The 2 year SML chart is looking very good at the moment. The 1st year being a very well defined down trend with lots of lower lows each time finding resistance at the 100 day moving avg, the trend now is up and finding support at the 100 day MA. It looks like it will make new highs soon.
Good finish today albeit on light volume. Some punters are keen perhaps?
I think there is plenty of scope for growth over the next few years. Not sure about capacity and where they are currently at vs demand.
One thing for sure, the uptrend is already in place. You won't find many better examples than how this has bounced off the 100 day moving avg. Looks to be strong.
I think there is plenty of scope for growth over the next few years. Not sure about capacity and where they are currently at vs demand.
One thing for sure, the uptrend is already in place. You won't find many better examples than how this has bounced off the 100 day moving avg. Looks to be strong.
I think there's plenty of anecdotal evidence thro' A2 milk the IF demand is very strong. Let's wait and see when they announce results in Sep.
Noticed there's a big off-market transaction of 600k parcel went thro' at 345.
I think an independent like Synlait has so many options going into the future. If they can stay on track, I think we could see profits triple over an extended period. PE of 18 is cheap in my opinion.
Not sure about the current excitement ... I guess SML is a good company, great management but certainly a cyclical stock in a cyclical sector. I'd see their current share price as fair ... and as history shows they have a tendency for over- and under swingers.
So - yes, traders still might be able to make a dollar of the current SP - for investors I would see the current entry as a bit high.
They might well rise to the $4+ they reached before, but until they reduce their quite high level of debts and move into a position to pay dividends would I expect the share price to oscillate depending on the markets mood of the day.
I probably go at some stage back in ... but would hope that this is when the price has again a 2 in front. Who knows - another Chinese tremble, a deterioration of the world milk price or just some local jitter might do.
Even if their income is not really milk price dependent ... their balance sheet is. They have already at current a lot of additional debt in their books just to prop up the accounts of their farmers. Good on them to support their suppliers, but not sure, whether this is the time to pay top dollars for their shares.
Last edited by BlackPeter; 29-07-2016 at 10:22 AM.
Reason: spelling
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Originally Posted by Nasi Goreng
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