SML - Synlait Milk Ltd

[FarmerHamilton]

326 .... when's it gonna stop !!

[The BOWMAN]

326 .... when's it gonna stop !!

FarmerHamilton, this is unlikely to stop anytime soon. ATM is running over 100 PE on the basis of some unfounded theory. It is a bubble in my view but Synlait still has plenty room to go. The demand is super strong. Don't forget China Bright Dairy wants to rebuild their holding to pre-IPO level and hasn't really started their purchasing yet. The market is booming and I assume it is not too hard for Synlait to eat into Fonterra's market shares. From its recent announcement, the constraint is more on its own infrastructure rather than the market. I was not able to get any shares from IPO (ASB Securities is useless in getting any allocation of good IPOs). But purchased on the market pretty much immediately after its listing, now one of the top three holdings in my portfolio. I wish it doesn't rise too fast so I can free up funds and make it my NO 1 holding with a good price.

[CJ]

FarmerHamilton, this is unlikely to stop anytime soon.

I do wonder why FarmerH isn't using a stop loss to catch it when it falls rather than selling out while it is still rising.

[K1W1G0LD]

This looks to be the float of the year so far and you don't have to be a genuis to see the demand for shares in the Dairy industry here in Godzone. Enjoy the ride !

[FarmerHamilton]

This looks to be the float of the year so far and you don't have to be a genuis to see the demand for shares in the Dairy industry here in Godzone. Enjoy the ride !

Just sold another 2000 at 333 ... up 9c on the day , a small number left ( 1087 ) and then I am done selling until next September due to the escrow agreements with the old Synlait shareholders written into the IPO.

Amazing run ... up about 28% from the Monday morning after the Fonterra botulism scare !!

[K1W1G0LD]

Just sold another 2000 at 333 ... up 9c on the day , a small number left ( 1087 ) and then I am done selling until next September due to the escrow agreements with the old Synlait shareholders written into the IPO.

Amazing run ... up about 28% from the Monday morning after the Fonterra botulism scare !!

Looks like you've done pretty well out of Synlait already, I'm going to stay in for the ride to see how far this little run can go on for. cheers kiwigold.


Disc; hold SML,HNZ

[AndyLP]

Absolutely enjoy reading about your successes FH - are you able to tell us what your overall gains were over the 10 year investment?

[FarmerHamilton]

Absolutely enjoy reading about your successes FH - are you able to tell us what your overall gains were over the 10 year investment?

Initial investment in Oct 2003 : $400,000 , also an additional $25,000 investment in 2006

Sales proceeds since May listing of Synlait Farms ( on Unlisted market ) and IPO of Synlait Milk of NZX : $1,053,700

Remaining holding in Synlait Farms (SNLF) : 155,000 @ $1.55 = $240,250
Remaining holding in Synlait Milk (SML) : 64,962 @ $3.30 = $214,374

Net gain $1,083,324

[The BOWMAN]

Just sold another 2000 at 333 ... up 9c on the day , a small number left ( 1087 ) and then I am done selling until next September due to the escrow agreements with the old Synlait shareholders written into the IPO.

Amazing run ... up about 28% from the Monday morning after the Fonterra botulism scare !!

Hey Farmerhamilton, what is the agreement you mentioned in your post? How much do you need to sell and is there any timeline? How much shares would be forced to sell on the market like this? It basically means there are some artificial selling pressure and once this is removed, it will go up even faster.

[CJ]

Hey Farmerhamilton, what is the agreement you mentioned in your post? How much do you need to sell and is there any timeline? How much shares would be forced to sell on the market like this? It basically means there are some artificial selling pressure and once this is removed, it will go up even faster.

its a lock- up, not a forced sale. If they didn't sell their shares into the IPO, they have to hold on to (most of) those shares for a year.