Sanford Earnings FC effected by FX changes

[Joshuatree]

saw a snippet a little while back, can't remember where but it was re Sanford being a play on $kiwi exchange rate effect.(positive for profits)

[iceman]

Any explanation for last months SP ramp up? I guess SAN looks like a solid and well managed company, but it looked already expensive before the SP went up. PE (no matter how you calculate it) is well above 20 ... why is the market pricing it like a growth company?

I agree BP that SAN is expensive at current SP and on current earnings. I bought back into SAN in mid May, before it went XD.
The reasons I bought back in is that what I am hearing about the changes in management structure the new CEO is quietly implementing, I like and believe it was long overdue.

SAN has purchased a lot of assets over the last few years and these assets are still to contribute positively to the earnings, but they should.
I think the focus will nor be on making sure these assets will start contributing in the near-medium term future and with the lower FX rate, SAN earnings may finally improve substantially and give a more acceptable return on assets, which has been unacceptably low for too long !

[bunter]

Fair value = 5.35 by my model.
Sharp (25%) share price increase lately, seems more than could be accounted for by the falling NZD.
Good news coming?

[forest]

https://www.nzx.com/files/attachments/236309.pdf

Company seem to be moving in the right direction.

[mshierlaw]

https://www.nzx.com/files/attachments/236309.pdf

Company seem to be moving in the right direction.

Very light on content. FAO data is very OLD.

Turnaround in mussels is the key, progress on mussel spat breeding facility will shore up spat supply quantity in a couple of years. Major potential for increase in mussel quality through selective breeding using this technology.

Wild catch flat with focus on value improvement through quality & tailoring product to customer requirements.

DISC not holding.

[forest]

https://www.nzx.com/files/attachments/236290.pdf


Include in the link is the info about mussel spat which I have copied below.


[/urlSanford’s mussel farming operations
with its geographical spread around
New*Zealand, including trials in
off-shore areas and the emerging spat
volumes from Shellfish Production
and Technology (SPATnz), are well
placed to achieve increased raw
material supply in line with market
demands and our plans for this
business.
The SPATnz hatchery opened in
Nelson in April last year and has been
performing to expectations. The
hatchery is fertilising two billion eggs
every six weeks. These grow into spat
that will produce around 10,000
tonnes of Greenshell mussels at
harvest annually. The hatchery team
continue to make research discoveries
that improve consistency of the spat
production process and better
understand particular traits of the
different mussel families. Plans are
underway to move the capacity of the
hatchery to 30,000 tonnes by the
end of this financial year. The
advantages of hatchery spat over wild
sourced spat are a consistent and
reliable supply coupled with superior
performance. We are very excited
about this development, which we
believe will be a significant factor in
the ongoing development of the
Greenshell mussel industry in
New*Zealand.

[kura]

Was looking at their half yearly accounts recently & was suprised to see "finance Income" of $7.6m (negligible in previous periods ) No mention of this income was made in directors report, & I couldn't see any decent financial assets in balance sheet.
Any thoughts on how they made this income out of thin air ? It's a trick I'd like to know !


Disc: Went to shop downtown Sat morning & was served by guy on front page of half yearly report.

[iceman]

This is gains from FX hedging

Was looking at their half yearly accounts recently & was suprised to see "finance Income" of $7.6m (negligible in previous periods ) No mention of this income was made in directors report, & I couldn't see any decent financial assets in balance sheet.
Any thoughts on how they made this income out of thin air ? It's a trick I'd like to know !


Disc: Went to shop downtown Sat morning & was served by guy on front page of half yearly report.

[forest]

SAN had unusual high turnover in shares so far this month on a rising share price.
This together with four insiders buying 200,000 shares.
The ones buying were CFO, CCO, CFO and the COO.
Between them you would expect that they know how the company is doing.
I cant help but think good results are in the pipe line.

[Joshuatree]

It was $5.62 when you posted on the "Are NZ stocks too expensive thread". Now $6.05 so thats a 7.6% rise pretty handy. Have you an intrinsic value Forest. Thanks for bringing it to our attention.