SANford Chart

[iceman]

That's what I love about shares just when you think this is never gone get back until covid ends something like this comes along out of the Blue to turn things on its ead

The business hasn't changed though. Ngai Tahu has no or very little experience in running a company like SAN. But lets hope for the sake of SH and the industry that somehow they can make the overdue and necessary changes. It remains to be seen and will be a long hard road.

[ralph]

No of course not ,but ngai tahu do have a more long term Interest in kiwi based company's & have experience in making money ,hopefully more changes to come .

[Monarch]

The business hasn't changed though. Ngai Tahu has no or very little experience in running a company like SAN. But lets hope for the sake of SH and the industry that somehow they can make the overdue and necessary changes. It remains to be seen and will be a long hard road.

Before the pandemic they were making good profits and growing revenue, yet you speak about SAN like it is a sinking ship? Do you think it will struggle to recover or do you think current/future management choices will destroy shareholder value? I've seen past posts of yours relating to concerns about the scampi boats, but this doesn't seem to me as significant enough to throw SAN in the dog box.

The way I see it, wild catch will become a smaller and smaller portion of SAN's revenue, being replaced largely by growing salmon division income. Salmon has been relatively solid performer even during COVID times, and I think management will see it is an obvious place to deploy investment capital.
The lack of parasites and good water quality available in NZ offers advantage over other salmon producers, albeit offset by large distance from most export destinations. Global fish consumption trends offer a supportive tailwind, compounded by overfishing in most parts of the world (more relevant to wild catch). As for Ngai Tahu, surely it cant hurt having tangata whenua as significant shareholders?

Interested to know your thoughts.

[iceman]

Before the pandemic they were making good profits and growing revenue, yet you speak about SAN like it is a sinking ship? Do you think it will struggle to recover or do you think current/future management choices will destroy shareholder value? I've seen past posts of yours relating to concerns about the scampi boats, but this doesn't seem to me as significant enough to throw SAN in the dog box.

The way I see it, wild catch will become a smaller and smaller portion of SAN's revenue, being replaced largely by growing salmon division income. Salmon has been relatively solid performer even during COVID times, and I think management will see it is an obvious place to deploy investment capital.
The lack of parasites and good water quality available in NZ offers advantage over other salmon producers, albeit offset by large distance from most export destinations. Global fish consumption trends offer a supportive tailwind, compounded by overfishing in most parts of the world (more relevant to wild catch). As for Ngai Tahu, surely it cant hurt having tangata whenua as significant shareholders?

Interested to know your thoughts.

I do not agree they were “making good profits” before the pandemic. The profits have been poor for a long time whether you look at return on assets or return on employed capital.

In my view the company has made some very bad and expensive (tens of millions) choices in the last few years. To name some, 2 terrible and very expensive choices on vessels, selling great quota assets in Tasmania & NZ and creating a management culture where operational performance takes the backseat to excessive focus on OSH and other issues.

Whether we think wild catch will become smaller & smaller or not, that is where a lot of their expensive assets are employed. They will always be a significant part of the business and need to provide a decent return. Currently they’re not.

Tangata Whenua or not is of no importance to me. A new broom that knows what they’re doing and can make the changes needed, is of much more interest to me. Ngai Tahu may well be that broom. Only time will tell.
I know I’ve spoken up in this forum about my disquiet of SAN. I have done so because it frustrates me to see it's lacklustre performance and bad decision making, with assets that should be a goldmine

[iceman]

A substantial sell down from the Goodfellow family according to an announcement this arvo.

[tommy_d]

No of course not ,but ngai tahu do have a more long term Interest in kiwi based company's & have experience in making money ,hopefully more changes to come .

remember that beekeeping business Ngai Tahu bought, Watson and Son? didn't they lose $70million in that business last year? something like that. They aren't always blessed with robust due diligence...

[Muzz1234]

I believe owner or owners who sold them the honey business overstated number of hives had may have been something else dodgy done as well

[Aaron]

A substantial sell down from the Goodfellow family according to an announcement this arvo.

I wonder if they don't see a great future for Sanford? haven't they been a major shareholder for a long time?

I would not thought Ngai Tahu buying a minority shareholding would mean any major change in the company's operations. They see value but their time horizon will be longer than mine.

Selling quota was the last CEO who departed suddenly without much fanfare. His focus was on mussels and fresh fish direct to restaurants wasn't it? Both hit hard by covid while fish was getting stacked up in the freezer so not even a focus on marketing really, nor production. My knowledge is limited so I am probably being very unfair to him, but even as an ignoramus his decision to sell quota seemed concerning.

The new CEO has only been there since January this year so you haven't given him much of a chance as most of the decisions you are concerned about would have happened under the previous CEO.

[ralph]

The manuka goldrush yeah a lot of folks got burned another kiwi special being an Apiarist I could see it a coming and why so many reasons for it so many(do not want to highjack this thread ).
Strange I think its a lot of hype like A2, but I also am a comvita shareholder doing good with that.
But N T will be moving in to Sanford & the Amalgamated Goodfellas that let them in know that they will be looking forwards & see this as part of their movement to kiwi /iwi Investments ,I would not be surprised to see them Increase their holding soon, plus wild catch & green lipped mussels (a moat around this) & ngai tahu fisheries will be the future imho, not so much Salmon

[Balance]

I wonder if they don't see a great future for Sanford? haven't they been a major shareholder for a long time?

I would not thought Ngai Tahu buying a minority shareholding would mean any major change in the company's operations. They see value but their time horizon will be longer than mine.

Selling quota was the last CEO who departed suddenly without much fanfare. His focus was on mussels and fresh fish direct to restaurants wasn't it? Both hit hard by covid while fish was getting stacked up in the freezer so not even a focus on marketing really, nor production. My knowledge is limited so I am probably being very unfair to him, but even as an ignoramus his decision to sell quota seemed concerning.

The new CEO has only been there since January this year so you haven't given him much of a chance as most of the decisions you are concerned about would have happened under the previous CEO.

Goodfellow family used to totally control Sanford with their 44.5% stake. Death of the patriarch however cut the sentimental tie to the business and the family has been selling down its stake for a while.

So out goes Goodfellow and in comes Ngai Tahu with a lot of sentimental & emotional ties there with the fishing industry via Maori preferential access to all seafood resources & Sealord.