Skellerup (SKL) Fundamentals

[Scrunch]

Interesting fact - If you select 4-traders filters of 5-stars on both the invester/trader rankings and market cap from $100-$1b (US) there are 302 companies globally that meet this criteria. SKL is currently one of these. Only 6 are from Oceania the other 5 being Villa World Ltd, Adairs Ltd, Synlait Milk Ltd, Kathmandu Holdings Ltd and Elders Ltd. If there are investors using 4-traders or similar screens for what stocks they invest in, SKL may appear on their radar screen.

[Snoopy]

I am more than happy to see the dividend increasing over time, even if it is unimputed.
Personally I am not at all keen on having to sell some of my shares, possibly an annoyingly small portion, to generate income equivalent to a dividend.

I agree that unless you have a pretty substantial holding, then selling a few shares in lieu of extra dividends is impractical. However the more normal sized shareholders could still benefit from a share buyback strategy without selling any shares. If SKL starts doing buybacks and cancelling those shares bought back, this means the same company income will be distributed over a smaller number of shares in the future. This means that even if profits are flat, earnings per share will increase. And that likely means higher dividends (per share) in the future for all remaining shareholders.

SNOOPY

[Ted2]

Surprised there's been no comment on SKL movement of late. Up 15c this month - which is absolutely stellar for SKL - that would be an annual movement in a rare good year! Any thoughts? Snoopy?

Not complaining - have been a long suffering holder!

[forest]

My thoughts are that the new factory is improving the efficiency of this company substantially.
The lower $NZ also helps.
1H2018 revenue up 20% and NPAT up 31%.
Not to shabby.

[janner]

Surprised there's been no comment on SKL movement of late. Up 15c this month - which is absolutely stellar for SKL - that would be an annual movement in a rare good year! Any thoughts? Snoopy?

Not complaining - have been a long suffering holder!

My purchase was October 2015.. Since then It has done 16% per annum.. Plus a not to be sneezed at dividend..


Disc. Happy holder..

[Snoopy]

Surprised there's been no comment on SKL movement of late. Up 15c this month - which is absolutely stellar for SKL - that would be an annual movement in a rare good year! Any thoughts? Snoopy?

SKL has been a sound albeit unfashionable company for a few years. Eventually fashions do come full circle.

There seems to be a fair bit of 'index inclusion' speculation these days. CBL must be due to fall from the NZX50 soon. So what will replace it?

Free float of Skellerup (taking out the Cushing stake) is:

192,805,807-15,773,826 = 177,031,981

Last market sale was $1.95, which gives a free float market capitalisation of:

$1.95 x 177,031,981 = $345.2m

Can anyone think of a likely NZX50 inclusion candidate that can beat this?

SNOOPY

[RTM]

Surprised there's been no comment on SKL movement of late. Up 15c this month - which is absolutely stellar for SKL - that would be an annual movement in a rare good year! Any thoughts? Snoopy?

Not complaining - have been a long suffering holder!

Yes....its a really boring share. My average buy 125. Nice dividend.
I really wish that all my shares were as boring as this.

[Schrodinger]

Depends on the CAGR....

[Soolaimon]

Yes....its a really boring share. My average buy 125. Nice dividend.
I really wish that all my shares were as boring as this.

Great retirement share. I have held since way back when it was Skellmax or even before that, can't remember. Think it was originally Para Rubber. The dividends over the years have long since repaid original outlay and then some. Happy to leave them in the bottom draw and collect the very good dividends.

[Schrodinger]

That maybe the case but you could have put it in another investment and earned a lot more. Looking at my CAGR it is 4.30% since 2012. Add 5% for div's and its barely acceptable (9% combined). Auckland housing is 3% (rent yield) and 10% cap gain since then (13%)?