Posted this Dec 2021
Seems to have been the case.
WHERE DID ALL THE SYNERGIES GO?
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Good post Winner. We had a uni professor on sabbatical from the USA come teach us our 3rd year finance paper in the winter/spring of 1997 and he was a merger and acquisition specialist. I remember the term synergy being used a lot. All about Beta's and how merging 2 companies might affect that etc. Synergy seemed to be a good thing though.
I will see if I can read that book you recommend. Sounds very informative. I wonder if there is a psychological reason for synergies being over valued?
the big question indeed. when will revenue pick up again ? cost of living crisis not ending soon , rv sales are like jet ski sales and look at the massive debt levels on falling revenue :scared: no wonder going to the bank. have to agree with others downgrade possible again later this yr
During COVID the tourism industry rental fleets were sold down. Additionally, during covid many rental companies went into liquidation (or some merged) so the number of operators shrunk. Coming out of COVID there was a mad rush from tourists to jump in a campervan/motor home and have a post covid holiday. This meant there was a mad rush by the rental fleet owners to gear back up. The preferred cab chassis manufacturers like Mercedes couldnt keep up with demand so the likes of THL had to take some units from Iveco which are not as reliable as the Merc's or preferred by the rental customer.
THL issues today are only ex fleet sales not the rental side. How long will it take for the sales to recover? Will the rental side come in for some demand decline? I am not sure but that FY26 $100m npat has to be seriously questioned..
Getting a few in opening rush not good idea after all
Will need to average down and hope like hell it’ll come right
Updated that chart I posted earlier to reflect todays action
Seems they not on top of internal reporting / controls …..putting it kindly they don’t have fingers on the pulse or whatever the saying is.
Coincidence that CFO left a while ago and a guy came back from parental leave to look after things until new CFO starts in July?
Something wrong somewhere.