Seeka

[bull....]

Hi bull. Next time we should catch up :-) Good comments thank you.
I asked similar questions to you after the meeting. They have a BIG growth strategy that needs to be watched. CEO told me they already have a credit line of up to $120M. So they can tap the banks quickly for any acquisitions and I don't expect a cash call to SH.

I also had concerns about lack of storage facilities and asked questions about it after the meeting. My reading from it, and I may be completely wrong, is that they do not intend to grow much beyond 30M trays of fruit in NZ. Any growth beyond that will come outside of NZ with Australia being the first and obvious choice. Also, Australia is the only PSA free (long may it continue) Kiwifruit growing country in the World. This makes the pollen business exports really interesting and the potential opportunities quite big.

I think we will see Seeka growing very quickly in size in the next 2-3 years. I expect double market cap by end of 2018 and base my investment on that. We will also receive 18-20c of dividends per year as well in my view. I will be watching the execution of their strategy very carefully. But I regard SEK as both a growth and dividend investment.

storage is a big issue for all local packhouses at the moment I believe, if im correct it could get worse as a lot of post psa harvest is coming on next few yrs so volumes will be well up.
agree aus offers huge potential if execution is well done although needs quite a bit of investment to bring up to scratch also would be hoping the extra hectares they have there are utilised quickly for future growth.
yes ceo say not really interested in cash issue so therefore they will need to grow the banburtha massively to meet there 200m market cap objective or perhaps look for more bolt on acquisitions in aus.
I also own costa group in aus a similar company but different products.
yes I will look you up next meeting

[iceman]

storage is a big issue for all local packhouses at the moment I believe, if im correct it could get worse as a lot of post psa harvest is coming on next few yrs so volumes will be well up.
agree aus offers huge potential if execution is well done although needs quite a bit of investment to bring up to scratch also would be hoping the extra hectares they have there are utilised quickly for future growth.
yes ceo say not really interested in cash issue so therefore they will need to grow the banburtha massively to meet there 200m market cap objective or perhaps look for more bolt on acquisitions in aus.
I also own costa group in aus a similar company but different products.
yes I will look you up next meeting

The lack of storage may very possibly lead to improved returns !!

[iceman]

I have been expecting an announcement from SEK before Christmas to update us on the insurance claim negotiations for the fire related fruit loss this year. In the absence of such an announcement, one has to assume the negotiations are taking longer than expected and are probably quite complicated. I do hear though, that parts of it has been settled and growers taken care of. If true, that is good news.
But I do fear if delays continue or negative outcomes from the insurance negotiations are the result, that we may have significant negative effect on cashflow for 2015 and possibly final dividends due in March 2016 ?

But looking forward, it looks like the orchards are looking very good and we can expect another bumper season. We should also by now be seeing positive contributions from Australia.

So looking ahead I believe SEK is doing well and I expect a very good 2016.

Discl: Reduced my holding a little in the last couple of weeks due to insurance unknowns but still 2nd biggest in my NZX portfolio

[BIRMANBOY]

So you'll be getting a few cases of KWF over the holidays to support any weakness iceman If they bring back the red variety I'll be in too. It only appears occasionally...must all be exported. My favourite variety. Vouchers for all shareholders should be high on the list for the next AGM.

I have been expecting an announcement from SEK before Christmas to update us on the insurance claim negotiations for the fire related fruit loss this year. In the absence of such an announcement, one has to assume the negotiations are taking longer than expected and are probably quite complicated. I do hear though, that parts of it has been settled and growers taken care of. If true, that is good news.
But I do fear if delays continue or negative outcomes from the insurance negotiations are the result, that we may have significant negative effect on cashflow for 2015 and possibly final dividends due in March 2016 ?

But looking forward, it looks like the orchards are looking very good and we can expect another bumper season. We should also by now be seeing positive contributions from Australia.

So looking ahead I believe SEK is doing well and I expect a very good 2016.

Discl: Reduced my holding a little in the last couple of weeks due to insurance unknowns but still 2nd biggest in my NZX portfolio

[Jay]

In a mostly down day SEK up 20cents as at time of writing - make up for some "losses" on Air NZ!
You will be doing well there BB

[BIRMANBOY]

As they say on TV....see..no mould...just spray ....and walk away...I walk away. Yes hold and forget 13% gross yield on my dividends now. Just wish I had more.... Doesn't take much to move SP though so 20cents has come and gone a few times. SP go up and down but dividends will pay for your retirement.

In a mostly down day SEK up 20cents as at time of writing - make up for some "losses" on Air NZ!
You will be doing well there BB

[bull....]

expecting a good result

[iceman]

I think they clearly had a good operational result but at the moment the settlement of the insurance claim on the large fruit loss will have quite a significant bearing on the results. So one hopes for a favourable outcome

[LAC]

https://www.nzx.com/companies/SEK/announcements/278444

Great result for Seeka

[bull....]

nice result