Okay I'll help dicoak equals Drunk in charge of a keyboard.Lol
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Bought in today at 9.05
Forward p/e looking good, hoping sunshine will prevail.
Its my take that the sun has been shining for quite a while and the forecast is for plenty more sun. If you ignore the share price, just look at the last 3 years performance by Synlait and look at what's in the pipeline for the next 2-3 years. I think this is NZ's #1 dairy investment taking into account risk, profit growth, growth prospects, plant, assets and product diversification.
Synlait has a great business model. Find markets where they can add value, build strong relationship with farmers, load plant, grow cash, reinvest... repeat.
They recently said in the annual report that they don't expect to provide dividends in the medium term and I'm totally ok with this. There is a big pipeline of opportunities in place which all result in strategic placement of new plant which helps the company to continue to grow.
Agreed. FY19 PE at $9.00 gives a forward PE of just 17.5. VERY short list of companies with similar high growth prospects over the next few years on a more compelling PE than that with one notable exception, OCA. Maybe SUM other company fits the bill too IF they can actually sell what they're building. IF is in capitals because I think that's a big IF. We know Synlait can sell all it can produce don't we :)