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KMD - KMD Brands

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Re: KMD - Kathmandu

It wasn't just the result it was that about a month ago they came out with much more positive estimates.
It will no longer be treated like a quality company and treated accordingly on the market. Trashed.
 
Re: KMD - Kathmandu

Bit of interest at 1.40. But not banking on it, though exited the rest of the short.
 
Re: KMD - Kathmandu

Everytime I walk past their shop in the CBD at lunch there are no shoppers in there. Adjacent shops selling similar goods are quite busy.
 
Re: KMD - Kathmandu

This stock earning is more akin to resource sector
up down and round about.

I think their pricing strategy is flaw, heavy markup so they can have
a massive sale 2 months a year, so the rest of the year no one would shop there

so even if they have cheap price no one would shop, they just wait for the sale
and once people work out the sale price isn't that cheap, they shop less.

so the only way for them is margin compression and lower price and that cant be good
for the stock price...

and they doing a failed reject shop strategy....they now stock all sort of gear and move away from their core technical gears...so more distraction and more completion and less earning on the new stuff
 
Re: KMD - Kathmandu

The share price was bid up to the take over offer value before the takeover offer details were announced. Again some people are privy to market sensitive information before release.
 
Re: KMD - Kathmandu

It was announced on the 30th via financial press. Nobody knew much details only that it was a cash & script bid via Briscoe
 
Re: KMD - Kathmandu

Wysiwyg said:
The share price was bid up to the take over offer value before the takeover offer details were announced. Again some people are privy to market sensitive information before release.
Click to expand...

skyQuake said:
It was announced on the 30th via financial press. Nobody knew much details only that it was a cash & script bid via Briscoe
Click to expand...

...and given that they had paid up to NZ$1.80 (AU$1.60) to get a 19.9% stake it gave the market a rough idea of a minimum value that the offer would come in at.
 
Re: KMD - Kathmandu

VSntchr said:
...and given that they had paid up to NZ$1.80 (AU$1.60) to get a 19.9% stake it gave the market a rough idea of a minimum value that the offer would come in at.
Click to expand...
The offer value is $1.58 and yesterday the highest bid was $1.575. It was known before the announcement. No over buy.
 
Re: KMD - Kathmandu

Where to from here?

Fundamentals

PE Ratio - 13.08

Div. Yield - 4.00%

EPS ($) - 0.143

DPS ($) - 0.0746

Earnings Yield - 7.65%

Gross Div. Yield - 4.96%

 
Re: KMD - Kathmandu

piggybank said:
Where to from here?

Fundamentals

PE Ratio - 13.08

Div. Yield - 4.00%

EPS ($) - 0.143

DPS ($) - 0.0746

Earnings Yield - 7.65%

Gross Div. Yield - 4.96%

View attachment 67683
Click to expand...

Measured move out of the basing pattern aligns with $2.40. These basing patterns have been producing some stellar moves recently.

We hold.
 
Kathmandu has gapped up today after releasing a Trading Update and revising its FY2018 profit guidance. KMD now expects to report EBIT of $72 to $77 million (last year $57m) and NPAT of $48 to $52 million (last year $38m).

The KMD share price opened above its recent highs of $2.50 and is currently trading at $2.67. It hasn't seen these prices since late 2014. The market has taken a positive view of the revised figures and there is obviously a perception that earnings and profit growth can be sustained into 2019.

 
This is my pick for the month. With the announcement above and having my daughter working part time there, she says the jackets in particular are selling fast as they are quality and fashionable and she should know being a high school student.
I am expecting a very good result so price should keep rising.
 
I have also taken a position on KMD.

Main reason being that this year's winter is bloody freezing!!!!

Their jackets and winter gear are selling like hotcakes, I have been to various stores around Sydney and they are super busy, I also bought a jacket too and love it! The customer experience was positive and good store experience.

I'd say they have very high margins on all their products even if they are on sale, GOP is around 63.3%. Good trading update in June. Sales growth and margins have increased.

Oboz footwear acquisition has room to grown perfect vertical for the KMD brand, online sales are increasing faster than retail sales.

I also believe they will report strong. It's not all doom and gloom for retail. Some retail stocks are performing strong look at LOV, ADH, AX1, KGN, SFH, NBL as some examples.

Cheers
 
KMD @ $0.98

KMD in a trading halt today, what a pity for shareholders as I have 4 companies on my retailers list today up 30% or more after the Morrison Govt employee wage subsidy announcement.

KMD board believes that information that might lead to a future material announcement from KMD has leaked to some market participants.

Coincidentally I was thinking about this one last night (see chart)
They don't have much LT debt ($24m) but they do appear to me to have an unfavourable balance of cash + receivables ($20m) to payables ($71m) - all at end fy19. They do have a massive inventory but how to turn it into cash to defray payables with shops closed?

KMD all Data MTHLY
 
KMD @ 0.98

Equity Raise

Underwritten, so looks like it's possible to raise this amount in this situation. If they succeed I will strongly consider buying a few if I can get them below the capital raise price of 50c which is itself a 50% reduction of the price prior to the trading halt. That price seems good compensation for the dilution and additionally I would be buying a financially safer company. Tough on those already holding though.

What I didn't get from my previous superficial look at the financials of the company through Commsec's end of fy19 summary was that KMD took on a massive senior secured debt of $220m to buy out RipCurl post fy19 - this was announced October 1st 2019.

So on to today's announcement (excerpt):

• The Group has launched a fully underwritten $207 million Equity Raising at an offer price of $0.50 per share via a $30 million Placement to certain institutional investors, together with an approximately $177 million 1.2 for 1 pro-rata accelerated Entitlement Offer (together, the Equity Raising).
• Post-raising, the Group will be strongly capitalised through the current market uncertainties caused by the global COVID-19 pandemic.
 
Last edited:
Bought in, maybe a bit late, at 93c.
My daughter works there part time and there were queues a mile long of people trying to buy when they reopened Saturday.
 
I'll be picking up some if there's a second crash later (around Sept - David Hunter)
 
I figured with international travel restricted an outdoor/camping gear retailer would naturally do better than usual, maybe.
 
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