Skellerup (SKL) Fundamentals

[smalltrader]

https://nzx.com/companies/SKL/announcements/286611
More director buying..

[winner69]

https://nzx.com/companies/SKL/announcements/286611
More director buying..

A company (investment fund) he is a shareholder in is buying

Hands off relationship we are told - david just signs the form put innfront of him

[BlackPeter]

Match price this morning $1.37 ... spring is in the air and I see higher highs, assuming the price holds for the day.

Maybe it is the latest PGW announcement ... if others can still make money in agriculture, why not SKL?
Maybe it is the early recovery of mining stocks (well, not up today, but most are now above MA200)?
Maybe the market likes the outcome of the latest milk powder auction?
Maybe the markets see the building industry moving into the next gear?
Maybe the markets just like director David Mair's enthusiasm and commitment for the stock?
Maybe somebody expects a great annual result (or knows more than we do)?

Anyway - I think SKL is well positioned to benefit from any of these phenomena ...

Discl: holding:

[macduffy]

Yes, could be any of those reasons, Peter.

Or, maybe the market's got so high that investors are now turning their attention to the laggards and also-runs?

I hold a few.

[Biscuit]

Maybe somebody expects a great annual result (or knows more than we do)?
Discl: holding:

Well, not that great. $20.5M. "In line with expectations...." but then "expectations" have been steadily reduced over the last year ($24-26M in October 2015; $23M in February; $20 - 21M in April) So they got the bulls-eye in the end.

[Beagle]

Well Snoopy me ol mate, how's the hound feeling about this result ? I see they are confident about earnings growth this year....Hmmm How many times did they revise the forecast last year ?

Maybe let's back test that and have a look at what they said about earnings growth with last year's result.

"The economic environment is uncertain, however I am confident that our
progress and plans mean we are well placed to deliver a further improvement
in earnings in FY16."

Yet earnings declined this year. I'd suggest their credibility is very much on the line now...if they can't deliver earnings growth in FY17 then they're a no growth stock and deserve a lower PE. (I for one will not be giving them the benefit of the doubt as this hound has little patience for directors that make excuses not results). I suppose its some consolation the size of the dividend feed isn't changing.

[BlackPeter]

Well, not that great. $20.5M. "In line with expectations...." but then "expectations" have been steadily reduced over the last year ($24-26M in October 2015; $23M in February; $20 - 21M in April) So they got the bulls-eye in the end.

I guess we need to put this somewhat into perspective. Given that two of the industries they serve are still scratching along rock bottom (Dairy and Mining), do I think that they did very well in achieving basically the same (respectable) result as last year. Revenue up 4%, and earnings basically unchanged.

https://www.nzx.com/companies/SKL/announcements/287383

Share price is as well looking into the future. Mining seems to take off these days (at least that's what the markets believe) and the noises coming from the recent dairy auctions seem to move as well towards "major". Add to that the benefits of the new factory (which we should see in the next financial year) - and happy days should be ahead.

Discl: not excited, but quite happy holder;

[Balance]

Well, not that great. $20.5M. "In line with expectations...." but then "expectations" have been steadily reduced over the last year ($24-26M in October 2015; $23M in February; $20 - 21M in April) So they got the bulls-eye in the end.

Reinforcing the adage that 'downgrades come in threes'.

[Biscuit]

I think that they did very well in achieving basically the same (respectable) result as last year....

Almost exactly the same as 2012 as well.... However, I agree they have shown resilience when some of their end-users have struggled. I like that they are quite diversified and if all their ducks ever line up in a row, they could do quite well (that would be the time to sell I think). Am also holding.

[macduffy]

Yes, it's hard to shine when your top two markets are struggling as SKL's are. I'd prefer that they acknowledge that fact and accept that they have limited scope to grow profits until conditions improve.