Seeka

[Joshuatree]

I thought Zespris comments a bit weird but i guess they can see what we can't.Int article from Zespri. For example re 300 million trays of kiwifruit are grown and consumed in China.!! Zespri wants to grow fruit in China again.The last attempt found lots of illegal growing.

I spoke to a Zespri rep based in China a while backand he said their ultimate goal was to market the kiwi fruit in China and not just to its ports. Good luck with that and with their 4 new importers. Two of the last were found guilty of smuggling or under declaration

Wiser Zespri eyes growing fruit in China

[Xerof]

What do you folks make of the Zespri talk of headwinds...seems a curious thing to suggest headwinds when the currency has dropped so much ?

IIRC, Zespri's hedging policy runs to about 150 pages of gobbledygook, so expect them to be fully covered at much higher levels, possibly without some of the underlying USD sale prices locked in. Unfortunately it's a reality that most exporters are required to keep themselves well hedged, usually to protect the arses of the board's governance policy, secondly, banks also insist on there being a hedging policy to be adhered to, else no money honey. Thirdly, I have witnessed first-hand from in-market experience, the expectation of overseas buyers to 'have some part of the benefits of a lower local currency' In other words, we're going to lower our USD pricing sorry chaps - can't have you making too much money out of us eh? Perspective from a crusty old ex-treasurer (my treasury hedging policy ran to 1.5 pages)

[iceman]

I have been surprised how unloved SEK has been recently resulting in a weak SP. I am not unhappy about it as it has given me time to load up. They will be announcing their HY results later this month and I am expecting a ripper. As they have already announced to the market some time ago, their harvesting/packing was ahead of forecast. I believe it continued at pace throughout the harvesting season and is up at least 30-35% on last year. Of course they still are reliant on Zespri selling all the fruit but it is all looking reasonably promising.
I think there is little doubt that both revenue and profit will be up by quite a significant amount from last year and I also expect a healthy increase in dividends. I suggest PE will be in a single number when the HY results are out so for me, SEK is due for a major rerating by the market.

[Hectorplains]

ANZ Commodity Prices recorded a monthly decline in horticultural prices of 1.1% - this was stated as been due to both kiwi and apple price declines. That said I like the look of both SEK and Scales...

[Joshuatree]

Liquidity has been terrible most of the time.Two trades above 100,000 in the last year with most of the rest just a few thou. Hard to get in or out in any meaningful vol . Growers being shareholders too creates possible conflict?

[iceman]

Growers being shareholders too creates possible conflict?

Yes possible JT but they are small holders so hopefully the security of supply they provide will outweigh such concerns. I think we will see SEK diversify and grow more into being a general produce company, rather than just Kiwifruit and Avocado. I look forward to the strong HY report this month and hope it will propel SEK onto a few more radar screens.

[percy]

Liquidity has been terrible most of the time.Two trades above 100,000 in the last year with most of the rest just a few thou. Hard to get in or out in any meaningful vol . Growers being shareholders too creates possible conflict?

I often think one must approach illiquid stocks with the owner's eye.
A farmer,plumber,manudacturer,retailer has all his wealth tied up in his business for a great many years.Often millions of dollars.
So a stock such as SEK, if you buy with the owner's eye,making sure you have fully researched the company,and know how the Kiwi fruit industry is performing,and how SEK management are taking advantage of those opportunities,you will be less inclined to worry about selling.
Think Warren Buffett.He would not mind if the market was closed for 5 years.!
Growers being shareholders.Security of supply is essential.You will note how hard CVT have worked of have secure supply.SEK are looking forward by doing the same. Positive.

[percy]

And so it came to pass. that the game changed with the Seeka announcement, late today,of an Australian acquisition of A$22mil.;Bunbartha Fruit Packers,whose lovely brand is "Austfresh".I googled Bunbartha Fruit Packers and it looks as though Seeka have brought a great business.

[Joshuatree]

I often think one must approach illiquid stocks with the owner's eye.
A farmer,plumber,manudacturer,retailer has all his wealth tied up in his business for a great many years.Often millions of dollars.
So a stock such as SEK, if you buy with the owner's eye,making sure you have fully researched the company,and know how the Kiwi fruit industry is performing,and how SEK management are taking advantage of those opportunities,you will be less inclined to worry about selling.
Think Warren Buffett.He would not mind if the market was closed for 5 years.!
Growers being shareholders.Security of supply is essential.You will note how hard CVT have worked of have secure supply.SEK are looking forward by doing the same. Positive.

Good way to look at it.Still haven't bought any yet but the illiquidity may help me as the spread can be so wide that an entry can be got at a good discount at times. The announcement is good to see ;Seeka maybe seeing the Diversity SCL are creating for themselves.

[iceman]

And so it came to pass. that the game changed with the Seeka announcement, late today,of an Australian acquisition of A$22mil.;Bunbartha Fruit Packers,whose lovely brand is "Austfresh".I googled Bunbartha Fruit Packers and it looks as though Seeka have brought a great business.

Yes looks like a great fit bought at a reasonable price. With the fantastic year SEK is having, I would not be surprised if we see further acquisitions to grow and diversify in a steady and well planned manner. The market will appreciate in the next few months what a great year SEK is having which will be confirmed by the upcoming HY announcement