Sanford Earnings FC effected by FX changes

[Marilyn Munroe]

I think it may be time for look for a strong candidate from overseas that can nudge Sanford and the fishing industry in general a bit from the stagnation I feel we have seen in recent year.

I suspect foreign charter fishing boats have been a crutch used by the industry to avoid hard decisions. Is there value to be added by modern factory trawlers processing whitefish on-board, and has the investment of this type been able to be avoided due to the cash flow arising from foreign charter boats?

Boop boop de do
Marilyn

[iceman]

I suspect foreign charter fishing boats have been a crutch used by the industry to avoid hard decisions. Is there value to be added by modern factory trawlers processing whitefish on-board, and has the investment of this type been able to be avoided due to the cash flow arising from foreign charter boats?

Boop boop de do
Marilyn

Yes I think that is definitely one issue that has held back progress in the fishing industry although I do believe there is some room for WELL MANAGED charter vessels in NZ. But both the inshore and deepwater fleets in NZ are completely outdated and requires significant investment fairly soon.
The same can be said about on shore factories which rely completely on LOTS of people doing manual work, rather than using up-to-date technology to run the factories with a fraction of the current staff and much more efficiently.

This is why I believe the right overseas CEO may do a better job pushing for change than internal candidates from current management. But I do reiterate that all 3 internal candidates are highly experienced and capable.

[iceman]

[QUOTE=moosie_900;406609]Spanner in the works a bit here before the FY report...QUOTE]

Luckily noone injured and all fully insured according to CEO. Should have little financial effect.

[Marilyn Munroe]

If allegations of underpayment by crews working for its partner Dongwon Fisheries are sustained by the Employment Relations Authority then surely Sanford will terminate its relationship with this partner.

Do continueing breaches of public policy objectives by their partner expose Sanford to the risk of loosing their rights to fishing quota?

Boop boop de do
Marilyn

[iceman]

If allegations of underpayment by crews working for its partner Dongwon Fisheries are sustained by the Employment Relations Authority then surely Sanford will terminate its relationship with this partner.

Do continueing breaches of public policy objectives by their partner expose Sanford to the risk of loosing their rights to fishing quota?

Boop boop de do
Marilyn

They should get rid of these crap vessels from NZ. But severing all ties with DongWon will be difficult as they do own a processing company together overseas.
No chance of Sanford losing any of their quota because of these breaches by a third party.

[iceman]

MM, I've checked this with Sanford management. Their current Joint Venture is with Dong Won Fisheries Ltd, which is a fairly small and mainly family owned but publicly listed business. The JV is not with the very large DongWon Industries. Just a clarification.
Sanford currently has 2 vessels operating in NZ under this JV. Dong Won Fisheries also owns 50% of the Timaru coldstore and they and Sanford own 50% each of the WDWF Co processing facility in Weihai, China.
They also confirmed Sanford has no financial liability for the historical crew issues on the Korean vessels. It sits 100% with the vessel owners.

[Major von Tempsky]

Nah, affected is always a verb and effect usually a noun. Even if effected was being rarely used as a verb here it would mean that Sanford's earnings are put into place/delivered by Foreign Exchange changes whereas I'm pretty sure that you mean S's earnings are being cramped by the higher dollar. Slack.

[BlackPeter]

nice little downtrend of an in my view mainly well managed, but for some time already overvalued company. Who knows, may be at some stage worthwhile buying (though in my view not yet ...)?

[Marilyn Munroe]

Politically controversial compnay Oravida has a link to Sanford. It acts as Sanfords scampi distributor in Shanghai.

http://www.nzherald.co.nz/business/n...ectid=10846294

Boop boop de do
Marilyn

[BlackPeter]

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?