Week 8 - MOA Example PDF

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MOA examplefor practice in class material...

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BUSS503 FDM Week 8 (Capital Markets) Worksheet – Workshop Example MOA EXAMPLE TO PREPARE STUDENTS FOR EXERCISE 2 (& FINAL REPORT) **NOTE: Moa Group (the brewery) has been sold privately, and the remaining company is now Savor Ltd. See https://www.stuff.co.nz/business/124297597/moa-group-sells-unprofitable-brewing-company-for-19m Remember to note your sources for referencing later!! See ‘Reference List’ for examples of APA referencing. Note that we used the ‘AUT library APA 7th brief guide’ in the Tools/Guides for referencing folder, in APA referencing & paraphrasing folder under Assessments tab on Blackboard � (a) Go to your company’s website (OR NZX Company Research database) and provide a BRIEF overview of who they are and what they do. https://www.moabeer.com/ https://companyresearch-nzx-com.ezproxy.aut.ac.nz/deep_ar/newpage.php?pageid=overview&default=MOA

Moa Brewing Co. are NZ’s largest brewer, operating out of Blenheim. Their product range includes Moa Beer & Weka Cider. Moa exports to China, as well as selling locally through wholesalers & at their cellar door. HINT: Students can download the latest Annual Report & read the opening comments from the CEO/Board to get the gist of their company & important info. We will revisit Annual Reports in Week 10. OTHER SOURCES: Forsyth Barr provide good research on NZX companies, for example for Moa: https://www.forsythbarr.co.nz/markets-and-research/companies/NZX/MOA#overview (b) Take a screenshot and save their share price chart (Google is fine or NZX Company Research – see Appendix Example in Report Template). Use the last 5 years or ‘max’ version of the chart. https://www.google.com/search?client=firefox-b-d&ei=E1ehXJDGNqLfz7sPnuqlkA0&q=moa+beer+shares&oq=moa+beer+&gs_l=psyab.1.4.0l10.7328.7328..11316...0.0..0.223.223.2-1......0....1..gws-wiz.......0i71.vr5DrEw-tpw

Moa Group Ltd Price Chart (Google, 1 April 2019) – in-text citation

BUSS503 FDM Week 8 (Capital Markets) Worksheet – Workshop Example (c) How has your company performed over the last 5 years/since their IPO (since they listed on the share market)? To answer this, you need to look at what has happened to their share price over recent years and comment on any trends you see.

MOA listed for $1.25 at their IPO in 2012 and as at Feb 19, 2021 traded at $0.21. For an investor who bought shares at the IPO, and holds them still, this is a return-to-date of: Total Return = (0.21-1.25)/1.25 = -83.2% [Recall Week 3!!!] The trend is DOWNWARD. **NOTE: Moa Group (the brewery) has been sold privately, and the remaining company is now Savor Ltd. (d) Has there been any media or market commentary on their performance? How can their performance be explained? Looking up usual media outlets (business pages of the NZ Herald, for instance) is fine. Aside from noting this trend, you can also touch on the PAPERWORK required by a company at listing (namely, the PROSPECTUS). Students will not be required to look at their company’s prospectus (the annual report will be used in Weeks 10 & 12), however for the purposes of exploring WHY Moa declined, it is important to start at the beginning. Note the following: - Moa was criticized for running a sexist IPO advertising campaign (“Your guide to owning a brewery & other tips for modern manhood”) For instance, media coverage included: http://www.stuff.co.nz/business/industries/7808884/Moa-Beer-ruffles-feathers-with-prospectus https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11683934 Note: You’ll talk more about Social Responsibility in Week 11 when we look at non-financial reporting, and its importance to companies. - Poor performance since listing. For a recent summary, see https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12216372 But what ultimately resulted in POOR PERFORMANCE were optimistic (unrealistic) sales assumptions. They suffered expansion hold-ups (couldn’t get approvals) & distribution problems post-IPO, which meant that they couldn’t meet their targets.

BUSS503 FDM Week 8 (Capital Markets) Worksheet – Workshop Example Example Reference List (note in alphabetical order) Dietz, M. (2019, March 23). Moa Group nears break-even profitability after posting ‘positive ebitda’ for summer quarter. NZ Herald. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm? c_id=3&objectid=12216372 Mace, W. (2012, October 12). Moa Beer ruffles feathers with prospectus. Stuff.co.nz. Retrieved from http://www.stuff.co.nz/business/industries/7808884/Moa-Beer-ruffles-feathers-with-prospectus Moa Group Limited. (2018). Annual report 2017-2018. Retrieved from https://companyresearch-nzxcom.ezproxy.aut.ac.nz/reports/nz/2018/MOA2018.pdf? Moa investors slam ‘misogynistic’ marketing. (2016, July 30). NZ Herald. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11683934...