cheap
nzo gets a controlling share of cue-including by buying from Todd energy and ZETA.
Zeta has cash available to make a low offer for PPP
They don't need to buy more than around 20% before nzo and Zeta combined have a controlling share.
A merger then is the most likely next step.
Big savings can then be made in management
Numerous synergies and shared Knowledge.
So far I like this scenario
This really is an interesting question.
Zeta will be in it for themselves .
The Cue sp has fallen as expected now the offer is over.
The same could happen with PPP
At 5 cents a share Zeta investment in ppp will be very small.
Their investment in nzo has been big.
Cue and most likely ppp could be forced into merging with nzo on terms based on a low sp for cue and ppp(with no prospect of dividends or capital return who would want to buy into these companies? )
So my thoughts are it could be very positive for nzo but not ppp.
Disclosure-I hold far too many nzo and PPP so nzo is never again on my buying list
NZO has said that if it is deemed 'appropriate' they may delist CUE in the future, I wouldn't be surprised if a mega-merger is in the works.
Too confusing for this head.Saville imo like Hart tends to leave nothing on the table for anyone else esp us shareholders.Hope I'm wrong here.
This sounds like a April Fool stunt. If you make a Takeover you can not then scale it back to 30%. That to my mind would negate the takeover code,as I understand it. Are you sure you did not get mixed up with a comment from NZO during the offer when they said they[nzo] would be happy with 30% if that is what they ended up with.?
This story was also on the NBR website dated Friday and credited to some Jonathan Underhill.
Both sources are word for word identical and quote as the 'ultimate' source businessdesk.co.nz
Seems NBR has replaced its journalistic department with a somewhat unreliable ticker feed.
Have to agree with this observation - it must be some time ago that I remember to have read a properly researched article from NBR. I still like some of their opinion pieces (but there are less and less which are worthwhile reading either) and they certainly are not any more worth what they are charging (if they ever have been).
thats good, Allan T buying ppp shares. zeta have got a fight on. Reckon I might buy a few more.
Could well be a better bid from nzo before expiry of zeta bid, probably nzo script.
Gosh - deafening silence on this thread since balance got banned - you might even believe there is now some upwards potential in this stock ;)
(note: based on my highly unscientific survey do stocks without a lot of noise on their threads perform in average better than stocks with a high daily post rate)
Quarterlies are out - and nobody so far seemed to have noticed: https://www.nzx.com/files/attachments/212040.pdf and https://www.nzx.com/files/attachments/212041.pdf
and actually - not a too bad quarter:
positive cash flow (plus $8 odd million) - first time this year
successful takeover of CUE (and if I look at the recent oil price trend, than their timing was not too bad, either) and
the oil flows in Pakete-H4 ...
ah yes - and they propose a share buy back program (meeting later in May)
If we add the current oil price trend (this morning we had another 3 month high for Brent crude) to the picture ...
I am feeling cautiously optimistic.
Discl: holding (some) - and as usual, DYOR;
Hi BlackPeter
Yes things are a bit quiet. The quarter was the same old - loved the oil awaiting dispatch. However, I am more interested in the special meeting - Wellington again, whereas I guess the majority of retail shares are held north of the Bombays. Less owner/shareholders attending means an easier ride , less sausage rolls aside!
The idea that once again the company spend our funds on buying back shares is, as usual, a fools errand. Every time this company buys back the share price stabilizes or advances momentarily then proceeds South. In other words - waiting longer, to date, has opened a cheaper repurchase option - look back at their record. If NZO are awash in cash either return capital or preferably pay a dividend. In this country dividends are highly prized and longer term generally increase share value. Best of all the owners (us) of the dividends get to choose (yes choose) how to spend the payment. Not only for the benefit of the larger players consolidation plans - think Zeta, PPP, and Cue.
Hope that helps liven your days thoughts.
Regards
-dodgy (owner / shareholder - dividend spending wife)
Already voted against the buy back. Excess funds should be used as dividend payments.
Looks like another failed idea to get the share price up. Clearly this company ran out of ideas a long time ago and time for a large broom to go through there and clear out the board and senior management.
This ranks up with other similar failures in recent years
Brought PPP shares, but now look to be selling them to Zeta for a lot less than they paid for them-great investment
Raised 150M on a rights issue and then pumped a large amount of money into Pike
Ran out of ideas recently so paid some of the money back to shareholder via a capital return
I too have voted against the share buy back.
My reasons are directly related to the Simmons Corporate Finance report. In this document their treatment of the central issue is so inadequate as to be a joke. The main issue that should have been addressed is the quality of the use of the funds involved. The central question should have been “what alternatives could these funds be used for and how well do they compare with the proposed use?” This is the standard opportunity cost criterion, that should be the keystone of any investment decision.
Hi Joshuatree
NEVER confuse Harty with Saville. By comparison Saville drives with learner plates and his targets are somewhat lame.
Have a good weekend.
-dodgy ( owner/shareholder - very critical of NZ governance and management - generally help themselves before the owners).
Wow - some interest this morning - and up to 62 cents! If it manages to keep this level than today is the day it managed to push back through the MA 100. First indicator for a possible trend change? I guess the healthier oil price certainly helps ...