Comvita - CVT

[bull....]

Just remind us - which proportion of these "'assets" is the huge amount of honey they have stored (I think close to one years harvest?) and at what price point is this "asset" in their books? Will they ever be able to realize book value given the burst of the Manuka bubble and increased competition from Australia?

good point time will tell if your correct. if your correct then asset/share will decline but to under $3? if there pricing on inventory is correct then selling some of the overhang of inventory would reduce debt substantially making the balance sheet look very good

anyway cant you store honey for a very long time under the right conditions therefore if it was on there books for higher value than current pricing could they not ride it out till pricing improves then sell. commodity trading?

[BlackPeter]

Hahahaha, CVT always overpriced. Why can't they keep overpriced? If someone launch take over bid, if some good stories from China or North America...........................

I sense some desperate hope of an (as I assume) holder. I wish holders all the best, but would like to point out that hope is not always a particularly successful investment strategy ...

Anyway - good luck!

[Marilyn Munroe]

This is the time of year for peak extraction.

An acquaintance in the industry reports yields well down on last year and a lower price outlook.

He put the yield decline down to colder conditions in spring and early summer blocking bees from collecting nectar.

Boop boop de do
Marilyn

[Balance]

take out the good will and its still over $5

Watch for savage inventory write downs when new CEO has gone through with a proper audit and assessment of the state of the company and its products.

[stoploss]

Watch for savage inventory write downs when new CEO has gone through with a proper audit and assessment of the state of the company and its products.

But the older it gets the better it gets and its worth more

[Sideshow Bob]

Part of the problems is the industry, and the 'goldrush' mentality, where every man and his bee were in there. Bugger any quality standards, just do whatever to pump up the Manuka factor or confuse consumers, for the betterment of themselves, rather than the long-term business.

[kiwidollabill]

Watch for savage inventory write downs when new CEO has gone through with a proper audit and assessment of the state of the company and its products.

What is also happening is that alot of Manuka is failing the MPI export tests - I hear Northland and East cape. I wont go to he gory detail but my view is that the MPI test analytes were not suitable for industry use - they made a political judgement rather than a technical one on what to implement.

This will mean that this previously high grade manuka will have to be blended out with other sources....

Yes a write down should occur, if nothing else than the lowering of retail prices seen over the last 3-4yrs.

[Balance]

But the older it gets the better it gets and its worth more

That’s what the industry thought but sadly, that’s proven not to be the case with the bulk of the ‘manuka’ honey in storage out there.

It depends on the level of DHA in the honey in the first place as to how high the UMF or MG can go up to.

Plus, multiflora Manuka honey fetches a hugely lower price than monoflora manuka honey. I personally know of one beekeeper in Northland whose business went from hugely profitable to losses under the new MPI standard as his honey was reclassified to multiflora.

[kiwidollabill]

That’s what the industry thought but sadly, that’s proven not to be the case with the bulk of the ‘manuka’ honey in storage out there.

It depends on the level of DHA in the honey in the first place as to how high the UMF or MG can go up to.

Plus, multiflora Manuka honey fetches a hugely lower price than monoflora manuka h
oney. I personally know of one beekeeper in Northland whose business went from hugely profitable to losses under the new MPI standard as his honey was reclassified to multiflora.

Early in the boom those in the know bought honey cheap from beekeepers based on the tested values at extraction then 'aged it' to get a better grade.

Now that everyone has this trick (and can predict figure values) the $ is already priced in....

And over a certain time period/conditions the grade comes back down...

https://www.analytica.co.nz/Tests/Ho...ast-MG-NPA-HMF

[Balance]

What is also happening is that alot of Manuka is failing the MPI export tests - I hear Northland and East cape. I wont go to he gory detail but my view is that the MPI test analytes were not suitable for industry use - they made a political judgement rather than a technical one on what to implement.

This will mean that this previously high grade manuka will have to be blended out with other sources....

Yes a write down should occur, if nothing else than the lowering of retail prices seen over the last 3-4yrs.

Human nature suggests that pride and ego would not have allowed the BoD under Neil Craig to fully account for the mess that they presided over.

The new CEO on the other hand is fully motivated to initiate a full accounting of that mess he is going to have to clean up.