Comvita - CVT

[Joshuatree]

Watching this unfold. You'd think Comvita would have the rigid quality testing regime etc in place and that this will shake out and eliminate the shady cowboys and put Comvita in strong position to clean up . Ive heard another way of increasing UMF is to age the honey.

[Balance]

Watching this unfold. You'd think Comvita would have the rigid quality testing regime etc in place and that this will shake out and eliminate the shady cowboys and put Comvita in strong position to clean up . Ive heard another way of increasing UMF is to age the honey.

That's the conventional way to increase the UMF - provided the right active ingredients are in the honey in the first place. Was hit and miss in the old days but now, proper testing and vetting of honey active ingredients mean that top prices are paid for the manuka honey with the real stuff in them.

Comvita shares the industry problems - but should emerge as a leading player once the current mess is sorted out.

Meanwhile, check the sugar content in your honey when you buy! Plenty of that going on as well!

[kiwidollabill]

Watching this unfold. You'd think Comvita would have the rigid quality testing regime etc in place and that this will shake out and eliminate the shady cowboys and put Comvita in strong position to clean up . Ive heard another way of increasing UMF is to age the honey.

Who says CVT are any more honest than the others?

[Joshuatree]

Their fairly long proven history being a health foods manufacturer and exporter; you have to be a best in breed at this sort of thing. Neil Craig i rate very highly. While I'm not closely following it looks to have been wide open to abuse with the lack of clarity re UMF testingregs etc , naturally some would take advantage of this; hopefully now its robust and accurate enough to stop that; although i heard on the radio just now some honey tested with no manuka sources tested as UMF! Hopefully a teething prob. have you got some info on Comvita kiwidollabill?

[Balance]

Their fairly long proven history being a health foods manufacturer and exporter; you have to be a best in breed at this sort of thing. Neil Craig i rate very highly. While I'm not closely following it looks to have been wide open to abuse with the lack of clarity re UMF testingregs etc , naturally some would take advantage of this; hopefully now its robust and accurate enough to stop that; although i heard on the radio just now some honey tested with no manuka sources tested as UMF! Hopefully a teething prob. have you got some info on Comvita kiwidollabill?

Wait for the government imposed tests and standards to really take effect.

http://www.nzherald.co.nz/business/n...ectid=11844280

[kiwidollabill]

Some more 2c...

Those MPI standards are largely political - notice that none of the parameters are the same as the UMF. Also, none of the chemical markers have any antibacterial activity... kinda ironic since thats the original reason why Manuka is so valuable.

I think the DNA testing is a good inclusion, however providing the kanuka test as an 'optional' rather than a standard is done to placate some of the SI beekepers.

I've posted previously about how sugar feeding leads to crap honey which fails import tests into certain countries - CVT arent any different in this area.

Quite a few posters have mentioned the large amount of low quality stock sitting around, we all saw the large level of inventories in the last set of financial statement with the associated 'window dressing' excuses. It'll be interesting to see how this changes to the next reporting period.

[sb9]

Well, sp right on $6 as I type, soon to be with $5 handle...

[Beagle]

Now $5.99. Worth noting that for much of 2014 and 2015 it traded around the $3.90 mark when the companies position was far better, it was growing strongly, EPS positive, counterfeit product wasn't such a problem, it wasn't holding vast amounts of low quality product it couldn't sell and its forecasting then had credibility and further, it wasn't incurring losses or staring down the barrel of a potential myrtal rust outbreak. Why anyone would think its worth any more than $3.90 now is light years beyond my comprehension. I really don't get it why the SP hasn't fallen off the face of a cliff, it certainly deserves too ! The way they're headed though, they'll be out of the NZX50 soon enough and possibly worth noting that the stock put on 20% when it got included in the index in the first place.

[Blackrose]

I am feeling irate at this stock. Seriously I am PMSing over my CVT shares. Fark me. Last year I got sold the story - sells to China, good for bees good for the environment, eco-green shares... only to see it stumble down from double digit figures to single low ones.

I would cuss some more and blame our stupid hippy lefty tendencies that tend to blind one to specifics of the deal, but you know I can hear the chuckling from aged brokers over at the Fisher Funds who are probably sipping Mimosas on the deck of their Takapuna based office and chucking away rubbing their bellys.

But Fark me. SERIOUSLY??? Ok I sorta forgave them for the failure of establishing a proper trading channel to China that the communists would not routinely shake down, but honestly an Australian imported Fungus?

So what now? Well thankfully the chick next to me on my spin class did go on and on about diversification, so the plastic bewb funds, freeze my eggs fund as such remain unaltered just with a dent in it.

But what do we do with a bunch of CVT shares? Do we grind it out and wait for a recovery given that CVT is a market leader and all the other smaller honey producers will be up against the same issue? Is it a case of the larger one can survive as it has enough "fat" on it where as smaller Honey Producers that can't cope with a 2 year down turn will go to the wall quicker thus preserving the story of why I purchased CVT in the first place?

Will the boffins at MPI get their **** together and tell us how far this thing has spread? After all the varoa mite and other various jump scares have been a feature with this trade so there is that. Grouchy vegan whole foods stockists still stock this product along side the mung beans because of it's "health food properties" and have done so for decades after all. Also since this is the same story for anything to do with Dairy Farming (2 years in the hole, big question marks over what will survive) is it a case of chill out and give it a miss?

Advice Please.

[sharp]

I am feeling irate at this stock. Seriously I am PMSing over my CVT shares. Fark me. Last year I got sold the story - sells to China, good for bees good for the environment, eco-green shares... only to see it stumble down from double digit figures to single low ones.

I would cuss some more and blame our stupid hippy lefty tendencies that tend to blind one to specifics of the deal, but you know I can hear the chuckling from aged brokers over at the Fisher Funds who are probably sipping Mimosas on the deck of their Takapuna based office and chucking away rubbing their bellys.

But Fark me. SERIOUSLY??? Ok I sorta forgave them for the failure of establishing a proper trading channel to China that the communists would not routinely shake down, but honestly an Australian imported Fungus?

So what now? Well thankfully the chick next to me on my spin class did go on and on about diversification, so the plastic bewb funds, freeze my eggs fund as such remain unaltered just with a dent in it.

But what do we do with a bunch of CVT shares? Do we grind it out and wait for a recovery given that CVT is a market leader and all the other smaller honey producers will be up against the same issue? Is it a case of the larger one can survive as it has enough "fat" on it where as smaller Honey Producers that can't cope with a 2 year down turn will go to the wall quicker thus preserving the story of why I purchased CVT in the first place?

Will the boffins at MPI get their **** together and tell us how far this thing has spread? After all the varoa mite and other various jump scares have been a feature with this trade so there is that. Grouchy vegan whole foods stockists still stock this product along side the mung beans because of it's "health food properties" and have done so for decades after all. Also since this is the same story for anything to do with Dairy Farming (2 years in the hole, big question marks over what will survive) is it a case of chill out and give it a miss?

Advice Please.

SWOT analysis...

What are CVT's strengths, weaknesses, opportunities and threats?

Does CVT have competitive advantage against its direct and indirect competitors? (Other words, is CVT surrounded by a moat from its threats?)

Is the business scalable? How easy is it replicate CVT's business?

Go down to your local honey store and compare products and prices and determine for yourself whether you would choose CVT over any other brand on the shelf...