71 replies to this topic

[DividendTycoon]

RVF will only take up the excess not taken by existing shareholders.

Yes that is what I am saying, the company will end up with the full R398m irrespective of whether people want to take up their rights.

[Bullhunter]

The rights offer is underwritten by RVF, so they will get the R398m. This may help them get out of the mess they in. However, I still prefer GPI on almost every metric, still cheap after going up over 20% in the last few days.

RVF will only take up the excess not taken by existing shareholders.

[DividendTycoon]

Taste in deep trouble:

 

Taste intends to raise up to R398 000 000.70 by way of a fully committed renounceable rights offer (ôRights Offerö), in terms of which Taste will offer a total of 442 222 223 authorised but unissued ordinary shares of no par value (Rights Offer Shares) at a subscription price of 90 cents per rights offer share in the ratio of 96.28624 rights offer shares for every 100 Taste shares held by shareholders at the close of business on the record date for the rights offer, being Friday, 12 January 2018. 

The rights offer is underwritten by RVF, so they will get the R398m. This may help them get out of the mess they in. However, I still prefer GPI on almost every metric, still cheap after going up over 20% in the last few days.

[Bullhunter]

Taste in deep trouble:

 

Taste intends to raise up to R398 000 000.70 by way of a fully committed renounceable rights offer (ôRights Offerö), in terms of which Taste will offer a total of 442 222 223 authorised but unissued ordinary shares of no par value (Rights Offer Shares) at a subscription price of 90 cents per rights offer share in the ratio of 96.28624 rights offer shares for every 100 Taste shares held by shareholders at the close of business on the record date for the rights offer, being Friday, 12 January 2018. 

[Bullhunter]

My exposure to this share already high, but could not resist buying around the R2.30 level recently.

 

Unless we are all missing something, some fraud or other disaster, it is very cheap, as you say the gaming assets alone worth more than the market cap.

 

My experience with Burger King is that they are mostly busy and popular. Not sure about DD, but Spur should do well long term,

 

Happy to hold until Burger King becomes profitable, should be soon, share price will probably move up when this occurs.

At the recent AGM, Hussen Adams said the board turned down an offer of R5 per share

[DividendTycoon]

At the current 2.30, GPL is now trading at a 32% discount to its cash generating gaming assets. Hussen Adams is loading up.

 

The staff at Dunkin' Doughnuts, Blue Route,  and  Burger King, Kenilworth, say business is good.

 

Any one else with access to these brands, please provide feed back here. 

My exposure to this share already high, but could not resist buying around the R2.30 level recently.

 

Unless we are all missing something, some fraud or other disaster, it is very cheap, as you say the gaming assets alone worth more than the market cap.

 

My experience with Burger King is that they are mostly busy and popular. Not sure about DD, but Spur should do well long term,

 

Happy to hold until Burger King becomes profitable, should be soon, share price will probably move up when this occurs.

[Bullhunter]

 

Other assets excluding Spur:The 15% stake in SunWest International, which operates the cash-spinning GrandWest casino in Cape Town, remains GPI’s largest investment. The value is estimated at R875m — equivalent to 199c/share.The combined values of all its gaming assets is more than 340c/share. GPI values its 91.1% stake in the 70-outlet Burger King at R660m (equivalent to about 150c/share) and the net cash holdings of R300m is worth 68c/share.Total value excluding Spur = 558 cents per share.

 

So, at current prices you are getting the cash generating gaming assets at a 20% discount and the rest of the assets for free! No wonder Hassan Adams and co. are loading up.

 

At the current 2.30, GPL is now trading at a 32% discount to its cash generating gaming assets. Hussen Adams is loading up.

 

The staff at Dunkin' Doughnuts, Blue Route,  and  Burger King, Kenilworth, say business is good.

 

Any one else with access to these brands, please provide feed back here. 

Edited by Bullhunter, 29 December 2017 - 03:55 PM.

[Bullhunter]

and their investment in Spur at current Spur market price is worth at least R1.20 per share. So all u doing is paying another R1.50 for all other assets which are valued at least R4.00.

 

Good one for long term this. Bargain basement price at R2.60 if you can get it.

Other assets excluding Spur:The 15% stake in SunWest International, which operates the cash-spinning GrandWest casino in Cape Town, remains GPI’s largest investment. The value is estimated at R875m — equivalent to 199c/share.The combined values of all its gaming assets is more than 340c/share. GPI values its 91.1% stake in the 70-outlet Burger King at R660m (equivalent to about 150c/share) and the net cash holdings of R300m is worth 68c/share.Total value excluding Spur = 558 cents per share.

 

So, at current prices you are getting the cash generating gaming assets at a 20% discount and the rest of the assets for free! No wonder Hassan Adams and co. are loading up.

[Polly]

Unlike Taste, GPI has strong cash flow from gambling and property assets and don't need to have rights issues to survive.In fact, they're buying back shares, rather than issuing more.

and their investment in Spur at current Spur market price is worth at least R1.20 per share. So all u doing is paying another R1.50 for all other assets which are valued at least R4.00.

 

Good one for long term this. Bargain basement price at R2.60 if you can get it.

[DividendTycoon]

Unlike Taste, GPI has strong cash flow from gambling and property assets and don't need to have rights issues to survive.In fact, they're buying back shares, rather than issuing more.

I hope they will continue to buy more after the AGM, think they already bought as much as they could for the current year. When I first bought GPI in 2010 it had more than twice the number of shares TAS had. After the next TAS rights issue it will have twice the number of GPI. 

[Bullhunter]

And a dividend being served up of 11.5c. Not what we used to, but at least they giving us cash, not asking for it, like some other fast food co..

Unlike Taste, GPI has strong cash flow from gambling and property assets and don't need to have rights issues to survive.In fact, they're buying back shares, rather than issuing more.

[DividendTycoon]

Hassen Adams loading up again. Buys another 408 969 shares.

And a dividend being served up of 11.5c. Not what we used to, but at least they giving us cash, not asking for it, like some other fast food co..

[Bullhunter]

Hassen Adams loading up again. Buys another 408 969 shares.

[Bullhunter]

Trading at R2.75, a 60% discount to NAV of R6.82. CEO bought @ R3.00 two weeks ago. 

 

Just saved spending R100 million on a BEE deal which will be put to better use in the business.

 

Definitely worth a punt at these levels.

[DividendTycoon]

Personally, would trade GPL  between 330 and 395, but prefer taste as a long term hold think starbucks, dominos and jewelry business will be winners. 

I think Starbucks is a great asset to own, but I am just more comfortable with the GPI management and the asset mix, as well as capital structure (ie.having cash/low debt/share buy backs etc)

[MrDividend]

GPI having a nice run. Has been bad stretch but things seem to be on the up. I am very happy that they have bought back huge amounts of stock at cheap prices.(as reported today and in results a few weeks ago) This will be a huge benefit when profits start to flow. Very positive compared to Taste who have issued huge amounts of stock in order to fund their growth. They have also bought more spur shares, so perhaps that still on the cards.

 

Personally, would trade GPL  between 330 and 395, but prefer taste as a long term hold think starbucks, dominos and jewelry business will be winners. 

[DividendTycoon]

I also have a good feeling about this one. Definately a good sign that they are buying back their own stock, less dilution means more profits per share in the future. Their burger king investment starting to show profits too so that can only be better going forward. They still have sizable investments in casino's even after all the sales and this should still be a cash cow for them and support the earnings from BK.

Agreed, it is reassuring to have these assets in the background until such time the food business is fully profitable. They also have a good cash war chest thanks to the sale of some of the assets, although they have spent a lot on their own shares and Spur, but both good investments imo.

[Jack5]

GPI having a nice run. Has been bad stretch but things seem to be on the up. I am very happy that they have bought back huge amounts of stock at cheap prices.(as reported today and in results a few weeks ago) This will be a huge benefit when profits start to flow. Very positive compared to Taste who have issued huge amounts of stock in order to fund their growth. They have also bought more spur shares, so perhaps that still on the cards.

I also have a good feeling about this one. Definately a good sign that they are buying back their own stock, less dilution means more profits per share in the future. Their burger king investment starting to show profits too so that can only be better going forward. They still have sizable investments in casino's even after all the sales and this should still be a cash cow for them and support the earnings from BK.