'Well positioned' no longer the catch phrase to use? 'Strong and exciting position' the next big thing? Will look for this in future reports. Means buy up big I think.
'Well positioned' no longer the catch phrase to use? 'Strong and exciting position' the next big thing? Will look for this in future reports. Means buy up big I think.
Be fearful when others are greedy springs to mind. PS-Have large cash pile waiting for annual haircut season.
everything shaping up nicely, thinking I might follow Mr Sainsbury's lead and add another helping!
Yep overall the fruit and Veges on the NZX look at the expensive end of the price scale bar a few like NZR, the off season should lead to better valued produce
'Well positioned' no longer the catch phrase to use? 'Strong and exciting position' the next big thing? Will look for this in future reports. Means buy up big I think.
Companies seldom make things so crystal clear and this goes considerably further than the usual "well positioned" we have come to expect as almost the norm for good companies.
Trades on a historical PE of just over 10 with substantial growth to come in the foreseeable future and the possibility of a takeover thrown into the mix or significant help with distribution into China as the alternative.
Brief synopsis of thoughts from the annual report.
Growth across all divisions
Logistics and coolstores appear to have embedded growth going forward.
Pet food division has shown exceptional growth and more to come, return on invested capital 49%, expect more investment here !
Nice repositioning to more premium varieties augurs well for premium variety growth in the next few years
Exchange rate tailwind this year and probably next.
Low oil prices = low sea freight costs
Looks like they are currently evaluating a number of potential acquisitions as well as contemporaneously building strong organic growth
Impressive that they can materially invest in capex for future growth whilst paying a 6% fully imputed dividend last year (gross 8.4% based on $2.90)
Last years EPS 27.9 cps so it would appear at least $2.79 is supported by a PE of only 10 and the current price represents only a very modest premium for future growth and future distribution assistance from our new Chinese friends. Takeover offer if forthcoming would need to be pitched at a PE of at least 13 in my view to be successful = $3.63 based on last year's earnings, probably more based on FY16 or FY17 earnings depending on timing of potential offer.
Decent sized imputation credit account, (over $10m at year end) balance suggests all future dividends will be fully imputed
Doesn't look to me to be any material take-over premium built into the stock.
Conclusion: We're being paid handsomely with dividends to enjoy strong growth for the foreseeable future.
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Originally Posted by nextbigthing
PS-Have large cash pile waiting for annual haircut season.
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