SML - Synlait Milk Ltd

[Rawz]

43.5% ask and no bidders........

if you are a shareholder and you believe in SML you are better to sell your shares and buy the bonds imo

[Lego_Man]

43.5% ask and no bidders........

No bids on the OTC market either. Previously a bank was making a 2 sided market, now they are only offered.

Bearing in mind that due to the maturity effect these large yield blowouts are still only equating to a small relative face value/price move at this stage.

[Toddy]

43.5% ask and no bidders........

You can get a 79 percent return by backing the Warriors this coming Saturday on the TAB. And you don't have to wait until xmas to know whether or not you are going to be paid out.

What parameters would one be using to even contemplate adding SML bonds to their portfolio.

[Lego_Man]

If i was a hedge fund i'd be running a pairs trade of long the bonds, short the equity.

[Toddy]

Good call. I'm picking the sp to come under constant pressure heading down to 50 cents.

[Sideshow Bob]

At least 50 farmers want out according to BusinessDesk (paywalled).

Big chunk of their supply.....

https://businessdesk.co.nz/article/p...38c4-402467359

[Sideshow Bob]

Where have the board been in all this?

Massive destruction of value
Debt/losses continuing to mount up
Poor acquisitions and expansion
'Toxic' relationship with their major customer
Suppliers looking to leave
Much negatively publicity
Kicking the can down the road

Appreciate that much of the board is relatively new and many of these are legacy issues they have to deal with/unwind - 4 of the 8 (including the chairman) have been appointed from 2022 onwards, but Ruth, John and some of the Bright reps have been there much longer.

Their delays have put Synlait in a much worse situation than if they'd done a capital raise or sold assets earlier?

I've always found the situation interesting that Bright have 3 directors for their 39%, but A2 have none for their 19%. How deep does the Bright influence run??

[Rawz]

Where have the board been in all this?

Massive destruction of value
Debt/losses continuing to mount up
Poor acquisitions and expansion
'Toxic' relationship with their major customer
Suppliers looking to leave
Much negatively publicity
Kicking the can down the road

Appreciate that much of the board is relatively new and many of these are legacy issues they have to deal with/unwind - 4 of the 8 (including the chairman) have been appointed from 2022 onwards, but Ruth, John and some of the Bright reps have been there much longer.

Their delays have put Synlait in a much worse situation than if they'd done a capital raise or sold assets earlier?

I've always found the situation interesting that Bright have 3 directors for their 39%, but A2 have none for their 19%. How deep does the Bright influence run??

What a disaster aye.

there is this general thought that Bright have invested into SML to secure supply for the motherland. Yet one of SML issues is they have too much capacity and are screaming out for more customers. Why cant Bright just make arrangements back home and absorb that extra supply back into the mainland?? Doesnt really add up.

[Toddy]

Bonds flying off the shelf at 50 percent.

[Newman]

It is incorrect to believe that China has to buy dairy products from New Zealand, and totally wrong to insist that Synlait is essential to China.

The directors appointed by Bright have little experience in running business in New Zealand, they rely on CEO to rescue the business, who seems capable in useless talking.

If capital injection itself can solve problems, I guess Bright would. How to prove debt is the only problem?