Skellerup (SKL) Fundamentals

[percy]

And ACC agrees! On 19th March they bought over one million shares on market. Percentage holding goes from 5.346% to 6.893% in one day!

SNOOPY

Surprised me just how quick they were.
Buying on the day of the announce is indeed very quick,infact I would go so far as to say Ultralon quick!!
I have got no idea the volume of sales they will achieve,but Composites One would appear to be an excellent distributor.Will be interesting to see whether Ultralon or Composites One hold stocks,ie will Ultralon have to establish a warehouse in the US to service Composites One? I just can not see Composites One waiting for stock to be sent from NZ,even if it via the supper service Ports of Timaru and Tauranga can provide??!!

[Snoopy]

There may be opportunities in the next year or so when the share price dips. I didn't buy all the SKL shares I wanted at $1.33 for exactly that reason. The likes of Buffett sees these downturns as an opportunity to buy when the underlying long term outlook of the company is strong.

Thankyou Mr Pigappopolopolis for providing the opportunity. 'Averaged down' by picking up some more shares at $1.30 today! Or did I average down, as I have already banked a 7c dividend from the first tranche of shares I bought?

Since I bought my first tranche of shares the currency has weakened. That is generally good for exporters. Yet Skellerup has a policy of hedging currency cashflow risk 100% in the current year and 50% in the subsequent one. Last year a fall in the currency of 5% would have only boosted profits by 5% as a result (AR2014 p60)!?! Sub note 3 suggests a similar effect for this year:

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3. Apart from repayment of foreign currency loans over the reporting period, the Group’s net exposure to foreign currency at balance date is representative of past periods and is expected to remain relatively consistent for the future 12-month period

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Of course the currency weakness was relatively late in the year (Accounting year end 30th June). So it will take until FY2016 before the currency depreciation has a significant effect. Just as well share prices always behave with the future outlook in mind.

Still I am expecting a not so good year in FY2015. Sales to the iron ore miners and dairy farmers aren't going to be good. I will be more than satisfied if FY2015 can match the underlying FY2014 given industry circumstances.

SNOOPY

[Pricey]

Nice detail Snoopy. The CEO, David Mair, is also buying up (in his capacity as fund manager) at current prices, which peaked my interest the other day. Three separate purchases have taken place in June alone.

[theace]

Dipped my toes in today

[cdonald]

ACC have gathered up a few more shares to take their holding to a smidge under 10%. Excuse my novice approach, but do things change if one holder gets more that 10% or does the take over code kick in at 19.9%.

[percy]

ACC have gathered up a few more shares to take their holding to a smidge under 10%. Excuse my novice approach, but do things change if one holder gets more that 10% or does the take over code kick in at 19.9%.

Over 19.9%.
They have not brought enough to turn around the down trend.Possibly they could try harder.!

[Marilyn Munroe]

ACC have gathered up a few more shares to take their holding to a smidge under 10%. Excuse my novice approach, but do things change if one holder gets more that 10% or does the take over code kick in at 19.9%.

In the other direction the takeover code allows any bidder in a takeover who gets 90% of the shares from voluntary acceptances of their offer to compolsorily aquire the rest.

Thus if ACC have 10% or more of the shares they can block a complete takeover. This puts them in a favourable barganing position with anyone wanting to aquire the company.

Boop boop de do
Marilyn

[cdonald]

another large cross this arvo. Wonder if it is ACC picking up some more of these. Also of note is Mairs related increase in holding. Might be interesting if large holders choose to combine.

[percy]

another large cross this arvo. Wonder if it is ACC picking up some more of these. Also of note is Mairs related increase in holding. Might be interesting if large holders choose to combine.

They will need a big joint venture.!
sp is still falling.
May need a third party with deep pockets to join them?

[mattwanz]

Think USD strengthening against Kiwi must be good for these guys with previous investment in US and with the new factory around the corner too has pushed me over the edge, might have a go at this one