KMD - KMD Brands
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Re: Kathmandu IPO
I'm trying not to share too much on good stocks these days, but can't help myself.........
Kathmandu looks generally like a very desirable business being sold at a bit over a fair price.....but perhaps at a desirable price considering its apparent above average investment characteristics.....I'm looking forward to reading the prospectus
WHICH MEANS ITS NOTHING LIKE MYER...HEHEHE
Kathmandu is an iconic brand which captures a sustainable premium for its product........a premium which it captures fully with its vertically integrated business model
The above average characteristic of Kathmandu lies in its opportunity to leverage the above facts into simply "more stores"
What makes retail a potential unrivalled sector to invest is the "store opening machine"...............a JB HiFI comes to mind.......the private equiteers have enjoyed this a little but it remains virtually untapped from a global perspective.......the key question being whether its 60% gross operating profit margins, something quite rare indeed, can be completely translated in all virgin markets
Like any 'growth stock' created in Phillip Fisher's image........the floated share price may be a historic relic in 10 years if Kathmandu executes.....that would be the question for all reading the prospectus
But probably it'll just be gobbled up by those who missed out on Myer and heard that another shop is on sale!!!
I'm trying not to share too much on good stocks these days, but can't help myself.........
Kathmandu looks generally like a very desirable business being sold at a bit over a fair price.....but perhaps at a desirable price considering its apparent above average investment characteristics.....I'm looking forward to reading the prospectus
WHICH MEANS ITS NOTHING LIKE MYER...HEHEHE
Kathmandu is an iconic brand which captures a sustainable premium for its product........a premium which it captures fully with its vertically integrated business model
The above average characteristic of Kathmandu lies in its opportunity to leverage the above facts into simply "more stores"
What makes retail a potential unrivalled sector to invest is the "store opening machine"...............a JB HiFI comes to mind.......the private equiteers have enjoyed this a little but it remains virtually untapped from a global perspective.......the key question being whether its 60% gross operating profit margins, something quite rare indeed, can be completely translated in all virgin markets
Like any 'growth stock' created in Phillip Fisher's image........the floated share price may be a historic relic in 10 years if Kathmandu executes.....that would be the question for all reading the prospectus
But probably it'll just be gobbled up by those who missed out on Myer and heard that another shop is on sale!!!
Re: Kathmandu IPO
In the prospectus it states:
The Offer comprises:
the Retail Offer, consisting of:
the Kathmandu Employee Offer made to Eligible Kathmandu Employees; and
the Broker Firm Offer made to Australian and New Zealand resident retail clients who have received a firm allocation from their Broker; and
the Institutional Offer, which consists of an invitation to bid for Offer Shares made to Institutional Investors in Australia and New Zealand and a number of overseas jurisdictions.
Does anyone know if Etrade have received a firm allocation?
In the prospectus it states:
The Offer comprises:
the Retail Offer, consisting of:
the Kathmandu Employee Offer made to Eligible Kathmandu Employees; and
the Broker Firm Offer made to Australian and New Zealand resident retail clients who have received a firm allocation from their Broker; and
the Institutional Offer, which consists of an invitation to bid for Offer Shares made to Institutional Investors in Australia and New Zealand and a number of overseas jurisdictions.
Does anyone know if Etrade have received a firm allocation?
Re: Kathmandu IPO
Yeah im interested to read the prospectus. Ive bought stuff from them before and always wondered how they manage to sell it so much above what it actually costs. Even their 50% off sales they would make a killing on. They sell an attractive image and lifestyle. Roll on prospectus, lets see how the numbers look..
Yeah im interested to read the prospectus. Ive bought stuff from them before and always wondered how they manage to sell it so much above what it actually costs. Even their 50% off sales they would make a killing on. They sell an attractive image and lifestyle. Roll on prospectus, lets see how the numbers look..
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Re: Kathmandu IPO
I think that there are quite a few other established but not as famous stores that sell the same type of things, and, giving the prices they charge, they really need to open up new markets to look for fresh blood who are not yet familiar with where to get this type of equipment. So, it would work well for a while, until people realise what a rip off they are.
I think that there are quite a few other established but not as famous stores that sell the same type of things, and, giving the prices they charge, they really need to open up new markets to look for fresh blood who are not yet familiar with where to get this type of equipment. So, it would work well for a while, until people realise what a rip off they are.
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Re: Kathmandu IPO
Finally a topic i can actually comment on...
I tend to agree with awesomeandy to some degree. I worked in a large independent store within the same industry as Kathmandu for about 3 years as a purchaser of the products, and the general consensus then was that they basically copied other brand's products and released them under their own name and charged excessive prices. Although even considering that, the business model seems to be a lot better than Anaconda, who have also been opening up stores everywhere. Also between Paddy Pallins, Ray's Outdoors, Aanaconda and all the others, how much market is there?
Finally a topic i can actually comment on...
I tend to agree with awesomeandy to some degree. I worked in a large independent store within the same industry as Kathmandu for about 3 years as a purchaser of the products, and the general consensus then was that they basically copied other brand's products and released them under their own name and charged excessive prices. Although even considering that, the business model seems to be a lot better than Anaconda, who have also been opening up stores everywhere. Also between Paddy Pallins, Ray's Outdoors, Aanaconda and all the others, how much market is there?
Re: Kathmandu IPO
Wouldn't the intention by Kathmandu's founder and former-owner Jane Cameron to set up a business with a chain of shops to compete with Kathmandu be a threat?
(Page 61 of the Investor section of the Sun-Herald Sunday October 25, 2009).
Wouldn't the intention by Kathmandu's founder and former-owner Jane Cameron to set up a business with a chain of shops to compete with Kathmandu be a threat?
(Page 61 of the Investor section of the Sun-Herald Sunday October 25, 2009).
Re: Kathmandu IPO
She says prices in her new stores would be 50 to 60 percent lower than Kathmandu. She sold Kathmandu in 2006 for a reported $275 million, knows the industry very well and despite some recent retail acquisitions she seems to be pretty cashed up.
She says prices in her new stores would be 50 to 60 percent lower than Kathmandu. She sold Kathmandu in 2006 for a reported $275 million, knows the industry very well and despite some recent retail acquisitions she seems to be pretty cashed up.
Re: Kathmandu IPO
I spent a bit of money at Kathmandu store each year but right now I dont have an opinion on it, and I wont be shopping at Kathmandu any more if Jan follow her Plan. (see below)
there is something that bother me a little about this wonderful brand and I still havent figure out how they can sustain it, if the business was to grow like the two beauty that i like JB Hi-Fi and The Reject Shop.
but a rule of thumb is when private equity sell out it wont be cheap but at least fully price...
if you want to know what Jan Cameron been up since she sold Kathmandu have a read here
http://www.stuff.co.nz/dominion-post/business/2996271/Kathmandu-faces-competition-from-former-owner
If she use her existing retail and logistic infrastructure and open 60 outdoor stores and price it much cheaper than kathmandu I dont know how Kathmandu can handle the pressure.
the market is start to get crowded with BCF, Ray outdoor expanding non-stop too..
I spent a bit of money at Kathmandu store each year but right now I dont have an opinion on it, and I wont be shopping at Kathmandu any more if Jan follow her Plan. (see below)
there is something that bother me a little about this wonderful brand and I still havent figure out how they can sustain it, if the business was to grow like the two beauty that i like JB Hi-Fi and The Reject Shop.
but a rule of thumb is when private equity sell out it wont be cheap but at least fully price...
if you want to know what Jan Cameron been up since she sold Kathmandu have a read here
http://www.stuff.co.nz/dominion-post/business/2996271/Kathmandu-faces-competition-from-former-owner
If she use her existing retail and logistic infrastructure and open 60 outdoor stores and price it much cheaper than kathmandu I dont know how Kathmandu can handle the pressure.
the market is start to get crowded with BCF, Ray outdoor expanding non-stop too..
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Re: Kathmandu IPO
I've just been reading the prospectus........it does read like a very good sell.......still, it's not mutton dressed up as lamb.....it's got some enviable investment characteristics.....
For those who've comment on it from a perspective of, "i've been in their shops".......this type of intelligence is valuable but only in its place.......essentially, it matters little what you think of the product or the fact that I would never shop there, what matters is the business model and sustainable profit margins under the pressure of growth.......going into the store will be helpful in only a few respects..........similarly, I've always been dazzled by the Reject Shop model.........but would never buy anything from there........as a consumer myself, I just find the shop stupid......but I've always admired it from the float.....just an incredible business
All this talk of competition........its retail for crying out loud, I hope there is competition, otherwise there is no honeypot........
The fact that Kathmandu makes 60% profit margins in the face of existing and escalating competition says a lot of good, not bad
Personally, I would hope all the discounters enter the sector like crazy and rip everyone's profit margins to shreds.......cause they don't look like they would hit Kathmandu
I get the impression that the people who shop at Kathmandu buy a piece of the brand and then work out what the hell they are going to do with another useless product!!!
I've just been reading the prospectus........it does read like a very good sell.......still, it's not mutton dressed up as lamb.....it's got some enviable investment characteristics.....
For those who've comment on it from a perspective of, "i've been in their shops".......this type of intelligence is valuable but only in its place.......essentially, it matters little what you think of the product or the fact that I would never shop there, what matters is the business model and sustainable profit margins under the pressure of growth.......going into the store will be helpful in only a few respects..........similarly, I've always been dazzled by the Reject Shop model.........but would never buy anything from there........as a consumer myself, I just find the shop stupid......but I've always admired it from the float.....just an incredible business
All this talk of competition........its retail for crying out loud, I hope there is competition, otherwise there is no honeypot........
The fact that Kathmandu makes 60% profit margins in the face of existing and escalating competition says a lot of good, not bad
Personally, I would hope all the discounters enter the sector like crazy and rip everyone's profit margins to shreds.......cause they don't look like they would hit Kathmandu
I get the impression that the people who shop at Kathmandu buy a piece of the brand and then work out what the hell they are going to do with another useless product!!!
Re: Kathmandu IPO
started reading the IPO today.
My (now seven) minutes of looking into it seems to indicate that it seems it'll be pretty fairly priced.
However, also, IMHO, there are some shares on the ASX that are UNDERpriced.
Guess what will get my money first?
started reading the IPO today.
My (now seven) minutes of looking into it seems to indicate that it seems it'll be pretty fairly priced.
However, also, IMHO, there are some shares on the ASX that are UNDERpriced.
Guess what will get my money first?
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Re: Kathmandu IPO
Agree.......no debate it will not cheaply priced......if I do buy some, it will only be a few thousand just so that it sits on my watchlist for the case of a global meltdown or something
Agree.......no debate it will not cheaply priced......if I do buy some, it will only be a few thousand just so that it sits on my watchlist for the case of a global meltdown or something
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Re: Kathmandu IPO
Has been a very good business model so far with stores able to jump into profit within 1 year, but with the founders desire to set up next year with a similar model with permanently low prices as oppossed to not ones with so called "sales" is an issue worth considering..although competition is the backbone of a free market.....
with interest rates due for a potential number of % rises and guesses that rates could be 2% higher by this time next year, I am wondering whether the amount of discretionary spending will be there. Great brand, great business model..................
Havent read the prospectus but am very cautious about business conditions with interest rates set to rise.....possibly as quickly even as they dropped...........????
Good luck to those who subscribe though.....may it scream ahead.....a great Australian brand
Has been a very good business model so far with stores able to jump into profit within 1 year, but with the founders desire to set up next year with a similar model with permanently low prices as oppossed to not ones with so called "sales" is an issue worth considering..although competition is the backbone of a free market.....
with interest rates due for a potential number of % rises and guesses that rates could be 2% higher by this time next year, I am wondering whether the amount of discretionary spending will be there. Great brand, great business model..................
Havent read the prospectus but am very cautious about business conditions with interest rates set to rise.....possibly as quickly even as they dropped...........????
Good luck to those who subscribe though.....may it scream ahead.....a great Australian brand
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Re: Kathmandu IPO
hehe, the prospectus said $1000.....but I know from experience (I took the minimum).hehe......is a measly $2000
I don't think the stock is cheaply priced, but I'll keep a close eye on it this way.............my instinct tells me that they are actually expecting more than 15 % profit growth this year......but it pretty much ruines a newly listed company if they miss their first profit forecast!!...so I think they are being conservative......
hehe, the prospectus said $1000.....but I know from experience (I took the minimum).hehe......is a measly $2000
I don't think the stock is cheaply priced, but I'll keep a close eye on it this way.............my instinct tells me that they are actually expecting more than 15 % profit growth this year......but it pretty much ruines a newly listed company if they miss their first profit forecast!!...so I think they are being conservative......
Re: Kathmandu IPO
From the article
She intends to offer everyday low prices instead of the regular 50 per cent off sales concept practised at Kathmandu – a concept Ms Cameron introduced.
She says the prices in her new stores will be 50 to 60 percent lower than Kathmandu's everyday prices.
"I imagine that if we are offering a similar product at competitive prices, at everyday low prices, around 50 to 60 percent lower than Kathmandu, I imagine that might be quite attractive
Does she mean 50-60% lower than Kathmandu's discounted price? Or their RRP, because I don't see it as that much of a threat if its 50-60% less than the RRP because the RRP at Kathmandu is a joke. Their like rug stores, their always having a sale so the RRP is just some fantasy number. Stuff is always 25-50% off or more or buy 1 get 1 free.
Given margins are 60%, she might be able to price it at a significant discount to Kathmandu's discounted price at which would shred margins for Kathmandu.
From the article
She intends to offer everyday low prices instead of the regular 50 per cent off sales concept practised at Kathmandu – a concept Ms Cameron introduced.
She says the prices in her new stores will be 50 to 60 percent lower than Kathmandu's everyday prices.
"I imagine that if we are offering a similar product at competitive prices, at everyday low prices, around 50 to 60 percent lower than Kathmandu, I imagine that might be quite attractive
Does she mean 50-60% lower than Kathmandu's discounted price? Or their RRP, because I don't see it as that much of a threat if its 50-60% less than the RRP because the RRP at Kathmandu is a joke. Their like rug stores, their always having a sale so the RRP is just some fantasy number. Stuff is always 25-50% off or more or buy 1 get 1 free.
Given margins are 60%, she might be able to price it at a significant discount to Kathmandu's discounted price at which would shred margins for Kathmandu.
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Re: Kathmandu IPO
Myer's debut today will have an impact on the perceived success of Katmandhu's IPO I suspect. Hard to compare a major retailer with a category killer of course but the sentiment will be there.
Can anyone point me towards a link with an analysis of the Katmandhu offer?
Cheers,
Kenny
Myer's debut today will have an impact on the perceived success of Katmandhu's IPO I suspect. Hard to compare a major retailer with a category killer of course but the sentiment will be there.
Can anyone point me towards a link with an analysis of the Katmandhu offer?
Cheers,
Kenny
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