VRL - Village Roadshow

[Tysonboss1]

If the interim divi holds good for the final divi, that's a annualized return of around 9.5%
at the current SP...pretty good result...i was expecting the divi to be lower so was
pleasantly surprised.

whats the go with their dividends, are they planning on starting paying both interim and final divs.

I looked at their dividend history and in the past they have always only paid either a final or an interim never both until maybe recently.

what do you guys think of VRLPA the prefrence share, it is currently trading at a discount and has a minimum div of 10.75 cents ( provided a div is paid to VRL)

 

[Tysonboss1]

Does any one know where you can find info on village roadshow pictures profit and loss.

I would like to see figures of the cost of production of each film and the revenue generated both by each flim, but also the on going revenue of the library.

 

[So_Cynical]

I took the punt today...i figure the SP just cant go much lower. :dunno:

Well they did go a little lower a week later, however was interesting to see how
buyers appeared to be chasing the dividend since the announcement last week.
VRL's share price went clearly against the market, as it has done for the last 5 months.

Anyway took 90% of my capital out toady @ 90c and left my 9.8% profit in.

 

[Tysonboss1]

Well they did go a little lower a week later, however was interesting to see how
buyers appeared to be chasing the dividend since the announcement last week.
VRL's share price went clearly against the market, as it has done for the last 5 months.

Anyway took 90% of my capital out toady @ 90c and left my 9.8% profit in.

Have you thought about investing in the prefrence share, It seems such good value, I can't see why it should be trading at such a big discount to the ordinary share when it has a minimum dividend of 10.75c or 3c more than the ordinary div which ever is higher.

Info on the pref share is scarce, so I was just wondering if there is somthing I am missing here.

All of vrl's share buy back have been aimed at the pref share also, which kind of points to the fact that management see it as being undervalued.

I am thinking of using this stock to bring a bit more cashflow to my portfolio while also having exposure to vrls great assets.

it's currently trading at less than 60c which means it has a dividend yield of about 18%.

 

[So_Cynical]

Have you thought about investing in the prefrence share, It seems such good value, I can't see why it should be trading at such a big discount to the ordinary share when it has a minimum dividend of 10.75c or 3c more than the ordinary div which ever is higher.

I didn't know there was a preference share....looks interesting

VRLPA - VILLAGE ROADSHOW LIMITED - CLASS PREFERENCE

• Market Cap: 56,640,162
• Issued Shares: 97,655,451
• 52-wk High: 1.85
• 52-wk Low: 0.49

Interesting that while management hold about 60% of ordinary shares they hold almost
no preference shares...over 75% of preference shares are held by instos...ANZ, USB,
HSBC, CITI etc.

Has consistently payed higher dividends than the ordinary shares...yet trade well
below the ordinary's at the moment, and has done for 8 or so months.

 

[Tysonboss1]

Interesting that while management hold about 60% of ordinary shares they hold almost
no preference shares...

The pref shares Have no voting rights attached to them, So the kirby brothers (management) wouldn't be interested it accumulating them.

How ever they have been investing in them indirectly Through VRL's on market share buy backs all year which has been targeting the prefrence shares and not the ordinary shares, Which makes sense for them to do, Why buy back an ordinary share when you can buy back a pref share for less and then not have to pay out the 10.75c dividend into the future, clearing pref shares means there is more funds to pay divs to ords.

 

[So_Cynical]

The pref shares Have no voting rights attached to them, So the kirby brothers (management) wouldn't be interested it accumulating them.

How ever they have been investing in them indirectly Through VRL's on market share buy backs all year which has been targeting the prefrence shares and not the ordinary shares, Which makes sense for them to do, Why buy back an ordinary share when you can buy back a pref share for less and then not have to pay out the 10.75c dividend into the future, clearing pref shares means there is more funds to pay divs to ords.

Thanks for that analysis Tyson...makes perfect sense ...ive added VRLPA to my
watchlist rotation and will follow with some interest.

_____

Also Tyson im wondering if u would like to give us your thoughts on VRL's debt position,
im thinking they would love to raise some money from somewhere....however i cant see
a way they (kirby brothers) can do this without diluting themselfs or having to put alot
of there own money in.?

 

[Kremmen]

VRLPA usually trades little. Today, there was large volume, mostly one big trade:

29-07-2009 12:54 PM $0.600 1879509 $1,127,705.400 Crossed

 

[Tysonboss1]

Also Tyson im wondering if u would like to give us your thoughts on VRL's debt position,
im thinking they would love to raise some money from somewhere....however i cant see
a way they (kirby brothers) can do this without diluting themselfs or having to put alot
of there own money in.?

I havn't taken a close look at the debt position for some time, from memory there was a fair bit of debt, but alot of it is held at the asset level. A couple of the assets operate on low interest cover which is a bit of a worry, But I believe the worst of the GFC is over so it shouldn't be a problem.

Another thing I find comfort in is that the kirby bros have such a vested interest that they are going to do everything possible to maintain value and not conduct any suicide capital raisings, and if they did have to it would be good terms for share holders.

I have real confidence in the kirby bros management style, they know theirs assets and have proven them selves very astute managers, Saying that I am annoyed with my self for selling out at $1.05. I just hope the stars line up again and I can buy back in sub $0.90

 

[So_Cynical]

VRL & VRLPA up significantly today on the announcement of a proposed management buyout/takeover, John Kirby, Robert Kirby and Graham Burke, want to go from 61% to 100%...early days yet and many details to come.

http://www.villageroadshow.com.au/press_releases/pdf/Project Darwin 100809.pdf

I expect there is some chance of more significant SP upside to come. :dunno: so glad i brought in at
82 cents, even happier i gave the trade time to come good.

 

[Kremmen]

Have you thought about investing in the prefrence share, It seems such good value

I've got to say thanks for that reminder. I'd stopped watching the prefs ages ago and hadn't realised that they'd lost so much ground to the ordinary shares in recent times.

Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.

 

[So_Cynical]

Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.

WD Krem...great timing.

Anyone got any ideas about what sort of price the Kirby's etc would be prepared to
pay, i wouldn't know where to start trying to figure out fair value etc. :dunno:

 

[Kremmen]

i wouldn't know where to start trying to figure out fair value etc.

Surely they have only made this move because they think the company is way under-valued? Book value as of Jun 08 was $4.80/share.

In the past, obfuscation of finances seems to have been part of their way of running things. Dividends have been highly variable (between 3.75c and 34c), which makes it even harder. They have almost always exceeded analysts' expectations on earnings, sometimes by huge margins.

If an offer comes, depending on the quantity of franking credits available, they could pay a large dividend as part of the deal. That would make it attractive to shareholders to accept a lower price than we would for an all-cash buy out.

 

[Tysonboss1]

I've got to say thanks for that reminder. I'd stopped watching the prefs ages ago and hadn't realised that they'd lost so much ground to the ordinary shares in recent times.

Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.

:bonk: unfortunatly for my self I sold out at $1.05 to buy another stock (which hasn't done to badly $1.20 to $1.79).

The idea rumors that the kirby brothers want to privatise have always been in the back ground, and at current prices it is probally a good time,

I wonder what the offer price will be, it will be sad to see this company leave the market, I think it's a great mix of businesses.

 

[So_Cynical]

it will be sad to see this company leave the market, I think it's a great mix of businesses.

VRL aint going nowhere...the buyout has been called off...RE: today's ann

http://www.villageroadshow.com.au/press_releases/pdf/Project Darwin 240809.pdf

The board of Village will consider alternative capital management
strategies in due course....what ever that means.

 

[Kremmen]

VRL aint going nowhere...the buyout has been called off.

Looks to me like it may have all just been a ploy to ramp their own shares. There's been massive turnover, for sure.

 

[Tysonboss1]

Looks to me like it may have all just been a ploy to ramp their own shares. There's been massive turnover, for sure.

Yeah it could be a ploy, But it makes me wonder why they would want to ramp up the price considering they have been purchasing at such good levels though the buy back .

maybe they were close to a margin call.

 

[oldblue]

Yeah it could be a ploy, But it makes me wonder why they would want to ramp up the price considering they have been purchasing at such good levels though the buy back .

maybe they were close to a margin call.

Recent shareprice movements don't support that theory.

If anyone was close to a margin call it would have been back in May when the SP was around 77-80c.

Perhaps it was a genuine buy-out attempt that didn't get off the ground. Or is that just me being naive?

Disc: Not a holder.

 

[Tysonboss1]

Recent shareprice movements don't support that theory.

If anyone was close to a margin call it would have been back in May when the SP was around 77-80c.

Perhaps it was a genuine buy-out attempt that didn't get off the ground. Or is that just me being naive?

Disc: Not a holder.

The margin call wouldn't have to be on VRL, it could be on another investment they were using vrl as security for, or perhaps they wanted to boost the price so as to allow them to borrow more for another investment.

Any way I think informing the market so prematurly was a mistake. if I were them I would have just kept quitely buying the prefrence share through the buy back as they were.

 

[Kremmen]

Massive on-market buy-back for VRL and VRLPA during November announced today, so both shot up about 20c.