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MYR - Myer Holdings

Discussion in 'Stocks I-P' started by kennas, Sep 28, 2009.

  1. kennas

    kennas hoarding tinned food

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    Just what is this company selling?

    I'll buy it if it's from the front of the prospectus.

    They're obviously trying to target the informed investor.... :eek:
     

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  2. Nyden

    Nyden G.E. Money Genie

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    Re: MYF - Myer Holdings

    I'll take a billion dollars worth please.

    Joking, of course.

    I'm still unsure about this one. Myer are kind of a middle-ground store. They're not quite high-end, but they're probably a little better than K-Mart. Good future in targeting middle-class folk in boom times, perhaps?
     
  3. investorpaul

    investorpaul

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    Re: MYF - Myer Holdings

    I can see this float being over subscribed, the share price opening sharply higher and then plummeting after 2 or so weeks. I.E. Retail holders all jump in thinking its the float of the century and all the smart money moved out quick smart making a nice profit.

    My opinion only, DYOR
     
  4. explod

    explod explod

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    Re: MYF - Myer Holdings

    Smart money maybe behind the float in the first place I think. Lambs to the slaughter again IMHO


    Just my old muses
     
  5. TheAbyss

    TheAbyss

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    Re: MYF - Myer Holdings

    Precisely.

    Equity money has bought at a price, borrowed more money to do it. Yes they have increased turn over from the lows but not certain they had anything to do with it as the Govt Stimulus packages were a contributor.

    They have now packaged up a circa $1.2b business, a mountain of debt and a tidy profit to arrive at a value per share and selling it to mums and dads.

    Institutions will be out quick smart and this will be a potential Babcock/ MQ shrink wrapped debt vehicle for the rest. My money is on a 1-2 week window to sell out or you will be stuck with them and talking up the dividend prospects.
    :2twocents
     
  6. oldblue

    oldblue

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    Re: MYF - Myer Holdings

    I'll be having a hard look at the prospectus .... if I can get past the cover!

    But seriously, I wouldn't underestimate the power of the Myer name in the Australian psyche nor in the Aussie wallet so I'll be taking a good look at the numbers before dismissing it as a hard sell. If I get offered any, that is

    ;)
     
  7. swm79

    swm79

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    Re: MYF - Myer Holdings

    agreed - in and out with a quick turn around on this one would be the only way to go.

    short term DEAD money IMO... esp with the lack of stimulus monies.

    dont think i'll touch this one - better opps elsewhere IMO

    but, DYOR
     
  8. Caliente

    Caliente Black Gold!

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    Re: MYF - Myer Holdings

    yeah, just got this in the inbox as well.

    P/E ratio for the offer will be about 15 which I think is quite reasonable given retail rival DJS is trading on a relatively expensive 20.

    70-80%payout fully franked also seems pretty reasonable.

    Not sure, but am tempted to grab a few units... any other takers???
     
  9. mythos

    mythos

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    Re: MYF - Myer Holdings

    Michael Pascoe, has slamed the Myer float, as the private equiteers ripping off the retail investors.
     
  10. mythos

    mythos

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  11. Caliente

    Caliente Black Gold!

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    Re: MYF - Myer Holdings

    thanks for the article. It's pretty scathing - but nevertheless I thought given the hype that the Myer IPO is going to be a success and there should be some profit for the taking when it opens.
     
  12. mythos

    mythos

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    Re: MYF - Myer Holdings

    I agree, should be able to make a quick profit. Everyone I have run into the last couple of weeks is talking about trying to buy Myer shares for the long term. Going to be big interest from the punters to buy em and stick em in the drawer.
     
  13. Silhouette

    Silhouette

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    Re: MYF - Myer Holdings

    ...pretty blunt and aggressive...was he refused a refund for a set of Maxwell & Williams plates or something? :D
     
  14. TheAbyss

    TheAbyss

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    Re: MYF - Myer Holdings

    Bottom line is private equity paid $1.2b, borrowed $390 m added in a tidy profit and are trying to flog it to Joe public for around $2.4b. That is a profit of approx $800m that they want us to fund on the strength of some rubbery eps estimates that may or may not eventuate.

    Other side of the coin is emotion gets involved when it is an iconic name up for sale so retail investors will like it.

    "Get in get out" is the credo on this one.
     
  15. Awesomandy

    Awesomandy

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    Re: MYF - Myer Holdings

    While I'm not very familiar with this business, from memory, it was rather poorly managed back in the Coles Myer days in terms of generating financial performances.
     
  16. Kremmen

    Kremmen

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    The retail issue price will be determined on Fri 30 Oct after the institutional offer closes.

    Trading on the ASX will commence on Mon 2 Nov. Shares will trade on a conditional and deferred settlement basis, with normal settlement trading to commence Wed 11 Nov.
     
  17. OZInvestor

    OZInvestor Rod

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    Re: MYF - Myer Holdings

    Guys ,

    What do u people say abt MYF ???

    Is it just a hype or will it go really high .. ???

    I have planned to go for it .. what do u people reckon ??
     
  18. nomore4s

    nomore4s Commonsense isn't that common

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    Re: MYF - Myer Holdings

    Rod,

    How about adding a bit more depth to this post by stating what you think will happen and why, maybe then you will start some discussion on it that will give you some other peoples views on it.
     
  19. philly

    philly

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    Re: MYF - Myer Holdings

    I did a little bit of research on Myer.
    In Australia there are only 2 non discount department stores and they are David Jones Stores [ASX Code DJS] and MYER Stores. It follows that any analysis of MYER must involve a comparison with DJS and also to a lesser degree the discount department stores [Target, K Mart and Big W].

    MARKET SHARE
    In the 2009 FY the department store market was worth $18.7 billion. The key players % share was as follows:
    DJS 11.7, MYER 19.2, TARGET 21.2, K MART 22.4 & BIG W 23.9
    On market share MYER is clearly ahead of DJS by 7.5% [or about $1.4 billion pa].

    FUTURE GROWTH: NEW STORES AND REBUILDS
    DJS currently has 36 stores across Australia.
    It is building 4 new stores – Sunshine Coast, Gold Coast, Sydney and Perth.
    It is in negotiations to build a further 4 new stores
    It is rebuilding 2 stores in Melbourne and Perth.
    It has completed or is in the process of refurbishing 7 stores
    It plans to refurbish between 3-5 more stores

    MYER currently has 65 stores across Australia.
    It is planning to build 15 new stores in the next 5 years.
    It is rebuilding its flagship store in Melbourne.

    DIVIDENDS
    DJS is currently paying investors a dividend of 28 cents per share. This represents a yield of about 4.83% pa.

    MYER predicts that it will pay a dividend of between 20 - 21 cents per share. This represents a yield of between 4.3% - 5.3% pa.

    This is just my:2twocents and as always DYOR
     
  20. Kremmen

    Kremmen

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    With the market sliding this week, it'll be interesting to see what the issue price will be. If the institutions get cold feet, it might make MYR's retail offer come in closer to the better value end of the range. For those subscribed to the float, a market slide this week and a bounce back next week would be ideal.
     
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