At least the $50m cap raise money did go to reducing debt ...and solid reduction in inventory and receivables helped
"Comvita continued to focus
on getting fundamentals right with extra emphasis on demand planning and working capital management,
net debt finished the year at $15.5M a reduction of $73.5M year on year with inventory reduced from $132M to
$113M as these process improvements delivered. Longer term Comvita has an inventory target of $70M as it
moves towards its zero long term debt target."
Therefore they target reducing inventory by another $43mil.ie from $113 mil down to $70 mil.
As "our David" does what he says he will do, we will see the $15.5 mil debt paid off, and $27.5mil left in kitty.
"All pigs loaded,and ready to fly."...........lol.
A lot of justifiable comment has been made of CVT's prior inventory level. but I wonder what is better/worse;
A co. that has NO inventory to sell at ANY price, and is yet to produce anything, has No family silver in the closet to peddle on the market?
A lot of justifiable comment has been made of CVT's prior inventory level. but I wonder what is better/worse;
A co. that has NO inventory to sell at ANY price, and is yet to produce anything, has No family silver in the closet to peddle on the market?
I think the answer is an appropriate level of inventory. Too much inventory means the company is unable to sell them at their best quality and it will result in inventory write off as they will have to sell them at cheaper prices... When Comvita was doing well back in 2016, I think the inventory level was about 40-50m and 110m seems too much when the revenue level stays the same.... unless there is a demand that can meet it....
Its been a long time between drinks since this one did any good. I would have thought with pestilence, disease, biological and other agricultural risks investors would have worked out that this is an extremely risky weather dependent stock by now.
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
Its been a long time between drinks since this one did any good. I would have thought with pestilence, disease, biological and other agricultural risks investors would have worked out that this is an extremely risky weather dependent stock by now.
Not to mention it's been propped up financially by a extraordinary event and so has an "unusual benefit" rather than expense line hidden underneath this new balance sheet.
How sustainable is this shift in a post COVID environment? Who knows.
I think the answer is an appropriate level of inventory. Too much inventory means the company is unable to sell them at their best quality and it will result in inventory write off as they will have to sell them at cheaper prices... When Comvita was doing well back in 2016, I think the inventory level was about 40-50m and 110m seems too much when the revenue level stays the same.... unless there is a demand that can meet it....
Generally correct, but fortunately honey has an extremely long shelf life.
Apparently honey found within the Pharoah's tombs is still edible.
Anyone for some Pyramid marketing?
Dr JPG
Inventory is like an Auditor taking your statement, it can be written down...
Tracking a company’s Operating Cash Flow is one of the best financial analysis tools. Hard to hide things in the cash flow statement and it also gives a good indication of working capital management (stock, debtors etc)
Tracking Comvita’s Operating Cash Flow has been an fascinating exercise over the years.its shown on the chart.
When everybody was excited and pushed the share price up to 12 bucks or so it’s cash flow was shocking ...a sign that things weren’t so good and not aligned with company hype. I pointed out this and other things to beagle and others who were riding the share up to 12 bucks. I’m glad they listened to me.
Even when the share price was dropping Comvita was still not worth 8 bucks or 7 bucks or even 4 bucks.
Things have turned over the last 18 months ...and cash flows are looking much healthier. Maybe there is life in this dog after all,
Fascinating chart eh ...I’ve included mid year share price .."amazing how the market drove it up to 12 bucks ...great for traders though.
Last edited by winner69; 24-08-2020 at 07:24 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Tracking a companies Operating Cash Flow is one of the best financial analysis tools. Hard to hide things in the cash flow statement and it also gives a good indication of working capital management (stock, debtors etc)
Tracking Comvita’s Operating Cash Flow has been an fascinating exercise over the years.its shown on the chart.
When everybody was excited and pushed the share price up to 12 bucks or so it’s cash flow was shocking ...a sign that things weren’t so good and not aligned with company hype. I pointed out this and other things to beagle and others who were riding the share up to 12 bucks. I’m glad they listened to me.
Even when the share price was dropping Comvita was still not worth 8 bucks or 7 bucks or even 4 bucks.
Things have turned over the last 18 months ...and cash flows are looking much healthier. Maybe there is life in this dog after all,
Fascinating chart eh ...I’ve included mid year share price .."amazing how the market drove it up to 12 bucks ...great for traders though.
It's changing from a Red head who has been through some dark days, to a honey blonde...
Originally Posted by winner69
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