Comvita - CVT

[Ogg]

Got plenty of honey in the warehouses ....but could end up as a sticky mess for the bank

With over $100m debt, surely the bank is looking to offload this, given how the risk profile has now changed. It was once an NZX50 company with strong earnings, now it's a penny stock with losses.

[whatsup]

I personally cannot see away out for CVT what with all of their problems, debt, competition, weather, huge stock, virtual no local market, under cuttion, too many to list, this share could easily be $1-00 -----$1-50 share, I hope not. sad sad sad !

[percy]

Well really is anyone surprised.?
All I can say is "no surprises here."

[Ogg]

Well really is anyone surprised.?
All I can say is "no surprises here."

I'm surprised. I remember reading this article not too long ago.

https://www.nzherald.co.nz/business/...ectid=11485597

"I've been with the company for 10 years, the company's in very, very good shape."

O how things can change.

[Beagle]

With over $100m debt, surely the bank is looking to offload this, given how the risk profile has now changed. It was once an NZX50 company with strong earnings, now it's a penny stock with losses.

Have a look at note 13 to the interim accounts and review how systematically they've drawn down long term bank debt in recent times. https://www.comvita.co.nz/_assets/In...Statements.pdf This is damming stuff for a company with financial performance that's best described as an ongoing fiasco.
I would think this latest revelation today is likely to see them in breech of their banking covenants and the bank saying "no more".
Time's up for the current CEO and Chairman...massive change is needed and a whole new perspective or there's a real risk the bank will give them some new perspective whether they like it or not !

I won't try and put a price on the fair value of the shares any more as I think the business is fundamentally "broken" and probably has little if any value other than in a takeover situation with a complete clean sweep of management and the board and their conceptually flawed current processes.

I think shareholders are on a hiding to nothing and this is just a slow motion train wreck heading for derailment.

[kiwidollabill]

I still believe they are using the harvest story to hide poor action in their sales channels. The harvest business will just provide transfer pricing to their production/sales arm so its really just an accounting ploy - you can cut it every which way and it comes down to sales vs COGS. Their desire to move to 'a variable cost model' does show some bad decisions in the past to lock in supplier pricing which means they will be overpaying for raw feedstock.

Looks to be a 'plan' to hold 12 months of inventory based on borrowings - this would be fine if they had some flex on the sales price, but they have none.

Alot of 'old fashioned exporter' logic here which will not grow value for shareholders. More room to slide on the SP I feel. DYOR...

[Beagle]

SP has massive potential to the downside in my view.

[Ogg]

SP has massive potential to the downside in my view.

Someone big has been loading up in 10k lots all morning.

[winner69]

I still believe they are using the harvest story to hide poor action in their sales channels. The harvest business will just provide transfer pricing to their production/sales arm so its really just an accounting ploy. Their desire to move to 'a variable cost model' does show some bad decisions in the past to lock in supplier pricing which means they will be overpaying for raw feedstock.

Looks to be a 'plan' to hold 12 months of inventory based on borrowings - this would be fine if they had some flex on the sales price, but they have none.

Alot of 'old fashioned exporter' logic here which will not grow value for shareholders. More room to slide on the SP I feel. DYOR...

When companies publicly talk about ‘price harmonisation’ you know they are in trouble

Wonder if they know what it means .....hope not the lowest common denominator

Suppose they into phosfluorescently myocardinating client-centered solutions as well

[kiwidollabill]

When companies publicly talk about ‘price harmonisation’ you know they are in trouble

Wonder if they know what it means .....hope not the lowest common denominator

Suppose they into phosfluorescently myocardinating client-centered solutions as well

It means that sales channels of theirs are probably leaning out as they can get Manuka for cheaper elsewhere (I have mentioned the Australians), their China ploy is probably an attempt to stop the bleeding.

Race to the bottom.....