SML - Synlait Milk Ltd

[minimoke]

Many thanks for the explanations. Think I will leave price matching to others as sounds quite a stressful process

It is.
Heres the ASX pre close a minute before open. Puts it about NZD$9.95, but NZX trading at 9.92 - but at 12:00 a sale goes through at NZD$9.95

And as I close this post ASX is on AUD$9.68 which is equivalent to my sell price on the NZX of $9.98. Now I have to give some thought do I push my sell out a bit more.

[minimoke]

That's me all done. I'm all out at $9.98 and $10.03. Ive had a good run but very unhappy with yesterdays results and outlook. Just content now to sit back and let the market do its thing while I ponder where to put the loot next.

[pg0220]

Looks like SML is doing THL to me again!! SP going up after selling out!

[oldtech]

I got badly burnt by THL; holding off on clicking SELL for SML so I can hopefully avoid the same mistake.

[Nasi Goreng]

Such a high number of sells from ST’s yesterday, what a twitchy bunch you are.

I’m looking at all the opportunity going forward and the fact that last year from memory, they pre sold some product before end of H1 which bumped up first half profits... perhaps not so bad a picture as has been painted.

[dreamcatcher]

All just BIG BOY GAMES to grab weak hands & pump 'n dumpers LT holders never needed to worry

BELL POTTER reiterated their Target Price A$12.75 BUY rating unchanged

This morning GS upgraded to BUY NZ$11.66

Result all about variations in TIMING in SML's sales volumes resulting from orders from its key customers particularly A2

[nzsharetrade]

why people concerned SML could be replaced by fonterra?
it seems SAMR is very hard to get now.
reducing the margin to help your customer in a bad market is one thing and that normally happens anywhere. is ATM in trouble? Not sure. ATM will be shorted for sure.
NZ is such a small country. working together is the key rather than stab your partner from the back.

[minimoke]

why people concerned SML could be replaced by fonterra?
it seems SAMR is very hard to get now.
reducing the margin to help your customer in a bad market is one thing and that normally happens anywhere. is ATM in trouble? Not sure. ATM will be shooted for sure.

At the time ATM was enjoying huge demand for IF in the Chinese sales. No reason why SML should not enjoy the success as well. Anand have pressure put on inventory - stocks now ought to be low not increasing.

Agree companies should work together to maximise each others profit potential. Unless ATM does not see SML as a partner and for some undisclosed reason SML was forced to drop their pants on price.

[winner69]

As a matter of interest what percentage of Synlait sales are to A2

[Beagle]

At the time ATM was enjoying huge demand for IF in the Chinese sales. No reason why SML should not enjoy the success as well. Anand have pressure put on inventory - stocks now ought to be low not increasing.

Agree companies should work together to maximise each others profit potential. Unless ATM does not see SML as a partner and for some undisclosed reason SML was forced to drop their pants on price.

Agreed. The substantial rise in Inventory at Synlait at a time when ATM has been going gangbusters suggests something is wrong here with sales and the extent of the loss of margin is even more shocking in my opinion. If ATM can "milk them" to that extent once you can bet your last dollar they'll come back to milk them again in the future.