debt going to blow out this year , lucky the banks are being kind with the waivers
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debt going to blow out this year , lucky the banks are being kind with the waivers
Good post BP and in theory what you suggest has merit...at some point they may be a buy BUT someone on here a while back, (might have been you) suggested all the milk companies have a poor track record of governance including fonterror, (deliberately misspelt) so i wouldn't be holding my breath looking for a compelling entry point if I were you.
I don't presently subscribe but the headline says it all NBR - Synlait CEO "We took our eye off the ball"
https://www.nbr.co.nz/story/synlait-...k-our-eye-ball No kidding :rolleyes::rolleyes:
You are probably right ... and I won't hold my breath. It's just - I do have a weak spot for local industry, and their factory in Dunsandel is quite something.
But hey - I certainly won't leave money growing roots in the cheque account, just to wait for a potential reentry ... i.e. no damage done anyway. Pondering however whether I should buy in November something like 1000 shares at 50 cents each to get an entry ticket into the AGM :) .. I expect some fireworks - and this despite the warehouse not selling them anymore.
We will see closer to the time :)
You never know mate, you might get your 50 cents. Certainly I wouldn't touch them at anything like their current price despite John Penno's mea cupla today which is far too little and far too late.
Its one thing to acknowledge fault and error and quite another thing to clean up the mess and with no real assurance of a culture change one must assume people and the planet are still on the same level as shareholders. I don't think they've really got it that the company exists as its primary purpose to make shareholders money. Wait for the guy fawkes bonfire. Hint (Banks have only given them accommodation for FY21)...things could get pretty interesting in FY22 if they keep losing money :eek2:
Agree. Just listened to the Q/A session (like good old steam radio :) https://www.synlait.com/wp-content/u...135-240521.mp3) - and it sounded a bit like: "Ah well, very sorry we took the eyes off the ball and missed some details, but the strategy is fine and wait for 2022 everything will be good again."
Not convinced it will be that easy ... I heard nobody asking based on which assumptions they modelled their 2022 recovery (i.e. do they assume ATM to return to their old growth trajectory or did they make some more cautious assumptions)? Nobody asked either what the position of the company will be if ATM sales do not recover next year.
You just can't leave these shareholders alone, but given that I don't hold I thought it not appropriate to join the meeting ...
Thanks for the steam train version of the conference call. I'll listen in later in the week.
Why do people "rubber neck" at the scene of a car crash ? Answer that and you'll know why I can't help myself keeping an eye on the "dynamic duo" of ATM and SML. They're the car crash that just keeps on giving and giving and... I think these sort of corporate fiasco's play themselves out in such a way there's a lot you can learn from them....about what not to do in business.
They haven't painted the exterior of the new Pokeno plant pink yet...so you never know mate, there could be even more scope to go down their pink path :eek2: :eek2:
How will this mess ultimately play itself out ?...who knows but its going to be fascinating to see. Maybe ATM takes over SML and reneges (maybe under some force majeure clause we don't know about) on their MVM purchase ?
Fidelity International Ltd has been throwing money at Synlait for quite sometime. I wonder what their end game is..
Jarden note today: "Target Price down 19% to NZ$2.90; retain Underweight on valuation downside, high debt loading and low confidence over near-term outlook improvement drivers."
Obviously market sees value in SML
Dreadful guidance but up 20% since mid of last week
That’s pretty good
Obviously better to give dreadful guidance than no guidance.......FPH down about 15% after an 82% increase in profit, but no forward guidance.
On another front, Synlait matching Fonterra's price: Synlait matches Fonterra’s milk prices | Farmers Weekly