Latest announcement good?
Not by my calculations mon. Here's what they've been saying:
June 2008: "We expect net profit for the year ending 31 March 2009 to be in the range $2.0-$2.5m."
Nov 2008: "We are not confident of meeting the $2.0-$2.5m target."
Feb 2009: "We still expect to post a positive year end result."
Looks like a series of downgrades to me mon, at a time when the NZ$ has sank quite rapidly and CVT should be big beneficiaries given that 80% of its earnings are now derived offshore.
Am I reading a different announcement
Trying not to be too cynical here but there are no actual numbers.
"We expect to post a positive year end profit result. We have a good working relationship with our bankers, Westpac, and have recently rolled over our long term debt positions"
can be translated as
We should make a profit but don't bet the farm on it, and the bank reckons they can get their money back at this stage.
regards
Paper Tiger
Comvita Announces Full Year Result Guidance
Quote:
Comvita Limited (“CVT”) wishes to provide profit guidance for the year ending 31 March 2011, as follows.
The reported net profit after tax is expected to be in the range of $0.4m profit to a $0.2m loss on forecast sales of approximately $81m. This compares with a net profit after tax of $5.0m and sales of $84.9m in the previous financial year. On a normalised basis, net profit after tax forecast range is between $2.8m and $3.4m profit (2010 - $5.7m).
The difference between the normalised and reported results comprises a number of one off items; the main ones being a non cash tax expense of $1.5m after tax to account for the change in New Zealand tax law relating to depreciation on buildings, the already announced and provided for expense of $2.2m after tax in the defence of a medical patent in the UK, a write down of intangible assets of $740k after tax and the revaluation of warrants held in Nasdaq listed Derma Sciences of $950k after tax.
Even though we have enjoyed a much improved sales trend and profit for the last quarter, the sales and profit numbers for the full six month period are lower than the same period in 2010. It has proved to be too difficult to make up for the poor results in the first half. Problems were experienced with a soft Australian retail market further impacted by the mild southern hemisphere winter and the Queensland floods. Despite the slower sales situation for the year, Comvita has continued to invest in expanding its global internet direct sales model, expanding its retail presence in growth markets and expanding its product portfolio.
Our audited result and full commentary will be provided to the market on 20 May 2011.
Anyone else hold CVT? I bought some of these when I started out investing middle of last yr. Can't say I'm pleased with this result. This UK patent lawsuit crap is costing them too much. I hope they get their sh*t sorted ASAP and get back to selling honey.
1 Attachment(s)
Technical analysis of CVT
Some bullish technical signs to back up the fundamental view:
CVT smashed through previous resistance of $2.00. This should now, theoretically, be a level of support (a nice round number).
All of the high volume days in the last four months (>= 100k shares traded) have corresponded with up or flat share price movements ie. CVT is being accumulated. This is backed up by a rising OBV indicator.