Comvita - CVT

[ratkin]

Not giving away but yes I see this as a very sound move and note it boosts margins into China where CVT believe 60% of sales end up. Also noting the acquisition is earnings accretive from year 1.

I'm back in today as I think this is a very important development for the company and address's my concerns previously articulated. Trades cum a "whopping" 2 cent final divvy...this one definitely not part of any planned dividend stripping strategy

So now we can look forward to many glowing posts on the companies prospects. Until you sell again of course

[winner69]

So now we can look forward to many glowing posts on the companies prospects. Until you sell again of course

Roger - take a deep breath now - remember what STMOD said on the AIR thread.

[Beagle]

Roger - good to see you back in. Seeing they are cheaper now than when you sold you got heaps more eh. You sneaky bugger.

Nothing really changed. If 'doubts' over China were the reason for the recent falls today's announcement must alleviate those a lot.

I know they didn't give away 7% of the company per se ......but shows you what a strong share price can do for you when you want to buy things / invest

Somebody said CVT a $20 share - whoever it was might be right

Thanks mate, looks like we're "in clover" already I didn't realise 60% of products end up in China, WOW, who would have thought...just as well management are on to it and have been working on this new JV for months. No question with this being earnings accretive from the get-go this is a real game changer.

[Balance]

Thanks mate, looks like we're "in clover" already I didn't realise 60% of products end up in China, WOW, who would have thought...just as well management are on to it and have been working on this new JV for months. No question with this being earnings accretive from the get-go this is a real game changer.

Would not trust the Chinese to operate a subsidiary company for foreign interests - best to use them as suppliers or distributors.

[Beagle]

Would not trust the Chinese to operate a subsidiary company for foreign interests - best to use them as suppliers or distributors.

Did you read the news article mate ? I've had very little time today with business pressure but from a real quick read this morning they're big shareholders in CVT already personally, and will be bigger with this JV arrangement and they've been working successfully together with these poeple for over a decade already.

[Balance]

Did you read the news article mate ? I've had very little time today with business pressure but from a real quick read this morning they're big shareholders in CVT already personally, and will be bigger with this JV arrangement and they've been working successfully together with these poeple for over a decade already.

I did - am sounding a note of warning before we all get carried away with an investment in a China company as the solution to distribution in China. Fonterra and quite a number of NZ companies found out the hard way.

Talk to any Asian companies and they will caution that it is best to distribute using China owned companies.

[winner69]

Share price up over $10.70 now

Market likes the announcement by looks of it and the 'disappointment' of the results announcement now all forgotten

Looking good

I shouted myself some Chanui tea the other day - quite nice but tea leaves are awesome - point to CVT being $12 plus in next few months

[winner69]

I hadn't properly read the recent announcement re JV in China

It's really positive and a good story - building long term relationships to generate future prosperity.

They say EPS accretive (starts April next year) which implies at least an extra couple million NPAT in F18

I just happen to notice share price over $10.80 now

[jim9358]

I did - am sounding a note of warning before we all get carried away with an investment in a China company as the solution to distribution in China. Fonterra and quite a number of NZ companies found out the hard way.

Talk to any Asian companies and they will caution that it is best to distribute using China owned companies.

I sped through it this morning too in ODT: Took it that CVT bought into the distributor, 49%, powerful position, but not owning them: (I'll go back to it later to check my understanding correct but by all means correct me!) There is a ton of incentive there for this distributor to continue getting it right. There was a guy on RNZ today (financial commentator) who said that he checked out one of the CVT dedicated outlets in China, in a Mall, to see out the front of the shop a "Gift Pack" to the value of NZ$750 for 5 small CVT items! The significance of that value was also in the "numerology" of that value in Chinese currency: VERY CLEVER! It is premier value product targeting wealthy Chinese. In the mid '80's I recall a fact in some article I was reading that China had a million millionaires then! CVT are doing amazing and very cleverly IMHO. Good for the ride!

[ratkin]

Meanwhile the unramped Ebos closes in on Twenty dollars