don't expect divs anytime soon either I would think still debt to be reduced and the investment to go into IT will suck up all there profits
Amazing how many millions those IT projects can suck up and then often they don't run right. The fact that they're suggesting the investment in IT will be made as funds allow, (or words to that effect), gives a clear hint of the enormous costs involved. Plenty of risk with this pup and synthetic is still the way most punters are going. Profit growth was supposed to be happening in FY17 but they have excuses why it isn't. What's their excuse for FY18, IT costs ? Good companies make profits not excuses. I'm definitely in the "Doubting Thomas" camp with this one.
Last edited by Beagle; 25-11-2016 at 12:14 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
actually I thought there agm presentation was pretty good at explaining things.
Restructures are notorious for the unexpected happening so doesn't surprise me that the manufacturing consolidation ran into problems. Once sorted 4-5m of productivity gains is substantial in the scheme of things so theres the money to pay for it upgrade which should lead to more productivity gains as well as the product simplication will add to gains so the 4-5m could easily be more after completion.
wool price is continuing to decline so big gains will flow through and as we all know currency runs in cycles so will no doubt drop at some stage.
elco direct is temp as this situation has happened with nz logs and milk powder also and the buyers did return.
I stick to my 10m profit potential in the future as mentioned previously on thread as long as it pans out lol if if if ?
forgot to mention the sell off didn't affect the long term uptrend as the sell of bottomed out around the 50% retracement level 61c after a low of 55c which was 61% retracement level if it holds around current levels for the mthly looks quite good and in hindsight may have just been a big over - reaction to a short term down grade ??? time will tell
actually I thought there agm presentation was pretty good at explaining things.
Restructures are notorious for the unexpected happening so doesn't surprise me that the manufacturing consolidation ran into problems. Once sorted 4-5m of productivity gains is substantial in the scheme of things so theres the money to pay for it upgrade which should lead to more productivity gains as well as the product simplication will add to gains so the 4-5m could easily be more after completion.
wool price is continuing to decline so big gains will flow through and as we all know currency runs in cycles so will no doubt drop at some stage.
elco direct is temp as this situation has happened with nz logs and milk powder also and the buyers did return.
I stick to my 10m profit potential in the future as mentioned previously on thread as long as it pans out lol if if if ?
If, If If indeed. Take you point about restructuring issues and delay and agree they explained it well but as for other factors like exchange rate and low wool prices being repeatable, perhaps NZR is the best analogy, they do well when oil and currency is low but at other times...
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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Originally Posted by bull....
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