Australia's largest stock trading and investment forum Australia's #1 stock forum

ORL

Click for more information

0.00%

43.5¢ orotongroup limited

Exactly right. They poisoned the company and made it very hard...

First 5 Last

Share
Profile

Follow
persistentone

1,491 Posts.

16

22/05/15

11:21

Post #: 15330940
Share

Originally posted by ValueSnatcher ↑

EV/EBIT for ORL is currently around 18x based on guidance and a $2.15 share price.

PMV by comparison at the FY result was 13x.

Making an acquisition tough to justify on current earnings. Also they state that the AUD is a big contributor to the decline, however I don't think many of us would expect the AUD to settle much higher than even 85c at the most optimistic estimates. More likely lower than currently. So this statement, in a way, tells me that they have can expect more downside to earnings as the dollar falls.

There is scope to increase EBIT substantially if any acquierer could steady the ship by getting Oroton back on track and getting the acquisitions in shape.
But I think that the assets are a bit odd for an acquirer to want. You have a high end fashion biz and then two low margin distribution brands..which will require completely different strategy.

Expand

Exactly right. They poisoned the company and made it very hard to sell by buying retailers.

ORL Price at posting: $2.20 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

The market's shrugged at China's stimulus measures all year. Why is this one different?

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

The winners & losers on market if negative gearing were gone

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

There are more pages in this discussion • 4 more messages in this thread...

First 5 Last

Add ORL (ASX) to my watchlist