Silver Ferm Farms

[DarkHorse]

Just having a look at these. They sure look good value. Looking at online news beef and lamb prices overall are off their highs but still at historically strong levels. Wondering about the effect of lockdowns and social distancing on sales of higher margin (presumably) cuts supplied to restaurants. I'm also wondering how this type of co-operative structure is generally assessed in valuations. Any comments would be much appreciated.

[freddagg]

Just having a look at these. They sure look good value. Looking at online news beef and lamb prices overall are off their highs but still at historically strong levels. Wondering about the effect of lockdowns and social distancing on sales of higher margin (presumably) cuts supplied to restaurants. I'm also wondering how this type of co-operative structure is generally assessed in valuations. Any comments would be much appreciated.

Shareholders will always get the rough end of the pineapple with this company. They are only interested in looking after their livestock suppliers.

[kiora]

So where do the Chinese shareholders fit in?

[iceman]

So where do the Chinese shareholders fit in?

Shanghai Maling own half of Silver Fern Farms and the listed Coop SFF the other half

[percy]

Shareholders will always get the rough end of the pineapple with this company. They are only interested in looking after their livestock suppliers.

Yesterday's announcement proves otherwise.
Very positive for all shareholders.

[Sideshow Bob]

Yesterday's announcement proves otherwise.
Very positive for all shareholders.

The key point for me (aside from the divvy ) was in some of the communication yesterday that they said they had had a strong financial start to 2020 - which will be the busier part of the year and through Covid. Retained $45m of FY19 profit in the business.

Disc: Holder

[percy]

The key point for me (aside from the divvy ) was in some of the communication yesterday that they said they had had a strong financial start to 2020 - which will be the busier part of the year and through Covid. Retained $45m of FY19 profit in the business.

Disc: Holder

Agreed.....................
Nice divie ,and a very positive outlook.

ps.Yes I am also a holder.

[iceman]

The key point for me (aside from the divvy ) was in some of the communication yesterday that they said they had had a strong financial start to 2020 - which will be the busier part of the year and through Covid. Retained $45m of FY19 profit in the business.

Disc: Holder

Exactly my view too. They have stated clearly that 2020 has started well, they repaid the wage subsidy in full, kept all staff, paid out a healthy dividend AND kept a lot of cash in both the operating company and more surprisingly, in the listed Co-op as well.
Certainly gives me great confidence for good future dividends as well.
With Percy onboard, we could even say we are well positioned.

[Sideshow Bob]

With Percy onboard, we could even say we are well positioned.

I'd be disappointed if we couldn't say that!!