Comvita - CVT

[jim9358]

Her ID was KW , unfortunately I believe most of her posts were deleted. However those that people replied with quote are still around . Never buy in a downtrend was a classic .

Yes got that on my list of rules. Been diddling and learning for 20 years, but now I see the horizon of retirement and cheesed off with bank TD's, am making this my 2nd job (self-employed so can scratch out time somewhat as I please through the day, although was busy and missed a shift 3 weeks ago which cost me! C'est la vie!). Got 2/3 in mortgage free home and plot of dirt in a high cap gain town so happy with my meeting the investment spread rule!

Might put my rules up one day if it doesn't get me busted and posts removed like KW ;-)

[stoploss]

Jim , think investment rules will be safe .

[Joshuatree]

Go for it Jim, please share your nous.. KW asked for her posts to be removed when she left ,except for a few on the T/A thread

[jim9358]

Go for it Jim, please share your nous.. KW asked for her posts to be removed when she left ,except for a few on the T/A thread

Oh she wasn't busted then. I need do a re-write and additions ...they do mutate slightly. Maybe better in "holdings" folder or some other than this CVT. Won't be today as standard "day-biz" tied up.

Looking forward to post TIL meet today. Anybody else?

A little anxious about serious negative talk about outside NZ set to implode, taking us down with them, esp. on "black monday" folder. You or Anyone else here feel rattled about sentiment lately?

Again, CVT "marrying" their distributor got to be good to keep some cashflow irrespective of global implosion.

[winner69]

Director Sarah keeping to her buying plan - always good to see insiders buying

https://www.nzx.com/files/attachments/245444.pdf

[JayRiggs]

Placement and MOU with China Resources Ng Fung Limited

5:08pm, 21 Oct 2016 | PLACE

Comvita announced today, the placement undertaken to China Resources Ng Fung Limited (China Resources Ng Fung) of 2,000,000 new ordinary shares in Comvita at $10.60 per share, bringing China Resources Ng Fung’s existing stake of less than 5% in Comvita to approximately 9.0%. China Resources Ng Fung is a leading integrated food enterprise in China, wholly-owned by China Resources Enterprise Limited.
The placement will strengthen working capital and provide funding to support several strategic initiatives currently under consideration by Comvita.
Contemporaneously, Comvita has signed a Memorandum of Understanding (MOU) with China Resources Ng Fung regarding co-operation in the Hong Kong and Mainland China market places. China Resources Ng Fung intends to assist Comvita in stocking Comvita products in stores operated by China Resources Ng Fung’s affiliated retailers in Hong Kong and Mainland China, as well as assisting with regulatory processes where appropriate. China Resources Ng Fung’s affiliated retailers have over 4,000 supermarket outlets in China.
This MOU with China Resources Ng Fung has the full support of our China distributor with whom we are completing a JV distribution company in China as announced to the market on 5th September 2016. It will allow Comvita to access potential channels into China for existing and future Comvita products which may otherwise be unavailable to Comvita. Further, it will reduce our dependence on the third party exporter channels that have been a feature of our China growth in the financial period ended 30 June 2016. These channels have recently been subjected to regulatory change and new taxation imposts which has impacted sales in the last few months. Our arrangements with China Resources Ng Fung, together with our existing distribution arrangements, will diminish the impact from the volatility of these channels, which however still remains important for Comvita in New Zealand and Australia.
Comvita CEO Scott Coulter, commented, “We are confident that China Resources Ng Fung will be extremely beneficial in achieving our aspirations in China including opening up more opportunities for our new distribution JV. China Resources Ng Fung is a highly reputable corporation with extensive network in Mainland China and Hong Kong and the Executives respect our culture and the need for Comvita to be a New Zealand controlled business. We are comfortable from numerous discussions that the key Executives of China Resources Ng Fung really do ‘buy in’ to our culture and values.”
Mr Weiyong Wang, CEO of China Resources Enterprise Limited, commented, “We are delighted to be invited to be a substantial shareholder in Comvita. Comvita has been selling into China for 12 years and we hold the brand in the very highest regard. Further, we believe retention of significant New Zealand ownership in the long term was and will continue to be a vital ingredient of the business.”

https://www.nzx.com/companies/CVT/announcements/291306

[Apathy]

https://www.nzx.com/companies/CVT/announcements/291306

Two separate distribution deals in the last month - year end stock more than double (an extra $51m) prior period and trade receivables down 30% which is a pretty good indicator of sales decline.

$2m profit booked on SEA fiasco and layoffs at head office.

The area is getting very congested and it is going to be a real test to see who can actually make a dollar - very timely cash injection and partnership I would suggest. Maybe not done from a position of strength however.

[ados_nz]

Have we seen a peak in the CVT price? Or do you think it can push through and take the market poll position....

[Beagle]

https://www.nzx.com/files/attachments/246731.pdf

Main points:-
Very difficult trading conditions in first quarter. Ouch
Expecting a loss in the first half to 31 December - Double Ouch !
Expecting net profit for FY17 to be broadly similar to FY16 - Triple ouch, no profit growth on the back of increased share capital = EPS reduction !
Target of $400m annual sales has "very conveniently" been pushed out to 2021, from 2020.

Not impressed that they didn't front foot the whole regulatory issue in China properly much earlier.
At least they have taken the positive step of culling staff, (obviously this is a good step by management) but its fair to say the company is experiencing significant growing pains.

I expect the SP to under-perform until they can prove they can regain growth momentum.

[BlackPeter]

https://www.nzx.com/files/attachments/246731.pdf

Main points:-
Very difficult trading conditions in first quarter. Ouch
Expecting a loss in the first half to 31 December - Double Ouch !
Expecting net profit for FY17 to be broadly similar to FY16 - Triple ouch, no profit growth on the back of increased share capital = EPS reduction !
Target of $400m annual sales has "very conveniently" been pushed out to 2021, from 2020.

Not impressed that they didn't front foot the whole regulatory issue in China properly much earlier.
At least they have taken the positive step of culling staff, (obviously this is a good step by management) but its fair to say the company is experiencing significant growing pains.

I expect the SP to under-perform until they can prove they can regain growth momentum.

Makes sense. Good on you for selling fast - no material offers left.

Agree - the last quarter was shocking - I don't dare to extrapolate the numbers to a full year. On the bright side ... maybe now I can buy the shares for $4 as I always intended?

Discl: not holding and hey, my broker is an optimist. They rejected my $4 order for CVT. Apparently I am too far away from the market price . Sigh - lets try again tomorrow;