Synlait Farms Limited (SNLF)

[FarmerHamilton]

Besides Chinese and Japanese investors a significant portion of shareholders in Synlait Milk are also shareholders in Synlait frams.

Synlait Milk is currently 51%/49% owned by Bright Dairy and Synlait Limited. All Shareholders in Synlait Farms own all the shares in Synlait Limited apart from Mitsui & Co who cashed out of Synlait Farms recently in the move to the Unlisted but maintained their Synlait Limited shareholding.

It sounds like Synlait Limited will distribute all its Synlait Milk shares to its shareholders so all holders will then have shares in SNLF on the Unlisted exchange and SML shares on the NZX. A far better scenario than a few short weeks ago.

[FarmerHamilton]

The timing of this is interesting ... Synlait Milk may have had an absolute ripper of a season as I imagine they are virtually all sold now of there 2012/13 production. They will have their margin in the bank on what they sold the milk for ( powder , infant formula , AMF ) and have a pretty good idea within 10c / kgMS of what they will pay for the milk. $6.3m last year ... the prospectus will be interesting reading. 31 July balance day so actual Y/E figures are months away still.

[000831]

If Synlait Milk gets more bright prospectives, why farmers sell them?
I only see GDT Milk price down, OCR will lift up by the end of year. Not good for the farmers.

What's the real reason Synlait did seperate the firm into two parts? To protect the land to be controlled by the Chinese firm, debt heavily on Synlait farm, or EPS too low bad for NZX list as a whole?

If the farm part has potential, then the group should not seperate them at the beginnings. But they did. Why Why Why?

[FarmerHamilton]

If Synlait Milk gets more bright prospectives, why farmers sell them?
I only see GDT Milk price down, OCR will lift up by the end of year. Not good for the farmers.

What's the real reason Synlait did seperate the firm into two parts? To protect the land to be controlled by the Chinese firm, debt heavily on Synlait farm, or EPS too low bad for NZX list as a whole?

If the farm part has potential, then the group should not seperate them at the beginnings. But they did. Why Why Why?

"I only see GDT milk price down" .... don't invest then ! Simple

[FarmerHamilton]

"I only see GDT milk price down" .... don't invest then ! Simple

Trading in Synlait Farms is quiet this week , the announcement of a Synlait Milk float will hog the limelight over the next few months, trading in Farms may well be non-existent while people wait to see the IPO prospectus and weigh up the best way to gain exposure to the dairy supply chain. Raw milk or end products ?? Land or stainless steel ??

[FarmerHamilton]

Fonterra forecast $7.00 payout for 13/14 season. SNLF P/E ratio on a payout at that level about 6

[FarmerHamilton]

No trade for over one month now . Disappointing given the Fonterra forecast of $7/kgMS for the 13/14 season and the fact that the NZ$ has dropped about 5% since early May.

[FarmerHamilton]

Should have double checked ... 100,000 just traded

65,000 at 98c
35,000 at $1.00 ... no offer currently

[FarmerHamilton]

Should have double checked ... 100,000 just traded

65,000 at 98c
35,000 at $1.00 ... no offer currently

$1.05 bid , albeit in tiny size.
$1.20 offer , decent size

[1leon]

There really is a lot of nonsense going on here. A bid for 1000 @$1.05 and 1500 @1.00. Punters with $1005 and $1575 to spend! Not worth the brokerage. There really is no liquidity on Unlisted. I would have expected substantial investor interest in a dairy farm much more attainable than syndication.