This is what Mr Dick Smith said which I strongly agree. You simply CANNOT turn $92m business into $500m business within 12 months and float back to ASX.
"You don’t need to be very bright to realise that a company worth $90 million one moment is unlikely to be worth $500 million 12 months later just because it had a change of ownership.” He added that: “It was pretty obvious to me that anyone buying those shares would be taking quite a risk.”
Source: https://www.********.au/2015/12/08/...thy-for-dick-smith-holdings-ltd-shareholders/
Not to mention, private equity left DSH with little inventory stocks to sell (ie holders need to pay for new inventory items to restock shelves).
So $92m business - full with stocks; $500m business re-sold 12 months later to ASX with little stock in warehouse. Essentially private equity used DSH's stocks in warehouse to pay for $92m acquisition cost (pay itself, got for free). Than resale back for $500m with empty shelves.
Totally laughable.
- Forums
- ASX - By Stock
- DSH
- Ann: Trading Halt
Ann: Trading Halt, page-106
-
- There are more pages in this discussion • 245 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)