TOY - Toys 'R' Us Anz

[frugal.rock]

Given how the economy is looking I think children of the world should be getting used to a lump of coal and some Aldi & Kmart brand toys this year.

Aye, and they should consider themselves looocky, the little blighters.

 

[greggles]

Nearly $11 million of negative operating cashflow vs negative $4 million last year and trade payables vs receivables swung negative $2 million vs last year as well. I question the value of the inventory on the books as toys don't exactly maintain value. Given how the economy is looking I think children of the world should be getting used to a lump of coal and some Aldi & Kmart brand toys this year.

$37 million market cap company burning through cash at a rate of $10 million a year with revenues of $38 million? Hmm. No thank you.

I'd call 0.00 bottomed out. Not there yet. Still some gullible suckers in the market though.
View attachment 148151

You could well be right. It's hard to tell right now, although management do seem to be determined to turn things around. As you say, a slowing economy certainly doesn't help. They need to trim the fat and drive more sales. I agree that the toy business is very fickle and they need to keep turning over stock. They bought $5 million more stock than they sold in the year ended 31/07/22 which is a concern, especially since they bought it wholesale and are selling it retail.

TOY is currently in a trading halt pending a further announcement. In their response to an ASX Price Query the company said this:

The Company is not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could be an explanation for recent trading in the securities of the Company. The Company holds information which it plans to announce in the coming week, however, currently the announcement cannot be made as the information concerns an incomplete proposal or negotiation that is uncertain. Announcement will be made immediately after the proposal is completed.

So perhaps the share price increase in recent days is related to whatever they are about to announce? TOY could be a leaky ship. We will find out soon enough.

 

[greggles]

Also interesting is that Alex Waislitz took a 5% stake in the company via on market purchases earlier this month by Thorney Investment Group. I wonder what convinced him that the investment would prove to be a profitable one down the line.

 

[divs4ever]

REQUEST FOR TRADING HALT
Toys”R”Us ANZ Limited (ASX: TOY) (Company) requests an immediate trading halt in respect of its
securities.
In accordance with Listing Rule 17.1, the Company advises:
1. The trading halt is requested to assist the Company in managing its continuous disclosure obligations
pending the release of an announcement regarding a potential new commercial agreement.
2. The trading halt is requested to apply until the earlier of the commencement of trading on 21
October 2022, or an ASX release issued by the Company providing details of the commercial
agreement.
3. The Company is not aware of any reason why the trading halt should not be granted.



probably a precursor to a cap. raise ( but just guessing ) a 'pump and beg ' play i suspect

i hold TOY ( and been watching my capital disappear even faster than perceived inflation )

but at least the current rally will cover the brokerage if i sold ( but only the exit brokerage )

 

[peter2]

Oh, come on. The standard "we know nothing" and less than one hour later there's a request for a trading halt to finalise and then announce an imminent business deal.

 

[divs4ever]

now maybe senior management didn't , but depending on the actual news ( after the halt ) somebody with more ready cash than me DID ( or has been tricked into buying )

i wonder if the regulator will 'follow the money ' to look closer

 

[divs4ever]

The Company noted an article dated 17 October 2022 entitled ‘Macy’s Partnership Signals A Brand New Future For Toys R Us’
released on Forbes (https://www.forbes.com/sites/joanve...rand-newfuture-for-toys-r-us/?sh=187be45542a6) (“Article”), which discusses WHP Global’s partnership with Macy’s and the installation of 451 Toys”R”Us branded toy shops in Macy’s stores. However, the Company would like to clarify that this partnership and matters raised in the Article has no material impact on the Company as it wholly relates to WHP Global’s US operations.

PS the indicated Forbes article has now disappeared ( coincidence ?? )

 

[greggles]

PS the indicated Forbes article has now disappeared ( coincidence ?? )

Here's a working link: https://www.forbes.com/sites/joanve...and-new-future-for-toys-r-us/?sh=3478aa442a6e

Yours is missing a dash between "new" and "future" in the URL.

 

[divs4ever]

the next question that comes to mind IS , is that still related to the ASX listed stock

TOYS'R'US ANZ LIMITED​

there are some tiny ( but important ) differences in the branding , which may start a brawl over trade names

Substantial Shareholders List​

NAME	SHARE HOLDING	SHARES HELD (%)
Louis Mittoni and Associated Entities	291,205,818	34.33%
Jason Sourasis and Associated Entities	109,733,159	12.93%
Regal Funds Management Pty Ltd	61,259,729	7.22%

and very recently Tiga Trading with just over 5%

i guess time will tell

 

[greggles]

So here's the news that interested observers have been waiting for.

TOY has signed a sub-license agreement with WH Smith High Street Limited in the UK to trial nine Toys R Us store-in-store implants, all of which are scheduled to open in the first half of 2023.

Announcement a bit of a let down really. The UK economy is tanking and nine trial stores won't be more than a drop in the bucket in terms of revenue. There is no guarantee that the store-in-store implants will be increased (or even maintained) after the trial period ends 12 months after the first store is opened.

So I can't see this really going anywhere. The market agrees and TOY is down 14.5% following this underwhelming announcement.

 

[divs4ever]

indeed correct ,
not quite the confirmation of that Forbes article the market might have been expecting

and let's face it new exposure to the UK this festive season could be a real tester

 

[UMike]

Not Even tha wannbe chief bottom picker of ASF would invest in this.

I have picked it for the November comp tip.
The most interesting detail of this pic is the gap between buyers and sellers. Pick the timing right there could be a good margin trade.

 

[greggles]

View attachment 148637

Not Even tha wannbe chief bottom picker of ASF would invest in this.

I have picked it for the November comp tip.
The most interesting detail of this pic is the gap between buyers and sellers. Pick the timing right there could be a good margin trade.

Good luck with it in the November competition. I thought that TOY may have been on the path to recovery with the share price bouncing back this month, but the recent announcement didn't impress me. But that doesn't mean they are out of powder yet. Might be some other news around the corner. I will watch with interest from the sidelines.

 

[UMike]

Down to 2c now. Lets hope they get a Christmas spirit boost.

 

[UMike]

Interesting announcement.

ON-MARKET SHARE BUY-BACK 22 February 2023 - Toys“R”Us ANZ Limited (ASX: TOY) (Toys“R”Us or the Company), today announced its intention to commence an on-market share buy-back of up to 10% of its fully paid ordinary shares (Share Buy-Back) on the terms specified in the Appendix 3C released earlier.
The Board considers that the Company’s current share price does not accurately reflect the underlying value of the Company’s assets, and the Share Buy-Back represents an opportunity to add value to the remaining shares on issue. The Share Buy-Back is a flexible and efficient capital management initiative and also reflects the Board’s confidence in the Company’s ongoing performance.
The Share Buy-Back is expected to commence from 8 March 2023 and to remain in place for a period of up to 12 months unless concluded earlier or extended by the Company. The Share Buy-Back will be within the “10/12 limit” as defined under the Corporations Act and accordingly does not require shareholder approval.
The timing and actual number of shares to be purchased under the Share Buy-Back will depend on the prevailing share price, business and market conditions and other considerations such as forecast future capital requirements and any unforeseen circumstances. The Board considers that the Share Buy-Back will not impact the Company’s current activities for the next 12 months.
Canaccord have been appointed by the Company to act as broker for the Share Buy-Back. Toys“R”Us advises shareholders that there can be no certainty that the Company will acquire any or all shares under the Share Buy-Back. This announcement is authorised for release by the Board of Directors.
For media enquiries please contact: Rochelle Burbury, Third Avenue Consulting 0408 774 577 Rochelle@thirdavenue.com.au

 

[debtfree]

I've noticed @UMike's last post has sent TOY down further in price but hopefully it has now found it's bottom. Yes it's been a big fall from the tops in November 2004 at $41.50, OMG, now only 0.015 cents.

I have selected TOY in the November Monthly Comp.

There has been some momentum and volume go through of late so someone has a little interest in it. Will they continue to push prices up or not, time will only tell but the chart gives me a glimmer of hope, atm!
The 10day EMA is finally above the long term EMAs after nearly 2 years so that a positive and besides that, I need a multibagger to get me back to breakeven in the Comp .