Nope.
Note to myself (again!) : never buy into a downtrend and never buy until downgrades become upgrades.
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Managed to get out at $8.29 this morning after thinking about selling yesterday, but reasoning the SP was still rising, so decided to wait. Read the announcement this morning and hit the sell button immediately. It's been a good recovery from the previous bottom of $6 so happy to lock in the gain from there (even though selling at a loss from my entry point).
Luke Bunt a director - companies he involved in seem to be having a bad run of late.
Least he can tell from first hand experience what high stock levels, poor sales and cash burn leads to.
At an operational level they been cash flow negative for the last 3 half year reporting periods - to the tune of $40m
Hard to see them being cash flow positive in H2 seeing thy can't sell all this excessive inventory.
At Sept they had $4m in the bank
More family silver to be sold? Yes Balance cap raising from somewhere a possibility.
The easiest way out for them is to sell stock.
They are not in the storage business.
The easiest way to sell stock is to "meet the market".
Manuka Honey has been off our shopping list as it is too expensive.
We will start buying again if and when they half the price.
I expect others will do the same.
Neighbour was excited that Comvita had 'updated' their guidance. I didn't have the heart to tell him that up words don't always mean more profit.
He and his mates bit peeved with their 'investment' in Comvita .......but I did tell him that he should be as happy as Larry with his 'investment' in Heartland