FDY - Findlay Securities

[Rainmaker2000]

50% profit growth means a 50% increase on last years profit..........as in, a lot of money for a company with a market cap of 14 million dollars!!!!

I managed to pick up some of these babies in the down market today.....it's remarkably cheap..........I don't really see something like this as a defensive offering....for example, the business has no hard assets......I assume it offers full service broking which is probably little more fickle than discount broking and the corporate side is basically a baby of corporate activity which is cyclical.......................right now......but the company still has earning power outside our current boom

But at these prices, its just outragious.......no hard assets, just wait 6 months for the cash to build up.....

On the mining side, people are paying 20 X Earnings for bloody resource companies....then you have FDY charging sums like 6% + fees +admin fee for underwriting some stock...+2% for advicing..at PE 2, they are more leveraged to the mining boom than the resource companies with none of the risk.......if they allocate their cash flow well, this could be an incredible growth story

 

[robandcoll]

from announcement on 14th November:

The company continues to build up its cash reserves and is continuing to develop growth opportunities, including the potential acquisition of key staff and the establishment of a Melbourne office.

 

[Rainmaker2000]

Since I've been taking an interest in Findlay, I've been reading quite a bit about the Fairstar/Golden West bid and Findlay's very public no win/no fee arrangement........I got to say its all very amusing, hard to believe and not helping Findlay share price.....I don't know why though, it's bloody fantastic these guys are risking a big pay off, since they are already valued so low.........I just can't wait for them to declare their dividend.....I've never had a 50% yield before...

Check out this article on the deal: http://news.smh.com.au/fairstar-could-sweeten-golden-west-bid/20071128-1dgb.html

It's not every day a floundering gold and uranium miner makes a play for a floundering iron ore player....its not everyday a $28m company tries to buy a $164m company....It's not everyday a useless company like Golden West issues a poison pill share issue of about $36million just to fend off a bid from a company worth $28m......why doesn't Golden West just buy Fairstar and be done with it....hell, the deal already makes no possible sense to start off with.....

Does either of these companies give a damn about their own shareholders? And now Fairstar has talked about raising the offer.....with whose money? they are already issuing shares to punters to pay for Findlay's advisory fees should they win.......I just can't believe they've already signed up 1/3rd of shareholders while another almost 1/3 have signed Golden West's agreement to say they have no interest in the offer.......this is all a very amusing and dodgy affair whith Findlay's just readying themselves for their first trip to the bank........

 

[stoxclimber]

Since I've been taking an interest in Findlay, I've been reading quite a bit about the Fairstar/Golden West bid and Findlay's very public no win/no fee arrangement

It's not really no win no fee. If the bid fails FDY gets renumeration of expenditure. If it succeeds they get that + the 2% success fee. That's the standard structure for corporate advisory..all the big boys (Macquarie, UBS, JPMorgan, Morgan Stanley etc.) work on the same structure (although they get less than 2%).

 

[Rainmaker2000]

Did anyone get sense out of FDY's speech released today....it was like a 2 year old cobbled it together.....I've seriously never seen a one page speech with a released with a significant spelling error....its all passive language too

Apparently 'commission business' is trading well, "Management however needs to focus on current commission levels".........What do people think that means....does it mean reduction in the charges for their services....

How about 'cost control and debtor management are issues we are actively pursuing'.......does that mean that we have accounted for profit on accruals but we are going to downgrade it since we have not seen it come in..........the guy was obviously in a massive rush when he wrote this...

Since I've never owned a stock so cheap, does this mean this is a profit downgrade....heheh....does a profit downgrade matter...

Just on FAS takeover, who thinks the increased bid will get to 50%......surely, it a high probability since they already have 33%....

 

[Rainmaker2000]

Wow guys, this has to be the dodgiest company and dogiest takeover I've ever witnessed.......I'll be reading the financial statements very closely now, especially the part relating to an AFP investigation of Findlay's brokers...unbelievable........anyone still on this puppy and enjoying the ride......

FDY appears to have consented to underwrite the $40 million worth of falling FAS stock..

For a stockbroker worth about $12 million, I would think that may raise an eye brow.......specially since FAS is worth less than that....now can't wait for that cash flow statement.. .http://www.theaustralian.news.com.au/story/0,25197,23146037-643,00.html

 

[prawn_86]

This co always did have a bit of a 'dodgy' feel to it. Although the low PE is attractive (under correct conditions)

What I find amusing is how virtually any corporate legislation enforcement almost always falls on the small guys rather than the top 200

 

[Rainmaker2000]

Yeah, I would have thought the smaller cases would be harder to prove, not easier.........it would appear as if 'trading' was the relevant area......which is actually a very small part of the business although I remember them specifically itemising that part as being a profitable niche....

From a business perspective, it does not make much sense.........why risk so much publicity damage for such a small upside.........It would make more sense if the offence was unauthorised...

Anyway, too early to tell or ponder......perhaps they just seized some documents of interest to the current FAS maneoverings in Federal Crt, but then that would be unlikely...that would be heavy handed

 

[blaze87]

erm, this might sounds a bit noobish, where exactly does it says it has 56million shares. i check the annual report but it seems to be in a mess and i can't seem to find it. so any1 care to help?

 

[Sean K]

erm, this might sounds a bit noobish, where exactly does it says it has 56million shares. i check the annual report but it seems to be in a mess and i can't seem to find it. so any1 care to help?

All I can find is in their annual report last year, after the capital restructure they were to have 54,462,489 on issue. Page 9. Not sure if anything's changed since then.

 

[blaze87]

All I can find is in their annual report last year, after the capital restructure they were to have 54,462,489 on issue. Page 9. Not sure if anything's changed since then.

ty found it, but it was on page 11 and page 44. sigh why do they make it so hard to find such a simple information??

 

[prawn_86]

Hmmm, takeover offer from Zodiac Capital. Not that good if you have been holding for a while.

Offer is 12c and one Zodiac (NSX) share for every 2 Findlay shares.

If it goes through Zodiac have got a fairly good deal imo.

You still holding Rainmaker??

 

[Rainmaker2000]

Still holding (regrettably)........my worst buy since CDR but thankfully there has been much rain in between.....

At first I was pretty pissed with the takeover offer.....but then I've come to the conclusion that Zodiac does not intend to and is highly unlikely to take all the shares at what would appear a ridiculous offer.....

So now I actually think its a good thing....provides some support for share price and some suggestion from an insider that there is much value to be had in FDY........and to boot, it will weed out a lot of the punters with Zodiac maybe emerging with a 30-40% stake...

The bottom line is I'm hanging out for the half yearly, as market guidance suggests they are making lots of money and are worth lots even if the share price reacted to the very clear dodginess of the company...clearly, if market guidance proves correct, they are worth a lot of money, even if they are very, very dodgy

 

[prawn_86]

Well imo, that is a massively dissappointing half year result.

Shows that management cant and wont deliver on promises, I feel sorry for those who hold now.

A loss of $147000, how the hell did they manage that?

What are your thoughts Rainmaker?

 

[Rainmaker2000]

Well they released their result....when investing, one has no choice but to accept the word of those closest to the situation, management and weigh that against external critique....management after all have fiduciary duty to their own shareholders....

Market guidance from management has been misleading to say the least. In this case, revenue rose largely and expenses rose much more, including a 41% increase in consultant fees paid to client advisors....the accounts are not detailed but they appear to indicate that a)we listed the company and paid ourselves options and incentives b) we decided to pay ourselves more commissions also

I've liquidated my small stake in light of the result and am happy to have the collateral considering the situation. Management has indicated they may require 'external' funding to fund some of their clients debts...but don't worry at the moment, they say.

In light of a takeover bid by part of the FDY management, I wish to have nothing to do with people of such ethic.....and as a sideline am preparing a submission to ASIC

Best of luck all holders....

 

[prawn_86]

Yes i must say that when i originally looked into these guys, themanagement was the one big question mark, as some people had a lot of negative things to say about Ivor Findlay.

I guess it was a blessing in disguise that i didnt have capital free at the time...

 

[Rainmaker2000]

Yeah, that's a blessing....I'm happy I classed it as a highly speculative situation only bought a few and was reviewing the situation for more purchases.....it quickly became apparent, more purchases were not required!!!!hehehe

Bottom line is that there is very little difference between corporate crime and petty theft......this is a reminder of that

 

[ta2693]

Hi mates
Who the hell is Mr. Otto buttula? What is his background? Anyone has any idea?
Once he is on board. the Price of FDY rocket.

 

[Rainmaker2000]

I'm so sorry I'm sick home from work watching FDY soar to the skies......why ASIC and ASX allows such insider stocks, I have no idea.......

It's now appreciated over 100% in a few trading days apparently cause someone got appointed to a board...what has that got to do with the companies finances....where is the ASX please explain...... fantastic to see the punters have a win and I'll stick to my rather boring but fundamental method