SML - Synlait Milk Ltd

[BlackPeter]

It has been comical seeing all the bush lawyers giving there predictions on the outcome.
Neither way was a sure thing (a win or a loss) but some people seemed to comment as if they KNEW.

You want to point us to posts where people said they know the outcome - or are you just grandstanding? I remember only posts pointing out a material risk for Synlait to lose ... and hey, what a risk it was ...

Synlait management was gambling shareholder funds with very high stakes. District court saying heads and High court saying tails indicated already that the legal situation is deeply uncertain. It was only Synlait management who choose to rely on the coin in the Supreme Court to fall into the right place and they did bet several hundred million of shareholder funds on that.

The fact that they have been this time lucky in the Supreme Court does not prove that they acted in a careful manner - well, not more than a drink driver managing to avoid an accident would be evidence that drink driving is safe.

[Beagle]

Well said BlackPeter. To risk the last 6 years profits on an uncertain outcome is gross recklessness in the extreme and indicates some truly woeful governance shortcoming in the board at Synlait. All that was warned about was the extreme risks they were taking.

But wait there is more !!!! Further, there are ongoing governance concerns with vast amounts of management resources applied to elevating people and all things inclusiveness and the planet to exactly the same level as shareholders and all without getting approval from shareholders by way of a special resolution to embark upon this fundamental course change in the very reason for the company to exist !!

Perhaps Synlait see themselves as a one stop shop for investors who want to invest their money, gamble at the Casino on 50/50 outcomes (AKA play Russian Roulette with 3 bullets in the gun), and donate vast sums of money to Greenpeace all at the same time

16.9 cps is where the numbers are. If people are happy with how things have worked out, seen their shares decimated and are happy with the forecast, they're very easily pleased.

[dreamcatcher]

My positive thoughts from the past regarding Pokeno outcome and I continue to hold. Some may sell but portfolio has plenty of other stocks very profitable to compensate. Wow wish the beagle had put up his (in hindsight) $100,000 scenario a year ago when this started instead of the gloating towards holders with the help of banned minimoki who's posts were all deleted.

17-2-2020
Covenant law outdated and needs replacing.
Only part of building on covenanted land but have every right to build on any un-covenanted land. I'm not a lawyer but fail to see any damage done to Mr Ye. If total land had a covenant and SML built I would understand him been upset.
Bring on April

12-1-2020
Ground hog day till April when Pokeno site issues addressed finally (hopefully) and EXPECTING A FAVORABLE RESULT ...any new business announcements probably waiting on that result. Couple of new brands waiting on Chinese SAMR approval. If the ducks line up SP could bounce quickly as small number of retail sellers around.
Continue to hold and importantly in-profit without any further buy/sells but cannot say I'm overjoyed with management.

28-9-2019 HC
True they could have waited but clearly Mr Ye intentions or demands unknown but to date still no settlement forth coming, time is money, business needs to continue so let the courts decide outcome probably was the only way forward anyway. I doubt courts would order demolition of state-of-art factory that is commissioned and employs (I think) 65+ people with 100 odd supply farms livelihoods which adds to Pokeno's welfare.

Public uproar would be interesting if such an outcome was ordered and imo unlikely.

[Siyamalan]

Synlait is probably sliding towards $3-3.5

[ralph]

Just a tad concerning why would Roger Schwarzenbach (general manager ) sell all his shares 19,366 at this stage A couple of days ago

Synlait is probably sliding towards $3-3.5

I do not think anyone big is buying synlait

[Sideshow Bob]

Interesting to compare Synlait to a similar size company, albeit with more plants/different strategy. Synlait made $75.2m on turnover of $1.3b (slightly different YE July vs September).

Of course SML have now forecast something quite different for this year. Not sure if the forecast lift in dairy payouts will help OC further?

Below from Business Desk:

Open Country records another lift in profits

Open Country Dairy has reported another healthy increase in profit saying it weathered the uncertainties of covid-19, but is still cautious about the future.
The company said revenue for the year ended Sept. 30 2020 was $1.6 billion, up from $1.4 billion the previous year. Net profit after tax was $67.6 million up from $31.4 million previously.

[ratkin]

Fairly steady downtrend now, maybe decent buying at some stage in the future, but certainly not yet

[Baa_Baa]

Fairly steady downtrend now, maybe decent buying at some stage in the future, but certainly not yet

Rotfl, that's an understatement! Now below the Covid low price and in decline since September 2018 highs $13.53 ! The only nice thing about this chart is the tribute to branding, diversity and sustainability.

Otherwise, it's an unmitigated disaster of capital destruction, with no plan to return to its former glory.

Weekly chart, by the way. That's a heck of a lot of weeks in down trend

[winner69]

Book value about $3.40

Not likely to be earning enough to cover its cost of capital (ie value destroying) for many years so no reason it should trade above book value ...unless one is full of optimism and convinced that SML will one day be great.

Said this when share price was $10 ...then again when it was $12 ..and again at $8 and again at $6 ......and one day I might say it’s about fair value when share price is about $3.40

[sb9]

Rotfl, that's an understatement! Now below the Covid low price and in decline since September 2018 highs $13.53 ! The only nice thing about this chart is the tribute to branding, diversity and sustainability.

Otherwise, it's an unmitigated disaster of capital destruction, with no plan to return to its former glory.

Weekly chart, by the way. That's a heck of a lot of weeks in down trend

Yeah it’s sad looking chart, sold two parcels in 10s and last two parcels around 8 and 7. Leon’s leadership completely destroyed shareholders value and returns. Sorry traits of ex Fonterra management style. Can’t believe Board still has confidence in him.