Comvita - CVT

[bull....]

Need to cut divie because they are a high growth company

Positive outlook for F19 ...that’s good

haha need more funds for fish oil?

[Balance]

its a disaster

https://www.nzx.com/announcements/322500

and they do not have confidence going forward as they have dropped there div policy going forward

Underlying profitability and margins all going backwards but wait!


Outlook

The history of honey harvests in New Zealand shows that empirically a third consecutive poor honey season is unlikely. However, we are in the process of continuing to evolve the operating model of our Apiary business to reduce the financial exposure in the event of another poor harvest. In particular, we have further reduced the fixed cost overhead in the Apiary business and used our considerable body of scientific knowledge to select hive sites that optimize profitability.

It is very early in the new financial year. However, we are confident that given the changes we have made to our Apiary model, our renewed focus on China and the US market opportunities and an increase in marketing spend at the expense of fixed overhead costs, we have a positive outlook for FY19. We will provide a further update at our Annual Shareholder Meeting on 18 October 2018.


SO ALL GOOD, folks. Happy honeybees!

[BlackPeter]

LOL - this quote from the announcement made my day (highlights by me):

This payout ratio signals a change in policy from 40-45% of after tax profits, to a range of 25-30% of operating profit after tax. The Board believes a change to this lower payout ratio is more appropriate for a high growth company with ongoing demand for cash to fund growth.

Wouldn't you recognize a high growth company by high growth?

But than - they say a third bad year in a row (referring to the weather, not the board performance) is unlikely. What a relieve to the believers.

Just wondering whether they read all this stuff about climate change ... What would a long, hot and dry summer with plenty of wild fires interrupted by a handful of deluges do to their honey harvest?

Unlikely? We shall see.

[Blue Skies]

Though v tempted, relieved I never bought into CVT despite all the excitement & serious hype a few years back...miracle health properties, dominant brand, unlimited potential, China etc.

Definitely have to thank Beagle, BlackPeter, Balance, Winner & a few others on here for dodging this one.

Whenever I think of CVT, always reminded of Winner69's story of neighbour's 'mates at the bowling Club' selling AIR at a loss & buying CVT at close to $13 with some talking of the SP heading towards $20. That was just before the first lot of bad news. Wonder what happened to them? Should have hung on to AIR.

[Beagle]

I can't take any credit mate, I admit I got sucked into the hype of this but thanks in no small way to Winner I started to see more clearly as time went on. Thanks Winner, I owe you a beer.

Couldn't agree more BP. Love the bit that "we have a positive outlook for the year" They should add that this statement is contingent upon satisfactory weather, no new pests or diseases and no more widespread expansion of the existing myrtle rust problem and market demand.

In other words a no growth agricultural stock with all the risks that poses. Anyone paying more than a historical PE of 10 should head to their nearest doctor to ensure they take the appropriate medication to heal up from their susceptibility to beleiving corporate B.S.

EPS was just 18 cents per share and yeap, $1.80 is all I think they're really worth.

[Ogg]

What the CVT share price graph looks like:

cvt1.jpg
https://i.imgur.com/nLtxMS1.jpg

What the CVT share price graph really looks like:

cvt2.jpg
https://i.imgur.com/JXbrIgL.jpg

[Blue Skies]

Outlook 'The history of honey harvests in NZ shows that empirically a third consecutive poor honey season is unlikely'.

Can imagine next years copy saying.... empirical evidence suggests bad luck comes in threes, so a fourth is virtually impossible.

[Ogg]

Up 5%, another take over attempted coming?

[bull....]

Capilano caught with fake honey

https://www.canberratimes.com.au/business/companies/buying-fake-honey-as-simple-as-a-google-search-20180904-p501qo.html?crpt=homepage

i watched a good documentary on netflix about how honey producers mix there honeys with rice syrup. lucky comvita has the real deal a

[kiwidollabill]

Capilano caught with fake honey

https://www.canberratimes.com.au/business/companies/buying-fake-honey-as-simple-as-a-google-search-20180904-p501qo.html?crpt=homepage

i watched a good documentary on netflix about how honey producers mix there honeys with rice syrup. lucky comvita has the real deal a

How do you know they have the real deal? The point is that rice (and sugarbeet) syrup cant be picked up with the typical tests....