Skellerup (SKL) Fundamentals

[BlackPeter]

And 3.44 bagger plus dividends since 2009,8 yrs.I've seen worse thats for sure PP.Compared to bonds ?

Absolutely agree - they have been (given the right timing) a quite good investment ... and looking into the future they are likely to keep delivering a reasonable revenue stream. As well - board is heavily invested (which is normally a good sign).

I guess what some people are saying is that they are not really a growth company (a 8yr CAGR of 1.7% is actually (considering inflation) negative growth) ... and while they seem to be able to earn as well some money when their major markets are not looking that flash ... it is not quite clear where the next up bump is supposed to come from.

However - steady as she goes ... and I am sure people could do worse than investing in SKL.

Discl: don't hold at current ...

[Bjauck]

...
I guess what some people are saying is that they are not really a growth company (a 8yr CAGR of 1.7% is actually (considering inflation) negative growth) ... and while they seem to be able to earn as well some money when their major markets are not looking that flash ... it is not quite clear where the next up bump is supposed to come from....

The NZ Dollar is at comparatively high levels. I am not expecting a drop at this stage but any drop in the dollar may boost earnings in NZD terms? It has been an average performer (although quite volatile price wise) the few years I have had a holding. The results were slightly better than I had expected. I am continuing to hold.

[BlackPeter]

The NZ Dollar is at comparatively high levels. I am not expecting a drop at this stage but any drop in the dollar may boost earnings in NZD terms? It has been an average performer (although quite volatile price wise) the few years I have had a holding. The results were slightly better than I had expected. I am continuing to hold.

True ... a falling NZD would help. However - the experts on currencies are somewhat in disagreement. A German banker recently recommended I should invest (I am looking after my parents investments) some of them in NZD because their analysts think the Euro will tank compared to the NZD.

So yes, the NZD is in historic terms rather dear compared to other currencies, but so is the Swiss Franc

[Puriri Pete]

RTM - Agreed. On top of which 77% of revenue is from overseas sales so currency exchange rates have not done them any favours gaining new business. The debt to equity of 23% is reassuring too. No reason why patient investors should not continue to benefit in my view.

[macduffy]

I also agree with RTM. SKL's probably not going to turn into a top growth stock but it's done well to weather the downturn affecting it's two business sectors, dairy and mining, and has come out a stronger, better performing company. Pays a good dividend, making it a steady income stock in my portfolio. Market seems to agree - shareprice up 4% today!

[percy]

Those of you who hold are happy,those of us who don't hold, are happy too.
A real win win situation....??.........lol.

[Bjauck]

True ... a falling NZD would help. However - the experts on currencies are somewhat in disagreement. A German banker recently recommended I should invest (I am looking after my parents investments) some of them in NZD because their analysts think the Euro will tank compared to the NZD. ...

The Eurozone seems to be doing OK at the moment.
Eurozone growth smashes forecasts
http://www.dw.com/en/eurozone-growth...sts/a-40113502

[BlackPeter]

The Eurozone seems to be doing OK at the moment.
Eurozone growth smashes forecasts
http://www.dw.com/en/eurozone-growth...sts/a-40113502

That's just thanks to Brexit ☺

[Snow Leopard]

{12-Sep=2016} Sounds like an excellent opportunity to buy in or top up, if you think it has merit...

Well, well, well. Not owned them a year yet and up about 40% (dividends included).
Fairly amazing really.

I was looking around yesterday for something to sell as I have something I want to buy but the pockets are currently empty and this came up as the share most likely to go to the market.
But with today being a public holiday here (Independence Day) I had to do sight-seeing and eating stuff and generally being a Happy Tiger and so it was still in the portfolio as the sun set.

Having revalued it in light of today's results announcement I, in theory, have a one year forward value for SKL of $1.61 but the old Tiger senses tingle when I write that down and I am going with a more conservative current value of $1.48 and one year forward value of $1.54.


Best Wishes
Paper Tiger

[kiora]

After reviewing my reduced number of investments exited stage left PT to pay down some debt.Been a happy holder since the capital raise and in my mind still a well run company at all levels and a safe haven.