Yeah, I was a tad disappointed. Shares are allocated tomorrow so I guess we'll find out how many we got then. We may well see some people buying more on market to make up for (some of) what they missed out on in the SPP.
Successful conclusion to the shareholder milking. Wonder if they will be led into the cowshed for another milking next year ? Debt level's still very high and a long time between drinks before that new customer can be milked. Hmmm
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
The cap raise has reduced debt to a more comfortable level. The debt allowed considerable investment and diversification, so I'm okay with it. Short term risk, long term reward.
Some interesting speculation in Chris Lee's newsletter yesterday about new customer being Danone.
So if they're raising $200m to prop up the balance sheet, then maybe get a similar amount more via bank debt and/or a bond issue to fund expansion for the deal, what would that make the deal need to be worth?
SPP applications have been scaled down to only 1/3. Disappointing !
They probably expect people to buy the shortfall at a higher price on the open market ? Did the big shareholders get their full allocation ? If so, isn't it unfair to the small shareholders ?
SPP applications have been scaled down to only 1/3. Disappointing !
They probably expect people to buy the shortfall at a higher price on the open market ? Did the big shareholders get their full allocation ? If so, isn't it unfair to the small shareholders ?
Guess all holders would be scaled (as would be patently unfair if not). Also, otherwise it might have taken A2 over 20% holding, which would cause them all sorts of complications.
Im with you winner. The ability to onboard new customers (maybe Danone?) will be challenging for business's who do not have credentials in this space. Why? Because Synlaints customers customers are wanting it. My preference is to invest in companies who are in touch with their customers, and their customers customers purchasing decisions. The days of of pumping high volume commodity at the cost to the environment is numbered. It not a moral issue (although it may be for some) but a profitability issue. Synlait know they need to address this area. Thankfully Synlaint are aware and are responding to this.
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Originally Posted by limmy
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