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BWX - BWX LIMITED


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No doubt Goldman Sachs will lower price targets but still set them them well north of fair value.

 

https://www.fool.com.au/2018/03/06/bwx-ltd-...limb-65-higher/

 

(Not so) Surprisingly, GS has raised it's price target after the disaster Half Year!

 

Interestingly:

 

the weakness at Mineral Fusion attributed to one-off channel stocking by the previous owners.

 

https://www.fnarena.com/index.php/2018/03/0...ands-its-reach/

 

Operationally, the channel stuffing is likely to average itself out in the long run, but the acquisition price was determined off a forward looking revenue and profit forecast and lauded as a bargain buy based on a revenue to consideration ratio. Not so bargain if that revenue figure is artificially inflated by short term supply chain distortions.

 

Haven't checked if there was a corporate/financial adviser to the deal, but can't imagine they'll be invited back.

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  • 4 weeks later...
BWX, which owns skincare brand Sukin, has gone into a trading halt after the company was approached about a potential takeover.

 

Melbourne based BWX, a vertically integrated body, hair and skin care manufacturer and distributor, requested a two-day trading halt on Monday, citing a potential control transaction.

 

This time the acquisitive BWX, which has made three bolt-on acquisitions in less than 12 months, is the target.

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Hope you're not still short JSB - current position as at 15 May 2018 - 10.58%, although lower than the 13% at it's peak

 

https://www.shortman.com.au/stock?q=bwx

 

As per AFR article - Agony awaits BWX short sellers http://www.afr.com/brand/rear-window/agony...20180521-h10c0w

 

Suggestion is shorts will need to cover, which could send the price even higher than the offer price of $6.60

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Kept it on the radar, but fortunately no exposure long or short - I think the trade had already played out.

 

I'm not certain but there could be a spot of bother for Humble with his involvement in the consortium. The minimum bid price rule for takeovers prevents acquisition of shares at a price different to the offer price in the preceding 4 months. I'm not sure if it also applies to a Scheme of Arrangement, which is the proposed transaction structure for the buyout, but Humble bought $800k on market at $4.859 on April 18. If it limits the transaction structure to a Scheme, then they're gong to need approval of the independent board, and with the capital raisings (institutional shortfall for the Andalou acquisition cleared at $7) and analyst target prices of last year, the question is "will $6.60 be enough?"

 

:)

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  • 1 month later...

Good article.Finlay and Humble both did sell off some $2 options back in November at $4.80 each, at the time of the buys this year I though it may have been more a show of confidence to the new institution investors that paid up back in December. Still, if they were planning their own takeover at that stage..

 

Should clarify my post below where I seem to have confused myself. Share purchases by a potential acquirer in the 4 month lead up period to a bid do not have to be the same price, but any proposal has to be equal or higher to the highest price paid in the lead up period. Once the offer is open however, thereÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s no price discrimination.

 

 

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BWX shares have dropped 7.5pc to a 2.5 month low of $5.025 on disappointing earnings guidance. The integrated skin & haircare products company guided to an increase in EBITDA for the FY ending June 30 of 52-55pc to $40m to $41m.

 

Traders say this appears to be a miss from previous guidance. BWX has also pushed out its results to August 29 to give time for its strategic review and evaluation of takeover bid from a Bain Capital consortium.

 

The share price is now just 10pc above levels prevailing before the takeover bid was launched at $6.60 a share on May 21.

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  • 1 month later...

extract from AFR article

BWX on the hook for $1m tax bill for ex-executive's loan scheme

 

But the risk to investors of executive loan schemes is that the non-recourse loan is limited to the value of the shares. So, when our BWX executives leave and a portion of the loan is forgiven, the company is then on the hook for fringe benefits tax (at a whopping 47 per cent) on the portion of the amount foregone. GPT investors found out all about this turd in the punchbowl ten years ago when its then-chief Nick Lyons abruptly "resigned".

 

read more - https://www.afr.com/brand/rear-window/bwx-o...20180924-h15s6o

 

Short positions have been building since their "resignation" - as at 19 September 2018 = 9.96%

//www.shortman.com.au/stock?q=bwx

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It's been a week since BWX announced its key executives John Humble and Aaron Finlay would resign following the collapse of their Bain Capital-financed management buyout proposal. But the company has yet to lodge their final directors interest notices.

 

John Humble/LHS sold on market 6.5mil shares @ $3.70 on 21/9/2018 - ceases to be a substantial holder, which means he can continue selling, if he wishes, without needing to advise ASX.

 

SP currently $3.725 - down 3.99%

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