Should this be a concern for Knight's fans?

[Sydney Knight]

Whitehaven Coal up over 5% yesterday. Maybe there is a sniff of the big takeover being back on.

 

[Chicken_Hunter]

Whitehaven Coal up over 5% yesterday. Maybe there is a sniff of the big takeover being back on.

Probably more to do with the fact that the company has been heavily oversold and is very cheap at the moment. A lot of investment firms price whc anywhere from $4 to $7. It is Australia's largest coal producer after all.

Tinkler needs to raise over $5b to take over whc, he couldn't even take over a company with 28m a few months ago.

 

[Chicken_Hunter]

Just got this today from my Stockbroker. Bear in mind, I did buy into WHC at around $5.70 on their advice, it closed today at $3.23.

Good Afternoon,

I have detailed below an interesting opportunity in WHC.

WHITEHAVEN COAL

I see WHC as currently being in a similar situation to what QRN were recently and what TLS were below $3.00, about 12 months ago.

Why you may ask?

Firstly, they are all good quality businesses, trading at significant discounts to valuations, for reasons relating more to a situation with their major share holders, rather than any company specific reasons.

In the case of TLS it was the perceived overhang of the Future Funds shareholding and to an extent, the markets concern as to the sustainability of their current dividend. The Future Fund exited the stock in an orderly way, slipping under substantial and eventually disappearing from the register. This meant the institutions didn’t get the cheap stock they were hoping for from a sell down, the company gave some comfort that the dividends would be maintained for at least another 18 months and surprise, surprise the stock has barely looked back.

QRN was a similar situation. The institutions like the stock, are generally underweight, but thought they could bide their time and hang out for some cheap stock for when the Queensland Government sells at a discount. Now we know that didn’t happen. The insto’s are dirty about missing out on the sell down and they are now forced to buy on market to reduce their underweight positions.

I see WHC as a similar situation. Apart from the general concerns about the bulks, WHC has been weighed down on the uncertainty of what will happen with Tinkler’s 19% stake in the company. Again, the market is waiting/hoping for a forced sale or resolution of his financial situation and are holding off investing in the stock in the hope of getting it a cheaper levels. I wouldn’t have a clue about Tinkler’s financial situation, but am sure that being his primary asset, he would be doing everything he can to maximise its value as best he can.. The banks will either sell him out, his hedge fund backers will buy him out, or he will flog the strategic parcel to a strategic investor. Recent deals/activity in companies such as: ARI/Posco, BSL/Nippon Steel JV, FMG/refinancing should give comfort that deals can still be done in big cap, stressed situations. One way or another it will be resolved and the stock will recover, but obviously I have no idea when.

I would recommend either topping up your holding in WHC or taken an initial position in it at the current market price.

If you have any questions about the above, or would like to discuss further, please contact me.

 

[Rod]

I thought this was interesting considering we barely hear a peep out of HSG themselves, and they say as much in the first paragraph:

http://www.newcastleknights.com.au/news-display/Statement-for-Members-and-Supporters/65053

 

[Haffa]

Good to hear they're putting the Herald in their place.

 

[Frederick]

Because of this negative campaign driven by the Newcastle Herald, the Clubs have stopped their journalists from attending Knights and media opportunities.

Can't wait to read Rob Dillons hissy fit he will no doubt have over this :lol:

 

[God-King Dean]

I thought this was interesting considering we barely hear a peep out of HSG themselves, and they say as much in the first paragraph:

http://www.newcastleknights.com.au/news-display/Statement-for-Members-and-Supporters/65053

That's fuggin awesome. Wish the NRL would take this kind of stance against the Telecrap. Never happen though.....

 

[The Showstopper]

Dillon and Keeble just got put back in their box. Welcome to the new era folks. Newcastle Knights are the most professionally run football club in the country. HSG with Bennett's input dictate who they sign and don't sign.They also determine what media knows and doesn't know and won't fall for their petty 'if we make stuff up they will be forced to make a statement defend it ' crap. Newcastle Herald is amateur hour. Wayne bennett and Tinkler both think along the same lines ie. Do not give them anything tangible they can use against you.
Tinkler clearly is not bothered by any speculation regarding his finances. He owes this city nothing. He has done more than enough for the Knights.

 

[Pika]

I have never really cared for The Herald. I agree, the place is amature hour.

Tinlker may not owe the City anything, but he does owe numerous small and large businesses, contractors and several of local physio and medical practioners various sums of money which remains outstanding for many months.

Tinkler may not care about what others think about his finances, but there are a lot of people out there who have refused to do further business with him and he is quickly running out options for various services.

 

[macavity]

I have never really cared for The Herald. I agree, the place is amature hour.

Tinlker may not owe the City anything, but he does owe numerous small and large businesses, contractors and several of local physio and medical practioners various sums of money which remains outstanding for many months.

Tinkler may not care about what others think about his finances, but there are a lot of people out there who have refused to do further business with him and he is quickly running out options for various services.

This. I may not be a Tinkler sized business, but I have always made a point of paying suppliers on time, particularly small suppliers. It is shameful to do otherwise.

 

[Newie is God's Country]

I agree on the business ethics calls Pika and Macavity. Especially under current economic pressures. Everyone feels it but the fact is people in small to medium business rely on goodwill of people who owe them money above all else. Courts and debt collectors cost plenty.

 

[Spot On]

He's hit the jackpot with All Too Hard now. A stallion worth millions upon millions in future stud fees. Surely he can't win the Cox Plate as well?

 

[Big Tim]

http://www.news.com.au/sport/nrl/mi...-player-payments/story-fndujljl-1226496755803

ALARM bells are ringing over the future of the Newcastle Knights under the ownership of embattled mining magnate Nathan Tinkler following revelation the club has fallen behind in player payments.

Leaguecentral.com.au can reveal this morning that the monthly salaries have not been deposited into the players’ bank accounts on schedule this morning.

Superannuation payments and office staff salaries have also been delayed in recent months.

A number of players phoned their agents to say the payments due on the 15th of each month had not been paid yesterday

The money had still not been deposited this morning.

Hunter Sports Group spokesman Richard Fisk denies there is a problem.

"I accept there has been tardiness in the past," Fisk said.

"But all pays for Jets, Knights, HSG employees have been processed and will clear today in the normal course of business."

When trying to contact Fisk to quiz him about payments, he texted this reply: "Not late. Obviously confusion over weekend. Wages not late processed on 15th and will clear today. We are probably waiting on All Too Hards prize money from the weekend...lol"

The crisis involves many of the biggest names in the game including skipper Kurt Gidley and club veteran Danny Buderus.

It is not clear if super coach Wayne Bennett has been paid.

The now Singapore based Tinkler was once rated Australia’s richest man under 40 by Business Review Weekly.

He purchased the Newcastle Knights and hired super coach Wayne Bennett on a deal worth more than $1million-a-season.

Part of the deal negotiated by the club’s former CEO Steve Burraston ensured a $20 million bank guarantee was part of the deal.

The NRL has again been caught on the hop over the club’s finances.

I recently asked acting CEO Shane Mattiske about rumours of the Knights’ financial crisis.

"We have been assured by the Knights that there is no issue," said interim CEO Shane Mattiske.

"In our monitoring of the club's finances, we've seen no evidence that would suggest we should be concerned. We understand that some of the media reports are clearly going to lead to speculation.

"We continue to monitor the Knights, as we do all clubs. It is important to remember that there are also a number safeguards that were built into the original transfer of the licence to Hunter Sports and these remain in place."

Jeez. If only I could go to the media every time my pay was not in my account on the Thursday as expected....

 

[Old_Timer]

Hmmmm, sadly it look's like the vultures are circling. Time to move on from Uncle Nat methinks.

 

[Matchball]

He's hit the jackpot with All Too Hard now. A stallion worth millions upon millions in future stud fees. Surely he can't win the Cox Plate as well?

It will keep his head above water for a few weeks. He loses 500k a week just running the stables.

It's only a matter of time before he is bust and knights will pocket the 20m.
Thank god you had a CEO with brains. Id want him to fold for that windfall.

 

[Rod]

http://www.newcastleknights.com.au/news-display/It-is-business-as-usual/65151

Typical scummy Rothfield dribble.

 

[Apey]

I love how the club has been dealing with this stuff lately. Posting articles that completely contradict other media asap :lol:

 

[The Showstopper]

Tew negotiated the 20 million and not Burro! Rothfield is a disgrace and should be sacked for his blatant agenda against our club. Rothfield is everything that is wrong with journalism. Great return serve by the Knights.

 

[eozsmiles]

I don't know why Nathan doesn't pay people on time. It just looks sh!t. I don't think he will lose the club and I'm sure he doesn't want to. If he did have a cash flow problem he could sell his colt for $30millon today and pay everyone in Newcastle that he owes.

Anyway, who squealed and why? If everything is sweet then why are they telling their manager and why is slothfield finding out? Lots of people have come out and said Tinkler owes them and every time he says it's bullsh!t. At best its bullying and tiresome and with any luck he'll grow out of it.

 

[RHCP]

Rothfield is a tool of the highest order (along with the rest of the Tele for that matter).