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  1. #451

  2. #452
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    Quote Originally Posted by Sideshow Bob View Post
    This quote from the above article sums up the position well for the $20m to $50m cash injection that Scott's want:

    ---------

    Scott chairman Stuart McLauchlan said, when asked last Thursday why capital raising had been dropped, that some of the present larger shareholders were not prepared to inject more capital ''and would prefer to sit back''.

    Mr McIntyre said Scott was ''in a funding quandary'' over how to get a financial boost to secure its growth prospects.

    Scott was too large for some existing, relatively small shareholders to ''stump up with more cash'' for expansion.

    However, Scott was conversely ''too small'' to attract the attention of large institutional investors, which could have offered a large cash injection, he said.

    --------

    This is really a shame. For our company to spend over a decade on developing world leading technology for the meat industry and then sell out for as little as $20m makes me want to cry. It is IMO, far more valuable technology than something like A2 milk or the likes of what any of our locally listed software companies are developing. And is it commercially proven, not pie in the sky. $20m is just peanuts in institutional terms. It seems incredible that no local institutions have stepped up to back SCT.

    SNOOPY
    Last edited by Snoopy; 25-08-2015 at 01:40 PM.
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  3. #453
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    Quote Originally Posted by Snoopy View Post
    This quote from the above article sums up the position well for the $20m to $50m cash injection that Scott's want:

    ---------

    Scott chairman Stuart McLauchlan said, when asked last Thursday why capital raising had been dropped, that some of the present larger shareholders were not prepared to inject more capital ''and would prefer to sit back''.

    Mr McIntyre said Scott was ''in a funding quandary'' over how to get a financial boost to secure its growth prospects.

    Scott was too large for some existing, relatively small shareholders to ''stump up with more cash'' for expansion.

    However, Scott was conversely ''too small'' to attract the attention of large institutional investors, which could have offered a large cash injection, he said.

    --------

    This is really a shame. For our company to spend over a decade on developing world leading technology for the meat industry and then sell out for as little as $20m makes me want to cry. It is IMO, far more valuable technology than something like A2 milk or the likes of what any of our locally listed software companies are developing. And is it commercially proven, not pie in the sky. $20m is just peanuts in institutional terms. It seems incredible that no local institutions have stepped up to back SCT.

    SNOOPY
    Snoops,

    I've been thinking the same thing, I'm feeling very let down by management. Seems like they either had this planned for years or they lacked the grey matter to manage cash-flow.

    I don't feel this partnership is of real value to shareholders.

    Anyways

  4. #454
    Senior Member Marilyn Munroe's Avatar
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    Default Meat Co automation

    An item in the farming section of today's Christchurch Press about the Alliance Group installing primal cut automation into their Smithfield and Pukeuri works.

    No mention is made of the supplier of this equipment but I assume it will be Scott Technology.

    http://www.stuff.co.nz/business/farm...ig-in-robotics


    Boop boop de do
    Marilyn

  5. #455
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    Suppose..... this result is good/ok. Still can't understand selling half of a 125 year old company for 5-10years worth of profit.

  6. #456
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    Quote Originally Posted by Carpenterjoe View Post
    Suppose..... this result is good/ok. Still can't understand selling half of a 125 year old company for 5-10years worth of profit.
    To me, the result is a pleasingly surprising turnaround. The second half NPAT of $4.967 million is by far the best for any 6 month period in the 7 years my notes go back.

    No doubt the directors now recognise that the $1.39 transaction price they agreed with JBS will be resoundingly rejected by shareholders. If JBS still wants 50.1% and a quick resolution they'll move soon to bump the transaction price up by at least 30%. Otherwise they'll withdraw, and wait for the next time SCT directors blunder and overreach.

    By the way, SCT is only 102 years old. 125 years sounds more like the average age of the Dunedin grandees who hold big chunks of the company; they preferred to sit back rather than participate in a share issue and in so doing have done all holders a big favour.

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  8. #458
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    Quote Originally Posted by Sideshow Bob View Post
    Had a quick read of the Northington Partners valuation. It is based on earnings multiples. The problem is the superconductivity based business, the milking systems and yes even the meat industry robotics(*) currently make no profit. So all of these have been assessed as having nil, or even negative value (given cashflow in the early stages of product development means a negative contribution to earnings).

    However, this is clearly not true as the Brazilians are prepared to pay a so called premium for the business, even though none of the items to which Northington's ascribe value are wanted by them! I reserve my right to change my mind. But at first glance I can hardly take a valuation seriously that doesn't attempt to value the meat processing side of the business!

    SNOOPY

    (*) Not quite true. There is profit being made from meat industry robotics, but not as much as there should be.
    Last edited by Snoopy; 21-11-2019 at 08:56 PM. Reason: Amend meat industry profit comment
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  9. #459
    Senior Member Marilyn Munroe's Avatar
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    Quote Originally Posted by Snoopy View Post
    Had a quick read of the Northington Partners valuation.

    SNOOPY
    Are Northington Partners the same outfit that produced the independent valuation report on the Lyttelton Port Co takeover?

    Boop boop de do
    Marilyn

  10. #460
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    Quote Originally Posted by Marilyn Munroe View Post
    Are Northington Partners the same outfit that produced the independent valuation report on the Lyttelton Port Co takeover?

    Boop boop de do
    Marilyn
    The very same! :-(

    SNOOPY
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