KW, did you use TA to time these entrys?
Printable View
CLV- Clover Corporation
What are everyones thoughts on this one?
Hi born2invest - looks solid, div and growing eps. Also in the baby formula market - which is a bit of a boomer and in fashion at the moment. Seem there main product is omega-3 sourced from tuna oil that is in a special form that is added into products. They mention sales will take a small temporary dive after the foterra botulism scare - but no biggy. After a brief look I couldn't work out if they own a manafacturing site themselves. Would be interested to know others thoughts.
Business Description:
Clover Corporation Limited (CLV) is involved in the refining and sale of omega-3 oils and encapsulated bioactive ingredients for infant formula, children’s foods, supplements and medical foods. CLV operates its businesses from five sites: a headquarter in Sydney; a manufacturing plant for tuna oils and related products in Altona; a product development R&D facility, technical support and marketing in Brisbane; the finance and IT departments in Gladstone Park; and a logistic and customer service office in the UK.
With sales expected to be down 20% to 30% the PE at 13.79 looks very high.ROE is very good at either 19.2% or 25.2% [they use both].Yield is modest at 3.85%. Concerns me that their market cap is $85.894mil,yet sales last year were only $44.1mil and going to be a lot less this year.
Yes intention is to wait until they release their half yearly report in March with the drop of 20-30% sales. People will over-react (as they always do thinking short term) and the stock price will drop. You will notice in October 10th when the company released a notice of the Fonterra milk powder scandal and on October 30 when they released their full year results which again mentioned the Fonterra milk scandal that the stock price went from around the mid 50's to around the mid 40's. This may not sound big but it was a drop of around 20% in one month.
The long term picture of Asia buying more milk powder is strong and I think this will cause the sales to bounce back again next year to their normal upwards trend.
I've read over the past 14 years of annual reports this week and think the management is fairly straightforward to shareholders. The ROE is good as you mentioned. With little debt too. They have moved past their initial start up phase with a few failed ventures into soy products, etc and have found their niche of fish oils into milk powders.
The research is out there now about the numerous health benefits which wasn't there 10 years ago.
You mention market cap 85 million and sales 44 million as a concern. Other companies you have commented on in the recent past SUM, HNZ, etc have market caps more than triple sales/income so would appreciate if you can explain this a little further so I can understand your knowledge on the sales/market cap ratio.
Yes I agree it would pay to hold off until half year result announcement.
Price to sales ratio.Only to be used comparing companies in the same sector.
Should you google Market Analysts and down load an old newletter you will see he uses it.page 2.
www.stockmarket.co.nz
Divide market cap by revenue.
Tech stocks are trading up to 10 times revenue.??
Whether you use it or not is up to you,however I use it all the time.
Probably not a great year for WRR given lower revenues from Telstra and China and costs incurred towards Iridium sales, but managed to find a Hong Kong investor willing to put money in - $438k at 15cps while sp sits at 8cps. Second half 2014 might be more interesting as the Iridium sales start.
WRR may even be on to something here with the Iridium product - minimum $3m sales in first year could be light?
http://finance.yahoo.com/news/iridiu...180000213.html
http://www.usatoday.com/story/tech/c...ernet/5191049/