Tegel IPO

[Valuegrowth]

Although it is not a fast growing company, still it can offer interesting investment opportunities. Still I am not impressed with its ROE but it may improve in the future.

[couta1]

the old 53 week trick eh...fooled some into thinking they'd met guidance but the market overall has voted and seems unimpressed, down 5 cents before the result and 2 cents after it. I'm thinking the shares just like their chicken will be on super special for quite some time. A sustained commodity glut is exactly that no matter how you slice and dice it, just ask the Saudi's or the Russians !

Other than the obvious 53 week trick I wonder if the other beagle has time to go sniffing and digging into their accounts looking for any less obvious accounting tricks, (this hound too busy barking up other trees). Come in Snoopy !

Quite happy to chase the price down a bit, might even end up with an XOS sized holding before the divvy, unlike many other shares on the NZX, at least it's not at an overinflated price. It's fits my main criteria for an XOS drumstick, namely fare value and liquid, almost sounds finger lickin good aye.

[trader_jackson]

Slide 6 in preso has some nice charts.

If you take their revenue and divide by production ou get a good feel for pricing of the finished product (say yield per tonne)

f17 yield was $6,152/tonne down from $6,252/tonne in F16

Current (average prices) are 5.8% less than FY15

I'd say talk of increased prices is just wishful thinking - chicken is really just chicken after all - winning consumer preference on price.

Headline in NBR today: "Tegel says the chicken pricing war is over"... should be onward and upward from here right?
(then again, I also thought they said the pricing war was already over a year ago...)

The whole export story thing as well is interesting, I see they managed just 1% increase in exports.

[hardt]

Export volumes grew 6.7%
Market share grew 2% to 52%

They have had a very average year, we all know about the missed PFI, but looking at the report going forward there was little worry about the value of this company being greater than what the market is currently allowing for.

More Tegel products in more mouths, it opens up many more opportunities for earnings growth in the next 5-10 years...

If you want a boring long term dividend paying stock - buy Tegel at 100-110

Least we forget those that were certain another downgrade was coming.

It was well indicated that a poop and scoop was going to occur prior to results, easy 10+% returns for those that traded this one.
Instos would have been doing just that.

[winner69]

Headline in NBR today: "Tegel says the chicken pricing war is over"... should be onward and upward from here right?
(then again, I also thought they said the pricing war was already over a year ago...)

The whole export story thing as well is interesting, I see they managed just 1% increase in exports.

t_j - that 1% increase in export revenues was on the back of 7% volume increase

Sell heaps more for not more .....hmmm

[Beagle]

Quite happy to chase the price down a bit, might even end up with an XOS sized holding before the divvy, unlike many other shares on the NZX, at least it's not at an overinflated price. It's fits my main criteria for an XOS drumstick, namely fare value and liquid, almost sounds finger lickin good aye.

Maybe wait and see if Snoopy dog can sniff around and see if they added any other curry powder to the results first. Speaking of finger licken mate, dirt cheap chicken has been very good for Restaurant brands that's for sure ! A point I feel is well worth noting though, the results this year were generated on the back of cyclical lows in feed and transport costs. What if these two which are some of their biggest costs go up and additionally they get more pay equity demands from staff like a lot of other industries are getting ?

[JBmurc]

Well I'm happy to see the SP close on its highs for a the day .....might well get another trade before the weeks out

[Valuegrowth]

It went up by more than 7% on a volume of 1,926,403 today.The Inghams Group (ASX: ING) also has received some attention.

[JBmurc]

Yes seems many are keen to accumulate at these levels(Solid base formed in the 1.10-1.16 range

[JBmurc]

1.25 high >>> nice another trade gone to plan ....be interesting if it will trade a range from here with another dip to 1.10-1.20 after divi ex date likely IMHO .... then I might have another crack