Skeeta

Village Roadshow has gone into a trading halt

45 posts in this topic

On 10/07/2018 at 6:26 PM, RossL said:

I mean when I eventually go to VR Zone in Tokyo that will basically be replacing a day of going to a theme park for me.  If that was on the Gold Coast it would be far more compelling to visit than SeaWorld for me for example.

I love VR gaming, but currently there’s not much comparison. We have Optimus Gaming here in Perth, which has up to 8 players, but the clear market leader would have to be Zero Latency, with their free range multiplayer games. They’ve set up shop on so many continents now. Just curious to see what you think of their product.

https://zerolatencyvr.com/locations

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Hmm, This article instills a little less confidence, 

https://www.smh.com.au/business/companies/scary-ride-downhill-for-village-roadshow-shareholders-20180710-p4zqn6.html

Of note: Further asset sales are also on the agenda

That and the share price dropping again today -13.991%

 

 

 

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12 minutes ago, BatBoyd83 said:

Hmm, This article instills a little less confidence, 

https://www.smh.com.au/business/companies/scary-ride-downhill-for-village-roadshow-shareholders-20180710-p4zqn6.html

Of note: Further asset sales are also on the agenda

That and the share price dropping again today -13.991%

 

 

 

I'd imagine the further share price drop is mostly nervous shareholders reacting to the news the share price had previously dropped. The share market is crazy like that! However I am a bit concerned that they're considering further asset sales. If they could possibly avoid that they definitely should. It's usually only a short term solution with negative long term consequences!

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Village Roadshow Limited is pleased to announce the successful

completion of the institutional component of its fully underwritten Entitlement Offer to raise approximately $51 million. Summary of the Institutional Entitlement Offer

Completion of the institutional component of the Entitlement Offer

(“Institutional Entitlement Offer”) raised gross proceeds of approximately $35.7million, including $20.9 million from VRC shareholders

Eligible institutional investors took up approximately 96% of entitlements

Retail component of Entitlement Offer (“Retail Entitlement Offer”) opens on Tuesday, 17 July 2018

 

Retail Entitlement Offer

The Retail Entitlement Offer is expected to raise approximately $15.

7 million. The Retail Entitlement Offer will open at 9.00am (Melbourne time) on Tuesday, 17 July 2018 and close at 5.00pm (Melbourne time) on Thursday, 26 July 2018.

Eligible retail shareholders will be invited to participate in the Retail Entitlement Offer at the same offer price and offer ratio as the Institutional Entitlement Offer.

 
Village now out of trading halt.
 
1.875 Capture.JPG.a9fc5747f0844bdc6543c4be58bfdad7.JPG
Edited by Skeeta

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2 minutes ago, pushbutton said:

I'd imagine the further share price drop is mostly nervous shareholders reacting to the news the share price had previously dropped. The share market is crazy like that! However I am a bit concerned that they're considering further asset sales. If they could possibly avoid that they definitely should. It's usually only a short term solution with negative long term consequences!

Agree, I did invest on this investor panic myself purchasing some Village roadshow shares then came across that article lol but I do think it will only improve. 

Yes Asset sales are a worry but is this just creative journalism as its not quoted just a general statement.

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Could well be. Sadly a lot of so-called Journalists these days are much more suited to writing fiction novels. 

Edited by pushbutton
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1 hour ago, pushbutton said:

I'd imagine the further share price drop is mostly nervous shareholders reacting to the news the share price had previously dropped. 

It would be more to do with the capital raising diluting the value of each individual share. They're effectively adding ~20% more shares into the market so it makes sense that the existing stock would go down in price.

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7 hours ago, Skeeta said:

Retail Entitlement Offer

The Retail Entitlement Offer is expected to raise approximately $15.

 
1.875 Capture.JPG.a9fc5747f0844bdc6543c4be58bfdad7.JPG

Hold on *gets wallet*.

I think someone took a new line after the decimal place. 😜

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VR are currently running their own Coles down, down campaign.

asas.JPG.2de677b1bdf5e0a97fe8b6eba1115d19.JPG

Capture.JPG.9277c8fb64b59b1ae1e8d156771ee15c.JPG

 

When you compare the share prices between Ardent and Village over the last 2 years you would swear the accident happened at MW.

21 October 2016   $14.95

13 July 2018          $1.75

VL.thumb.JPG.b2e37be7f39111dbb2113072ad44713a.JPG

26 October 2016   $2.76

13 July 2018          $2.06

ardent.thumb.JPG.1c2496f6c238ff5406bf80de09df0068.JPG

Edited by Skeeta

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VRL was never $14.95... something's awry in those Google numbers. They were around $5 at the time of the incident.

Ardent is a company that has sold every other asset and sunk everything into the high-growth Main Event. The market wrote off the entire value of Dreamworld when the incident occurred so there has been no need for the market to "punish" them every time they've released dismal trading updates. To put it another way, no one is invested in Ardent Leisure because they see Dreamworld in the company's future.

Village on the other hand have their finger in many different under-baked pies and have a lot more opportunities to disappoint investors. They're hurting now because every division is struggling and they don't have the balance sheet to weather it.

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20 minutes ago, Richard said:

VRL was never $14.95... something's awry in those Google numbers. They were around $5 at the time of the incident.Village on the other hand have their finger in many different under-baked pies and have a lot more opportunities to disappoint investors. They're hurting now because every division is struggling and they don't have the balance sheet to weather it.

Google you lied to me.  Even so VRL's all time high of 7.424 to the current 1.75 it not a good thing.

If VRL don't change the trend of the last 4 years.  VRL won't be here in another 4 years.

Chart proudly supplied by skeet economics 101.

vrlvrl.thumb.JPG.4e5d64f3dce80e3e699fde9c10ee3c40.JPG

It's obvious I know nothing about economics and I don't pretend to but if I was currently buying shares I wouldn’t be buying them in VRL.

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52 minutes ago, AlexB said:

it depends. if you thought they had a good chance of recovery, now might be the perfect time to pick some shares up.

A fire sale doesn't give me optimism for the immediate future and the shit has hit the fan if the CEO’s are taking pay cuts.  I understand companies drop companies that are underperforming but what do you do when every company you own is leaking?  If they can’t plug all the holes the ships going to sink.  VRL have placed band aids over the holes but they haven’t fixed the problems.

Edited by Skeeta

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When everyone thinks about saying this means the company is over... just remember that little airline with the kangaroo on the tail back in say 2011

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29 minutes ago, djrappa said:

When everyone thinks about saying this means the company is over... just remember that little airline with the kangaroo on the tail back in say 2011

Very different example

Edited by dbo121

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17 hours ago, dbo121 said:

Very different example

How?

It'd be great, if you - you know - backed up your claims with evidence or explanation rather than a single short phrase...

https://www.parkz.com.au/about/guidelines

Quote

One-word or single phrase replies are not acceptable.

You should put some thought into a response, even if the answer is straight forward, it doesn't hurt to elaborate.

 

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Perhaps the example we’re looking for here is Ansett. There was fare warfare in the 90s (akin to giving away the gate) and Ansett was running with an old fleet. Air NewZealand bought it over and didn’t have deep enough pockets to buy enough new planes.

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On 11/07/2018 at 7:21 PM, iwerks said:

I love VR gaming, but currently there’s not much comparison. We have Optimus Gaming here in Perth, which has up to 8 players, but the clear market leader would have to be Zero Latency, with their free range multiplayer games. They’ve set up shop on so many continents now. Just curious to see what you think of their product.

https://zerolatencyvr.com/locations

I did the zombie shooting at zero latency in vegas.

Was bloody awesome fun

Bit expensive for half an hours fun but fun nonetheless.

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