SHRIRO HOLDINGS LIMITED (ASX:SHM) - Shriro - a value play, page-25 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Value21 ↑

Thanks for the update @Ivanovich, i knew it must have been a Fund selling, just didn't know who.

You know they say in the short-term the stock market is a voting machine, in the long-term it's a weighing machine. I'd agree that 12 x would be about right for this, and if we strip the IPO costs for FY15 then we get a MC of around $150M. Assuming NPAT for FY16 is around the $13-$14M mark which should be achievable given managements comments in the recent annual, then we could be looking north of $160M MC.

Have also noted a recent posters concern as well regarding Director remuneration particularly with regard to some Director "IPO Bonuses" which were paid for their "assistance in IPO'ing the company". These were to the tune of >$1.5m which i think is excessive. Add back this $1.5M "bonus" to the CY15 figures and go figure...I find it funny how the Investment Banks and Corporate Actions teams are already paid by SHM to take the company public, yet Directors grant themselves a 'Santas little helper' fee for their "assistance".
I think the structure of the rights issues and incentive plans issued by the board are freebies more than anything. I'm not too happy about the structure of some of these plans and i think they can be more a blank cheque signed by shareholders rather than an alignment of management/shareholder interests. Admittedly i actually missed this in the prospectus and didn't bother to review the remuneration and IPO costs more rigorously than i should have so my fault. Doesn't mean i still wouldn't have buyer - i would have - i just think maybe this could be brought up by someone such as a Top 20 shareholder in the next AGM if any are reading this.

Expand

Very good points medici which I will take up with the CEO. I read the IPO bonuses after the float, same deal should have read the prospectus before.

Originally posted by Value21 ↑

Thanks for the update @Ivanovich, i knew it must have been a Fund selling, just didn't know who.

You know they say in the short-term the stock market is a voting machine, in the long-term it's a weighing machine. I'd agree that 12 x would be about right for this, and if we strip the IPO costs for FY15 then we get a MC of around $150M. Assuming NPAT for FY16 is around the $13-$14M mark which should be achievable given managements comments in the recent annual, then we could be looking north of $160M MC.

Have also noted a recent posters concern as well regarding Director remuneration particularly with regard to some Director "IPO Bonuses" which were paid for their "assistance in IPO'ing the company". These were to the tune of >$1.5m which i think is excessive. Add back this $1.5M "bonus" to the CY15 figures and go figure...I find it funny how the Investment Banks and Corporate Actions teams are already paid by SHM to take the company public, yet Directors grant themselves a 'Santas little helper' fee for their "assistance".
I think the structure of the rights issues and incentive plans issued by the board are freebies more than anything. I'm not too happy about the structure of some of these plans and i think they can be more a blank cheque signed by shareholders rather than an alignment of management/shareholder interests. Admittedly i actually missed this in the prospectus and didn't bother to review the remuneration and IPO costs more rigorously than i should have so my fault. Doesn't mean i still wouldn't have buyer - i would have - i just think maybe this could be brought up by someone such as a Top 20 shareholder in the next AGM if any are reading this.

Expand

Originally posted by Value21 ↑

Thanks for the update @Ivanovich, i knew it must have been a Fund selling, just didn't know who.

You know they say in the short-term the stock market is a voting machine, in the long-term it's a weighing machine. I'd agree that 12 x would be about right for this, and if we strip the IPO costs for FY15 then we get a MC of around $150M. Assuming NPAT for FY16 is around the $13-$14M mark which should be achievable given managements comments in the recent annual, then we could be looking north of $160M MC.

Have also noted a recent posters concern as well regarding Director remuneration particularly with regard to some Director "IPO Bonuses" which were paid for their "assistance in IPO'ing the company". These were to the tune of >$1.5m which i think is excessive. Add back this $1.5M "bonus" to the CY15 figures and go figure...I find it funny how the Investment Banks and Corporate Actions teams are already paid by SHM to take the company public, yet Directors grant themselves a 'Santas little helper' fee for their "assistance".
I think the structure of the rights issues and incentive plans issued by the board are freebies more than anything. I'm not too happy about the structure of some of these plans and i think they can be more a blank cheque signed by shareholders rather than an alignment of management/shareholder interests. Admittedly i actually missed this in the prospectus and didn't bother to review the remuneration and IPO costs more rigorously than i should have so my fault. Doesn't mean i still wouldn't have buyer - i would have - i just think maybe this could be brought up by someone such as a Top 20 shareholder in the next AGM if any are reading this.

Expand

Very good points and I saw the $1.5M bonuses at the IPO after the fact as well. I think management have been given a lesson now that they need to fully align themselves with shareholders and know what the consequences will be if they don't.....almost like they are escrowed again now. I'm going to attempt to find out why the CEO thought it was reasonable to offload 25% of his holding under $1. I think it will get back to a $1 in the short term but grind for a number of months to get above that regardless of the stock being undervalued.

No.	Vol.	Price($)
1	112859	77.5¢

No.

Vol.

Price($)

112859

77.5¢

Price($)	Vol.	No.
79.0¢	2724	1

Price($)

Vol.

No.

79.0¢

2724

No.	Vol.	Price($)
1	112859	0.775
1	10000	0.770
2	11315	0.760
3	20748	0.750
1	10000	0.740

No.

Vol.

Price($)

112859

0.775

10000

0.770

11315

0.760

20748

0.750

10000

0.740

Price($)	Vol.	No.
0.790	2724	1
0.800	20000	1
0.805	7166	2
0.810	22195	2
0.840	10000	1

Price($)

Vol.

No.

0.790

2724

0.800

20000

0.805

7166

0.810

22195

0.840

10000

(20min delay)
Last 79.0¢		Change 0.015(1.94%)		Mkt cap ! $76.16M

Open	High	Low	Value	Volume
78.0¢	79.0¢	77.5¢	$73.95K	94.78K

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