The price was 3.82 when they wrote it so I assume that justified the sell rating.
Having said that, I think he has always priced it at lower than market value based on the fancy graph on the last page.
Printable View
Far to long. I prefer the shorter version
https://twitter.com/gselevator/statu...57710624653312
I do not trust any investment banks, all urgly for money. They may do anything for large profits in share market those days. They set up the regulations and rules and manupilate market.
Yili and MengNiu Dairy got Chinese government infant milk powder licenses this Jan, and allow to sell in supermarket, already increased their product around $105/tin from $60-$70/tin since last Dec. Those products are not high end, compared with NZ produced milk products.
If Chinese stated owned Bright Dairy grants license, then SML should have a new segment to grow with over 200% growth in revenue and profit annually, which may contribute total growth over 50% in NPAT annually for future five years.
Ask SML investor relations, they may explain what happen in China for infant milk powder. Crazy, they call it as white golden powder.
I am looking forward to seeing what GS will say after SML gets the Chinese government license.
Worse they haven't in fact ceded control. They reduced their holding just below 50% but RETAIN effective control. Current share buyers also seem to totally overlook the unique non standard governance provision. They might also reflect that Bright wasn't prepared to buy in at $2.20 to maintain its majority (it negotiated a deal it didn't need to) yet the market is somehow speculating those shares are worth over $4 six months later!
Greetings all,
Seems to me that SML is the only opportunity to get real dairy equity exposure on the NZX (please do correct me if this is inaccurate). Showing a bit of price and buyer depth weakness over the last month.. potentially finding a range after a good ramping since the IPO.
Considering topping up at current price, any of the TAs here able to offer some thoughts on what the charts are indicating?
Many thanks.. Shambles