mentioned quite a while back that scales was looking at getting into petfood and they have now confirmed the move
SCALES CORPORATION ACQUIRES 60% OF US PETFOOD INGREDIENTS MANUFACTURER SHELBY JV LLC FOR US$23.2M
https://www.nzx.com/announcements/328316
take time to see if they can replace the earnings from the cold store division guess thats why the share price has been falling to reflect the loss of that division and no replacement for the earnings yet
A very clever acquisition in a sector they know, and the margins are a great deal higher than coolstores.
mentioned quite a while back that scales was looking at getting into petfood and they have now confirmed the move
SCALES CORPORATION ACQUIRES 60% OF US PETFOOD INGREDIENTS MANUFACTURER SHELBY JV LLC FOR US$23.2M
https://www.nzx.com/announcements/328316
take time to see if they can replace the earnings from the cold store division guess thats why the share price has been falling to reflect the loss of that division and no replacement for the earnings yet
Great to hear this, should be good for SP, plenty of growth & profit in this sector.
Currently SCL is now in a downtrend, isn't it? (I'm not that great at TA!) With a death cross occurring a few days ago.
Disc: Not a holder but looking for a potential entry point
chart broke down from a range between 4.50 - 5 implies 3.95 - 4 as a target , long term looks fine at the moment but depends on harvesting. need to remember stocks like scales , seeka , comvita etc will cycle depending on how good there harvests will be.
chart broke down from a range between 4.50 - 5 implies 3.95 - 4 as a target , long term looks fine at the moment but depends on harvesting. need to remember stocks like scales , seeka , comvita etc will cycle depending on how good there harvests will be.
Also remember a weak or weaken NZ $ works in their favour.
Interesting - this was different to the purchase I'd heard rumoured.
I wonder how much of it is in response to the likes of BHJ becoming more active in their patch in NZ (ie buying Wanganui coldstores). Good opportunity to bolt some lamb/beef/venison on to other species, and use their logistics/sales networks.
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