Tegel IPO

[Out to lunch]

A snippet from John Ryders excellent Global newsletter. Bodes well for feed prices here.

"At the beginning of June, US stocks ofcorn were 4.72 billion bushels, the highestreading since 1988. Farmers also seededthe highest ever acreage of soybeans(83.7 million acres), as well as the fourthhighest acreage for corn (94.1 millionacres).
The outlook in other large producing nations and regions, like Russia, Ukraine and the EU, is alsopositive... and is expected to take total world grain production to 2.026 billion tonnes this year, withinventories reaching the highest level ever. "

In FY16 accounts it doesn't look like they hedge grain either, just FX and IRS.

[Valuegrowth]

World total grains production is now expected to be an all-time high in 2016/17. In addition, with large opening inventories, overall supply will surpass 2.5bn t for the first time. Grain yields also have increased.

A snippet from John Ryders excellent Global newsletter. Bodes well for feed prices here.

"At the beginning of June, US stocks ofcorn were 4.72 billion bushels, the highestreading since 1988. Farmers also seededthe highest ever acreage of soybeans(83.7 million acres), as well as the fourthhighest acreage for corn (94.1 millionacres).
The outlook in other large producing nations and regions, like Russia, Ukraine and the EU, is alsopositive... and is expected to take total world grain production to 2.026 billion tonnes this year, withinventories reaching the highest level ever. "

[Traderwannabe]

Does anyone know why this share has drifted lower?

[Joshuatree]

Was just asking the same question.No announcements since the positive one on Aug 18th; s/p drifted down ever since.
Consensus outperform T/P $2 on 4 traders. Close to 12 days of 500,000 or more shares sold this month already. Insto selling down maybe?

[Out to lunch]

Is there something I am missing? I know that Tegel are pretty unfavourably hedged for the recent upsides in the USD and lower feed costs, but this just means less upward pressure on the price.
The clearance for Aussie raw chicken market was probably overstated when the price went up, EBITDA isnt going to move huge on this.
Maybe some people are adjusting their valuation methods? Can't be Affinity right?

[Joshuatree]

Who/whats Affinity OtL?
A friend has mentioned the coming Ingham listing .Possibility of manipulating the TGH price down for a better entry to Ingham?

[RGR367]

On NBR pay wall now. And looking like the "indicative price range for the book build, which begins today, is $1.10 to $1.20 per share".

[Out to lunch]

Under a $600m valuation now. Still curious as to why the drop.

Who/whats Affinity OtL?
A friend has mentioned the coming Ingham listing .Possibility of manipulating the TGH price down for a better entry to Ingham?

Affinity is the private equity company that took this company public earlier this year. I know the other large holders, Claris, can't sell all of their holding.

Claris, the senior managers, and the directors who purchase Shares under the Offer are subject to escrow arrangements with Tegel under which they have agreed not to sell, transfer or otherwise dispose of their existing Shares (and any Shares issued to Claris or the senior managers under the subscription agreements referred to in Section 2.13.3) until at least the first day after the date on which Tegel releases to NZX its preliminary announcement of its financial results in respect of the financial year ended 30 April 2017. Claris is able to dispose of up to 50% of its Shares prior to this date if the volume weighted average price of Shares on any 10 consecutive NZX trading days following the date on which Tegel announces its results for the half year ending 23 October 2016 is at least 20% higher than the Final Price.

[Out to lunch]

On NBR pay wall now. And looking like the "indicative price range for the book build, which begins today, is $1.10 to $1.20 per share".

I think you're talking about NZ King Salmon not Tegel. You're close though, Tegel sells salmonella.

[JeremyALD]

Hi all

Further to the above has there been any news on this share to drive the slump? It's dropped 10% or so in 2 weeks.

I have to say I'm a bit confused by Tegels share price performance. It was listed at the lower side of guidance at $1.55, beat prospectus information and has had pretty good news flowing through since the listing, yet the share price hasn't gone anywhere. It has a decent chunk of my holdings, but I'm a little concerned there doesn't seem to be a lot of interest since its listing. I notice most analysts have it at $2 within the next 12 month?

P.S. long time lurker but finally joining in the fun!