Thursday, August 01, 2013
Ideally a capital raising should deliver the classic ‘win-win’ by shoring-up capital reserves and paying down company debt while offering shareholders more shares at attractive discounts to traded prices. Unfortunately the benefits of capital raisings can be extremely one sided. That’s why it’s important to understand that all capital raisings were not created equally, and can be invariably value destroying for shareholders.
By learning how to identify an unfair capital raising, you (the shareholder) can avoid being diddled out of more cash and potentially a dilution in your shareholder value.
Wednesday, July 03, 2013
In 2005, 2006, 2007, 2010 and 2011 Flight Centre (FLT) achieved Skaffold's second highest score for business quality and performance, A2. Since 2012 Skaffold has rated Flight Centre (FLT) A1, and for good reason. So today when the company released its updated market guidance, at Skaffold we weren’t surprised. Failing another GFC or September 11, Flight Centre will continue to dominate its industry.
FLT’s earnings per share, dividends per share and profits have increased more than 10% per annum since 2003. Return on equity has averaged 22% and aside from 2009, Cash Flow Generated from Operations has consistently exceeded Reported Net Profit After Taxes. There aren’t too many other Aussie businesses that can boast such impressive business performance.