A scathing article by Shoeshine- Jenny Ruth in the NBR today
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A scathing article by Shoeshine- Jenny Ruth in the NBR today
Any kind of excuses by Tegel directors and management to try and bluff their way out - to cover their inability to grow profits and grow the company - what they promised to get IPO $$$$ out of punters in NZ (courtesy as well of Forsyth Barr of Feltex, Wynyard and Credit Sails fame).
75 cents is where it will go - all the supermarkets have drumsticks on specials this week it seems, as well as the local shops and the ever reliable Mad Butcher. Ain't no sign of the discounting chicken war abating.
I and others correctly observed that at the time of the IPO chicken feed costs and diesel costs, (distribution costs are a huge factor) were at cyclical lows.
Its clear the promoters timed the IPO well. What's also clear in terms of their talk of growth is they applied very liberal amounts of lipstick to a pretty ordinary looking pig...something seasoned investors have come to expect from private equity floats. Talk of overseas growth was just that...talk, and that's all it will probably ever be in my opinion. Who's going to 60 cents first, this or MPG ?
Tegel sell a commodity product into a price-sensitive market.
Buy at the right price, and it's like buying an electricity company.
I don't think we've seen the right price yet.
Ingham actually delivered a very good result (beating consensus forecasts on earnings, dividend, cash flow and debt reduction), were candid about the impact of rising costs when their hedge contracts expire and had a credible plan to address at least some of the impact. ING's management strike me as being very different from TGH's .... so far.