Seeka

[IAK]

Seeka of course .....and anybody else who thinks they can do the same.

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Agree, maybe they should be blaming those who imported it. Industry is it's own worse enemy e.g., PSA - pollen imports; varroa mite smuggled Queen bees; Mycoplasma bovis take your pick on this one imported bull semen, second hand dairy plant etc.

Disc. holding

[iceman]

A healthy 2c (20%) increase in interim dividend compared to last year. Not to be sneezed at. Have to wonder whether the money would be better spent on reducing debt though. Personally that would be my preference.

[bull....]

A healthy 2c (20%) increase in interim dividend compared to last year. Not to be sneezed at. Have to wonder whether the money would be better spent on reducing debt though. Personally that would be my preference.

debt levels quite high , so i agree

[BlackPeter]

Oops - Seeka just dropped below the EMA200. Historically seen an outstanding buying opportunity which I couldn't resist .

They are in my books with a forward PE of 12.6 (I know, analysts are not always right, particularly in an industry so weather dependent like this one) and with a forward CAGR of 16 (admittedly jumping quite a lot around depending on how you set the window). Makes a PEG of 0.79.

Add to that a board with lots of skin in the game (but not too much - roughly 10% of all shares) and a quite optimistic future outlook - what possibly can go wrong?

Good enough for me to invest a little bit of money into a well run agricultural company.

[iceman]

Oops - Seeka just dropped below the EMA200. Historically seen an outstanding buying opportunity which I couldn't resist .

They are in my books with a forward PE of 12.6 (I know, analysts are not always right, particularly in an industry so weather dependent like this one) and with a forward CAGR of 16 (admittedly jumping quite a lot around depending on how you set the window). Makes a PEG of 0.79.

Add to that a board with lots of skin in the game (but not too much - roughly 10% of all shares) and a quite optimistic future outlook - what possibly can go wrong?

Good enough for me to invest a little bit of money into a well run agricultural company.

Welcome aboard. A well run company in a fast growing industry. Has been a very good investment for the last few years and I have no doubt it has a steady and successful future as well.

[iceman]

I find the recent investor presentation underwhelming with flat revenue and underlying profit despite a return to better levels of harvest than the poor 2017. Good to see them selling some of the recently purchased farms in Northland to reduce debt and a definite focus on further debt reduction and control. I suggest this may stop the steadily growing dividends we've seen over the last few years, as it should.
The disappointment for me is the lacklustre performance in Australia where EBIDTA has gone from $2.2M last year to zero this year. They are still forecasting good growth in volumes in Australia for the next 4-5 years but need to do so profitably. The discovery of PSA may make Australia more challenging.

So I've sold out my remaining shares and will stay on the sidelins for now. Still believe this is a well managed company with a bright future and will look at re-entering when I see some of the current clouds disappear. Been a great ride.

[BlackPeter]

Looking for fresh money to deleverage their balance sheet and support their growth strategy:

1 new share at $4.25 for every 1.5 shares holding.

This represents a 25.4% discount to the closing share price on the NZX on 9 November 2018 and a 17.0% discount to the theoretical ex-rights price (TERP) of $5.12 per share, post the Rights Offer, based on the preannouncement close of $5.70.

http://nzx-prod-s7fsd7f98s.s3-websit...674/290279.pdf

I guess considering that their debt to equity ratio is closer to the upper boundary of what's sensible in potentially a bit roughter times to come and considering that these times might offer as well some aquisition opportunities - probably a wise move.

Market so far seems to take the news in its stride - already expected?

Could (obviously after going ex-rights) well form the bottom for the trend to change ...

[iceman]

Looking for fresh money to deleverage their balance sheet and support their growth strategy:

1 new share at $4.25 for every 1.5 shares holding.



http://nzx-prod-s7fsd7f98s.s3-websit...674/290279.pdf

I guess considering that their debt to equity ratio is closer to the upper boundary of what's sensible in potentially a bit roughter times to come and considering that these times might offer as well some aquisition opportunities - probably a wise move.

Market so far seems to take the news in its stride - already expected?

Could (obviously after going ex-rights) well form the bottom for the trend to change ...

Agree BP. This is sensible as their debt has been getting uncomfortably high for this risky industry. Glad to be out for now but will watch with interest what happens to SP after this "restructure" of the balance sheet.

[BlackPeter]

SP up from $5.70 to $5.83. Not that often that you see the SP rise after the announcement of a capital rise.

Feels like punters value the rights to buy discounted SEK shares.

[Lewylewylewy]

The capital raise is an announcement of the start of a growth strategy being put in place