So valuable they had to hock off some of the family silver last year to shore up the business
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So valuable they had to hock off some of the family silver last year to shore up the business
With all this talk of premiumness, moats, monopoly, optionality, billions of Chinese consumers, etc etc you would think the compoany would be spewing out cash from operations
Far from it as chart below shows - CVT a real cash burner (2018 is onlyH1). Last 5 1/2 years negative cash flows of $36m
Add to that another $57m of plant and intangibes and they have burned through heaps eh
Company value or intrinsic value is the NPV of future cash flows ..... whats going to change .....hmmm
Book value $186m and market cap over $300m ....hmm again
Hope you only in for the big takeover ogg
If they were smart they would have read the long term weather report back in January and sold at $9 a few months ago....
https://www.niwa.co.nz/climate/seaso...ary-march-2018
Can't believe the buy depth is shrinking. This will be another great asset that the Chinese will buy at a bargain price. 5 years from now Kiwi's will be moaning about it.Quote:
New Zealand’s regional climate over the next three month period is anticipated to be dominated by the very warm ocean waters present around the country and in the Tasman sea, which will influence surface air temperatures and the likelihood of significant rainfall events.
Wouldn't be surprised if the Chinese played games and pulled the take over, then the stock will plummet, then they come back at a lower price.
I'm averaging down with no stop loss.
If it was so easy why hasn't someone else replicated this by now and had the same success? That's like saying you're gonna start a shoe company and replicate Nike. You can't replicate the market leading brand. Ship has long sailed on anyone else copying this.
Comvita dominates the market and branding is especially important for the export market. Ma and Pa small businesses can sell locally at the farmers market but they can't export overseas to the big market. That's where the money is.
I think it's the other way around, $2.50 upside vs $1 downside. The Chinese buyer was happy paying $10, then they topped up at $7.20 last year. Stock has already been hammered recently too. The selling is likely coming from those technical investors who are looking at the dividend payment, just lol.
Nobody will care including the OIO.
If only it was an easy as picking the right PE.
I start with the board, do they have a credible track record of governance ? (No otherwise they would have been reigning in the CEO's ludicrously optimistic forecasts that have regularly been wildly wrong
Does management have a credible track record with their performance and forecasting ability ? Repeated Epic Fails.
Have they been achieving previous KPI's as outlined in pervious years annual reports ? Repeated Epic fails
Is the company cash flow positive and is cash flow growing ? Epic Fail year after year.
Is the gearing acceptable ? Its getting a lot worse as they pay dividends out of negative cash flow.
What are the market dynamics and is the regulatory regime likely to change ? All the hype of sales into China hasn't come to much. The regulatory environment regarding manuka honey specification is uncertain and fluid.
Fundamentally is the forecast PE attractive given the sector the company trades in and its growth rate ? No its shockingly overpriced and could very easily halve in the foreseeable future.
Technically, is the stock in an confirmed uptrend ? No its in a confirmed downtrend despite takeover possibility which must be a massive red flag for anyone who believes anything about TA.
This company fails All the filters I use in stock selection...not just two or three, All of them !
Might as well back the truck up and learn yourself a serious lesson the hard way I reckon as you quite obviously don't want to listen to anyone on here.
I can see this under $4 if the party doing due diligence walks away.
Beagle ....share price was $13 odd once when profits were about the same as now
Betcha you glad your took your profits on Comvita and ran for the hills a while ago ....I was surprised you got sucked in with the hype at the time but at least you came out of it (lucky) making heaps. Going into the NZX50 helped eh and the Chinese starting buying also helped. Good on you
Looking back I note that the Chinese pumped $20m into Covita at $10.60 a share
Probably wondering how they can resurrect this investment