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A2B - A2B Australia

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HarryH said:
News today that Reg Kermode sold 47% of his CAB shares just before Half Year results are to be released. Doesn't seem like a good indication of things to come.
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This was news last week, and the H1 results are not due to be released until 23rd of Feb, so not right before.

It would be interesting to know why he sold half his stake though
 
prawn_86 said:
This was news last week, and the H1 results are not due to be released until 23rd of Feb, so not right before.

It would be interesting to know why he sold half his stake though
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Last week? Really? Where do you get your news source from?

A month before is close enough to "right before" for me. The half year is over, they release them on 23 Feb. He would know information on the company better than either you or I. Seems to worry me that he sells such a large amount of his holding.

Does anyone know the disclosure requirements (ie is he forced to disclose?) when someone of Reg's status sells their shares? I'm just wondering what he is playing at here. Why only sell 47%?
 
HarryH said:
Last week? Really? Where do you get your news source from?

A month before is close enough to "right before" for me. The half year is over, they release them on 23 Feb. He would know information on the company better than either you or I. Seems to worry me that he sells such a large amount of his holding.

Does anyone know the disclosure requirements (ie is he forced to disclose?) when someone of Reg's status sells their shares? I'm just wondering what he is playing at here. Why only sell 47%?
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Dated 25/01/2012: http://asx.com.au/asxpdf/20120125/pdf/423yg76c0k334p.pdf

The guy is pretty old - and it was just a touch under $400,000 - we are not talking millions here. Maybe he wanted to buy a house? Upgrade a property? Blow money on his kids?

I wouldn't read that much into it.

Disc: Not holding but would like to :)
 
There are other directors on the board that has bigger stake in the business than Reg.

Reg get most of his earning from salary, the other director who owns their own taxi company has much much more skin in the game in Cabcharge holding...

These guys would know more than Reg in term of Cabcharge day to day operations.

I wouldn't read too much into it ... plus he's doing it inside the blackout period so he would be stupid
to do it on a bad result ...he would get a lot of bad press for it something he doesn't like...
 
Great result, the stock about to get a re-rating

Many good years still a head of CAB and each year the moat get a bit wider ...this year it added 2 more taxi company to the fold...

Paid reliable dividend
Great cash flow
Extremely reliable earning with small variation between cycle.
Toll Bridge to Taxi industries
and it's cheap...

what is not to like..??
 
Was trying to buy this at $4.30 on the last retrace. Changed my order to $4.35 the next day missed it by a cent or two. Kicking myself for worrying about a few cents here and there, when it will not matter in the long run. You live and learn.
 
Ves said:
Was trying to buy this at $4.30 on the last retrace. Changed my order to $4.35 the next day missed it by a cent or two. Kicking myself for worrying about a few cents here and there, when it will not matter in the long run. You live and learn.
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This is straight from Phil Fisher book (common stock, uncommon profit) I read some years ago...I still regards it as one of all time best book on stock investment...

Don't quibble over eighths and quarters.
After extensive research, you've found a company that you think will prosper in the decades ahead, and the stock is currently selling at a reasonable price. Should you delay or forgo your investment to wait for a price a few pennies below the current price?

Fisher told the story of a skilled investor who wanted to purchase shares in a particular company whose stock closed that day at $35.50 per share. However, the investor refused to pay more than $35. The stock never again sold at $35 and over the next 25 years, increased in value to more than $500 per share. The investor missed out on a tremendous gain in a vain attempt to save 50 cents per share.
 
One thing I don't like is that they have taken on more debt to fund this contactless system. Balance sheet is starting to look a little more unhealthy. Not saying that it is unhealthy, just saying it looks a little more unhealthy than say 2 years ago.

Really not liking that their debt equity has increased to around 42%.

Plus EPS is actually a lot lower compared to Dec 2009. We all know why it was low in comparison to Dec 2010 (****ing ACCC) but even underlying profit in Dec 2010 was low. So increase of 11% underlying profit for Dec 2011 isn't saying much.

I mean still not bad overall, still on track to around 16% ROE (which has also declined). Just voicing my concerns is all.
 
ROE said:
This is straight from Phil Fisher book (common stock, uncommon profit) I read some years ago...I still regards it as one of all time best book on stock investment...

Don't quibble over eighths and quarters.
After extensive research, you've found a company that you think will prosper in the decades ahead, and the stock is currently selling at a reasonable price. Should you delay or forgo your investment to wait for a price a few pennies below the current price?

Fisher told the story of a skilled investor who wanted to purchase shares in a particular company whose stock closed that day at $35.50 per share. However, the investor refused to pay more than $35. The stock never again sold at $35 and over the next 25 years, increased in value to more than $500 per share. The investor missed out on a tremendous gain in a vain attempt to save 50 cents per share.
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Agree,

When discussing Wonderful companies eg. Great sustainable earnings, Great management, strong competitve advantages with expanable businesses able to take incremental capital at high returns.

You can afford to over pay a bit if your holding time frame is long. When you look back the extra few percentage points you pay with seem like nothing.

Mind you though, this does not mean the value is not to be considered, though analysis is still required and you have to be able to look in the mirror and state reasons based on facts as to why you are paying that price.
 
HarryH said:
One thing I don't like is that they have taken on more debt to fund this contactless system. Balance sheet is starting to look a little more unhealthy. Not saying that it is unhealthy, just saying it looks a little more unhealthy than say 2 years ago.

Really not liking that their debt equity has increased to around 42%.

Plus EPS is actually a lot lower compared to Dec 2009. We all know why it was low in comparison to Dec 2010 (****ing ACCC) but even underlying profit in Dec 2010 was low. So increase of 11% underlying profit for Dec 2011 isn't saying much.

I mean still not bad overall, still on track to around 16% ROE (which has also declined). Just voicing my concerns is all.
Click to expand...

I agree.
 
HarryH said:
One thing I don't like is that they have taken on more debt to fund this contactless system. Balance sheet is starting to look a little more unhealthy. Not saying that it is unhealthy, just saying it looks a little more unhealthy than say 2 years ago.

Really not liking that their debt equity has increased to around 42%.

Plus EPS is actually a lot lower compared to Dec 2009. We all know why it was low in comparison to Dec 2010 (****ing ACCC) but even underlying profit in Dec 2010 was low. So increase of 11% underlying profit for Dec 2011 isn't saying much.

I mean still not bad overall, still on track to around 16% ROE (which has also declined). Just voicing my concerns is all.
Click to expand...

Interest cover is still 8.5x...Pretty safe margin.
 
ROE said:
This is straight from Phil Fisher book (common stock, uncommon profit) I read some years ago...I still regards it as one of all time best book on stock investment...

Don't quibble over eighths and quarters.
After extensive research, you've found a company that you think will prosper in the decades ahead, and the stock is currently selling at a reasonable price. Should you delay or forgo your investment to wait for a price a few pennies below the current price?

Fisher told the story of a skilled investor who wanted to purchase shares in a particular company whose stock closed that day at $35.50 per share. However, the investor refused to pay more than $35. The stock never again sold at $35 and over the next 25 years, increased in value to more than $500 per share. The investor missed out on a tremendous gain in a vain attempt to save 50 cents per share.
Click to expand...

Thanks mate

I'm happy to have learned the lesson. It's entirely possible that, CAB, or any other of a number of quality businesses that are on my radar, will swing lower again with the market gyrations.

Rather than trying pick bottoms (smelly fingers!), I am trying a monthly capital allocation or "averaging" approach. However, if I don't see value in any stock I will postpone to the next month and so on... thanks to Craft for encouraging that idea a few months back.
 
HarryH said:
One thing I don't like is that they have taken on more debt to fund this contactless system. Balance sheet is starting to look a little more unhealthy. Not saying that it is unhealthy, just saying it looks a little more unhealthy than say 2 years ago.

Really not liking that their debt equity has increased to around 42%.

Plus EPS is actually a lot lower compared to Dec 2009. We all know why it was low in comparison to Dec 2010 (****ing ACCC) but even underlying profit in Dec 2010 was low. So increase of 11% underlying profit for Dec 2011 isn't saying much.

I mean still not bad overall, still on track to around 16% ROE (which has also declined). Just voicing my concerns is all.
Click to expand...

Debt isn't bad provided it use wisely and its earning exceed its cost of capital ...
Business like WOW and CAB it's more efficient to use debt market than
going to shareholders for capital.

CAB return on capital far exceed its cost of capital so it use debt very wisely
and the capital intensive of the business is not from the cab side but from
the Bus side ...

I'm not a fan of bus business but the way it structure the deal with government is
so beautiful it assure continuously drive earning grow with virtually no risk :)
so it can afford to pump capital into Bus but still get awesome return.

They are also very discipline buying other business, it has to make economic
sense and they wont pay any price to get it ....

Also contact less is the way of the future they are right to invest in future technology
and stay ahead of the pack...nothing worse than a company being complaisant and stick
to old ways of doing things... CAB has always been at forefront of this in term of taxi technology

if you own a taxi which I know family member do, you see how Cabcharge system is way ahead.
their wireless fare update takes a few minutes, its rival you need to take to a service station and take
the taxi out of commission for a few hour to get it update :)

so all in all CAB is one kick ass business now ...
 
Just checked on these for the first time in many months. Good to see they are up near a 2 year high :)
 
What a coincidence and a joke Fels' inquiry comes into this after CAB has a large rally when there was hardly any news on this company since the ACCC.

The ACCC incident IMO was a simple slap on the wrist so I wasn't too worried about that but I think Fels' proposal is going to materially hurt CAB's sustainability and profitability. Reducing the surcharge to 5% and these new licence reforms (which I feel is large part of CAB's moat) are my main concern. What are people's opinions on this?
 
HarryH said:
Not only that but also because the RBA announcment:

http://www.rba.gov.au/payments-syst...-var-surcharging-stnds-fin-ref-ris/index.html
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I could be wrong but CAB's system is not part of the payments system, they're merely a service that connect to the payment system, so that report doesn't concern them. They charge a fee for their service, not a surcharge through the payments system.

I have for a while thought that this business was a bit of sitting duck to government legislation, because the fees are pretty outrageous. I posted that last year sometime, must have been in another thread though because I can't see it in this one.
 
Yeah and academics say the market is efficient. Sellers today probably didn't even read any of it but rather listened to the biased ramblings of that Michael Pascoe idiot.
 

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