Scales - SCL

[tim23]

Caught tail end of Eion Edgar on Farming show today and he mentioned Scales - might have helped?

[janner]

A hailstorm of biblical proportion would do instead of a broken leg.

Perish those thoughts !!!...

Hopefully with it being grammatically incorrect.

It will not come to pass..

[BeeBop]

I like their balance sheet - also an investment in land (half of their 2015 non-current assets). However, if there were to be "a hailstorm of biblical proportion"...a huge amount would be wiped off their balance sheet. I wonder if the trees/biological assets are insured - I don't know anything about this side of agricultural businesses.

[janner]

On a Biblical theme couta1 ...

One could quote.. Matthew 6:30 :-))))

[janner]

The first line of course :-))

[couta1]

Perish those thoughts !!!...

Hopefully with it being grammatically incorrect.

It will not come to pass..

Added S to proportion, is that better? Yes Matthew 6:30 quite applicable but doesn't offer much comfort to Scales holders (The first line that is)

[Jantar]

......However, if there were to be "a hailstorm of biblical proportion"...a huge amount would be wiped off their balance sheet. I wonder if the trees/biological assets are insured - I don't know anything about this side of agricultural businesses.

I am sure they would have a form of business interuption insurance to cover the loss of a main crop. However, no hail storm would be able to actually damage the land. It is possible that trees could be damaged, but again it would be extremely unlikely that any would be completely destroyed. For any that were destroyed, the infrastructure (irrigation system etc) are already in place and new trees could be planted
that would be producing within 2 - 3 seasons. Trees that must be pulled out can be sold as firewood, and hail damaged apples get juiced, so still not a complete loss.

Also, while most of their orchards are in Hawkes Bay, they do have orchards and suppliers from other areas.

In short, while a major hail storm would affect the bottom line, it would not be devastating.

Discl: If I see a major storm system approaching the Hawkes Bay, with a blocking high to the east, and atmospheric lapse rates approaching 1 C per 100 m, I may just sell half my Scales shares.

[janner]

Added S to proportion, is that better? ..

Add an N to the first letter..

Have ducked many an accurately flying " Duster " ( Which would produce court cases today ) when the N was dropped before AN H.

How ever .. Language moves on..

As will SCALES.. IMHO..

Disc.. Added..

[BeeBop]

I am sure they would have a form of business interuption insurance to cover the loss of a main crop. However, no hail storm would be able to actually damage the land. It is possible that trees could be damaged, but again it would be extremely unlikely that any would be completely destroyed. For any that were destroyed, the infrastructure (irrigation system etc) are already in place and new trees could be planted
that would be producing within 2 - 3 seasons. Trees that must be pulled out can be sold as firewood, and hail damaged apples get juiced, so still not a complete loss.

Also, while most of their orchards are in Hawkes Bay, they do have orchards and suppliers from other areas.

In short, while a major hail storm would affect the bottom line, it would not be devastating.

Discl: If I see a major storm system approaching the Hawkes Bay, with a blocking high to the east, and atmospheric lapse rates approaching 1 C per 100 m, I may just sell half my Scales shares.

Thank you - they are certainly well diversified including in their assets, with just over 1/4 of assets in trees and with insurance then maybe I won't run to sell! Am currently feeling lucky that I purchased at 2.95 last week as I readjusted my portfolio selling non performers and those that had reached my current valuations. SCL and HBY are my new entrants....

[see weed]

Thank you - they are certainly well diversified including in their assets, with just over 1/4 of assets in trees and with insurance then maybe I won't run to sell! Am currently feeling lucky that I purchased at 2.95 last week as I readjusted my portfolio selling non performers and those that had reached my current valuations. SCL and HBY are my new entrants....

We are a funny lot. I just sold half my HBY to buy ATM. And the brokers laughing all the way to the bank. I think someone with the know how should start up a brokerage firm for us traders and charge 0.1% brokerage.