SML - Synlait Milk Ltd

[Mel]

And a response from Synlait:
https://www.nzx.com/announcements/358411
"Synlait Milk Limited (Synlait) notes The a2 Milk Company’s (NZX: ATM, ASX: A2M) announcement this morning.Synlait and The a2 Milk Company have a long standing, strong and complementary partnership. It is a partnership that continues to strengthen as both companies grow together. Synlait is committed to our relationship with The a2 Milk Company, which is built on an exclusive long-term infant formula supply agreement for China, New Zealand and Australia.
Synlait is well positioned to continue to support and enable The a2 Milk Company’s growth aspirations via its highly integrated infant formula manufacturing capabilities that meet the high standards in China, the world’s largest infant nutrition market.
Synlait intends to release its full year results for the 12 months ending 31 July 2020 before the market opens on Monday 28 September 2020. The company will provide a further update at that time."

[Mel]

which doesn't really say much at all......looking forward to the results announcements on Monday, although I don't expect too much more detail on the implications of the MVM acquisition (apart from a positive spin on it).
Discl: holder of SML

[Beagle]

Synlaits Supreme court case was heard on 3 and 4 June 2020 so our most respected, experienced and intelligent Judges have been deliberating on this for nearly 3 months now.
A decision must be due in the near future I would think. Synlait have risked the last 6 years of profits on the Pokeno expansion, (who takes risks like this?), and continued to build and commission this plant in direct contravention of a lower court ruling.

It will be a cataclysmic failure of the board if they have to shut the operation down and all should resign in complete disgrace.
I hope they have their professional indemnity insurance fully paid up because a class action against them for a gross breech of their fiduciary duties is something I think could have genuine merit.

[winner69]

NBR was mentioning a capital raise by Synlait ..or something like that

[Jiggs]

Synlaits Supreme court case was heard on 3 and 4 June 2020 so our most respected, experienced and intelligent Judges have been deliberating on this for nearly 3 months now.

I was foolhardy enough to buy some SML shares yesterday without knowing about the court case. Having just read Tompkins-Wake's summary of the whole mess, I can see why it is taking the judges so long. The farm-forestry-only covenant was so Winstones could quarry rock from the neighbouring land without disturbing people who might build homes on the land that Synlait eventually bought. But Winstones never established a quarry there, and the district council rezoned the Synlait land as industrial.

If the Supreme Court judges in favour of Sylait, my shares triple in price, and if the Court doesn't, I suddenly have penny stock. Hmmm...
https://www.tompkinswake.co.nz/insig...dairy-factory/

[dobby41]

I was foolhardy enough to buy some SML shares yesterday without knowing about the court case. Having just read Tompkins-Wake's summary of the whole mess, I can see why it is taking the judges so long. The farm-forestry-only covenant was so Winstones could quarry rock from the neighbouring land without disturbing people who might build homes on the land that Synlait eventually bought. But Winstones never established a quarry there, and the district council rezoned the Synlait land as industrial.

If the Supreme Court judges in favour of Sylait, my shares triple in price, and if the Court doesn't, I suddenly have penny stock. Hmmm...
https://www.tompkinswake.co.nz/insig...dairy-factory/

Not necessarily penny stock - this isn't the only factory that they have and a lot of the risk has been priced in (they were a $10 stock just over a year ago).

[Beagle]

I was foolhardy enough to buy some SML shares yesterday without knowing about the court case. Having just read Tompkins-Wake's summary of the whole mess, I can see why it is taking the judges so long. The farm-forestry-only covenant was so Winstones could quarry rock from the neighbouring land without disturbing people who might build homes on the land that Synlait eventually bought. But Winstones never established a quarry there, and the district council rezoned the Synlait land as industrial.

If the Supreme Court judges in favour of Sylait, my shares triple in price, and if the Court doesn't, I suddenly have penny stock. Hmmm...
https://www.tompkinswake.co.nz/insig...dairy-factory/

I estimate about a $2 hit to the share price with a negative result. Whether some of that has already been priced in is the question.
A positive result might see a rebound of a similar amount but I think your chances of this tripling anytime soon are extremely slim.

[Jiggs]

Phew, thanks Dobbie and Beagle, I thought I had just shot myself in the foot with what I expected to be a trouble-free purchase. I had only checked the stock market advisors -Share Clarity, Yahoo, Simply Wall St - and I saw nothing about a court case. I can cope with SML halving in price, and I'll be delighted if it rises even 5% should a favourable judgement be handed down.

[BlackPeter]

Phew, thanks Dobbie and Beagle, I thought I had just shot myself in the foot with what I expected to be a trouble-free purchase. I had only checked the stock market advisors -Share Clarity, Yahoo, Simply Wall St - and I saw nothing about a court case. I can cope with SML halving in price, and I'll be delighted if it rises even 5% should a favourable judgement be handed down.

Hmm - I guess not my business, but while I use data from both ShareClarity as well as Yahoo Finance as input into my investment decisions ... I never ever would make any investment decision based on just these two sources (or any other single data points ...).

Simply Wall Street however provides in my view not even sensible data points worthwhile considering - what I have seen from them so far is just plain rubbish generated by brainless algorithms ... waste of time to read. Buy yourself a horoscope instead, this would be a better investment and more fun to read.

If we are talking investments and real money I would as a minimum read the latest annual reports of the relevant company (which in Synlaits case contains info about the court case), the latest price relevant announcements from the company (dito) and - browsing the relevant thread in sharetrader is typically very useful as well (and would have pointed you as well to the court case).

Obviously (re share trader) - never ever make an investment decision based on the view of any poster, however - you will find it typically contains plenty of data worthwhile researching to help you form your own opinion.

Just trying to help - and no offence intended ... my two cents.

Happy investing ...

[dreamcatcher]

Big trade of 500,000 this morning @ $6.16