SML - Synlait Milk Ltd

[Beagle]

You dont get to an Appeal Court decision without lots of talking already done. Synlait obviously not meeting expectations - and loosing. Time for talk has now gone. (might have been nice for them to have let the market know theres talks were happening as they occurred). I think a "practical solution" just means a whole lot of extra dollars being thrown in - but how many?

Fair comment. Safe to say its not a six figure sum that's for sure !

[RTM]

Fair comment. Safe to say its not a six figure sum that's for sure !

So what is the sum...?
$5,000,000 is 2.8c per share. Doesn't seem a lot ?
Is that the right way to think about it ?

The whole thing smacks of a fair bit of arrogance IMO.

[BlackPeter]

So what is the sum...?
$5,000,000 is 2.8c per share. Doesn't seem a lot ?
Is that the right way to think about it ?

The whole thing smacks of a fair bit of arrogance IMO.

I think the right question would be - how much does it cost Synlait to remove their newly build factory and rebuild it somewhere else instead. Add to that the lost opportunity cost for not having this capacity for the next 4 or 5 years.

Cost pretty easy to add up to lots of $100 million chunks. Question is - how much does the beneficiary of the covenants want from this cake? All they need to do is ask ...

Obviously - we don't know where they will end up, but at face value it looks like Synlait put itself into a very weak position to negotiate. I find it hard to understand that a management team I once used to respect put themselves into such a position. Is this arrogance? How dumb can one be?

[RTM]

I think the right question would be - how much does it cost Synlait to remove their newly build factory and rebuild it somewhere else instead. Add to that the lost opportunity cost for not having this capacity for the next 4 or 5 years.

Cost pretty easy to add up to lots of $100 million chunks. Question is - how much does the beneficiary of the covenants want from this cake? All they need to do is ask ...

Obviously - we don't know where they will end up, but at face value it looks like Synlait put itself into a very weak position to negotiate. I find it hard to understand that a management team I once used to respect put themselves into such a position. Is this arrogance? How dumb can one be?

OK...so lets say it costs them $100,000,000.00 to buy there way out. That would come to 56cents a share.
Price has dropped from say ~10.50 to 9.86.....imaybe that's about right and it will cost the shareholders 100mil. Phew.
Seems a lot of money.

[Leftfield]

SML's management not performing IMHO.

1.) reduced margins (tough negotiating by ATM)
2.) non achievement of China and USA approvals
3.) Pokeno legal farce

Holders should be very concerned.

[whatsup]

Still weakening, Mr Market does NOT like uncertainty !

[Beagle]

SML's management not performing IMHO.

1.) reduced margins (tough negotiating by ATM)
2.) non achievement of China and USA approvals
3.) Pokeno legal farce

Holders should be very concerned.

Also they have put a lot of effort into inclusiveness, making sure the colour of their presentations ensures the organisation is known to be outstanding in this area and making efforts at shareholders cost to ensure CO2 emissions are reduced.

The new CEO has really been making his mark on the company for (what I would suggest) is all the wrong reasons.

[whatsup]

From a text book situation this is fascinating situation that SML finds its self in, unheard of to my mind in recent N Z commercial history, this could go either way ( very bad ) or ( terrible ) for them, any judge has to pass judgement on the facts of this matter not the circumstances of it.

I cannot see a easy way out for either party as there will be appeals galore what ever the judgement, point to consider what is the rub off to ATM if SML has to remove the plant, ( heaven forbid ) I know that wont happen but one never knows .

[Raz]

yes , I completed my full exit from this somewhat misleading company a couple of days ago. small loss , no worries.

I believe that is now a hat trick of misinformation events so yeh agree - this ones gone from the portfolio and now relegated to the merely 'Curious' watchlist

Yeah more has come home to roost quicker, bits were out there just not the whole picture...

[pg0220]

Also they have put a lot of effort into inclusiveness, making sure the colour of their presentations ensures the organisation is known to be outstanding in this area and making efforts at shareholders cost to ensure CO2 emissions are reduced.

The new CEO has really been making his mark on the company for (what I would suggest) is all the wrong reasons.

LOL, I wanted to say that this could go as disruptive as colour of title in their announcement letter.