Quarto Share Discussion Threads

[fenners66] 16/8/2017 09:18

Going back to the previous announced results - this business is in trouble, kitchen sinking 2016 did not work and the mystery bidder is not really interested - but they do not mention due-diligence , perhaps this was refused - maybe they did not want him seeing the books - and so he walks away.....

[fenners66] 16/8/2017 09:15

battlebus 214 "How can it be low given this mornings statement"

galeforce1 217 "Of course if the bid fizzles you're left with a holding that's really difficult to sell."

Battlebus - you have your answer

[battlebus2] 16/8/2017 07:57

Yes all too convenient and the reasons are pretty lame.

[spooky] 16/8/2017 07:49

IMO the insiders always knew the bid was a non starter.

[stocktastic] 14/8/2017 19:16

Agreed battlebus - it is also too easy for people to make fraud bids. An ex employee claiming to have the support of bankers for example. Not saying that is the case here, but bidderz should be made public after pulling out if not before

[battlebus2] 09/8/2017 09:59

One downside of not being a UK listed as opposed to Delaware means there was no need to declare who made the approach, if it comes to nought we may never know..

[stocktastic] 09/8/2017 09:51

Looks like the market doesnt believe Leaver

Bids at a time of weakness - a company with an accounting screw up, too much debt and underperforming sales... does not typically see a fantastic bid.

Still, this could be a rival taking its chance to grab this, as opposed to quarto being 'rescued'?

When Leaver said the terms looked positive - he maybe meant for himself securing a chunky payment?

[stocktastic] 08/8/2017 17:42

"How can it be low given this mornings statement"

Because the rest of the statement shows a company with high debt that will be in a pickle if xmas trading isnt good

[galeforce1] 08/8/2017 12:52

Seems to me quite an interesting risk/reward situation here.

Shareholders are reducing or exiting because the preliminary approach and results provide a bit of liquidity in a share that it usually very illiquid.

Unfortunately the debt is quite high, but otherwise there are things to like about this company. Very good CEO. Useful niche in illustrated books. Global footprint. Useful insti. investors like Herald and Liontrust.

If the bid is at £2.50 and you can buy at £1.50 that would be a nice turn. Of course if the bid fizzles you're left with a holding that's really difficult to sell.

[battlebus2] 08/8/2017 12:13

Only a small holding from years back held mainly for the dividend but I wouldn't add on today's results.

[spooky] 08/8/2017 12:09

God knows, but trading this morning doesn't inspire confidence. I do not have a position.

[battlebus2] 08/8/2017 12:03

How can it be low given this mornings statement.

[spooky] 08/8/2017 11:56

Heavily offered, someone definitely doesn't think the bid will happen or that the price will be low.

[trogerswinning] 08/8/2017 09:04

battlebus28 Aug '17 - 07:21 - 208 of 210
Results not good and interim dividend cancelled but let's hope the offer is around £4/5 and we're all happy.

No chance. It will be closer to £2-£2.50.

[battlebus2] 08/8/2017 08:19

Strange to speak of the bid as attractive before negotiations, suitor must be know by co? 🤔

[stocktastic] 08/8/2017 08:16

Thoughts on which potential bidder?
The debt and poor performance must be off putting!?

[battlebus2] 08/8/2017 07:21

Results not good and interim dividend cancelled but let's hope the offer is around £4/5 and we're all happy.

[fenners66] 04/7/2017 13:40

The annual report published "adjusted headline figures" which suggested underlying growth.
The loss ascribed to write downs and losses in the disposed of Australian business , not sure about the NZ co.
One might think that as they split the NZ out in order to improve the realisation on sale that it could be profitable and thus worth selling.
However it may have been that it was worse and the buyer of the Aus co. did not want it.

Either way to have removed the yoke of the Aus co. was supposed to leave the underlying profitable growing business and kitchen sink 2016.

If now some few months later we are told that profitability is getting worse then it means that buying time kitchen sinking did not work there must be more fundamental problems.

I guess this may follow the "rule" of profit warnings coming in 3's - I make this number 2 so maybe after market reaction to the results for full year 2017 there will be something worth looking at.

DYOR etc etc

[gnnmartin] 04/7/2017 12:16

I was a bit complacent here, happy to hold a share I did not particularly understand but that seemed to offer yield plus growth. I guess part of the problem with the company is it is quite hard to see what they really expect. I find it quite hard to pick my way through the accounts to see why we had such a big loss this last year, and hence to see why it is a one off. It was similarly not obvious that today's RNS was a profit warning. I guess people like me who are too lazy to work their way past all the mission statements in the annual report to get a proper understanding will be bailing out now that unthinking confidence is harder to maintain.

When I read the RNS I thought I would sell while I could still get out slightly ahead. Unfortunately I went out to breakfast before contacting my broker. Having taken the trouble to read the annual report more closely now, I'll very probably hold and hope.

[eastbourne1982] 04/7/2017 11:47

Debt looks too high here.

[win2003] 04/7/2017 10:17

Looks a bit of a market over-reaction but I guess that's not unusual, might be an opportunity in the medium term?

[pugugly] 04/7/2017 09:21

Trading update with profit warning concealed in the middle BUT Mr Market seems to have seen through the rose tinted words - (imo) The printed book market is in decline and competition is getting vicious in most areas

[fenners66] 04/7/2017 09:21

Just read today's statement which appears to add the lack of business from the "trading" business disposed of , to the reasons for the poor first half performance.

However we know the disposed business was loss making - so this makes no sense at all!

Could it be that the new broom that is the new CFO has found something else to sweep away?

We know there were accounting errors reported in the finals for 2016