This will be one of my very long term holds, ten years of divvys should cover the paper loss me thinks but if they get their act together, well you never know what could transpire, I do like the company so that's a bonus aye:cool:
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This will be one of my very long term holds, ten years of divvys should cover the paper loss me thinks but if they get their act together, well you never know what could transpire, I do like the company so that's a bonus aye:cool:
Yes, and "rocky" seems to fit as well.
Interesting is as well the statement "gaps in some key elements of the management team" (referring to Farmside). Just wondering - is he referring to gaps in managers (how do I imagine that with presumably one manager being one key element)? or is he referring to missing team members?
Overall - TeamTalk is an experienced team but seems to have bought with Farmside a lemmon (and / or at least paid ways too much for it). Nevertheless - good to see that they still make some sort of profit (if we ignore the good will write off). Lets hope the story develops like PGW after the big write off .... there are certainly plenty of opportunities!
Ah yes - and the liabilities to assets ratio is moving towards CNU levels (well, not quite there yet, but 64.5% isn't flash, either). Hope that they soon start again to earn the divvies they pay.
Must agree with you,"isn't flash" .................may be this year's understatement.!!!! lol.
That $34m of debt is a worry but no principal due to December 2015.
Talk of breaching covenants always leads to the old Altman-Z solvency test.
On that balance sheet TTK score is the worst I have come across - even worse than Postie Plus. According to Mr Altman TTK " Probability of Financial embarassment is very high" and this even after not counting the $34m of Retained Losses in Equity.
I would think that Westpac are taking a lot of interest how things are going, and will get more involved if the rocky road becomes rockier I would think
Obviously happy for TTK to pay this divie. Next years?
Anybody know what their capex requirements are going forward, in the next year or two?
MD Ware just sold 75,000. Must be planning another trip to Europe. Big fat sell this.
I sold when they bought Farmside, and broke even. This acquisition immediately reduced EPS and I wondered what other dumb things they might do.
David Ware writes in plain English and I like that. Doesn't mean he's a good businessman though.
IMO you can only mass send reports to shareholders from the south of France (like he did) when your company is humming.
TTK... one of my first little case studies and have a bit of a sentimental attachment but yes I to am concerned about there level of debt for such a small company and there talk of requiring significant further investment before getting things right.
Plan to have a little more of a looksie this sunday - anyone got leads on particular area's of concern with TTK and any potential light at the end of the tunnel?
Cheers
TG