Thank you for you input. It is rare to get such quality input on this forum.
I was talking to a kiwifruit "insider" yesterday. Your thoughts around CAPEX align with his. He is a top 20 holder in Seeka.
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Bummer re fire destroying post harvest shed last night
Packhouse Fire - 5 March 2015
No one injured. Should not affect earnings. More of a distraction at this stage.
The earnings announcement last week beat guidance by about 8%.
Underlying earnings ( excluding one-offs and assuming full year of Glassfields) comes in at 27.5cps. This puts SEK on a pe=11.8 at the current price of 3.25.
But the real story here is the massive growth of G3 gold coming on line in the next 2 years. SEK have already announced volumes for 2015 are going to increase from 21.3m trays to 24-25m trays. There should be a further uplift in 2016. I suspect the FY15 profit growth will strong. However, guidance is probably 6 months away.
Its a shame about its lack of liquidity. Actually has been a very good dividend earner for me and I'm surprised there hasn't been more interest in it. An example of a good business quietly going about its business, making money, not taking any risks, managing its exposure by a diversification program and effectively weathering a bad time in an admirable fashion. I can see this gradually gaining some followers and in years ahead should continue its positive momentum.
You know Kiwifruit is back in vogue when Orchards are being syndicated
http://myfarm.co.nz/opportunities/kiwifruit
Just more evidence that volumes are on the rise. Given SEK make most of it's money though post-harvest, volume is more important than the commodity price of the kiwifruit. It should be noted that Seeka do do some orcharding of their own.
A good article by Alan Williams
https://agrihq.co.nz/article/seeka-continues-to-improve-its-profit?p=321
Take outs for me:
"Seeka packed 21.34m trays and was budgeting for 30m trays by 2018, with the bulk of the increase being in Gold fruit."
"And a fire at its Te Puke packhouse and coolstore complex would not hamper this season’s output."
"Seeka was interested in acquisitions and the balance sheet gave it “financial freedom of action”, Franks said."
Gales and heavy rain forecast for tauranga, tepuke area monday from PAM.Eastern ranges of BOP high chance of severe southeast gales and rain. Northern Hawkesbay and Gisborne on hitlist too. Central and South hawesbay are in for it too. Just hope its downgraded.
It appears there are some tail winds in the kiwifruit industry
https://nz.finance.yahoo.com/news/ki...050442586.html
Even made tv3 news
http://www.3news.co.nz/nznews/new-ki...try-2015032816
Seeka will be packing a lot more kiwifruit this year. Should translate to $$$
Some discussion on a competitor, Eastpack, here: http://www.sharetrader.co.nz/showthr...l=1#post567649
Looks like Avocado growers are enjoying great yields from Seeka
http://www.seeka.co.nz/top-avocado-returns
All bodes well for the half year result
Looks like they are having a good harvesting season with around 15M trays packed already, slightly ahead of schedule with about half a million being packed per day at present.
Fruit quality exceptional and volumes up somewhat.
So far so good so hopefully well on track for a good result.
For those interested, a few more details on their avocado business
http://www.scoop.co.nz/stories/BU150...y+17+June+2015
Very interesting and positive reading. Thanks for posting noodles. Looks like we may be in for a good year with an outstanding harvest season just completing. Looking forward to the divie increase :t_up: