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VTG, VITA GROUP LIMITED
nipper
post Posted: Apr 4 2017, 01:58 PM
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Posts: 7,614
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made it back over 6 months only to lose it in 6 minutes
QUOTE
A leaked internal Telstra document has revealed the telco giant is considering taking back control of some of its store network, potentially clashing with its major retail partner Vita Group. Vita's share have tumbled to $2.91 on the news, down 9.6 per cent in trading on Tuesday.

Eleven of the identified stores are currently operated by listed company Vita Group, which is Telstra's only Master Licensed Dealer and operates just over 100 of Telstra's 350 stores around the country.

Vita released a statement to the market on Tuesday noting that conversations with Telstra are confidential. "Telstra and Vita Group have enjoyed a strategic relationship for 22 years, presently governed by a Master License Agreement, which applies to all of Vita Group's Telstra stores," the company stated. "The Master Licence Agreement has been extended a number of times, and currently extends to 2020." "The terms of the Master License Agreement are confidential and any significant changes to it are subject to mutual agreement."

Internally, Telstra has identified 16 stores it believes would be more profitable if they were brought back into the Telstra Shop Network, because it would no longer have to pay sales commissions to licensees. It could take back control by not renewing the Telstra Dealership Agreement [TDA] with licensees, according to the document.

A Telstra spokesman said the document was only an "internal draft developed for discussion purposes". However, if Telstra goes ahead with these plans it would reduce by one tenth the number of Vita-operated Telstra stores.

This includes five stores in New South Wales - Macarthur Square, Tuggerah, Hornsby, Rouse Hill and Erina Fair - three in Western Australia, Rockingham, Success and Midland Gate, and Queensland's Chermside and Northlakes stores, and the Werribee dealership in Victoria.

"There are sixteen identified stores to buyback which meet the "no regrets" criteria," the leaked document states. The 'no-regrets' criteria includes being located in a major metropolitan shopping centre, if the regional director approves of the move, and if the store is likely to have a positive operating cash flow if it is part of the Telstra Shop Network rather than paying commissions to a dealer.

Telstra spokesman Steve Carey said "the document in question is an internal draft developed for discussion purposes only". "It does not reflect the viability of any of the stores listed, and no decisions can be taken on individual Vita sites due to the nature of the agreement," he said. "There are no current plans to amend our arrangement with the Vita Group. All conversations with Vita and individual licensees are confidential."

He added Telstra regularly reviews its store footprint and licensee arrangements. "The agreement we have in place with all our licensees clearly states when changes can be made and the process we must follow," Mr Carey said.

The document noted the TDA non-renewal is currently underway at the independent dealership at Fountain Gate, believed to be the dealership on level two of the Westfield shopping centre. The remaining four stores are independent dealerships in Robina, QLD, Joondalup, WA, and two in the Westfield mall in Carindale, QLD.
SMH



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 13 2016, 02:03 PM
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Vita Group is another one that has fallen out of bed .... now $2.75 ; was $5.30 in Sept

QUOTE
Part of the reason is the lack of control these minnows have over the gorillas they are dealing with. In Vita's case, it's Telstra, while Bellamy's is trying to come to terms with the Chinese consumer and the country's bureaucracy.

Interestingly, the New Zealand-based small cap fund manager Pie Funds has sparked some buying in Vita, stating in its recent newsletter that, having reduced its holding from 13 per cent to 2 per cent in early November, it is "back buying again". According to the Pie Funds founder Mike Taylor: "Of late, there are a lot of new investors to the Vita story who don't necessarily have the knowledge and understanding of the business that we do, and hence they've just exited their positions." Taylor then goes on to sum up the problem for many who aren't stepping up to the Vita plate: "This extreme markdown in price is not a result of a material earnings downgrade, but of uncertainty about the relationship with (Telstra)."

It's also worth knowing the founder, Maxine Horne, sent a shock through the market in September when she sold 10 million shares for $49.5 million.

Richard Hemming is an independent analyst who edits undertheradarreport.com.au



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
ShareScene.com
post Posted: May 5 2008, 03:30 PM
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Topic rename

From:
FONE ZONE GROUP LIMITED (FZN)

To:
VITA GROUP LIMITED (VTG)

Thankyou
Sharescene.com

 
Bluechip
post Posted: Jan 10 2007, 02:38 PM
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Posts: 35


In reply to: wrxsti on Thursday 13/07/06 01:53pm

This stock looks like it has been insider traded by Investec in a major way. Looks like shit is about to hit the fan with ASX/ASIC. Serves them right - who announced a profit downgrade 12 days before a period ends? The directors of FoneZone have been sloppy reporting material information in my opinion.

 
wrxsti
post Posted: Jul 13 2006, 01:53 PM
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http://www.fnarena.com/index2.cfm?type=dsp...52A083EF675CB75

http://www.fnarena.com/index2.cfm?type=dsp...52A083EF675CB75

Things are happening at FZN. Tightly held, excellent management, and with huge prospects ahead IMBO.
The analysts/brokers obviously agree judging by the report shown on accessing the link posted. This stock was untouched by the latest correction, and on my intel, the second half was indeed huge when compared to the good first half, by way of the urgently increasing migration of all Telstra CDMA Customers to the Telstra 3G network via FZN - the No. 1 Telstra Dealer in Australia. Consequent large Telstra incentives and revenues per migration (to the Dealer) achieved will mean a massive upside in total revenue booked for the second half. Also, an imminent take-over of a large, well established, and dominant 'opposition' group is always on the cards, as has been seen previously with FZN, in it's already announced growth strategy going forward. Been flying under the radar for some time, and major break-out into new highs will not surprise on release of news, and/or reports.
wrxsti



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"To conquer without risk is to triumph without glory."
 
ShareScene.com
post Posted: Dec 19 2005, 10:16 AM
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Created by request:
FONE ZONE GROUP LIMITED (FZN)

Thankyou
Sharescene.com

 
 



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