My bad Gerald ,dodgy doings
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Sweet boost for mānuka honey
The new Free Trade Agreement between New Zealand and the European Union has given a major boost to the New Zealand honey industry’s claim to exclusive rights to the name ‘mānuka’ honey.
Currently Comvita’s head of industry affairs,Tony Wright
"He revealed at the conference two findings from new research, not yet formally published, that indicate significant differences between New Zealand mānuka trees and honey and their Australian rivals.
One used Rapid Evaporative Ionization Mass Spectrometry (REIMS) to analyse honey’s chemical composition, and the other used something called an FST score to analyse the genetics of the trees.
Wright said the FST analysis showed some variation within New Zealand “but nowhere near the significant difference between here and Tasmania”.
He said it will be evidence to support future applications.
“The Australians can’t say that their leptospermum honey is the same as ours,” he told Rural News.
“It’s another one of those proof points that says what’s happened here in New Zealand with our unique environment has shifted the genetics in a way that the product is different.”
Wright explained to the conference there are several methods of protecting a name, including certification trademarks (CTMs), geographical indicators (GI) and protected food names"
https://www.ruralnewsgroup.co.nz/rur...r-manuka-honey
Full Year and headlines make good reading .... everything positive and solid result
I only look at two number and that's Operating Cash Flow and Free Cash Flow
Operating Cash Flow (including leases payments) has gone negative
And they borrowed $22m ....to buy new things and pay a dividend
Hope this chart looks better in a years time
Thats working capital intensive businesses for you. Hence, all things equal, businesses with a better quality of earnings (EBITDA or NPAT flow through to free cash flow) tend to trade on higher multiples (and ought to if you evaluated them using a dcf).
But of course companies with no assets employed get derided as low moat, and companies with assets employed get derided as poor cashflow.
No problem with capital intensive businesses as long as they can generate a strong return on funds employed (ebit / NWC + PP&E). Have to watch the inventory quality. Often times the cash surges when growth slows and gets consumed when growth ramps up.
Massive volume today - looks the biggest single day in at least 5 years, and still some time to go.
One off market trade for $4.6 million. Otherwise usual small trades.
Most punters like the solid results over the last year or so ...... but the share price has been hanging about in the 300 to 350 range for a year or so now
And that's with almost a continuous share buy back --- a great case study in share buybacks don't always boost the share price
One day CVT might be 4 bucks
Just happening to look through their books. Given its already more than 2 weeks since publication probably reflects on the priority I put on them.
RoE 5.6% - better than last year, but not really outstanding. Liabilities to assets look good at face value (31.5%) however - liabilities increased ... and their single largest asset is their inventory of honey. May or may not be easy to sell!
So, they say the sticky stuff they got in store is $132m worth ... well, if they find customers who want to pay this money. At the moment they don't (well, not enough), but they say that 2023 (and particularly the second half) will be different - this will be an amazing second half. Yeah right.
GLTH ... or should I say - good luck to anybody speculating on the future price of manuka honey?
It might work out ... or it might not.
Some analysts put it on a "speculative buy". I definitely would agree with the first part of this assessment.
ROE of 5.6% is pretty awful ..... jeez they're years down the transformation path and is the best they can do?
Even worse is that their return on invested capital (including debt) is less than 6% ...... wouldn't even be covering their cost of capital .... in other words a value destroyer
As such doesn't even warrant trading at Book Value of $3.25 but it is so punters really think the future is bright
That David hasn't really delivered (financially) yet .... needs to pull his finger out