What's new

"Trade Me" IPO

Lorenzo

Top Contributor
Okay big shot, why don't you give me your analysis then? You seem to be indicating the deal was less than successful.


The media group has been shedding staff and selling off assets in a bid to slow losses from dwindling advertising revenue.

I will wait to see the financials before to make any other comment which so far is purely based on my feeling.
 

Shane

Top Contributor
That's the whole Fairfax group though, not Trade Me. Trade Me is one of the most profitable parts of Fairfax, and enjoyed a 10% increase in profits for the year.

The IPO is going to value Trade Me at a figure considerably higher than Fairfax originally paid, and they're keeping around 70% of Trade Me so they still get to enjoy strong profits while freeing up capital to pay down debt.
 

Lorenzo

Top Contributor
That's the whole Fairfax group though, not Trade Me. Trade Me is one of the most profitable parts of Fairfax, and enjoyed a 10% increase in profits for the year.

The IPO is going to value Trade Me at a figure considerably higher than Fairfax originally paid, and they're keeping around 70% of Trade Me so they still get to enjoy strong profits while freeing up capital to pay down debt.

It doesn't matter, if you search my old posts some months ago when RenRen (http://www.google.com/finance?q=renn), the Chinese Facebook, debuted on the market and on the first day went higher (up to $24) than the IPO price I warned that it was insane and it was just another bubble 'bubbling'.

Now it's just above $7

Same for LinkedIn.

A P/E ratio of 1000 ? :rolleyes:

In Italy there are currently solid blue chip companies delivering a dividend of 8% and with a P/E ratio under 10. That's value.

Then of course if there are fools buying some kind of shares with no intrinsic value and FairFax makes money out of it, good for them. It won't be me buying though.

But as I said, I need to see TradeMe's financials. If they come up with numbers that I hardly expect then it will be another thing.

In other words, would you pay 1000 times (that's 1000 years) the earnings for a domain?

Example: a domain earns $10/year , would you pay $10,000 for it? Please tell me this so I can sell you lots of domains at a special discounted rate of 50% off.
 
Last edited:

Shane

Top Contributor
It doesn't matter, if you search my old posts some months ago when RenRen (http://www.google.com/finance?q=renn), the Chinese Facebook, debuted on the market and on the first day went higher (up to $24) than the IPO price I warned that it was insane and it was just another bubble 'bubbling'.

Now it's just above $7

Same for LinkedIn.

A P/E ratio of 1000 ? :rolleyes:

In Italy there are currently solid blue chip companies delivering a dividend of 8% and with a P/E ratio under 10. That's value.

Then of course if there are fools buying some kind of shares with no intrinsic value and FairFax makes money out of it, good for them. It won't be me buying though.

But as I said, I need to see TradeMe's financials. If they come up with numbers that I hardly expect then it will be another thing.

In other words, would you pay 1000 times (that's 1000 years) the earnings for a domain?

Example: a domain earns $10/year , would you pay $10,000 for it? Please tell me this so I can sell you lots of domains at a special discounted rate of 50% off.

WTF? Your entire post irrelevant and you're making yourself look stupid.

Trade Me's EBITA for the FY just past was $79m.

From what I've read Fairfax are looking to sell down 30-35% of their holding, and it is expected a raise around $300m cash for them. Based on those figures we can see a valuation of around $1 billion on Trade Me.

So you're looking at an earnings multiple of around 13x, which is so far removed from your 1,000x comparison that it's... well it's just stupid.

Seriously, you need to run some numbers before you embarrass yourself any further.
 

Lorenzo

Top Contributor
WTF? Your entire post irrelevant and you're making yourself look stupid.

Trade Me's EBITA for the FY just past was $79m.

From what I've read Fairfax are looking to sell down 30-35% of their holding, and it is expected a raise around $300m cash for them. Based on those figures we can see a valuation of around $1 billion on Trade Me.

So you're looking at an earnings multiple of around 13x, which is so far removed from your 1,000x comparison that it's... well it's just stupid.

Seriously, you need to run some numbers before you embarrass yourself any further.

You know what? I thought there was some kind of manners in this forum. Now I know I was wrong.

Instead of insulting you could have simply pointed me to this $79m that you mention.
 

Shane

Top Contributor
You know what? I thought there was some kind of manners in this forum. Now I know I was wrong.

Instead of insulting you could have simply pointed me to this $79m that you mention.

If you made a statement to someone in public, and they replied with the single word "okay" whilst rolling their eyes, do you think that would be good manners?

That's what you did to me, without even knowing the facts. So yeah, maybe I didn't display the greatest of manners, but I was simply finishing what you started.
 

neddy

Top Contributor
Updated news: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10755653

For a small country like NZ, this is simply amazing imho:

However, Trade Me will be a popular float with the so-called "mum and dad" investors because they understand the company through using it.

The documents show that Trade Me has more than 2.8 million registered members with one million members logging in during the past month.

In 2010, more than one million people bought or sold something on Trade Me, there were more than 650,000 visitors each day, more than two million emails were sent each day and there were 20,000 message board posts daily.
 

Community sponsors

Domain Parking Manager

AddMe Reputation Management

Digital Marketing Experts

Catch Expired Domains

Web Hosting

Members online

No members online now.

Forum statistics

Threads
11,098
Messages
92,044
Members
2,394
Latest member
Spacemo
Top