@MarsC
For the moment you are happy to proceed with the forecast that the Wilson's will simply continue to have the Midas touch, regardless of how far they stray in geography & market.
I'm not sure how you can say that I'm forecasting that the Wilsons will continue to have the Midas touch.
In my first post after the Morsco announcement, I said:
Integrating a new subsidiary and changing the culture of the company on the other side of the planet are the mammoth tasks facing Reece now. Success is far from guaranteed. Many mistakes will be made. However, I'm willing to give the Wilsons the benefit of the doubt until I see evidence to the contrary.
And in my second post, I said:
I'm fully aware that this acquisition can blow up in their face in a few years time. But, it can also work out and be the platform for growth for the next few decades.
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How you can interpret posts like that into "forecasting the Wilsons will continue to have the midas touch" is something that I don't understand.
When I said "I'm willing to give the Wilsons the benefit of the doubt until I see evidence to the contrary.", I'm just saying that based on their past performance & behaviour and the fact that they put in $300m of their own cold hard cash into this, then for now I will continue to support them.
I want to reiterate that I don't have my blinkers on and that I'm fully aware of the challenges ahead. I am also ready to make the hard decisions if I see evidence of wheels coming off the Reece bus.
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I have to disagree with you and others as I still don't see the value in performing too much analysis up to FY2021, when I know that so many things can happen between now and then.
I'm pretty sure that in 3 years time, the actual financial figures for REH will be
COMPLETELY different from those presented in the analysis.
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As for the in the money entitlements, considering that it's 30+% in the money, those who are not taking up their full entitlements and apply for additional shares, are not behaving in a rational manner.
Regardless of whether or not they still believe in Reece post Morsco, they have easy short term profit that they can secure.
People can sell part of their existing shares now or even last week to lock in the profit and maintain their overall number of shares.
People can sell their entitlements next week and lock in some profit.
It has nothing to do with turning REH into a casino, as casino doesn't offer a certain 30% profit.
P.S. My statement
"As for the entitlement rights, considering that it's way in the money, most shareholders will participate in it. They can always sell afterwards and pocket easy profit." is not an exhortation, it's just a statement, nothing more nothing less.
In fact, I prefer it if some retail shareholders don't participate so that I can make sure that I can get the full allocation of my additional shares.
Why would I want to exhort people to do something that can result in me securing less immediate profit?
(20min delay)
