SML - Synlait Milk Ltd

[Leftfield]

I think their average is now about $6.35

I reckon that's about right too...... perhaps av of $7.50 ...certainly not north of $10.

[SCOTTY]

This is unbelievable, rises 6 trading days in a row, somebody knows something we don't.

I think it is all the positive news of late:

- 11/3 - 582 hectares of farmland adjoining Dunsandel facility purchased. Increasing own dairy production. Importantly, potentially improving railway access for supply chain efficiencies - reducing 16,000 truck movements annually between the factory to Lyttelton Port.
- 19/3 - HY result published. Positive with FY February guidence confirmed.
- 1/4 - Dairyworks settlement complete. A NZ market leader in the Everyday dairy category; Half NZ cheese, 25% NZ butter plus milk powder and Deep South Icecream.

Looks exciting to me and I believe the reason for the market interest.

[BlackPeter]

Wouldn't think so. Didn't they buy the first 17% of their now close to 20% holding well north of $10 per share?

And it was not even Jayne screwing that up ...

I reckon that's about right too...... perhaps av of $7.50 ...certainly not north of $10.

Fair enough. Just checked. The first big parcel (they bought from Frislandia in March 2017) was around $3.20 per share ... and the second (similar number of shares bought in August 2018) was around $11 per share. That's the parcel I had in mind.

So, yes - average (before buying the last lot) was somewhat above $7 per share.

[Leftfield]

Fair enough. Just checked. The first big parcel (they bought from Frislandia in March 2017) was around $3.20 per share ... and the second (similar number of shares bought in August 2018) was around $11 per share. That's the parcel I had in mind.
So, yes - average (before buying the last lot) was somewhat above $7 per share.

Yes, it is tricky to calculate because (as I recall) they didn't always state the number of shares or av SP.
eg
March 2017 purchased 8.2% of SML at $3.20 (ish)
Aug 2018 purchased further 9.2% to take total stake to 17.4% for $162 mill. (I remember an av of $11.05 but may be wrong??)
March 2020 purchased further 2.44% to take total stake to 19.84% at $4.95

Can't help thinking an av holding price around current $7.00 levels is a useful yardstick.

[Beagle]

It will surprise nobody that Jayne was in charge when they paid out the really big bucks. One of her first decisions after being appointed if I remember correctly. The she started hiring all her old JetStar mates. What a "legend" she turned out to be.

[sb9]

Yes, it is tricky to calculate because (as I recall) they didn't always state the number of shares or av SP.
eg
March 2017 purchased 8.2% of SML at $3.20 (ish)
Aug 2018 purchased further 9.2% to take total stake to 17.4% for $162 mill. (I remember an av of $11.05 but may be wrong??)
March 2020 purchased further 2.44% to take total stake to 19.84% at $4.95

Can't help thinking an av holding price around current $7.00 levels is a useful yardstick.

Here are details of all investment by A2 Milk in SML and under who is in charge of A2, no wonder GB is our great man as always...

9/03/2017	14,634,119	$ 47,926,739.73	$ 3.28	GB
13/04/2018	1,700,000	$ 15,322,950.00	$ 9.01	JH
3/08/2018	14,840,527	$ 161,761,744.30	$ 10.90	JH
23/03/2020	4,400,000	$ 21,780,000.00	$ 4.95	GB
Total	35,574,646	$ 246,791,434.03	$ 6.94

Their av price of investment is tad under $7 at $6.94 which is pretty good.

[Baa_Baa]

It will surprise nobody that Jayne was in charge when they paid out the really big bucks. One of her first decisions after being appointed if I remember correctly. The she started hiring all her old JetStar mates. What a "legend" she turned out to be.

Get over it, for a non shareholder you’re stuck in ancient history. ATM is performing way better than most other stocks

[Leftfield]

Thanks sb 9 very helpful.

Well said Baa Baa.

[kiora]

I wonder role of Lactoferrin for Coronavirus?
https://www.synlait.com/news/synlait...ply-agreement/
https://www.researchgate.net/figure/...fig10_51614957
"Lactoferrin blocks virus invasion"
/www.foodnavigator-asia.com/Article/2020/03/17/Fight-COVID-19-with-dairy-China-industry-associations-issue-consumption-guidelines-to-build-immune-resistance#

[Leftfield]

Market update FYI. See it here.

Disc - I followed Geoff in last time and have done so again...got out last time with healthy gains... now in again and a bit over exposed to dairy but WTH!