Investors have described the forth-coming float of Dick Smith Electronics as opportunistic for sellers and risky for potential buyers. The Australian, reports that institutional investors are cautious given the estimated $600 million float price less than 12 months since the business was acquired from Woolworths for just $96 million. Fund Managers have questioned just how much could have been changed in such a short period of time and are cautious on a valuation multiple that is likely to match that of JB Hi-Fi. A good article from Blair Speedy on the following link (VIEW LINK)
I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.