I used my "spare" cash to buy more SCL today.
Have a good holding in both .
Not keen on SPPs.
Pleased to see you posting.I was concerned the cheap Vodka may have got the better of you.!!!
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Perc... The Vodka is not " cheap ". It is export quality.. The price is much lower than the rip off prices charged for most things in NZ..
Just arrived back from a rail trip 400 Klms. One way.. $NZ30.00 Return.. Comfortable. Fast... Milk.. One litre Tetra pack.. 15 Grivna.
1 NZ$ = 17.5 Grivna.. Approx. Go figure !!.. Why does a Tetra pack cost so much in NZ ??...
How ever.. The roads are bad.. The footpaths atrocious.. The " Eye Candy ".. Compensates :-)))))))))))))
Having said that.. I HUNGER for a good roast Leg of Lamb.. :-)))
Til.. As said I hold... Will not be taking up the offer..
Going for the full allocation. Good buying yesterday it appears as though the Aussies might be starting to sniff around. The Aussie listing should light a fuse under this one when more meaningful comparisons can be made to BWX and to a lesser extent BLK
Decent plug in the latest Pie Funds release as you could imagine
https://www.piefunds.co.nz/news/tril...ural-skincare/
Great to see a brand like Trilogy analysed by the Australian Financial Review (http://www.afr.com)
New Zealand’s Trilogy International has joined the rarefied air of BWX Limited and Blackmores,becoming the latest stock to land on the radar of investors for its hand in the China consumption boom.
Shares of Trilogy, which will obtain an ASX listing later this year, have advanced 332 per cent over the past year (and 362 per cent in Australian dollar terms), culminating in a $NZ20 million capital raising last week. Cornerstone investor The Business Bakery partially sold down its stake,to 33 per cent from 48 per cent, expanding the free float.
The raising was done at $NZ3.70 a share; Trilogy stock traded at $NZ4.02 on Tuesday.
Trilogy is a maker of affordable skincare and scented candles, and its biggest-selling product is certified organic rosehip oil, which is how it fits into the natural-based skincare niche. The China skin care market is forecast to grow at 9 percent a year for the next five years, according to Euromonitor, and the natural segment paves the way for Australian operators in a market otherwise dominated by Western conglomerates and Korean and Japanese brands.
The Trilogy brand is already the top selling natural line in NZ pharmacies, but it has observable earnings in Asia where it recorded revenue of $NZ4 million in 2015-16,up from $NZ2.8 million.
Most growth is still coming from its home markets. ‘‘Really, they’re getting significant growth in Australia and New Zealand. The market in Australia for natural skincare is growing at 25 per cent as a category and Trilogy is getting above that,’’said Mike Taylor of Pie Funds Management. Pie owns around 12 percent of the company after lifting its stake in the capital raising.
‘‘It’s pretty easy to get to a valuation over $NZ6 without working that hard and if you consider the opportunity in front of them, the number could be a lot higher than that.’’
Mr Taylor said Trilogy’s share price performance this year was entirely founded in earnings and the stock is trading at a material discount to its closest peer, BWX. Trilogy is priced at 17 times 2016-17 earnings compared with 31 times for BWX, which produces the Sukin brand.
He anticipates more institutions coming on to the share register and says the stock has been ‘‘under the radar’’without broker coverage.
CLSA started in April with a ‘‘buy’’ rating on the stock.
‘‘There’s a big trend in the industry away from people buying stuff like Nivea,’’Mr Taylor said.‘‘The trend to natural has been occurring for a while and it’s not just going to reverse overnight. The Asian consumers want to buy to products manufactured in Australasia.’’
Trilogy acquired a 25 per cent stake in Forestal Casino of Chile last month to ensure a reliable supply of sustainable,certified organic rosehip oil.
Jeffrey Kim from NAOS Asset Management does not hold Trilogy,but has owned Bellamy’s and Comvita. Even though Chinese consumption is a broad trend, the investment side can vary widely between companies, he said.
‘‘No one really understands it entirely, I think that’s fair to say,’’he said.‘‘They are very,very company specific.There’s different regulations for infant formula and normal foods and health foods. That’s why I think you’ve seen a lot of them pull back and it’s on going in terms of what earnings are going to be.
‘‘Everyone focuses on quarter-to quarter, but if you take a longer-term view the companies are definitely going to be bigger than they are,’’Mr Kim said.
- Article first published in the Australian Financial Journal on Wednesday 22 June 2016 (http://www.afr.com)
Large off market share sale of $870k taking place at $4.20 someone sees value at this level.
Couldn't agree more, in light of recent company specific events its only fair to assume that someone is accumulating at these levels as they see more upside from current levels.
My take is most these funds are taking positions before ASX listing happens later on. Or could be those that participated in sell down didn't get enough stake and they would like to add more at these levels.
With a few new significant holders added to the register and some good churn at these levels hopefully we are creating a good base for future SP appreciation. Remember the current SP compares to an SP of approximately $4.70 SP pre dilution