KEY POINTS:
VTL Group
Two American investors who each took a significant slice in the vending machine company's shares this year have not had an easy ride.
Professional investors John Halpern and George P. Denny III in January paid $1.45 a share to each buy 9.95 per cent stakes. Since then the shares have slumped to around $1. This appears related to a poor interim result for the year to December 31, which showed a net loss of $6 million compared with a $1.8 million profit in the previous corresponding period.
The company has blamed a high kiwi dollar for the result. While the company should do better when conditions are more favourable, it is some way off realising its potential.
If it is able to add value to the struggling All Seasons business in the United States, the benefit to its bottom line could be immense.
Despite the poor recent performance of the firm and its shares, the interest shown by US investors is a positive sign for the future.
Veda Advantage
After rising more than 20 per cent following the announcement in late January of a "private equity proposal", shares in the credit reporting company have been weakening as there has been little action since.
Recently Veda (formerly Baycorp Advantage) hinted a deal was still some way off. "There is currently no definitive proposal capable of recommendation by the board or of putting to shareholders for consideration," it said.
"Despite the ongoing nature of discussions with the consortium, shareholders should be cautious about drawing any inference about whether any definitive proposal will eventuate."
But since this is not the first private equity bid for the company, the chances remain high that someone will eventually make an offer attractive to major shareholders.
* Views expressed in this article are those of IRG and not the Weekend Herald.
