Comvita - CVT

[winner69]

Still 100% plus up from a year ago ...not too bad

[Beagle]

FY17 forecast PE only 21 for a company growing at 68% last year. Management are very confident of doubling sales by 2020 and with the company gaining ever increasing economies of scale and efficiency as the company grows I expect profit growth over the next four years to significantly outstrip the doubling in sales. Profit could triple over the next 4-5 years. Share split with only 39m shares on issue is likely at some stage. Outstanding growth opportunity in my opinion. (Disc: Hold, DYOR not to be considered a recommendation or professional advice).

You must have missed this post Winner. Profit grew 68% last year and they're currently trading on a PE of under 19 times forecast FY17 earnings. Profit grew 68%, (more than double the sales growth rate) on 32% increase in sales so the business model is clearly scalable and clearly isn't broken, (anything but). A simple extrapolation of last year's numbers would indicate that if sales can double within 4 years profits could quadruple ! This in a company trading on a multiple less than the NZX50 average... Hmmm...

[Red Bus]

Yes the basics are still appealing,Sea Dragon is a concern but as Roger has earlier pointed out the convertible loans amount to but 7.5CPS ,the weakness may be overdone.
Share Price should benefit in December when MPI are scheduled to release their 'Robust ,science based definition for mono-floral honey"which will further enhance the value of compliant Manuka Honey. MPI have been toiling away on this with Comvita input since December 2014. It is a big deal in the manuka honey world which is riddled with non genuine and counterfeit product.
CVT to the best of my knowledge remains the only Manuka honey play available on the NZX when the genuine product is subject to MPI certification it will assume an even stronger premium and CVT will benefit.

[Beagle]

Yes the basics are still appealing,Sea Dragon is a concern but as Roger has earlier pointed out the convertible loans amount to but 7.5CPS ,the weakness may be overdone.
Share Price should benefit in December when MPI are scheduled to release their 'Robust ,science based definition for mono-floral honey"which will further enhance the value of compliant Manuka Honey. MPI have been toiling away on this with Comvita input since December 2014. It is a big deal in the manuka honey world which is riddled with non genuine and counterfeit product.
CVT to the best of my knowledge remains the only Manuka honey play available on the NZX when the genuine product is subject to MPI certification it will assume an even stronger premium and CVT will benefit.

Nice post, welcome to the forum.

[stoploss]

I hope this will help reverse some of the colony loss globally ...

https://www.theguardian.com/environm...e_iOSApp_Other

[winner69]

How long does raw honey (before processed into finished stock) last?

Comvita had $54m worth as at March

Just seems an awful lot - even more than at last September when they said they had purposely built up stock .....so still building a stock pile?

[BlackPeter]

How long does raw honey (before processed into finished stock) last?

Comvita had $54m worth as at March

Just seems an awful lot - even more than at last September when they said they had purposely built up stock .....so still building a stock pile?

I understand that they find in the Egyptian pyramids sometimes honey which the ancient Egyptians gave their pharaos on their way into afterlife. I understand that the honey survived the travel through the millennia much better than the pharaos. Actually - it is still (after 3 or so thousand years) good for human consumption. Given that, I wouldn't worry too much about raw-honey going off.

[kura]

Have a dim recollection of being told that the longer you store Manuka honey, that the higher (& more valuable) the UMF factor

With regards to theft of hives etc, you will be interested to know, that several years ago, as part of rehabilitating our young inmates on central north island prison farms, that they were trained in the art of bee keeping, in the hope of gainfully using this talent on their eventual release.

Yep they obviously adapted this talent for their own gain. ( The law of unintended consequences )

[Harley]

Honey never goes off.

[emveha]

Have a dim recollection of being told that the longer you store Manuka honey, that the higher (& more valuable) the UMF factor

With regards to theft of hives etc, you will be interested to know, that several years ago, as part of rehabilitating our young inmates on central north island prison farms, that they were trained in the art of bee keeping, in the hope of gainfully using this talent on their eventual release.

Yep they obviously adapted this talent for their own gain. ( The law of unintended consequences )

And obviously you have proof of what you are saying.