PLG Schools

Concerns:

 

* Valuation is astronomical by any measure (literally any measure)

*The listing is in the best interests of management (salaries, internal web of companies, vendor debt holders, construction company, retaining control)

*management has no track record

*The balance sheet is non-existent

*Revaluations of properties are based on inter company rental agreements that imply "good tenants" 

*There is no large shareholder backing this thing

*The listing is not underwritten by anyone (no surprise there) 

*It looks like these guys saw a gap by following the likes of Curro and Advtech who are completely different operators

 

The bottom-line is there is no business, no balance sheet and no track record. I

 

I will be surprised if the listing is a success, a bit of who is the bigger fool theory. 

 

This should have gone the private equity route. 

I couldn't agree more.

My biggest concern is that the share will open at X amount and a few weeks later drop 50% of it's value due becoming illiquid as maybe people will realise the company will only start making profit maybe 2019.

Concerns:

* Valuation is astronomical by any measure (literally any measure)

*The listing is in the best interests of management (salaries, internal web of companies, vendor debt holders, construction company, retaining control)

*management has no track record

*The balance sheet is non-existent

*Revaluations of properties are based on inter company rental agreements that imply "good tenants" 

*There is no large shareholder backing this thing

*The listing is not underwritten by anyone (no surprise there) 

*It looks like these guys saw a gap by following the likes of Curro and Advtech who are completely different operators

The bottom-line is there is no business, no balance sheet and no track record. I

I will be surprised if the listing is a success, a bit of who is the bigger fool theory. 

This should have gone the private equity route. 

Holding thumbs for this one.

Available on Standard Bank too now

Hi all
 
Just received a mail from ABSA that the prelisting offer of the shares for PEMBURY LIFESTYLE GROUP LIMITED is now available on their platform.
 
Checked it and it is available.

Hi all

Just received a mail from ABSA that the prelisting offer of the shares for PEMBURY LIFESTYLE GROUP LIMITED is now available on their platform.

Checked it and it is available.

On easyequities I managed to reserve some.

Anybody been offered shares yet? I don't see this on Standard Bank yet.

Also wondering about that, Haven't seen anything either.

Anybody been offered shares yet? I don't see this on Standard Bank yet.

It will probably do well on listing, my guess oversubscribed and price will probably double shortly afterwards. People are hoping this is the second Curro, and won't care about figures as long as its in the education sector.

 

I like the sector too, just don't like the figures. I look at it as a long term investor. As a trader maybe worth a quick punt and then dump.

That is why I am buying - Both my other two private school stocks did so damn well I am blinded by emotions of good tinkling sparkles inside

I am going to bite in any case.

It will probably do well on listing, my guess oversubscribed and price will probably double shortly afterwards. People are hoping this is the second Curro, and won't care about figures as long as its in the education sector.

I like the sector too, just don't like the figures. I look at it as a long term investor. As a trader maybe worth a quick punt and then dump.

I am going to bite in any case.

Also disappointed. Financials really not looking too good, even though it is a very new company. Has not made a profit yet and only expect to make profit in Dec. 2018. That's assuming they more than double revenue each year till then.

A lot can still go wrong before then and assuming they want to grow very quickly I have my doubts over being profitable very soon.

My other worry is the current net asset value is around 3c a share and they are asking for 100c per share. This is quite premium they are asking for considering they are yet to make a profit.

Prospectus is out and offer opens tomorrow.  http://www.plgschool...spectus2017.pdf

I am very disappointed in this one:

- offer price at R1 ... 100million ordinary shares

- 40 million pref shares offered to those connected to company ... not sure what the difference in the shares are

- CEO takes home R1.9m per year

- At end of 2017, the earnings will still be negative

- At end of 2018, the earnings is expected to be 3.6c and will only consider divvie from then (10% of earnings)

ALSO:

- R2K minimum share offer limit

I am buying this. Been very happy with both private school listings currently on the JSE

Intention was to list during this month and since there is no news, they have already disappointed the market ... not a good start.

Looking at their school fees (between 30 and 40K), they state that they cheaper than their competitors ... who is their competitors?

http://www.plgschool.../investors.html