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  1. #12651
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    Quote Originally Posted by mfd View Post
    What makes you think nestle would offer a better margin than A2?
    i am not saying Nestle will do that and it does not have to be Nestle. it could be anyone SML choose to supply......

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    Quote Originally Posted by t.rexjr View Post
    I do hope you never never get to mentor any budding entrepreneurs
    Sounds entirely logical to me!


  3. #12653
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    Quote Originally Posted by nzsharetrade View Post
    i am not saying Nestle will do that and it does not have to be Nestle. it could be anyone SML choose to supply......
    Without knowing the details, and please feel free to correct me, my assumption is that A2 are now paying a fair margin to synlait. They may have been paying a higher price before, partially due to smaller volumes and partly to compensate for synlait working so hard to keep up with their volume needs. The fact that margins have reduced does not mean that they are now lower than they should be.

  4. #12654
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    Quote Originally Posted by mfd View Post
    The fact that margins have reduced does not mean that they are now lower than they should be.
    Theyu might be benificial for ATM. But as far as SML is concerned you cant sell product for less than cost of sales. SML's margins are way off where they need to be if they are going to maintain costs.

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    Quote Originally Posted by minimoke View Post
    Theyu might be benificial for ATM. But as far as SML is concerned you cant sell product for less than cost of sales. SML's margins are way off where they need to be if they are going to maintain costs.
    Yeap. The lack of transparency in terms of Synlait not telling the market about the terms of this new contract has blindsided minority SML shareholders and explains why a major gap has opened up between the relative share prices of these two companies in recent months. Some major shareholders were obviously "in the know"
    John Penno was a great CEO but as with ATM we now get an unknown quantity with a whole lot to prove... but we do get lovely pink colours and heaps of slides and details about diversity programs...its just absolutely marvellous, that's exactly what I have been hankering for all these years (sarcasm intended).

    I think both ATM and SML are very fully priced and an awful lot of future growth is already priced in but in all sincerity I wish the best of luck to shareholders of both companies.
    Last edited by Beagle; 20-03-2019 at 12:15 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  6. #12656
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    Quote Originally Posted by minimoke View Post
    Seems the new CEO of ATM might be doing a better job than the new CEO of SML.
    Actually - they announced the milk price agreement betwen these two companies in early July 2018. At this stage it was still John Penno running Synlait - and Jane started from memory only after this announcement as well her new job (but yes, in July as well).

    Blame the old management ...
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

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  8. #12658
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    Legend minimoke's Avatar
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    Quote Originally Posted by BlackPeter View Post
    Actually - they announced the milk price agreement betwen these two companies in early July 2018. At this stage it was still John Penno running Synlait - and Jane started from memory only after this announcement as well her new job (but yes, in July as well).

    Blame the old management ...
    Thanks for the correction.

  10. #12660
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    After watching the webcast of Synlait's presentation by CEO and CFO y'day, there are lot subtle hints that were a giveaway which point to a boomer of SH 2019 for A2, both on better margins which we all know by now and expected increase in canned IF sales.

    In other words, its an indirect trading upgrade for A2.

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