Comvita - CVT

[noodles]

I don't normally concern myself with trading action, but I was surprised to see an off-market trade this morning at $3.80. $3.4mill worth changed hands. That is a decent premium over the previous close of 3.58.

I won't be selling mine at 3.80, but it would likely be a short-term target price now.

Perhaps a SSH notice on the way.

[Vaygor1]

I don't normally concern myself with trading action, but I was surprised to see an off-market trade this morning at $3.80. $3.4mill worth changed hands. That is a decent premium over the previous close of 3.58.

I won't be selling mine at 3.80, but it would likely be a short-term target price now.

Perhaps a SSH notice on the way.

Could it have anything to do with the $5million in shares as (preparation for) part payment of Comvita's latest purchase of New Zealand Honey Limited? The deal is still subject to shareholders' approval but I would be extremely surprised if it didn't go ahead.

Refer following passage from announcement on 22-May-2013 at https://www.nzx.com/companies/CVT/announcements/250737

The purchase price is $12.3 million, subject to a working capital adjustment. The purchase price shall be payable with $7.3 million in cash and $5 million in Comvita shares issued at $3.50 per share. The Comvita shares are to be held in Escrow and released to New Zealand Honey Producers Co-Operative annually, over a six year period.

[noodles]

Could it have anything to do with the $5million in shares as (preparation for) part payment of Comvita's latest purchase of New Zealand Honey Limited?

I would expect to see an allotment notice at 3.50 for that deal. A separate announcement confirming the deal would also be expected.

[percy]

I don't normally follow CVT however I read the AGM presentation today.
Looks as though they have moved to protect their supply of Manuka honey.
An excellent presentation.Premium brand means better margins.
No surprises there considering they have Sarah Ottrey as a director.She was the person who developed Tui brand for DB.I know of her as she is a director of EBO and I have shares in them.A very clever woman.
Looks to me as though CVT have a very bright future.

[noodles]

Looks to me as though CVT have a very bright future.

There could also be some acquisition upside as well. PharmaZen perhaps?

[percy]

There could also be some acquisition upside as well. PharmaZen perhaps?

Don't get my hopes up!!!! lol.

[GizyGold]

Comvita will defintely be on the look for more acquisitions, whether it is companies or suitable land to secure supply. Think the next 10 years they are well positioned for good growth. Hopefully it is a hot summer for that Manuka harvest, unlike farmers they actually dont want rain. If it is a good summer we can expect some big volumes harvested and exported!!

[Vaygor1]

In October last year, Comvita CEO Brett Hewlett said, "Comvita has historically had a year of two profit halves with the second half year sales and earnings stronger than the first half due to many of our product lines primarily being consumed in the northern hemisphere winter months. This effect is compounded by Asian tourists purchasing our products in New Zealand and Australia during the peak tourism season in our own summer. As we grow our retail infrastructure in Asia and with the Australian market continuing to be quite soft, this year of two halves effect is becoming more pronounced".

I have held CVT for a few years now and the above is never a truer word said. Fairly recently there was another statement issued by Brett on the subject saying they were going to do something about this year-of-two-halves issue but it would take a year or two before CVT would see the results. Just what he intends to do I don't know for sure.

If I could follow my own advise, I would sell before the 1/2 year result in November this year when the 'bad' 1st half result comes out, as the market will drive the SP down (again)… and then buy back a month or two before their full year result comes out in 2015.

Trouble is, being an accumulator and not a trader, I cannot bring myself to sell but as in previous years when the price drops due to the 1/2 year result I just end up buying more. As a result, much like every share I own I end up with far more than originally intended.

[noodles]

No surprises there considering they have Sarah Ottrey as a director.She was the person who developed Tui brand for DB.I know of her as she is a director of EBO and I have shares in them.A very clever woman.
Looks to me as though CVT have a very bright future.

Well that clever woman has been topping up on her CVT shares. Another $25K disclosed to the market.

[noodles]

What have I become? A towny reading rural news

http://www.ruralnewsgroup.co.nz/rura...ka-honey-trees
Key point for me...
"increase the value of the mānuka honey industry from an estimated $75 million towards $1.2 billion per annum by 2028."

I'll be wearing Airtech shirts next.