Comvita - CVT

[nztx]

Is this the company which tended to have after one good year three or four unexpected bad years until they run out of excuses ...? Next good year coming?

Show me the dividend being restored, then I might feel slightly more inclined to look closer ..

[BlackPeter]

Show me the dividend being restored, then I might feel slightly more inclined to look closer ..

Lets not get carried away ... just the claim that last year was not too bad should be for long suffering shareholders reward enough :

Of course they will need to save some money for the next streak of unexpectedly too wet, too cold or too hot weather. These things just happen, you see ...

[Balance]

Lets not get carried away ... just the claim that last year was not too bad should be for long suffering shareholders reward enough :

Of course they will need to save some money for the next streak of unexpectedly too wet, too cold or too hot weather. These things just happen, you see ...

Thanks, BP for the timely reminder of how weather dependent this stock is. Need to price that risk into the stock.

[bottomfeeder]

Some movement today, wondering if this is a readjustment from results, or something else.

[Getty]

It appears to have got rid of the overhang & profit taking from the SPP, and just getting back to normal trading

[bull....]

profit taking from spp probably finished , looking forward to result

[macduffy]

It appears to have got rid of the overhang & profit taking from the SPP, and just getting back to normal trading

Now for getting rid of that honey overhang!

[Beagle]

Lets not get carried away ... just the claim that last year was not too bad should be for long suffering shareholders reward enough :

Of course they will need to save some money for the next streak of unexpectedly too wet, too cold or too hot weather. These things just happen, you see ...

A more fulsome list of risks is appropriate.
Too hot
Too Cold,
Too Wet,
Too dry,
Pestilence,
Disease,
Covid 19 effects,
Deep economic recession,
Cheap counterfeit Chinese copies,
Inexact and confusing Govt definitions of what exactly is manuka honey,
Inconclusive or unexhaustive independent research on its benefits compared to other honey's
Oversupply and pricing issues
New Australian supply coming onto the market
Questions as to the effectiveness or otherwise of the board
Questions as to the effectiveness or otherwise of management

...I've probably overlooked at least a few other concerns. Really a weather dependent agricultural stock with no clear track record of growth deserves a PE of no more than 10 times the average of the last five years earnings in my opinion.

http://nzx-prod-s7fsd7f98s.s3-websit...224/307981.pdf
In the last 5 years their average profit has been $6.0m. There is no real growth as the top line shows in the five year comparison in the financial statements I have provided a link for. There are current 69.8m shares.

When you look at the shares in that light there's obviously a lot of blue sky and puffery built into the share price, still. They have such an appallingly bad track record at predicting and forecasting anything the board could do everyone a favour by simply keeping their mouth shut and reporting results along with their usual excuses and any new ones they can think of every six months. This is one very high risk stock I am happy to avoid.

[Shareguy]

Agree with all your comments . All companies have a risk profile and anyone who is worried regarding this company should not invest. However I see a refreshed company with little debt , plenty of High quality stock that has been independently checked, a top ceo and a insider who has brought plenty . Plus the demand side by all accounts is strong and I expect this to continue. Costs are lower and margin higher moving forward.

I agree, high risk like a lot of stocks ....but high reward and have Just put the proceeds of Met into this stock. Apart from all the above I also can see a takeover on the cards.🧚

[Beagle]

Good luck with it. I note sales for the first half of $94m and just over $100m in the second half.
I would have thought with Covid 19 ravaging the world people would have been keener than that to boost their immunity if indeed this stuff is the elixir of great health it purports to be and somewhat better than any old common honey variety available for a fraction of the price.
Good they got their debt down (probably told too by the bank, or else !) and stock is finally starting to be reduced.
One swallow does not a summer make. This is one that has it all ahead of them to prove there is more than just potential to this story and they really can get back to decent earnings on a sustainable and regular basis.