Seeka

[winner69]

Sneaky buy today Percy

Bargain at $3.02

Pity the seller didn't have more for you

[percy]

Sneaky buy today Percy

Bargain at $3.02

Pity the seller didn't have more for you

More astute rather than sneaky,but yes a bargain..
I was surprised to get" my fill" last week at $3.00.Was getting ready to pay $3.25 which I thought was "fair" value.Took my holding to where I wanted.Have DRP so will slowly be adding.

[Joshuatree]

Its been really illiquid for many years which can be a prob getting in or out in any but tiny volumes.. Only two trades over 50,000 in 2 years!! .SEK in a sweet spot atm but no change in liquidity. Tradeswell under NTA too although i haven't checked lately.

[percy]

Its been really illiquid for many years which can be a prob getting in or out in any but tiny volumes.. Only two trades over 50,000 in 2 years!! .SEK in a sweet spot atm but no change in liquidity. Tradeswell under NTA too although i haven't checked lately.

Correct.
SEK has only 15,551,233 shares on issue, giving a market cap of $47,431,261 at sp of $3.05.NTA is $3.70.
So it is not a FBU or a RYM,however with the Kiwi fruit industry recovering from PSA,this very well managed, focussed company offers possible excellent rewards, for those of us who are prepared to invest in small illiquid companies.No I do not hold anywhere near 50,000 shares in SEk [at this point in time].
Just part of a well diversified portfolio.

[noodles]

Correct.
SEK has only 15,551,233 shares on issue, giving a market cap of $47,431,261 at sp of $3.05.NTA is $3.70.
So it is not a FBU or a RYM,however with the Kiwi fruit industry recovering from PSA,this very well managed, focussed company offers possible excellent rewards, for those of us who are prepared to invest in small illiquid companies.No I do not hold anywhere near 50,000 shares in SEk [at this point in time].
Just part of a well diversified portfolio.

It is nice to have a discount to NTA. However, I think a path to higher profitability is what investors are really after.

Fortunately, we know a lot already:
1. In 2014, SEK packed 21m trays.
2. In 2015, SEK packed 27m trays. This is forecast to increase to close to 30m by 2016 (see AGM presentation)
3. In 2014 and 2015 packing margins have been tight across the industry.However, with more fruit coming onto the market, storage capacity will require packers to increase capacity. I'd expect margins to normalise to reflect the lack of spare capacity

So to summarise, in the next couple of years, we should see a 50% increase in volumes and a normalising of packing margins. It is not unrealistic to expect a massive profit jump from 2014 levels.

Shares traded hands at about $3 today. This is the same price as the CEO, Michael Franks, was buying at earlier in the year. So whoever is selling is effectively on the opposite side of the trade as the CEO.

[noodles]

growth in kiwifuit from 95m trays to 130m in 5 years

http://podcast.radionz.co.nz/busines...ercent-048.mp3

[Joshuatree]

Read more » Future looking good sobered a little by this Zespri report

[Beagle]

What do you folks make of the Zespri talk of headwinds...seems a curious thing to suggest headwinds when the currency has dropped so much ?

[noodles]

What do you folks make of the Zespri talk of headwinds...seems a curious thing to suggest headwinds when the currency has dropped so much ?

Hi Roger,


Green Kiwifruit prices are forecasted to drop around 10% for the 2015 season.


But this needs to be put in context.


At an EBITDA level, post harvest operations are about 75% of profit. Post harvest operaters do not really care about the price of the fruit. It is all about volume (someone correct me if I'm wrong).


Seeka also has a Orcharding operating. This will be affected by the drop in price. However, they will also be enjoying a boost in volume as Gold come on-line.


Overall, I see the growth in volume being a far greater driver of growth than the price.

[percy]

What effect on Seeka's exports to Australia do you see?
I see them growing.