usually profit downgrade come in three? i heard it form somewhere..
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usually profit downgrade come in three? i heard it form somewhere..
Change of balance date without any real substantive reason is a red flag to me.
I don't hold but the weather is a huge factor Apathy good prediction but the weather has been the biggest factor in you being correct. Looking to buy but will take wait and see approach
Looks like stock has shifted into severe reverse gear on earnings and sp performace.
Stock steadily climbed from $3.85 in Jan 2015 to $8.35 on ta series of profit upgrades. Example on 10 Nov 2015 : "For the six month period ending 30 September 2015, Comvita recorded an after tax profit of $3.0 million on sales of $91.1 million. With the strong result for the first six months we now expect our operating profit after tax to be in the range of $15-17 million, up 46% to 65% for 12 months to 31 March 2016, compared to the prior year."
Today's drop looks ominous so I tend to agree with Roger that there are more downsides yet - CVT is a stock best to avoid until profit trend stabilizes.
Good advice Balance for the brave at this stage
They will stabilise and it is then the time to pick up some more which I will do. Good products .
Weather has nothing to do at all with me being correct-then or now!
Last year $230m sales on COGS $113m (lets say 50%) they started this year with just over $95m in stock...... or $190m in sales based on prior year.
It is total BS - or they have a massive stock problem of 'unsaleable' material... maybe they are picking up bad habits of SEA...... Supply constraints followed by a one off write down of stock...
i am not saying weather isn't an issue - but that pain is going to be next financial year.
Ha.....their annual report told me the same thing!;-)
So it really is SEA all over again..... they have sold all the good stuff and booked a profit but the low grade stuff sits in stock over valued........ sorry but there is plenty of demand locally for Manuka Honey - they just don't want to meet the market price.
If you are correct - board and management all need the flick. It's amateur hour - book big profits and build stock of the low grade offtake/by product at unrealistic valuations.