Skellerup (SKL) Fundamentals

[Snoopy]

The acquisition of Australian company Deks in 2003 made Skellerup one of the largest producers of the rubber components of roof flashings in the world, he said. In the 2007 year its revenues would hit about $18.5 million.

Technical rubber product maker Gulf Rubber, bought for $32 million in January 2006, had targeted revenues of $35 million.

Skellerup still in the long game of buying up niche companies with a connection to rubber products. The Nexus acquisition today looks to be a good fit with Skellerup company culture.

https://www.nexusfoams.com/

Purchase price of $6.5m might imply sales levels of a similar amount?

"Our dedicated manufacturing facility in Auckland’s Highbrook Technology Estate allows us to represent leading flexible foam brands from around the world and design, prototype and manufacture new components. At the same time, our sites in East Tamaki (Auckland) and Christchurch add to our expanding network, which currently employs 37 staff and is growing."

"We export around the world to markets like Asia, Australia and the United States – with our eye also on new opportunities overseas."

With revenue of last year at $240m, an extra $6.5m is not a game changer. But as a shareholder I am happy with the purchase. I particularly like the 'earnings accretive' immediately bit.

SNOOPY

[percy]

Appreciate the commentary Snoopy, my average buy is a few cents less than yours.
Neither buying or selling at current level, would like a few more tho if the price does drop at some stage.

Get ready for the big price fall,as I brought in yesterday at $2.19.!!

[RTM]

Get ready for the big price fall,as I brought in yesterday at $2.19.!!

Welcome aboard. Hopefully you bought enough to support the share price for a couple of weeks.

[percy]

Welcome aboard. Hopefully you bought enough to support the share price for a couple of weeks.

More like half an hour.!!!

[Biscuit]

Get ready for the big price fall,as I brought in yesterday at $2.19.!!

I've been buying on dips since 2012, so am hoping you are right about the effect of your entry. Is there any particular reason attracting you to SKL currently?

[percy]

I've been buying on dips since 2012, so am hoping you are right about the effect of your entry. Is there any particular reason attracting you to SKL currently?

A few reasons.
The company seems to be well focussed.
Adding good bolt on acquistions.
I like the chair.Funny same chair as the company I sold to buy SKL,OCA,.Liz Coutts.
The pick up in the Australian mining sector should benefit SKL.
Little debt.
Growing dividend.FY 18...11cps......FY 19...13cps......FY 20....14cps....[according to Craigs]
Revenue mainly offshore, which is positive should the NZ low interest rate enviroment lead to a lower NZ $.

[Biscuit]

A few reasons.
The company seems to be well focussed.
Adding good bolt on acquistions.
I like the chair.Funny same chair as the company I sold to buy SKL,OCA,.Liz Coutts.
The pick up in the Australian mining sector should benefit SKL.
Little debt.
Growing dividend.FY 18...11cps......FY 19...13cps......FY 20....14cps....[according to Craigs]
Revenue mainly offshore, which is positive should the NZ low interest rate enviroment lead to a lower NZ $.

Thanks for your view, maybe I should add some more. I nearly added some a couple of days ago but thought they were looking a bit strong and the price might drop back a bit. They have certainly picked up their game in recent years, were going backwards for quite a while, or static at best.

[percy]

We are doing well Skellers.
Share price now $2.25.
Been good volume the past two days.

[BeeBop]

I bought back in at the start of January all based on their forward looking plans...even looking backwards the numbers are fine but forwards it looks like they have a future. They had better continue upwards as they are my NZ conviction stock. And if they slip in the short-term there is always the dividend.

[percy]

Another good day up 3 cents to $2.29.