Comvita profits buzzing
Printable View
A P/E of over 25 is extremely high for a small company like CVT , for any company for that matter in my opinion so you would need to be totally convinced about their future earnings potential
I think that it is a company that appeals to quite a number of people and as there are not too many shares to be had I feel that the price has been bid up above what would be a "normal " price for a share in similar companies , although because of its unique nature comparisons would not be easy
I took some CVT up at the public offering but sold out when I felt the price had reached quite a bit above what could be justified
Having said that the long term prospects for the company may be okay , if you are prepared to wait
It is the high P/E that puts me off
Do your homework
My opinion is just that , an opinion --- time will tell
I purchased a small-holding in Comvita late June/early July of this year.
To my mind many of the agreements they have entered into of late show that their earlier endeavours were not in vain. With increased access now negotiated, the signals for the future continue to improve.
They are never going to set the world alight with the dividends, but as well as the generally positive vibes attached to their recent market announcements, they have plenty of upside potential from a weakening exchange rate (it will weaken won't it?).
The shareprice will often drift between announcements - an occupational hazard of being too small to show on the radar for many market observers. Keep an eye out for an attractive entry point, and you too could soon be in the <s>honey</s> money...no guarantees mind.
Regards JAMP
NZX: AIA CHA LPL MCH MVN NOG PPG RBD SAN SKX SPN
NZAX: CVT
Unlisted: BRK
Jamp - wonder if a portfolio reflects its owner
You seem to be a fish and chip person with the odd pizza and chipsd thrown in for a change washed down with orange juice (as the billboard says there's no P in Charlies) ..... and then to fix the neglected body need a good dose of Comvita from your local Lifestyle Pharmacy.
W69 this would be a good time for you to list your holdings for old times shake.. [8D]
W69, I too "wonder if a portfolio reflects its owner". I guess it does to an extent...although the pizzas I consume are hand-made.
CVT FY announcement to 31/12/05 now due. I have been keeping an eye out for it for the past two days, so maybe tomorrow! My expectations for the result are reasonably modest. However, my expectations for FY 31/12/06 announcement in 12 months time are a lot higher. I expect this company to be buzzing about the prospect of further softening in the TWI.
Regards JAMP
NZX: AIA LPL MCH MVN NZO NZOOD PPG RBD SAN SKL SPN
NZAX: CVT NWFOA SAT
Unlisted: BRK
I'm suprised there isn't more discusion about this stock.
Its a great little company.
If phaedrus were able to complete a chart, evidence would suggest the trend is now your friend.
Also, the registry is very tight with only 13m shares on issue, if they get up a bit of steam the price could rocket. as Jamp says FY06 will be they key to getting the s/p really moving.
Interesting response to what was an excellent profit announcement.
Comvita seems to have a good sales channel and improving prospects and trades at a historic low. No wonder people avoid the sharemarket.
CVT is in an ongoing downtrend and has been for over 18 months, so far. What's worse, there is no sign of the downtrend weakening - in fact it is accelerating.
A selection of indicators are shown here with their associated Buy signals marked by green arrows, Sell signals red arrows. All of these got you out of CVT before the downtrend began. It is clear that none are anywhere near triggering buy signals.
The chart also features a 200 day moving average. These are commonly used by conservative, long-term investors, to keep them on the right side of major trends. Even this very slow ma signalled an exit before the downtrend began.
Note the abrupt "step" in the OBV plot. These often mark where the "smart money" sells out. Didn't they do well?
http://h1.ripway.com/78963/CVT212.gif
Once a "great little company" - now in a great big downtrend!
Will be interesting to keep watching. After all any company improving sales and profits in this enviroment deserve a bit watching brief. Will keep my powder dry for later. Still expect Comvita to be a good performer when they finally change direction.