Select Harvests - SHV

[macduffy]

This is an interesting company for those not deterred by climatic factors. SCL investors like me, perhaps?

They are the biggest almond grower in Australia which is the number 2 producer of almonds after the USA. Okay, USA produces 90% of the global crop, Australia 7%! The point is that most of the USA production happens in California, which has been in a prolonged drought for some time. The price of water in California has soared as a result - and the price of almonds has risen until recently. So SHV may well be worth researching. Any holders/comments?
A word of caution. The SHV shareprice has taken a battering in recent months, despite optimistic noises from the company. General sharemarket malaise or something more sinister?

Company market update of 14 January 2016.

http://www.asx.com.au/asxpdf/20160114/pdf/434czdfxmtg0b3.pdf

[Snow Leopard]

I understand that last year was regarded as 'as good as it gets' in the near and medium terms and the consensus expectation for Select is for smaller average profits in future years.

Having said that the current decline from the blind optimism of $13.48 six months ago appears to have swung to far into pessimism at $4.68 yesterday, and it does, superficially, look a bit of bargain.

Best Wishes
Paper Tiger

* MY partner once had a dental emergency as a result of an almond and I still have to read the ingredients list on all muesli packet before possible purchase.

[macduffy]

Well, something's put a rocket under SHV today with the SP up 7.2%!

And yes, Tiger, I've had my own dental problem with almonds. But then, I avoid brazil nuts and afghan biscuits for the same reason!

Cheers

[macduffy]

And up another 7.9% today. Not much joy in identifying stocks and then not buying them.

:mellow:

[Well Endowed]

Thanks for raising this one macduffy. Had been looking for a stock along these lines for sometime. I like the correlation with Californian weather/market and it seems like (from a non scientific observational approach) that Almond use in milk and higher end cafe items is on the rise.

Looked a bit oversold - even when factoring in lower almond prices, so picked some up at $4.11, coincidentally a couple small on market purchases by directors yesterday too at similar levels.

Looking more medium term here, hopefully will see $6+ in 12mths time :)

Discl: Holding now

[Well Endowed]

There has been some solid movement the past week or so (up 15% from the lows), looks like there's still a bit of a short position still capping the rise. The SP is trading around $4.70 now, but in general the days trading is usually a rise in the morning, followed by some staunch selling into close. Interesting hold, I'm still looking medium to long term on this.

[macduffy]

Looking more medium term here, hopefully will see $6+ in 12mths time

Five months on - trading at $7.24.

Nice, if you hold them!

But not me.
:(

[Well Endowed]

Five months on - trading at $7.24.

Nice, if you hold them!

But not me.
:(


Happily still holding from $4.11, it's a volatile stock but long term fundamentals still remain sound I think.