SML - Synlait Milk Ltd

[silverblizzard888]

Simply a stone throw away from another capital raise if things don't improve.

[Beagle]

Simply a stone throw away from another capital raise if things don't improve.

No worries, promise to paint the exterior of all their processing facilities in shocking pink, hand out free pink attire at a special meeting to all shareholders and investors will be happy to tip in another $1,000 million this time. Who needs real earnings when there's such incredible ESG benefits to staff and the planet who according to Synlait are equally as important as shareholders. Reminds me of the old Meat Loaf song "Two out of three ain't bad"

[silverblizzard888]

No worries, promise to paint the exterior of all their processing facilities in shocking pink, hand out free pink attire at a special meeting to all shareholders and investors will be happy to tip in another $1,000 million this time. Who needs real earnings when there's such incredible ESG benefits to staff and the planet who according to Synlait are equally as important as shareholders. Reminds me of the old Meat Loaf song "Two out of three ain't bad"

Only one mistake in that plan they forgot their shareholders aren't little girls...they almost succeeded, or could I be wrong because the share price is holding up pretty well.

[winner69]

Only one mistake in that plan they forgot their shareholders aren't little girls...they almost succeeded, or could I be wrong because the share price is holding up pretty well.

Some on here are just showing their true colours

[Baa_Baa]

Some on here are just showing their true colours

Back around your $3.40 NTA, or has NTA gone down as well - only $2.76 on NZX?

[winner69]

Back around your $3.40 NTA, or has NTA gone down as well - only $2.76 on NZX?

Book Value now $3.90. ....all that new capital

As cash flow positive need to discount that quite heavily. They have $1.3 million of invested capital so need to make about $110m after tax to cover cost of capital which would justify trading above book value

I’d say 220 is about fair price without being too pessimistic ...but what the heck do I know

[Balance]

Another capital raising on the horizon if things do not improve in the next 12 months.

https://www.stuff.co.nz/business/124...stomer-a2-milk

Good summation of why SML (& ATM) are in strife - and will be for a while yet :

“It’s a perfect storm for them,” said Brad Gordon, an investment adviser at Hobson Wealth Partners. “They have just come through a significant investment period, their cost of inputs, milk prices, are high, and their biggest customer a2 is going through a destocking process and therefore volumes are down.

“All three factors are weighing on that stock and I think there’s probably some concerns around debt levels coming to the fore given they are at the end of that investment cycle.”

[winner69]

Brad gordon says - That’s left a2 Milk with higher inventory, which it is selling down before it taps Synlait for more product.

Synlait seems to have excessive levels of inventory as well....hmmm

[winner69]

NOVEMBER 2018

. IMPRESSIVE RESULT APPLAUDED BY SHAREHOLDERS


Don’t think that will be happening again .....amazing how much in love with Synlait punters were back then.

[Sideshow Bob]

Synlait ponders lack of profit | Farmers Weekly