Bad bad move.
It does not even synergise with jts business.
It will drain the cashflow.
Many invested for solid cashflow and dividends and organic growth. ..
They don't want the CEO to play the role o chief acquistor to buy this and that
Now it has to servhc the debt of the company it is buying ...shareholders can say bye bye to the solid dividEnds. It is buying a negative cashflow company
of the same size as itself.
I was waiting for a good price to buy SATS now I can strike it off my list.
The compaany to be acquired has been living on debt with $1.5B due this yr. It is paying 6-8% yield on its debts says alot about the financial state of the company.
I am rather shocked that they would even consider this....it is just so bad.
![[Image: Nvwn8zO.png]](https://i.imgur.com/Nvwn8zO.png)
The market is not receiving this half-baked news well despite the company swiftly refuting the $3billion buy price. This ambitious acquisition nets a whopping 161 airports in 20 countries at one go. It is a BIG trawler-size catch. If this goes through, WFS will certainly undergo a management-level shakeup to cut the fats and slash redundancies and bad practices that led to debt pile-up.
(23-09-2022, 08:37 AM)icarus Wrote: [ -> ]The market is not receiving this half-baked news well despite the company swiftly refuting the $3billion buy price. This ambitious acquisition nets a whopping 161 airports in 20 countries at one go. It is a BIG trawler-size catch. If this goes through, WFS will certainly undergo a management-level shakeup to cut the fats and slash redundancies and bad practices that led to debt pile-up.
Not so easy. They are dealing with unions and complex regulation, I believe many of the contracts for baggage handling is given by govt agencies with certain worker conditions in these countries. There is no competitive advantage WFS has. That is why it accumulated so much debt due to contracts with onerous hiring obligations.
Once SATS buys it, SATS will be a debt laden company. The only reason WFS is selling is it js becoming harder to refinance its debt pile which is growing.
This is all out foolish decision by SATS management to take short cuts for growth. The board should block it and sack the CEO.
(23-09-2022, 08:56 AM)sgbuffett Wrote: [ -> ]Not so easy. They are dealing with unions and complex regulation, I believe many of the contracts for baggage handling is given by govt agencies with certain worker conditions in these countries. There is no competitive advantage WFS has. That is why it accumulated so much debt due to contracts with onerous hiring obligations.
Once SATS buys it, SATS will be a debt laden company. The only reason WFS is selling is it js becoming harder to refinance its debt pile which is growing.
This is all out foolish decision by SATS management to take short cuts for growth. The board should block it and sack the CEO.
This wouldnt be the first time a Singapore glc buys into foreign unionised entities. The heydays of the all-powerful unions are gone.
The ceo/president has to do more to calm investors
In 2018, Cerberus paid $1.2B euros for WFS.
After 2 of losses and mounting debt SATS wants to buy at higher price!
This is beyond stupid!
![[Image: JWO7NJc.jpg]](https://i.imgur.com/JWO7NJc.jpg)
(23-09-2022, 09:06 AM)sgbuffett Wrote: [ -> ]In 2018, Cerebrum paid $1.2B euros for WFS.
After 2 of losses and mounting debt SATS wants to buy at higher price!
This is beyond stupid!
If you are not invested, relax. Wait for the right time. Or look elsewhere.
If WFS is a good conpany to buy, SATS won't have a chance. WFS has probably been offered to many potential buyers such as DHL and they all declined.
(23-09-2022, 09:34 AM)starbugs Wrote: [ -> ]If WFS is a good conpany to buy, SATS won't have a chance. WFS has probably been offered to many potential buyers such as DHL and they all declined.
DHL and fedex has many synergies with WFS yet they don't want.
SATS is to hard up to grow...this is an easy route but full of traps
(23-09-2022, 09:37 AM)sgbuffett Wrote: [ -> ]DHL and fedex has many synergies with WFS yet they don't want.
SATS is to hard up to grow...this is an easy route but full of traps
PAP is Forever Desperado
like they sign CECA when no other 200 countries want
we suffer but PAP happy
SATS, Singtel, Keppel . . . .
all must clean- up their backend/ Administration process
which is still like PAP system seen in HDB, TC . . . .messy and unproductive
the board n ceo make a stupid unwise move
put all eggs in a basket
market rejected on sharp sell down
Up >3% in morning trade
Something is either brewing, or unwinding
Should have scooped up last week
(26-09-2022, 09:41 AM)icarus Wrote: [ -> ]Up >3% in morning trade
Something is either brewing, or unwinding
Should have scooped up last week
either v gd results upcoming
or deal aborted
or reduce take over price
or could be any of the 2
Almost back to pre-news levels
Big short squeeze
Likely successful in present Regional business so wants to buy up more. I doubt they can handle such a huge company as we are not DBS paying employees that is 5 times more than other sectors.
i JUST saw from mainstream media claim it stocks plunge
(23-09-2022, 08:00 AM)sgbuffett Wrote: [ -> ]Bad bad move.
It does not even synergise with jts business.
It will drain the cashflow.
Many invested for solid cashflow and dividends and organic growth. ..
They don't want the CEO to play the role o chief acquistor to buy this and that
Now it has to servhc the debt of the company it is buying ...shareholders can say bye bye to the solid dividEnds. It is buying a negative cashflow company
of the same size as itself.
I was waiting for a good price to buy SATS now I can strike it off my list.
Plunge!
![[Image: fvL0BJh.jpg]](https://i.imgur.com/fvL0BJh.jpg)
WTF ... cannot escape this even
one shit after another
may drop to covid 19 low 2.50
do not catch a falling knife now.
is a stupid move to buy now on expected recession n higher interest rates