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#1 gamma

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Posted 09 September 2014 - 08:58 AM

Will WHL bounce back to 8100 by the end of the week or month?

 

Who knows.

 

Keep in mind the share has not really lost any real value. shareholders have been compensated for the drop in price via the rights issue


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#2 zoner

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Posted 09 September 2014 - 08:05 AM

Will WHL bounce back to 8100 by the end of the week or month?


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#3 zombii

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Posted 08 September 2014 - 10:01 PM

Hi can someone explain to me the open election for Woolies NPL.

 

I see that i have been allocated WHLN shares and have been given the option of performing an election. What does this mean?

Product Name: WOOLIES NPL Close of Election: 2014/09/17 05:00:00 PM Take up Value ©: 5950c Total Nilpaid Holding: yyy Tradeable Funds ®: xxx Total available for election: yyy Total Taken-up: 0

 

Why is the Take up value 5950c and the WOOLIES NPL share price 1545c ?

 

 

Basically, you can take up your rights (perform the election) and buy the additional shares you are offered for 5950c each, or sell your rights to someone else for 1545c each.


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#4 MillionDollar

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Posted 08 September 2014 - 09:57 PM

Also why did the WHL price drop and the WHLN price rise?


Edited by MillionDollar, 08 September 2014 - 09:59 PM.

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#5 MillionDollar

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Posted 08 September 2014 - 09:56 PM

Hi can someone explain to me the open election for Woolies NPL.

 

I see that i have been allocated WHLN shares and have been given the option of performing an election. What does this mean?

Product Name: WOOLIES NPL Close of Election: 2014/09/17 05:00:00 PM Take up Value ©: 5950c Total Nilpaid Holding: yyy Tradeable Funds ®: xxx Total available for election: yyy Total Taken-up: 0

 

Why is the Take up value 5950c and the WOOLIES NPL share price 1545c ?


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#6 HDB

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Posted 08 September 2014 - 01:32 PM

Is anyone able to get live market depth (best bids/offers) for WHLN currently? and on what platform?

 

I am using the Standard bank platform and I am getting no market data at all for it. Having to use the 15 minute delayed prices from sharenet and a bit of guesswork to trade it  :rolleyes:

 

I did manage to buy at 1530c earlier though. Looking for 1650c, but may close out a bit lower...

 

Bids / Offers Volume Bids Offers Volume 5000 1565 1579 54 3000 1561 1580 5541 15000 1560 1584 1263
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#7 yusufm

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Posted 08 September 2014 - 01:04 PM

Is anyone able to get live market depth (best bids/offers) for WHLN currently? and on what platform?

 

I am using the Standard bank platform and I am getting no market data at all for it. Having to use the 15 minute delayed prices from sharenet and a bit of guesswork to trade it  :rolleyes:

 

I did manage to buy at 1530c earlier though. Looking for 1650c, but may close out a bit lower...


Edited by yusufm1, 08 September 2014 - 01:06 PM.

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#8 gamma

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Posted 03 September 2014 - 03:34 PM

Gamma question is what happens one year from now???

Im short and topping up soon for additional shorts!!

 

One year from now, I take some profit. Go on holiday. (after paying SARS their share)


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#9 Demolishia

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Posted 03 September 2014 - 02:50 PM

My calculations:

 

Closing share price on 28th August 2014 : 7906c

Rights offer was declared on the 29th.

 

Offering 22 rights for every 100 held at 5950c.

 

WHL should trade at (5950*0.22+7906*1)/1.22 = 7553.29c when it goes ex-rights. 

 

I shall be exercising my rights. Do you guys think there is value in buying additional rights?


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#10 yusufm

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Posted 03 September 2014 - 12:48 PM

Gamma question is what happens one year from now???

Im short and topping up soon for additional shorts!!

Yip, I would stay short until the listing of the new shares. 


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#11 HDB

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Posted 03 September 2014 - 12:16 PM

/thx. makes sense. I'm following my rights

Gamma question is what happens one year from now???

Im short and topping up soon for additional shorts!!


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#12 gamma

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Posted 03 September 2014 - 12:00 PM

My calculations:

 

Closing share price on 28th August 2014 : 7906c

Rights offer was declared on the 29th.

 

Offering 22 rights for every 100 held at 5950c.

 

WHL should trade at (5950*0.22+7906*1)/1.22 = 7553.29c when it goes ex-rights. 

 

/thx. makes sense. I'm following my rights


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#13 yusufm

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Posted 03 September 2014 - 11:05 AM

So what's the verdict on the rights offer pricing?

Any comments?

My calculations:

 

Closing share price on 28th August 2014 : 7906c

Rights offer was declared on the 29th.

 

Offering 22 rights for every 100 held at 5950c.

 

WHL should trade at (5950*0.22+7906*1)/1.22 = 7553.29c when it goes ex-rights. 


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#14 Procrastinator

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Posted 03 September 2014 - 11:01 AM

So what's the verdict on the rights offer pricing?
Any comments?


Shareholders will take up their rights, offered at a decent discount, that's the way to do it as everyone piles in.
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#15 gamma

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Posted 02 September 2014 - 08:55 PM

So what's the verdict on the rights offer pricing?

Any comments?
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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#16 ykhan

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Posted 25 June 2014 - 11:01 AM

Moneyweb Article:

The fascinating history of Solomon Lew and Woolworths.

CAPE TOWN – It reads like the plot of a Jeffrey Archer novel:

For 17 years Solomon Lew sat on his 11.88% stake in Country Road. For most of that time, the share price went nowhere. There was so little volume in the counter that Australian analysts didn't even pay it much attention.

But Lew had a game plan. Somewhere down the line, somehow, he was going to make that stake pay.

1997

The story goes back to the previous millennium, when Solomon Lew began building up a position in the under-performing Australian fashion brand Country Road. Lew was already an established name in the local clothing business and had his eye on making an acquisition.

“He was probably sitting with his foot on that stake, thinking that he would take it over,” says Australian retail analyst Martin Duncan of Arnhem Investment Management in Melbourne. “But then along came Woolworths to buy it instead. So in typical fashion he thinks 'stuff you' and he takes his stake to over 10% to prevent Woolworths from making a full compulsory acquisition.”

Under Australian law at the time, any entity that owned 90% or more of a listed company could force minorities to sell to them. That was always Woolworths' intention, but Lew wouldn't budge.

“Lew refused to accept Woolworths' offer,” explains veteran retail analyst Syd Vianello. “Because he had more than 10% they couldn't get rid of him, and he became a thorn in their flesh.”

Lew used his shareholding to very publicly question the management of Country Road and the direction the company was taking. Woolworths struggled to turn the business around and he made sure everybody knew about it.

“He used to send out a corporate financier over to South Africa every year to put the Solomon Lew case forward – that Woolworths was messing up Country Road,” Vianello recalls. “He never had a good thing to say about the way the business was run.

“All he ever did was complain, but there was a game plan in mind,” Vianello says. “Maybe he thought that by coming out to South Africa and upsetting a lot of institutional investors, maybe Woolworths would sell to him or offer to buy him out at his price. He wanted to upset Woolworths to the point where they would pay to get rid of this irritation.”

Woolworths, however, was determined to make a success of Country Road and its Australian venture. And so Lew had no option but to be patient.

“He thought I'll just sit here for as long as it takes,” Duncan says. “He knew that eventually they would have to pay to get him out.”

2012

Over the years, the relationship between Lew and Woolworths thawed a little. As Country Road picked up and started reporting healthy earnings, Lew had less to complain about. In fact, the two parties even became cordial.

“I know that Simon Susman developed some sort of relationship with Lew while he was CEO of Woolworths,” Vianello says. “Whenever he went to Australia he would meet him and they would have tea and coffee. So relations had improved.”

But then along came 2012 and the Witchery deal.

The Australian fashion brand was owned by Gresham Private Equity, who had bought it from Solomon Lew's investment company in 2006. Six years later, Country Road arrived with an offer to buy it.

“What a turnabout,” Duncan says. “Lew sells Witchery to Gresham and, what do you know, Gresham sells it to Country Road. So he's thinking 'bugger, I've just sold this and now I'm back in it again!'”

And so Lew returned to ranting against Woolworths. He criticised the rationale for the acquisition and the appointment of Witchery's CEO to run the combined entity. But, once again, Woolworths stared him down.

“It was a good deal for Woolworths, but they had to finance it through a rights issue,” Vianello says. “Lew put up a huge fuss, but Woolworths decided to call his bluff. They basically said that if you don't like the business, then you don't have to follow your rights. And guess what? He followed his rights.

“Because if he didn't, his stake in Country Road would have fallen below 10% and that would allow Woolworths to buy him out at a discount. So as much as he was criticising Woolworths, the end result was that he backed the deal because he had to put up the money.”

2014

All of that leads to the current year and Woolworths' bid for David Jones. Lew had a look at the R22.4 billion offer for the Australian retailer and realised that his opportunity had come.

“He rapidly assembled a 10% stake [in David Jones], and possibly even more, and basically threatened to do the same thing he did with Country Road all over again,” Duncan says. “He completely snookered Woolworths.”

And faced with the prospect of losing out on the David Jones acquisition, Woolworths finally gave him what he wanted. On Tuesday it announced an offer of A$17 per share to buy out Country Roads' minorities – a price more than ten times higher than Lew paid for his stake 17 years ago.

“They had to get rid of him,” Vianello says. “They paid top dollar, but being able to consolidate Country Road and David Jones as wholly owned subsidiaries into a single operating unit gives them the financial flexibility to achieve what they want to achieve.

“Lew is obviously a winner because he got what he wanted,” Vianello adds. “ It cost him a bit of risk, but he's a man prepared to tolerate risk and he's been doing it all his life. But in my book, Woolworths is a winner too. If you take the long-term view, I think what they are paying now will seem like peanuts in ten years time. And of course there will be no more irritation from Lew.”

So perhaps the story has a happy ending for everyone. Woolworths should now be able to seal the David Jones deal and bring all of its Australian businesses under one roof. This will have significant long-term benefits.

And as for Solomon Lew, the reward is a very impressive profit and the comfort that his patience eventually paid off.

“What his ultimate game plan was back in 1998, we never knew, although it was clear that he wanted Woolworths to take him out at a much higher price,” Vianello says. “And because he is a very wealthy man, and because he was able to stick it out, that is what he did.”


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#17 ykhan

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Posted 25 June 2014 - 10:17 AM

There's no offsetting. They borrowing huge sums to pay huge premiums on both acquisitions. Will only be weight on shoulder for shareholders until this venture works out. That's why in the sens they comforting shareholders by telling them it won't affect dividend policy, PROVIDED business stays as good as it is currently

okay, fair enough. That could be a valuable deduction. Though i doubt that the Woolies management would risk so much for a deal that doesnt have some bearing to the business. good companines can be defined by the good management. Making unwise decisions doesnt fit the type.


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#18 Ninja

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Posted 25 June 2014 - 09:09 AM

There's no offsetting. They borrowing huge sums to pay huge premiums on both acquisitions. Will only be weight on shoulder for shareholders until this venture works out. That's why in the sens they comforting shareholders by telling them it won't affect dividend policy, PROVIDED business stays as good as it is currently
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#19 ykhan

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Posted 25 June 2014 - 08:32 AM

Lew really squeezing woollies hard... Some tough times ahead for woollies shareholders, they now forced to buy all the remaining country road stake from Lew at a lofty A$17 per share when they were bloody trading at A$ 3.54 last year. Now fully overextended in the short term with high debt, rising rate cycle, and lackluster consumer environment.

This ones going south boys

 

 

i read this morning about a release from DJ that the deal Woolies amde for country road is subject to the deal for DJ being approved as is! so i think Woolies is actually killing a few birds with one stone. The premium for Country road is offset by a premium for DJ. The full acquisition of Country road, will will result in a delisting, and the then full acquisition of DJ as well. In other words, instead of paying more for DJ, theyre spending it on Country road, and acquiring full ownership of both companies.

 

This still may go down though due to market sentiment, but i dont think a dive is at hand.


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#20 Ninja

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Posted 24 June 2014 - 06:35 PM

Lew really squeezing woollies hard... Some tough times ahead for woollies shareholders, they now forced to buy all the remaining country road stake from Lew at a lofty A$17 per share when they were bloody trading at A$ 3.54 last year. Now fully overextended in the short term with high debt, rising rate cycle, and lackluster consumer environment.

This ones going south boys
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