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What's going on with Comvita? My numbers are GREEN! What is happening?? And the current buy price is $5.22 even though the last sell was $5.13! I haven't seen any exciting news....
Should of sold some MPG and got some CVT at $4.36, ah Balance?
Seriously tho, it's up because it seems to move the most this time of year. Results are due soon with the outlook of the honey season. Also, most of the NZX50 funds have all sold out. It was cheap at $200m MC. Global markets have rebounded and this was playing catch up. It's probably a bit of a leaky ship too. Spread and volume was low so even small buy backs would push the price up. Maybe that 'take over' buyer is back again as it was around this time of year that they started looking into it.
In the last 12 months there's now another 80m people on the planet, who's gonna feed these people. You can get window frames anywhere.
I stand by my judgement, that this is a good company that has been around for decades and will continue to still be around for years to come.
Disc, zero holdings.
What you gotta remember is that A2 was once like this.
A2 milk is just as much as snake oil as Manuka. Both are scientifically questionable.
The problem is that the execution on CVT has been terrible. It's suffered from a huge industry bubble. There were winners but also just as many losers.
What it needed is a series of mergers and acquisitions, with all the competitors you've been talking about. More capital is needed. Also need to get trust back from the public. Grow the nurseries. Involve government to sort out regulation. Get the standards right. Improve the branding even more etc.
That's why private equity is so interested in this, as they see the long term potential. That's why Capilano Honey was bought out recently. There's a solid export industry here unlike MPG where Bain is only interested in a 'flick off deal'. They are debt vultures. Sure, you could probably make just as much, if not more, betting on MPG. The point is that CVT is a solid business long term. MPG is just another manufacturing business, likely to fail in an ever increasing globalized world.
Long term CVT is a winner. Short term MPG is probably more of a winner. The problem is that retail holders never do well short term.
Who in their right mind will own shares in companies with management who do not deliver on their promises - year after year - unless there is the very strong prospect of takeover.
CVT and PEB are two of the prime examples of failed management, and companies which have already failed in their business strategy and have no alternative strategy save to pay themselves big fees and big salaries.