SML - Synlait Milk Ltd

[Lease]

2017 growth is modest as Synlait doesn't have sufficient capacity to meet rising demand, thus they need to raise capital to build more capacity.

They need more funds which are required for further business development.

These are all OK for a growing company and the Company financial performance has proved they have kept their promise.

How come investors ignore the facts?

[Hectorplains]

2017 growth is modest as Synlait doesn't have sufficient capacity to meet rising demand, thus they need to raise capital to build more capacity.

They need more funds which are required for further business development.

These are all OK for a growing company and the Company financial performance has proved they have kept their promise.

How come investors ignore the facts?

I don't think that they are. I invested in this company from day dot, I expect that the sp will move slowly north over the next few months (all things being equal.) The reality is they've got major capex and growth is going to be lower next year; you'd expect the PE to par back from previously. There's no dividend in the foreseeable either - so they haven't benefited from yield chasers.

[Lease]

I don't think that they are. I invested in this company from day dot, I expect that the sp will move slowly north over the next few months (all things being equal.) The reality is they've got major capex and growth is going to be lower next year; you'd expect the PE to par back from previously. There's no dividend in the foreseeable either - so they haven't benefited from yield chasers.

If PE went back to previous level, SP would be $7. Isn't is exciting?

[ratkin]

If PE went back to previous level, SP would be $7. Isn't is exciting?

This is pie in the sky stuff, they seem a decent enough company, but it is no get rich quick scheme. No dividend, still fairly high debt and having to ask US for money instead of THEM giving us any.

Still they should have a decent enough future, I added to holding with the capital raise, but certainly not expecting any spectacular returns. This one is for patient money only

[Lease]

This is pie in the sky stuff, they seem a decent enough company, but it is no get rich quick scheme. No dividend, still fairly high debt and having to ask US for money instead of THEM giving us any.

Still they should have a decent enough future, I added to holding with the capital raise, but certainly not expecting any spectacular returns. This one is for patient money only

If you expect dividend, you should buy Air NZ, Spark, Fonterra, etc, not Synlait. Synlait is a fast-growing company which is spending more funds to expand business. Interest cover ration is over 4, debt/equity ration is less than 1. Financially quite sound.

I just expect we, as investors, are compensated by SP appreciation. But not happen yet.

[Nasi Goreng]

Just wait 5 years or so, starts up rarely pay dividends but wait to see what you will get 5 to 10 years from now.

[sb9]

Last day for the retail offer to close, expect the sp to raise steadily after this.

[BlackPeter]

Last day for the retail offer to close, expect the sp to raise steadily after this.

Longtime I agree that SP is likely to rise (at some stage ...). However, it feels currently quite ahead of itself - and given next years results and another likely CR in a couple of years, it won't be a walk in the sunshine.

If you look a the typical pattern for CR's - I'd say it is more likely that over the next couple of months there will be opportunities to buy the share below the cost of the current CR price. There always are people who think to make a quick buck come CR time ... and there are always some of them who get afterwards cold feet (or just need to sell for whatever reason).

Interesting Analyst update on 4 traders: Share downgraded to "underperform";

I believe this company will be at some stage a good and solid buy, but we are not there yet ...

Discl: waiting ...

[ratkin]

http://www.smh.com.au/business/bega-...24-gs9rbc.html

Behind weakess?

[iluab]

http://www.smh.com.au/business/bega-...24-gs9rbc.html

Behind weakess?

Expect so, creates an uber bargain for those anticipating a re-rating when SML joins the ASX before xmas. Forward PE is presently 12 or so and analysts have just revalued SML up to $3.74. I think we could see a bit of multiple expansion on the ASX also as the aussie insto's buy in, say up to 15.

http://www.4-traders.com/SYNLAIT-MIL...761/consensus/

I think we could even see a pop when they announce the ASX listing date, that must be soon given a pre-xmas launch, and they will want to launch on the ASX prior to the November agm so as to have something to brag about on the day I reckon.