ATM bound to utilize their own facility to the maximum at Matura if they proceed with that acquisition.
Quite apart from all my other misgivings I am not seeing the strong growth others are here. Do I trust management that they've "got this" with their supposed eps accretive new processing arrangement with a major new customer from FY23 ? NO !! In my book Trust is earned not given and management have done northing but undermine trust in recent times. They closed today at a historic PE of 14.1 Not expensive but for my capital there's companies with far more credibility and at least as good growth prospects on even more attractive metrics.
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
From 30 odd holdings for me SML is 1 of only 4 in red. Recently announced Pokeno land dispute settlement and multinational client agreement this company can now move forward. Maybe even two outstanding SAMR registrations waiting on Chinese approval may arrive. Personally couldn't care less about the pink lettering or non-holders negative comments. It's all about whether I can see a buck here in the future so if CR terms acceptable? will probably partake.
snippet UBS report.........
"In the model portfolio, we hold a2 Milk Company, BHP, Synlait Milk, Fortescue
Metals, IDP education and Sims as a positive weight."
10/11/2020, 8:31 amOFFER10 November 2020 Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
WELLINGTON Copy to: ASX Market Announcements
Australian Stock Exchange
Exchange Centre
Level 6
20 Bridge Street
Sydney NSW 2000
AUSTRALIA RE: SYNLAIT MILK LIMITED (SML / SM1)
Notice Pursuant to Clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct Regulations 2014
1. Synlait Milk Limited (Synlait) announced on 10 November 2020 that it intends to undertake an offer of new ordinary shares in Synlait by way of: (a) a placement to eligible institutional and other selected investors to raise approximately $180 million (Placement); and (b) a share purchase plan to eligible shareholders with addresses in New Zealand and Australia to raise $20 million (SPP), (together, the Offer).
2. The Offer is being made to investors in New Zealand in reliance upon the exclusion in clause 19 of Schedule 1 to the Financial Markets Conduct Act 2013 (the FMCA). Synlait will issue the relevant shares under the Offer to investors in Australia without disclosure under Part 6D.2 of the Corporations Act 2001 (Cth) (Corporations Act).
3. This notice is provided under: (a) subclause 20(1)(a) of Schedule 8 to the Financial Markets Conduct Regulations 2014 (the Regulations); (b) paragraph 708(12J) of the Corporations Act as notionally inserted by ASIC Instrument 20-1052; and (c) ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 as amended by ASIC Instrument 20-1052.
4. As at the date of this notice: (a) Synlait is in compliance with the continuous disclosure obligations that apply to it in relation to the ordinary shares in Synlait; (b) Synlait is in compliance with its financial reporting obligations (as defined in subclause 20(5) of Schedule 8 to the Regulations); (c) Synlait has complied with its obligations under rule 1.15.2 of the ASX Listing Rules; and (d) there is no information that is “excluded information” (as defined in subclause 20(5) of Schedule 8 to the Regulations) in respect of Synlait.
5. The Offer is not expected to have any material effect or consequence on the "control" (as defined in clause 48 of schedule 1 to the FMCA) of Synlait. Ends
Last edited by Sideshow Bob; 10-11-2020 at 08:38 AM.
I’m surprised they are able to proceed with an equity raise without yet disclosing who this new customer / global category leader is, and without disclosing the financial impact from the recent Pokeno settlement
I’m surprised they are able to proceed with an equity raise without yet disclosing who this new customer / global category leader is, and without disclosing the financial impact from the recent Pokeno settlement
Yes. I only have a small holding, but a lot of information missing. What to do hmmm.
So we now expect to be at or slightly below the FY20 NPAT result for FY21
So NPAT back below 2018 levels (profit trend 75m (F18) 82m (F19) 75m (F20 and <75m (F21)
Using double the amount of invested capital to achieve these great results
Hardly a growth company is it
But the future is looking really really bright - that's the main thing
Did you really expect anything different when they expend vast management resources over a protracted period of time to achieve accreditation (without special resolution authority from shareholders) to elevate people and the planet to the same level as shareholders ?
Is this a growth company ? NO. Is the future looking really bright ? NO. Has their disclosure around recent events been acceptable ? NO Was their risk taking with Pokeno appropriate ? NO.
Have they met their fiduciary obligations to put shareholders interests first and foremost at all times ? NO. Have they met their fiduciary obligations to mitigate risk to an acceptable level to the company at all times ? NO. Do they deserve further support from shareholders ? NO. Would I ever be interested in investing in this company again ? NO
Is this sour grapes because I have lost money on Synlait shares in the past ? NO...I've actually made a useful amount of money from this dog in better times.
Last edited by Beagle; 10-11-2020 at 09:24 AM.
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
Did you really expect anything different when they expend vast management resources over a protracted period of time to achieve accreditation (without special resolution authority from shareholders) to elevate people and the planet to the same level as shareholders ?
Is this a growth company ? NO. Is the future looking really bright ? NO. Has their disclosure around recent events been acceptable ? NO Was their risk taking with Pokeno appropriate ? NO.
Have they met their fiduciary obligations to put shareholders interests first and foremost at all times ? NO. Have they met their fiduciary obligations to mitigate risk to an acceptable level to the company at all times ? NO. Do they deserve further support from shareholders ? NO. Would I ever be interested in investing in this company again ? NO
Is this sour grapes because I have lost money on Synlait shares in the past ? NO...I've actually made a useful amount of money from this dog in better times.
Jeez ...and I thought 4 pages of Disclaimers (in small letters) was a lot in their Presentation today
I take it you only look on with morbid fascination.
The Pokeno settlement never be known ....probably will be hidden away as a capitalised cost relating to new plant.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Reply With Quote
Go big or go home....
Originally Posted by Gregnz
Bookmarks