# CDO - Colorado Group



## Alien (27 January 2006)

Shares down 15% today due to another profit downgrade. Perhaps all the bad news is now out of the way?...

Represent pretty good value IMHO.

91 million shares. $3.28 current price. Market Capitalisation $298

Advised EBIT for this year to be $44m. P/E 6.77 Dividend 6%+ (fully franked)

Am i missing something here? Are my calculations correct? 

Regards
Alien


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## Narkov (27 January 2006)

The question I ask myself is all the bad news REALLY out of the way. Thats consecutive profit downgrades and what looks like not much action and a lot of excuses. 

Lets hope the new CEO can liven up the place a little. Maybe some acquisitions on the medium-term horizon?


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## visual (27 January 2006)

Personally the bad news for colorado will come when they go back to selling clothes that fit normal people,used to love buying there then they did the turn around and there goes my sales,why do all these shops cater for stick thin grasshoppers when the majority are screaming for choices,i dont mean fat i mean normal looking us.


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## It's Snake Pliskin (27 January 2006)

visual said:
			
		

> Personally the bad news for colorado will come when they go back to selling clothes that fit normal people,used to love buying there then they did the turn around and there goes my sales,why do all these shops cater for stick thin grasshoppers when the majority are screaming for choices,i dont mean fat i mean normal looking us.




I agree. I look at this company from a consumer`s point of view. Their shoes are too expensive for what they are and then they change the designs which don`t fit like the old ones. Their clothes are too expensive, and terrible designs. I never see many people in their shops. I won`t pay $70 for a short sleeve shirt.  

They have some groundwork to do imo.

Snake


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## rozella (27 January 2006)

Newspaper Article tonight

Colorado potential takeover target: Analysts


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## Narkov (27 January 2006)

As per rozella's link....who would buy them? Millers?


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## Odysseus (7 February 2006)

I agree with those who AVOID this stock. It was great when people were buying shoes readily. Today, they are showing buyer-resistance, and this is particularly true of us males. The statistics make this very plain: men simply postpone buying shoes these days. And neither do they buy them from THIS company. For a while the company went gangbusters, but that now seems long ago. They are a typical retail casualty, and not coping with the problem confronting them. One would really need much better news to buy it. To think of it as a nice "contrarian" buy is - as so often with contrarians - waiting for the past to offer a re-play. Very often it doesn't, and one would need some real evidence in this case. Personally, I much prefer The Reject Shop (TRS), which IS doing a successful trade, and still not much explored by analysts. And I own Noni-B (NBL), a great little company selling women's clothes. A quality stock, but not cheap. I don't like many other retailers. I declare a direct owner's interest in TRS (not expensive at all) and NBL. However, I truly do think they are both very good companies.


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## justjohn (7 February 2006)

I own this stock a couple of years ago before :fan .I replace it with JST (just group) another retailer owners of Just Jeans, Jay Jays, Portmans ,Dotti ect they have done well by targeting the younger consumer with smart casual wear also pays good div of 5.4% worth a look


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## justjohn (15 February 2006)

.finally got one right JSTup 11% today on report.up 15-20%(pcp)which was a record year







			
				justjohn said:
			
		

> I own this stock a couple of years ago before :fan .I replace it with JST (just group) another retailer owners of Just Jeans, Jay Jays, Portmans ,Dotti ect they have done well by targeting the younger consumer with smart casual wear also pays good div of 5.4% worth a look


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## Narkov (16 February 2006)

Yeah good pick. Makes me wonder that given the similar market segment why CDO posts consistantly softer sales and JST stronger. I can't wait for that management change!


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## mickmiller (6 June 2006)

I recently did a little bit of ratio analysis on CDO. The company looks to be in reasonable financial condition from what I could glean so the impression that I came away with was that the future success or failure of the company would depend largely on what management could do to improve the operational performance of the group.

Click the link if you're interested in having a look at the analysis.


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## Warren Buffet II (6 June 2006)

mickmiller said:
			
		

> I recently did a little bit of ratio analysis on CDO. The company looks to be in reasonable financial condition from what I could glean so the impression that I came away with was that the future success or failure of the company would depend largely on what management could do to improve the operational performance of the group.
> 
> Click the link if you're interested in having a look at the analysis.




Hi Mickmiller,

Good analysis but I don't know where the figures are coming from, I know they are from the Annual report but what values exactly?

Colorado has 2 issues that I am aware of, first the current market with high oil proces make people to spend less in clothing, Colorado in particular gets hurt here because they are in the medium-top range, second the operational issue is that they have many brands but they have poor synergy from them and additionally every brand has a large number of items which overlap other brands.

Just my thoughts

WBII


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## mickmiller (19 June 2006)

Warren Buffet II said:
			
		

> Hi Mickmiller,
> 
> Good analysis but I don't know where the figures are coming from, I know they are from the Annual report but what values exactly?
> 
> ...



Thanks for the feedback WBII, I will endeavour to add what figures I used next time I do something like that, it would probably help people to correct any mistakes I had made.

As has been reported in most of the Australian financial press, Colorado's acting CEO Eddie MacDonald has now resigned, although not effective immediately.

I thought first up that this would lead to further falls in the share price, but the day after the announcement the price actually rose a few percent. It seems that the reason for Eddie MacDonald's resignation is that he had been told he wasn't going to be successful in his application for the top job on a permanent basis and as such moved on to another opportunity. This would suggest that the Colorado board is fairly close to securing the services of a new CEO.


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## BSD (19 June 2006)

Takeover speculation is rife

Makes sense too. 

Looking at the $$$s the private equity guys have up their sleeves at the moment and the massive vals they have been paying (Cleanaway??) - CDO looks a steal

Strong volume in three rising sessions, Marcus Padley spruiking it in his daily and on the ABC on Saturday, followed up by Street Talk today. 

Is the Hog about to emerge from the tunnel?

I dont own any, but if the smell gets stronger...


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## Realist (22 June 2006)

Wow CDO hass rocketed up today.

Takeover speculation right?

 

I've made 25% in about 3 weeks.   OH YeeeaaaAAAAAAAAAAHHHHH


Should I sell now???


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## suhm (22 June 2006)

the australian was saying some private equity firm had picked up around 13% should have pulled the trigger at $3.60 before the special divvy


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## jkool (16 January 2007)

Once again I have done some fundamental analysis of this stock http://sog.shopinthemall.com/2007/01/16/australia-colorado-group-limited/ and found out that CDO does not seem to be what it once was. 

Based on the Jan06 ann rep (admitedly bit old but still the latest AR released) the company's outlook does not seem to rosy. Add to it the recent public equity takeover and I don't think CDO as a company is going to grow much in coming years. 

Yet at $4.15 it seems its still trading around 17times its earnings so where is the enthusiasm coming from? Or perhaps its just being dragged up there by the overal upward momentum of whole sharemarket?

Any thoughts?
jkool
sog.shopinthemall.com


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## Warren Buffet II (16 January 2007)

jkool said:
			
		

> Once again I have done some fundamental analysis of this stock http://sog.shopinthemall.com/2007/01/16/australia-colorado-group-limited/ and found out that CDO does not seem to be what it once was.
> 
> Based on the Jan06 ann rep (admitedly bit old but still the latest AR released) the company's outlook does not seem to rosy. Add to it the recent public equity takeover and I don't think CDO as a company is going to grow much in coming years.
> 
> ...




Hi jkool

There is nothing left for this stock, the private equity fund holds 82+% now and they are trying to get rid of the company that stopped the whole take over which holds around 10.5%, so in trading numbers only 8% of the stock is left there.

This company that is holding the 10% is interested in one of their brands to get out of their way, will they succeed? I do not know, time will tell.

WBII


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## trainspotter (30 March 2011)

Warren Buffet II said:


> Hi jkool
> 
> There is nothing left for this stock, the private equity fund holds 82+% now and they are trying to get rid of the company that stopped the whole take over which holds around 10.5%, so in trading numbers only 8% of the stock is left there.
> 
> ...




*Time to pay the Ferryman.*

_COLORADO Group is heading for administration, according to Reuters. 

Colorado Group's directors are now expected to call in the voluntary administrators after a board meeting which was held on Monday._

Read more: http://www.news.com.au/business/bre...up/story-e6frfkur-1226030607050#ixzz0jdrDlEV7


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