165 replies to this topic

[delta66]

beginning to look like a great "short" option....

[Perreby]

I warned you guys about this one... Well in advance of its decline in price.

There are serious problems with this company.. They love debt.. They increased the amount of debt on their books by around R90million odd. So no dividend since they will need to pay more interest on debt.

Their cash management is up to ****. The only reason their cash flow looks even remotely healthy is cause they took on more debt which brought 'cash' in.

And then there is the 'inventories'. Inventories my foot. They hiding something in 'inventories' I suspect

[Shortboy]

It is concerning but keep it in context

 

It was up 250+% in 2012

in 2013 its down 15%

 

PE <10

 

Long term prospects look solid.

 

My one instinct that bothers me is this..

Management leaves a lot to be desired..starting to not trust the buggers...

 

For now I will continue to hold.

Am with you on the management aspect Gamma. There isn't a single CEO on the JSE I trust. 

[soutie]

Mr market  ALWAYS  punishes those who withdraw their divi

[gamma]

there has to be a price where it will start seeing green again!

 

It is concerning but keep it in context

 

It was up 250+% in 2012

in 2013 its down 15%

 

PE <10

 

Long term prospects look solid.

 

My one instinct that bothers me is this..

Management leaves a lot to be desired..starting to not trust the buggers...

 

For now I will continue to hold.

[jdm007]

there has to be a price where it will start seeing green again!

[soutie]

If it closes below R7 today expect it to continue down to the R6.60 mark through next week.

 

A break below there and......

[Shortboy]

You are not the only one worrying. I am down 17 percent currently and I get frustrated when Jse is at al time high except for Ellies. Its a good company and only way that I will see a profit is to buy more shares. I am going to hold on until next set of results come out, the next set should be better. Long term here I come! Wait for some good news to be released again

Looking at Ellies on a fundamental basis I am pretty sure indications for its weakness can be found in 2 points. 1) The owners are offloading buckets of scrip at the very stage when the company is supposed to be ramping up into a hyper profit space and 2) The cash this company generates from operations is poor. On a price to cash generated per share measurement Ellies is on a valuation of 47 X cash generated per share....sky high.

 

Famous brands is another 1 of these high profile companies that the owners and brokers have talked up and then sold to the small guys. Price to cash generated per share ratio on this one is over 80 X !! I have a short order in play for Famous at 10050. Hopefully today. 

[jdm007]

I am losing my confidence in this share. I guess I am just not understanding the recent behaviour! <br />Any opinions on this huge downtrend?<br /><br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />

You are not the only one worrying. I am down 17 percent currently and I get frustrated when Jse is at al time high except for Ellies. Its a good company and only way that I will see a profit is to buy more shares. I am going to hold on until next set of results come out, the next set should be better. Long term here I come! Wait for some good news to be released again

[jdm007]

I am losing my confidence in this share. I guess I am just not understanding the recent behaviour! <br />Any opinions on this huge downtrend?<br /><br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />

You are not the only one worrying. I am down 17 percent currently and I get frustrated when Jse is at al time high except for Ellies. Its a good company and only way that I will see a profit is to buy more shares. I am going to hold on until next set of results come out, the next set should be better. Long term here I come! Wait for some good news to be released again

[Stefan]

I am losing my confidence in this share. I guess I am just not understanding the recent behaviour! <br />Any opinions on this huge downtrend?<br /><br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />

[Stefan]

Interesting thought Pipman. I would also like to get some feedback on this!<br /><br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />

[soutie]

Eli sitting nicely at support levels around  R7.10

So at this price has to be a screaming buy!!

Sitting in a strong downward trend lately.

Tooo much risk for my cash.

[Shortboy]

Eli sitting nicely at support levels around  R7.10

So at this price has to be a screaming buy!!

Heh Heh! Good luck HDB. It looks like a value trap of note to me.

[HDB]

Eli sitting nicely at support levels around  R7.10

So at this price has to be a screaming buy!!

[Pipman]

The recent drop in Ellie's share price has largely been attributed to the fact that no divi was declared in line with previous years. Management have decided to be prudent and hold cash back for projects in the pipeline.

I wonder if there is not perhaps a darker reason for the R 7.13 price we see this morning ( I certainly hope not, as a fair % of my portfolio is made up of ELI). I was speaking to a DSTV technical guy yesterday, and according to him the Dec 2015 deadline for SABC shifting to DTT will have zero to little effect on sales of Ellie's set top boxes ( of which they must be sitting on 1000's ). I have little knowledge of things technical, but apparently almost all TV's manufactured in the last 7 years are capable of receiving digital broadcasts. My understanding, is that the set top box converts digital broadcasts to analogue which would enable viewers with old sets to still be able to get a picture ( this is when the shift is eventually made by the government broadcaster). If this is true, who then the only purchasers of the set top box would be people who have TV's older than 7 yrs ( in 2015 older than 9 yrs). A write down of DTT boxes already in stock would have a huge negative impact on the business.

I'm hoping I've got the wrong end of the stick here and that one of you can set the record straight.

[HDB]

And this post is even more hilarious!!!    

 

Not sure why you find it hilarious. Shareholders need to put more pressure on directors. I also spoke to my mates who run large funds with major stakes in Ellies and they will be doing exactly the same this week. Obviously when you own 5% of Ellies your voice carries more weight.

 

Get off sharechat and get back to actively managing those losing short positions of yours HDB

[gamma]

So did you call the directors chicken for selling  as well over the phone?

 

I actually find your phone call hilarious!!

 

 

Not sure why you find it hilarious. Shareholders need to put more pressure on directors. I also spoke to my mates who run large funds with major stakes in Ellies and they will be doing exactly the same this week. Obviously when you own 5% of Ellies your voice carries more weight.

 

Get off sharechat and get back to actively managing those losing short positions of yours HDB

[HDB]

So did you call the directors chicken for selling  as well over the phone?

 

I actually find your phone call hilarious!!

 

I contacted Wayne Samson to complain about these Director share dealings that have been making the news. While legal it really isn't in the best interest of shareholders and raises serious questions about management. I urge other shareholders to do the same.

 

On a more positive note, Ellies stands to benefit from this

http://www.fin24.com...losion-20130804

[Pipman]

I contacted Wayne Samson to complain about these Director share dealings that have been making the news. While legal it really isn't in the best interest of shareholders and raises serious questions about management. I urge other shareholders to do the same. On a more positive note, Ellies stands to benefit from thishttp://www.fin24.com...losion-20130804

Couldn't agree more. The directors should be directing their efforts towards running the company, not fiddling with its shares. Investing is one thing, but trading doesn't inspire confidence.