Comvita - CVT

[Balance]

CVT into a nice earnings upgrade trajectory. More to come over 2022.

[Rawz]

Why is it 'especially encouraging' that they increased brand investment by 50% but only increased rev 4.5%

[winner69]

Why is it 'especially encouraging' that they increased brand investment by 50% but only increased rev 4.5%

Increased brand investment means higher expenses …..so ebitda could easily have been lower than pcp on stuff all sales growth.

Investment in brands takes a little while to flow through to top line as well as bottom line

Be patient …things going well

[Rawz]

Increased brand investment means higher expenses …..so ebitda could easily have been lower than pcp on stuff all sales growth.

Investment in brands takes a little while to flow through to top line as well as bottom line

Be patient …things going well

Oh yes of course. Thanks W69.

Hopefully the brand investment pulls through to higher than 4.5% revenue increase in time.

[Shareguy]

A profit upgrade is coming by the look of it. Still well off the 5 year high of $11.40. Craigs currently have a outperform rating at $4.20

[winner69]

Full year operating EBITDA guidance is maintained at between $27M and $30M.

Not much higher than the $25,5m last year

Upgrade at next weeks ASM?

[Muse]

Full year operating EBITDA guidance is maintained at between $27M and $30M.

Not much higher than the $25,5m last year

Upgrade at next weeks ASM?

maybe but if I were management I'd hold off - one great quarter under the belt 3 more to go in a business with seasonal fluctuations. While obviously I'd like the price to pop I'd rather continued nice affirmations like this in lieu of an upgrade until management had absolute conviction. and then surpassing that guidance. Kind of the track record Scales Corporation have going. I hate yo yoing.

[Balance]

maybe but if I were management I'd hold off - one great quarter under the belt 3 more to go in a business with seasonal fluctuations. While obviously I'd like the price to pop I'd rather continued nice affirmations like this in lieu of an upgrade until management had absolute conviction. and then surpassing that guidance. Kind of the track record Scales Corporation have going. I hate yo yoing.

CVT imo has enough earnings tucked away to deliver one earnings upgrade after another.

Name of the game when companies are going through an upgrade cycle.

[pg0220]

maybe but if I were management I'd hold off - one great quarter under the belt 3 more to go in a business with seasonal fluctuations. While obviously I'd like the price to pop I'd rather continued nice affirmations like this in lieu of an upgrade until management had absolute conviction. and then surpassing that guidance. Kind of the track record Scales Corporation have going. I hate yo yoing.

I like it because it also lets me keep my money there for a period of time so that I don't need to sell shares at profit at a shorter time and I can avoid being trapped as a "trader" . With my such a small holding ird won't even give a care though haha

[Muse]

I like it because it also lets me keep my money there for a period of time so that I don't need to sell shares at profit at a shorter time and I can avoid being trapped as a "trader" . With my such a small holding ird won't even give a care though haha

I hear ya. Bloody IRD - if they want to tax capital gains then we should introduce a capital gains tax. and if not hands off.
and because of that I am very christian about my investing. Long term, put in the bottom drawer, collect the divs, and don't sweat the market.
Wait: maybe the IRD are doing us a favour because those all sound like sensible things to do.