Yeah, saw the revised notification. Not a bad endorsement by CFO, isn't it.
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Yeah, saw the revised notification. Not a bad endorsement by CFO, isn't it.
https://nzx.com/companies/SKL/announcements/269357
CFO (Ms Coutts) buying more...always a good sign.
Strong battle going between bid at $1.27 and ask at $1.28, let's see who blinks first no trades yet...
Is there a correlation between GDT results and SKL? Or has the market realised this is an undervalued high divvy stock? Or something else?
Psst ... some people still might want to accumulate while the price is low ...
Looking at your question ... the dairy industry is one quite important customer for SKL, so some people might see a connection, though obviously one somewhat better auction result (or three) does not make a dairy spring.
I suppose its more the market realising that this is an undervalued company. They are even successful if dairy is low - farmers can delay maintenance on their systems only so long, no matter how low the milk price is - and SKL was as well quite successful in diversifying their products. SP is slowly creeping upwards for the last five weeks or so and just passed the MA100. Some people might call this the start of an uptrend, though (I know Percy ;)) there is obviously still the MA200 to crack.
Discl: holding
I overlaid the GDT index and SKL, and the 18 month correlation is strong. Even the temporary price rise in Dec/Jan, and of course the rise over the past month are both mirrored. Probably just coincidence since SKL are much more than just dairy. But I would be interested in any other peoples thoughts.
I jumped aboard SLK 2 weeks ago when I noticed their P/E was comparatively low when they were paying a sizable dividend. So I'm keen to learn more about the drivers for this stock
Drivers
1. 76% of sales are exported so the recent major fall in the $Kiwi will materially boost FY16 returns and beyond
2. Cheap PE about 11 last time I looked
3. Gross dividend yield north of 10% and presently trades cum a fully imputed 5.5 cent final divvy, ex date early October)
4. Several directors recently bought in decent volume
5. Beat market expectations in FY15 a year that was already gloomy for the dairy industry
6. Expectations that the FY15 result is the bottom of the cycle for SKL ?
Disc : I'm a happy holder
All looking very positive, good points on drivers Roger. Just a small correction goes ex-div end of this month 30/09.