Director buying
http://www.stocknessmonster.com/news...S=SKL&N=267261
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Director buying
http://www.stocknessmonster.com/news...S=SKL&N=267261
The currency should be helping this exporting company in FY2016. The problem is two of their biggest selling consumable lines, the rubber attachments used in milking cows and the slurry handling rubber couplings used in iron ore extraction, have customers facing severe headwinds. These headwinds are likely to delay the aforementioned purchases rather than stopping them. But it does mean the first half of financial year coming up could be soft.
There are other good things happening in Europe. Maserati sales exceeded 35,000 in 2014 and are on target to exceed 50,000 in 2015. Skellerup supplies all the driveline couplings for those through their Italian factory. Even better Alfa Romeo are using a modified version of the mid size Maserati platform as the basis for their new rear wheel drive BMW challenging saloon. If that takes off we could see Skellerup driveline coupling sales increase by a factor of 5. What would that do the bottom line in coming years?
SNOOPY
Snoopy.
Raw materials will be costing more.
Imported goods such as gumboots will be costing them more.
Of concern is SKL share price weakness while other exporters' share price has gone up ,including SCT .
He is not buying personally. His non-beneficial interest rose from 1,946,444 to 1,996,444 while his "other relative interest" (i.e. his personal and beneficial interest) remained at 2,527,506. Its interesting that SKL's story is not compelling enough to use his own money ...
I also agree with Snoopy, the weakening of the NZD will probably be offset by the downturn in dairy and iron ore production in the short term. In 2014 North America counted for 24% of revenue while NZ/AUS counted for 49%.
As PT keeps reminding us, read SSH carefully and don't skim through them and jump to conclusions
Mind you besides the bereaucratic need for form filling I believe there should be a short summary somewhere. Not too hard
Percy, a farmer in need of a new pair of gumboots is not going to risk soiling his woolly socks inside a half manufactuired pair of North Korean gumboots. Yes Skellerup may have a hard time over the next year due to demand side pressuires on their customers. But the fundamentals of producing high quality consumables are still there. Farmers need quality gear at they will continue to buy Skellerup stuff because they can trust it.
The current macro environment is perfect for acquiring SKL shares. Not sure about the exact timing, which is why I am staggering my purchases of SKL throughout the year. One thing am am sure about though. 2-3 years down the track any shares you can buy at anywhere near todays prices will be seen as dirt cheap.
SNOOPY
For my money Snoopy the trend is absolutely crystal clear and holding off until some technical buy signals start firing appears to make good common sense. Personally I do not try to pick the bottom of a stock in a very clear down-trend as the risk of capital loss is too great and a lot of money has been lost on this stock in the last 12 months. I have this on my watchlist BUT am happy to wait for as long as it takes for a clear break back above the 100 day MA. The market appears to be saying that the severity of the headwinds facing dairy farmers and iron ore producers is impossible to overstate. I don't know about others but I find swimming against the tide too much hard work.
Hi Roger, understand what you are saying. On the other hand - if you look at the trend, buying at the last golden cross and selling at the quickly following cross of death wouldn't have helped you much either (unless you are a broker ;)).
If you look at the stock: they open later this year a brand new (and already paid for) factory, they have a very healthy balance sheet (you probably would call quite lazy), they produce quality consumables required by several important industries (even if these industries go currently through a rough patch, but they will always be needed), most of their raw materials are currently actually quite cheap (low oil price) despite the lower NZ$, they pay a healthy dividend (though not quite as outrageous as PGW) which they can afford ... and their CEO is holding heaps of shares and accumulating.
Whats not to like about them?
Discl: holding and still in accumulation mode ... actually - they might be the right place to park some of my recent SUM gains ;)
Thanks Snoopy.Yes I agree a farmer can't put off buying a new pair of gumboots.
I just keep wondering why the sellers have been so dominate for such a long time.
$1.26 today,and it was not long ago they looked sure to go back over $1.40.
Mair and every one buying,yet the sp continues downwards?
I guess it is just proving that share prices over and under shoot fair value.
I see 4-traders have eps 10 cents for 2015,12 cents for 2016 and 13 cents for 2017.So 20% growth followed by 8.3% which is healthy.
ROE is not bad at 13.9% and forecast yields are 6.88% for 2015,7.06% for 2016 and 7.20% for 2017.