Comvita - CVT

[kura]

Was interesting to see that Seadragon got a honorable mention in dispatches ! (or did I get that wrong ? )

[Apathy]

Was interesting to see that Seadragon got a honorable mention in dispatches ! (or did I get that wrong ? )

You mean the $2.8m write down or the $5m they are still carrying and has yet to be written off?

i thought overall the market was very kind on them today.

[winner69]

Finally had a look at Comvita financials

First thing that strikes me is horrendous cash burn over the last few years ......whilst they continue to pay dividends

Last 33 months total cash burn has been $59m (not counting cost of acquisitions) and in same period they have paid out another $19 odd in dividends. (Total inc dividends $78m). Cash burn of Xeroesque proportions.

Just as well the market reckons H2 is going to be an all time record half year.

[freebee]

Article in today's paper, not great local PR for Comvita.

http://www.nzherald.co.nz/the-countr...ectid=11804546

[BlackPeter]

Article in today's paper, not great local PR for Comvita.

http://www.nzherald.co.nz/the-countr...ectid=11804546

Nothing new about that. You can find cheaper (and often better) NZ lamb in European supermarkets than here. I bought last year quite drinkable NZ Marlborough Chardonnay back in Germany for 3 Euro (roughly NZ$5) per bottle (as well in the supermarket). NZ Apples are in Europe most of the year cheaper than here ... so why not the honey?

This is the ugly side of our agricultural industry ... they need to compete all around the world with others (and therefore price their goods in other markets quite reasonable). Here in NZ they are "protected" by our border control - and they use their home markets to squeeze the fat margins out of the NZ consumers they hold at ransom.

[Vaygor1]

Nothing new about that. You can find cheaper (and often better) NZ lamb in European supermarkets than here. I bought last year quite drinkable NZ Marlborough Chardonnay back in Germany for 3 Euro (roughly NZ$5) per bottle (as well in the supermarket). NZ Apples are in Europe most of the year cheaper than here ... so why not the honey?

This is the ugly side of our agricultural industry ... they need to compete all around the world with others (and therefore price their goods in other markets quite reasonable). Here in NZ they are "protected" by our border control - and they use their home markets to squeeze the fat margins out of the NZ consumers they hold at ransom.

I agree.
Best NZ lamb I ever had was destined for France but was sold here as the packaging ink had run a bit.
Quality of NZ goods in Asia and the Middle East are higher than here for sure.
The standards impose on a lot of countries before allowing products to be imported from anywhere means the crème de la crème of NZ-made is exported to ensure it gets through.

[Sideshow Bob]

Nothing new about that. You can find cheaper (and often better) NZ lamb in European supermarkets than here. I bought last year quite drinkable NZ Marlborough Chardonnay back in Germany for 3 Euro (roughly NZ$5) per bottle (as well in the supermarket). NZ Apples are in Europe most of the year cheaper than here ... so why not the honey?

This is the ugly side of our agricultural industry ... they need to compete all around the world with others (and therefore price their goods in other markets quite reasonable). Here in NZ they are "protected" by our border control - and they use their home markets to squeeze the fat margins out of the NZ consumers they hold at ransom.

Never always as straightforward as that. There are also issues such as GST on food in NZ, exchange rates, relative volumes as well as a cosy duopoly in NZ and margins. You can get something chilled or frozen to Europe cheaper than you can get something from Auckland to the lower South Island.

Often for the likes of apples or meat, 'the market price is the market price'. If the market says a leg of lamb is 10 quid, then is 10 quid regardless of if the exchange rate is 0.6 or 0.3. But still sells in Countdown for $20 regardless.

But otherwise yes, we do pay too much for food in NZ......

Back to Comvita, likely that Ali is getting it cheaper than the shop in Tauranga, and probably putting a whole lot less margin on it.

[arc]

Eventually the prices will have to fall anyway. The group thats presently sending NZ people to China, teaching how to make hives and establish honey production industries, in a few years it will be big enough that "everyone" will have to "adjust".

[winner69]

CVT up 11% in last week or so

Becoming a market darling again?

[Beagle]

Yes it is becoming harder to ignore the recovery. Clear break above 100 day MA today on the back of the Chinese authorities flip-flop which will allow continuation of grey channel imports to China apparently without new labelling a licensing requirements.
Blackmores and Bellamy's up about 14% since that Chinese announcement earlier this week but CVT relatively unchanged ?
Maybe the market is starting to look through the current year's abysmal projected profit and believes that with the grey channel now all clear and a new joint venture partner with a very wide distribution network in China coming on stream on 1 July and with 24 new products this year alone the market seems to be starting to price in future growth again.
Company Investor presentation February 2017 https://www.nzx.com/files/attachments/253401.pdf
Maybe the worm, (bee?) has turned on this one ?