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20-02-2019, 03:21 PM
#1291
Originally Posted by Balance
Who in their right mind will own shares in companies with management who do not deliver on their promises - year after year - unless there is the very strong prospect of takeover.
CVT and PEB are two of the prime examples of failed management, and companies which have already failed in their business strategy and have no alternative strategy save to pay themselves big fees and big salaries.
I would go further and say management should simply shut up completely about trying to project the future, (profitability or lack thereof or sales) as its abundantly clear they have no idea whatsoever.
Not since the debacles of the likes of Ariadne and Equitycorp can I recall a worse example of woefully inept forecasting year after year after year...just throw a dart at a dartboard, whatever number it hits, if its black that's the profit forecast or red the loss lol
Seriously, its way beyond a joke and I think this company is un-investable.
Last edited by Beagle; 20-02-2019 at 03:24 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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20-02-2019, 03:30 PM
#1292
Originally Posted by Balance
Who in their right mind will own shares in companies with management who do not deliver on their promises - year after year - unless there is the very strong prospect of takeover.
CVT and PEB are two of the prime examples of failed management, and companies which have already failed in their business strategy and have no alternative strategy save to pay themselves big fees and big salaries.
Well yeah, you're right, that's why the stock is so cheap.
The point is that this has "A2 potential". Just look at the history of A2 in the beginning, it was a complete balls up. Could have never happened. Some how they turned it all around. Execution was perfect.
It's not just CVT management fault. The whole industry needs a rethink.
As good as A2 is, you're paying a huge premium to own that now. It could easily do a "CVT" and experience a similar collapse/bust/bubble pop.
The real issue was that it was too easy to fake Manuka honey and too many jokers got into the industry for a quick buck. In other words the barriers to entry are too easy, where as starting an A2 Milk farm takes millions of dollars. The industry needs to clean out all the mess, and get some kind of regulation/certification. It then needs time to consolidate and earn public trust again.
Maybe the best thing to happen to CVT was the bubble it just experienced, cause now there's a chance to change and do it right next time.
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20-02-2019, 03:35 PM
#1293
Originally Posted by Ogg
Well yeah, you're right, that's why the stock is so cheap.
The point is that this has "A2 potential". Just look at the history of A2 in the beginning, it was a complete balls up. Could have never happened. Some how they turned it all around. Execution was perfect.
It's not just CVT management fault. The whole industry needs a rethink.
As good as A2 is, you're paying a huge premium to own that now. It could easily do a "CVT" and experience a similar collapse/bust/bubble pop.
The real issue was that it was too easy to fake Manuka honey and too many jokers got into the industry for a quick buck. In other words the barriers to entry are too easy, where as starting an A2 Milk farm takes millions of dollars. The industry needs to clean out all the mess, and get some kind of regulation/certification. It then needs time to consolidate and earn public trust again.
Maybe the best thing to happen to CVT was the bubble it just experienced, cause now there's a chance to change and do it right next time.
Cheap?
Cheap as in stuff from the Warehouse is cheap.
Last edited by Balance; 20-02-2019 at 03:36 PM.
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20-02-2019, 03:37 PM
#1294
Originally Posted by Balance
Cheap?
Cheap as in stuff from the Warehouse is cheap.
Walmart cheap.
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20-02-2019, 05:59 PM
#1295
Originally Posted by Ogg
Well yeah, you're right, that's why the stock is so cheap.
The point is that this has "A2 potential". Just look at the history of A2 in the beginning, it was a complete balls up. Could have never happened. Some how they turned it all around. Execution was perfect.
It's not just CVT management fault. The whole industry needs a rethink.
As good as A2 is, you're paying a huge premium to own that now. It could easily do a "CVT" and experience a similar collapse/bust/bubble pop.
The real issue was that it was too easy to fake Manuka honey and too many jokers got into the industry for a quick buck. In other words the barriers to entry are too easy, where as starting an A2 Milk farm takes millions of dollars. The industry needs to clean out all the mess, and get some kind of regulation/certification. It then needs time to consolidate and earn public trust again.
Maybe the best thing to happen to CVT was the bubble it just experienced, cause now there's a chance to change and do it right next time.
There is no comparison - look at the infrastructure and supply chain for milk (glut) vs Manuka. A2 have a bottomless well they can convert and add value to ...... CVT have exact opposite.
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21-02-2019, 02:55 PM
#1296
Originally Posted by Ogg
... The real issue was that it was too easy to fake Manuka honey and too many jokers got into the industry for a quick buck. In other words the barriers to entry are too easy....
There are a few nz-honey-sector issues including the one above. These are well outlined in this 2012 report from pages 46 to 50 inclusive...
https://coriolisresearch.com/pdfs/co...y-industry.pdf
Not so easy to fix. Scotland got it right with "Whiskey", and France got it right with "Champagne"... NZ did not get it right with "Manuka" or "Kiwifruit", and probably too late to correct it now.
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26-02-2019, 09:47 AM
#1297
Plenty of honey in storage but made a loss
No worries as They say .... the Financial Result is masking strategic gains. Everything will be realised one day
http://nzx-prod-s7fsd7f98s.s3-websit...112/295707.pdf
At the top of every bubble, everyone is convinced it's not yet a bubble.
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26-02-2019, 09:50 AM
#1298
They call it an ‘Investor Presentation’
I reckon it should be called a ‘Shareholder ‘Presentation’
http://nzx-prod-s7fsd7f98s.s3-websit...112/295710.pdf
Last edited by winner69; 26-02-2019 at 11:32 AM.
At the top of every bubble, everyone is convinced it's not yet a bubble.
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26-02-2019, 09:51 AM
#1299
Did I read this correctly that they have circa $100,000,000 bank debt ?
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26-02-2019, 09:56 AM
#1300
No dividend.
Relentless climb in inventories but declining sales.
Debts increasing and accounts payable increasing!
Bye bye Comvita!
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