SML - Synlait Milk Ltd

[percy]

[QUOTE=Snow Leopard;728448]
remember that milk production is a commodity industry;





Lest we forget.

[winner69]

SML up over last 5 weeks

Another UP week this week

And a boomer announcement next week will keep the momentum going

I’m told forward PE of 24 for all this growth ....PE not much higher than market average ...go figure

[Patient Panda]

remember that milk production is a commodity industry;

absolutely true for regular run of the mill milk however Synlait do not only make just plain milk. They’re currently the only NZ AUS supplier of CFDA / SAMR registered IF in China. They also process large volumes of A2 milk which has significant pricing power, high margins, a strong brand etc...

[winner69]

absolutely true for regular run of the mill milk however Synlait do not only make just plain milk. They’re currently the only NZ AUS supplier of CFDA / SAMR registered IF in China. They also process large volumes of A2 milk which has significant pricing power, high margins, a strong brand etc...

Agree with comments re IF but some will say A2 will be a commodity once the hype dies down

[winner69]

What SML has got going for it is that it’s a far better investment than that dog Fonterra for those wanting sector exposure

Some of recent strength in share price punters switching?

[sb9]

SML up over last 5 weeks

Another UP week this week

And a boomer announcement next week will keep the momentum going

I’m told forward PE of 24 for all this growth ....PE not much higher than market average ...go figure

Wait till you hear their update re pending CFDA approvals for their two other IF brands "Akara" and "Pure Canterbury".

[Ggcc]

Agree with comments re IF but some will say A2 will be a commodity once the hype dies down

That would take roughly ten years for herds to be completely turned to A2 milk. By that stage The A2 milk company will be a huge company buying up the competition........ That is my theory.

[percy]

That would take roughly ten years for herds to be completely turned to A2 milk. By that stage The A2 milk company will be a huge company buying up the competition........ That is my theory.

Why would that happen.?
Most people are more than happy with A1 milk.
Synlait and Fontera are having no trouble sourcing A2 milk.
Just a matter of testing herds, and separating A2 cows from A1 cows.

[peat]

Synlait I believe also produce A1 milk so with them (cf A2) I venture to suggest its not an either/or type situation

disclaimer - dipped my toes in the milk.

[minimoke]

Just a matter of testing herds, and separating A2 cows from A1 cows.

Its not a simple as that.

Excellent artiicle from guru Keith Woodford here: https://www.interest.co.nz/rural-new...will%C2%A0take

Theres around a 7 - 10 year process.