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**winner69** · 29-11-2018, 06:16 PM

Originally Posted by Left field

6 mnth report out at end of day...see here

Always a concern when such reports sneak out at the end of the day, and not enough in this one for me to sneak a late win the stock picking competition

Very much steady as she goes IMO, while nice to see more debt retired. Once again net assets almost double the SP so all is good????

....least it wasn’t the last thing on a Friday afternoon trick.

**iceman** · 30-11-2018, 06:36 AM

Can't really see anything there to worry about, nor is there anything in particular to celebrate. Pretty much steady as she goes.
I like how they're setting goals with their outlook statement and then clearly outlining how they have (or not) met the goals. They say they will be doing this soon for each of the next 10 years if I read this correctly which I think is interesting.

Clearly there will be some impact from hurricane Michael as they state some of their customers have had damage to land from flooding and will require less seedlings than expected. It may be possible that the new partnership with the Texans will pick up the slack although they don;t say anything about that. Shane Jones has ordered 12 million seedlings for next year and no doubt quite large amounts for years to come, especially if they continue mulching them like they did in Northland !!

A little bit at the end of interest is that "ArborGen’s annual management incentive metric will be cash-generation based" so they're focus is clearly on cash generation through balance sheet optimisation and earnings positive growth.

Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.

**minimoke** · 30-11-2018, 06:51 AM

Originally Posted by iceman

Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.

Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP

Net assets per share = $0.46 (up from $0.43 in March)

**Leftfield** · 30-11-2018, 07:23 AM

Originally Posted by iceman

Can't really see anything there to worry about.....
Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.

Originally Posted by minimoke

Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP Net assets per share = $0.46 (up from $0.43 in March)

Yep agree......onwards and upwards. Steady as she goes..... survived one of the biggest hurricanes for many generations and has taken steps to be more geographically diversified. The market will one day realise the true value of this small gem.

**Leftfield** · 30-11-2018, 08:53 AM

ps just had a more detailed read of yesterday's report.....

"Forecasting EBITDA for FY19 approaching $US 7 Million"
While Note 2 explaining the changed financial years, says: "The EBITDA result on a similar basis for the 12 months ending 2018 was $4.3 million"

So RBC on track to approx 62% improvement in EBITDA. I'm feeling better already, not as grumpy as I was yesterday

**iceman** · 30-11-2018, 09:08 AM

With improvements in operational performance as well as an obvious focus on cash generation and management I think we are now very well positioned with this company. I also think the "risk" of them delisting from the NZX is somewhat reduced by the large scale purchases from Shane Jones' slushfund in the next few years.
May look to accumulate a few more if SP stays at current low prices.

**percy** · 30-11-2018, 09:23 AM

Good progress,while the outlook remains positive.

**mikeybycrikey** · 30-11-2018, 10:15 AM

Originally Posted by minimoke

Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP

Net assets per share = $0.46 (up from $0.43 in March)

I’m less excited when I see that “intellectual property” is 31 cps of those 46 cents per share. I’m sure their intellectual property has some real world value but I doubt it is that high.

**percy** · 30-11-2018, 10:37 AM

Originally Posted by mikeybycrikey

I’m less excited when I see that “intellectual property” is 31 cps of those 46 cents per share. I’m sure their intellectual property has some real world value but I doubt it is that high.

Only time will tell whether the "intellectual property" is worth more or less than 31cps.
I guess we will get a fair idea in a couple of years time.