MSY bought by mining company

Discussion in 'Overclocking & Hardware' started by ssharwood, Jul 8, 2019.

  1. ssharwood

    ssharwood Member

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  2. shino

    shino Member

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    does anyone even shop at MSY anymore?
     
  3. power

    power Member

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    do you live under a rock? if so they might just dig you up.

    on the story, i don't see this going well - MSY works because of things that a lot of corporate muppets won't understand.
     
    Last edited: Jul 8, 2019
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  4. MR CHILLED

    MR CHILLED D'oh!

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    Of course they do, why not?
     
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  5. OP
    OP
    ssharwood

    ssharwood Member

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    Yes. It has $100m revenue according to the filings
     
  6. ruffdayz

    ruffdayz Member

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    MSY's drawcard was bog average service but low prices. I reckon they'll close all retail stores (or lots of them), to cut overhead.

    Something not adding up there though. Purchase price of $17.5 million (maybe its meant to be $175), yet turning over $100m in sales??

    For the business to only be valued around $17.5 million, suggests its $100m in turnover, but less than $17.5 million in profits.
     
  7. Zee

    Zee Member

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    I shop at MSY all the time. There's one a few streets away from my Dad's, makes it very easy when I need a switch or something with short notice.

    Z...
     
    Last edited: Jul 8, 2019
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  8. MR CHILLED

    MR CHILLED D'oh!

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    Go in, grab what you need, without help, and go out....<-their business model :p
     
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  9. cvidler

    cvidler Member

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    It says just that in the article.

    profits will be much less than 17.5m. That 17.5m will include all of MSY's assets (locations, stock etc.) + less tangible valuations (market value, staff, etc.).
     
  10. banshee

    banshee Member

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    I have never trusted numbers in articles. Too easy for them to misplace a decimal, or just mess up conversions. It may be correct, but always verify.

    My first first hand experience was when they reported that an aircraft in maintenance had been dropped 6 meters. That is not only inaccurate, but impossible, since you cannot jack a 707 up that high. What had happened was the jacks were lowered unevenly. ID-10-T left an apprentice in charge of one, & the apprentice did exactly what he was told to do. So the jack he was at kept going down at the prescribed rate, but when another jammed his dropped away & at one point was 18 inches below the point it should have been supporting. So, 18", 18', what's the difference? Who cares, 18 feet is close enough to 6 meters, so we'll go with that...

    There have been others*, but that is the most memorable.


    *Can anyone remember the Mars Climate Orbiter?
     
    Last edited: Jul 8, 2019
  11. cvidler

    cvidler Member

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    True,

    But you don't value a business on turnover - that's not profit. especially one like MSY known for high turnover at minimum profits.

    you buy a business for it's assets (the physical, and some intangibles, customer base, market size, good-will etc.)
    and 17.5m sounds reasonable based on their assets.
     
  12. d1ng0d4n

    d1ng0d4n Member

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    Last edited: Jul 8, 2019
  13. cvidler

    cvidler Member

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    the whole weird thing about this, is Lanka Graphite, is a digging rocks out of the ground mining company with some weird subsidiaries too, nursing homes, and medical companies.

    and now a computer parts reseller, some strange investments.
     
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  14. power

    power Member

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    wonder if it's one of those "investment" companies behind it all.

    you know like the ones that bought DSE.
     
  15. cvidler

    cvidler Member

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    Until I looked, I'd assumed it was a crypto-mining company, investing in a hardware supplier to reduce their hardware costs - vertical integration.
     
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  16. JSmithDTV

    JSmithDTV Member

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    You mean like the private equity group that crushed DSE or Ruslan Kogan?


    JSmith
     
  17. power

    power Member

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    i do
     
  18. MR CHILLED

    MR CHILLED D'oh!

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    You can get varying numbers from different news source articles. I see it all the time.
     
  19. davality

    davality Member

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    It seems to me a reverse takeover.

    From wikipedia 'A reverse takeover or reverse merger takeover is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company. Sometimes, conversely, the private company is bought by the public listed company through an asset swap and share issue.'
     
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  20. Bert

    Bert Member

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    I used to shop there as much as possible, however, over the last year or so I've seen their product range turn to garbage (in my opinion). Seems odd a mining company would want to buy a retail computer parts company...
     

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