Tegel IPO

[percy]

Well I added to my IPO holding, and a trust I am involved with added six and a half times the amount it was allocated at the IPO.[Did not get many at the IPO.]
Rings all the bells for me.Well run consumer staple,growing markets for chicken,loooking to pay excellent dividends.
The brokers' research I have seen have target prices between $1.90 and $2.10.
ps.AWK,RYM,MEL,SCL and IFT were slow to get runs on the board,and they have all turned out to be big hitters.

[NZSilver]

I sold mine a few week back, I've talked to a few people re the listing who have worked at TGH - it made me a little weary. PE sounds like they really pushed things hard to cut costs and inc production before IPO. This resulted in quite a few experience people leaving and heading to competitors. I'm looking to reassess once results are released.

[percy]

I sold mine a few week back, I've talked to a few people re the listing who have worked at TGH - it made me a little weary. PE sounds like they really pushed things hard to cut costs and inc production before IPO. This resulted in quite a few experience people leaving and heading to competitors. I'm looking to reassess once results are released.

The full year result was released 21/6/2016.

[Balance]

An observation after all those years of investing in sharemarkets - too many investors think that a share price must keep on tracking higher to indicate that a company is doing well. Whenever the sp stops going higher, doubts start setting in as traders take their cue and exit, and in the absence of positive affirmations (note - nothing negative has actually happened), panic actually sets in sometimes and they start bailing out.

Can see how stocks like SCL and TIL get sold off when their share prices were threading water even as their businesses were building up momentum.

Okay for traders to keep a close eye, hour by minutes and weeks to days, but certainly not for investors. Too hard.

[trader_jackson]

An observation after all those years of investing in sharemarkets - too many investors think that a share price must keep on tracking higher to indicate that a company is doing well. Whenever the sp stops going higher, doubts start setting in as traders take their cue and exit, and in the absence of positive affirmations (note - nothing negative has actually happened), panic actually sets in sometimes and they start bailing out.

Can see how stocks like SCL and TIL get sold off when their share prices were threading water even as their businesses were building up momentum.

Okay for traders to keep a close eye, hour by minutes and weeks to days, but certainly not for investors. Too hard.

"The days are long, but the years are short"

[BlackCross]

Annual Report 2016

8:30am, 21 Jul 2016 | ANNREP

Tegel Group Holdings Limited has today released its Annual Report for the year ending 24 April 2016. The Annual Report is attached and can also be accessed at www.tegel.co.nz/investors
https://www.nzx.com/files/attachments/239814.pdf

[RTM]

I caught a snippet on CNBC today with respect to "Soft Commodities" and Corn prices which are very low. That has to be good for Tegal.
Talked about chicken being highly processed corn.

He was speculating that it may be worth having a bet on Corn Prices rising.

https://ycharts.com/indicators/corn_price

All the best,
RTM

[kiwidollabill]

And the NZD devaluating?

[RTM]

And the NZD devaluating?

Yep....it goes down...and then it goes up ...and then it ....
But irrespective of that....a low corn price is advantageous to Tegal I would think.
I was staggered to read in their IPO document that nearly all their feed is imported.

RTM

[Rep]

I was staggered to read in their IPO document that nearly all their feed is imported.
RTM

Yes that is the case with Inghams NZ operation which is based in the BoP near the Port of Tauranga so whilst they need to move finished product around the country, most of their growers are near to the production plant and the port where the feed arrives. Most of the Canterbury Wheat harvest ends up being used directly for human consumption.

Keep in mind also that feed grain is an international commodity and that China is one of the largest purchasers for their domestic poultry consumption which continues to grow as incomes rise and the middle class starts demanding more protein in their diet (case in point, the massive growth in the footprint of Yum Brands KFC operation in China) - which will place demand for wheat, barley, corn, sorghum and other feed stocks in the longer term.