TTG - The Traffic Group

[cornnfedd]

anyone taken a look at this IPO?

thoughts?

I can provide link to prospectus if needed.

 

[ROE]

Re: The Traffic Group - IPO

anyone taken a look at this IPO?

thoughts?

I can provide link to prospectus if needed.

post the link, if I have time I have a quick read and give you my opinion
not advices

 

[bloomy88]

Re: The Traffic Group - IPO

Yeah I wouldn't mind a read as well.

What's the company all about?

 

[ROE]

Re: The Traffic Group - IPO

Yeah I wouldn't mind a read as well.

What's the company all about?

Here ya go
http://www.thetrafficgroup.com.au/downloads/ttgprospectus281009.pdf
http://www.youtube.com/watch?v=Hk0k2TO03wA

 

[ROE]

Re: The Traffic Group - IPO

I wont be buying failed most of my test

For a start I think most of their purchase doesn't seem to pay off ... and they don't tell you how much they paid for those earlier business and what sort of return they get from those business.

All I get to see is 30 June 2009 figure, what about say 2 years prior that so I can spot trends...racking up more debts?....purchased pay off or not...
Return on Equity..Return on Capital ????

too many uncertainty and too many un-answered questions keep me a way
but before I go I do a simple number calculation from the prospectus for you.

1.9 Mil of Debt paid 0.38 Mil in interest, you know what that equate to?
they pay 16% interest on their borrowing money...most well run company are lucky to generate that sort of return

so for this sucker to make decent money they need to make a return of at least 25%
else they soon belong to under performer....is it possible? maybe who know but I ain't putting my cash at risk to find out

also EBITDA of 1.03 Mil with interest of 0.38 ..interest covers sit at 2.6 times
too low for my liking of a small company...it need to be at least 5 and I like 8-10 times cover.

There are other reasons I dont like it but the above reasons are good enough and keep the post short and to the point

 

[drsmith]

Re: The Traffic Group - IPO

It's to recapitalise it out of administration.

I did not look down far enough to see if the board has the same directors that ran it into administration.

 

[ROE]

Re: The Traffic Group - IPO

It's to recapitalise it out of administration.

I did not look down far enough to see if the board has the same directors that ran it into administration.

No need to waste time on stuff you think is rubbish
I run a few quick rules, if it doesn't play ball I wont waste any more time

 

[cornnfedd]

Re: The Traffic Group - IPO

Here ya go
http://www.thetrafficgroup.com.au/downloads/ttgprospectus281009.pdf
http://www.youtube.com/watch?v=Hk0k2TO03wA

cheers for the link!

I wont be buying failed most of my test

For a start I think most of their purchase doesn't seem to pay off ... and they don't tell you how much they paid for those earlier business and what sort of return they get from those business.

All I get to see is 30 June 2009 figure, what about say 2 years prior that so I can spot trends...racking up more debts?....purchased pay off or not...
Return on Equity..Return on Capital ????

too many uncertainty and too many un-answered questions keep me a way
but before I go I do a simple number calculation from the prospectus for you.

1.9 Mil of Debt paid 0.38 Mil in interest, you know what that equate to?
they pay 16% interest on their borrowing money...most well run company are lucky to generate that sort of return

so for this sucker to make decent money they need to make a return of at least 25%
else they soon belong to under performer....is it possible? maybe who know but I ain't putting my cash at risk to find out

also EBITDA of 1.03 Mil with interest of 0.38 ..interest covers sit at 2.6 times
too low for my liking of a small company...it need to be at least 5 and I like 8-10 times cover.

There are other reasons I dont like it but the above reasons are good enough and keep the post short and to the point

interesting point of view, given me something to think about, ill certainly look at it harder but was probably going to pass anyway. Previous Administration doesnt sound good to me either, debt ratio too high as you said.



FYI - comments from a well known website, - maybe they are ramping. I assume this happens when you join these 'mail lists' etc.

#### subscribers have a limited opportunity to invest in the upcoming listing of The Traffic Group Limited. The Company is already profitable and plans to raise $5 million to substantially expand by winning new business, acquiring new businesses and to buy assets from distressed competitors.
The Traffic Group's core business is selling and manufacturing traffic and corporate signage and providing street sweeping services for the road construction and maintenance industry through its wholly owned business units, Allpack Signs, Cleansweep and Russell Signs.
The Traffic Group provides hardware and services to a robust industry that is fuelled by Commonwealth and State infrastructure spending. Forecast road infrastructure spending over the five years to 2013-14 is $13.5 billion per annum.
The Company has operations in Western Australia, South Australia, Victoria, Queensland and the ACT.
Investment Highlights:
• Profitable businesses in traffic and corporate sign manufacturing and street sweeping.
• Defensive market characteristics and benefiting from increased infrastructure spending by the Commonwealth and state governments.
• Major shift by local governments to increasingly outsource street sweeping services.
• Experienced and motivated management team with extensive industry knowledge.
• Industry ripe for consolidation and The Traffic Group will aggressively pursue acquisition opportunities to complete a national footprint.

 

[drsmith]

Re: The Traffic Group - IPO

No need to waste time on stuff you think is rubbish
I run a few quick rules, if it doesn't play ball I wont waste any more time

Very true but I am curious as to how you got 1.9 Mil of interest bearing debt.

There's 1.9 Mil as current and 2.3 mil Mil as non-current on the Jun-30 balance sheet.

 

[bloomy88]

Re: The Traffic Group - IPO

also EBITDA of 1.03 Mil with interest of 0.38 ..interest covers sit at 2.6 times
too low for my liking of a small company...it need to be at least 5 and I like 8-10 times cover.

Doesn't sound to tempting to me, the fact they are coming out of administration as well is a worry.
Think ill pass on this, plenty of other good companies out there...