Scales - SCL

[James108]

There is also a certain amount of growth that has already been paid for and has not yet flowed through to the financial statements. Such as Auckland coldstore but also new orchards coming on line, which from memory I calculated as low single digit growth in horticulture over the next 4-5 years. That may seem low but as I said earlier it requires no further cash investment.

I agree that some on here may not be facotring in a normalising of apple prices and there is a certain risk here that long term apple price/harvest is below current levels (I would consider this likely even). With that in mind I see value around $3.20. I recently topped up at $2.99.

[Beagle]

Nice rebound this week, was only $2.96 on Tuesday, so a $3.12 finish was nice to see for the week and the stock only on a historical PE of 11 at $3.12, (recall previous press articles about the level of growth, opps there's that word again, in apple exports this season) Plenty of old hands on here were recommending this stock as genuine value (in an otherwise pretty fully valued market), and any newbies than jumped in at under $3 should be very pleased they had the courage to do so.

Many long term investors will know this is a great hold and while there is always risk with any share that derives the majority of its revenue from horticulture the list of stocks that are without risk is very short and there are plenty of stocks with similar growth prospects trading on PE's well into the late 20's and even 30's. Its all about relative value for the risk and I for one am a very happy holder.

[winner69]

Carmel Fisher told her Kingfish devotees yesterday "“We’re not going to see a lot of double-digit earnings growth ..........but the returns should on average be around 8 to 10 percent.”

I reckon Scales earnings growth will exceed 10%. (Maybe by a lot)

That seems to be 'strong growth' to me

[Ace]

Carmel Fisher told her Kingfish devotees yesterday "“We’re not going to see a lot of double-digit earnings growth ..........but the returns should on average be around 8 to 10 percent.”

I reckon Scales earnings growth will exceed 10%. (Maybe by a lot)

That seems to be 'strong growth' to me

Yup, especially since it's above what was expected in the prospectus. If that isn't strong growth then I don't know what is.
We're seeing some nice movement in the SP today.

[Fox]

We're seeing some nice movement in the SP today.

Beat me to it. Must've been that Statistics NZ report last week that gave Mr Market the confidence in Mr Apple aye

[sb9]

Beat me to it. Must've been that Statistics NZ report last week that gave Mr Market the confidence in Mr Apple aye

Add to that Mr Market might have heard few snippets about a possible trading update soon??

[drcjp]

word is spreading its seems. everyone wants a piece of the PIE

[Beagle]

Looks very good

P.S. Actually thinking about this over dinner its looks exceptional. 23% growth in apple exports PLUS this is on the back of a record crop last year PLUS growth in services to others industry participants, (services to other industry participants provided were circa $80m IIRC last year), PLUS growth in coolstore revenue with new Auckland coolstore PLUS growth in pet food PLUS growth in liquid storage PLUS I am sure there is some more growth I have forgotten about PLUS the company is probably about to update the market PLUS the company has significantly underperformed the rampant NZX50 lately so the valuation now looks truly compelling PLUS the possibility of a Chinese takeover. You could say shareholders are very positioned That's a lot of PLUS's and not a single negative that springs readily to mind.

Knew I had forgotten something. PLUS widely considered to be the next stock that goes into the NZX50 index. We saw a very significant increase in CVT's price when it got included in the index, less so with TGL.
Index inclusion and consequent index tracker fund buying certainly can't hurt its SP growth prospects given moderate volume of late.

[Ghost Monkey]

Knew I had forgotten something. PLUS widely considered to be the next stock that goes into the NZX50 index. We saw a very significant increase in CVT's price when it got included in the index, less so with TGL.
Index inclusion and consequent index tracker fund buying certainly can't hurt its SP growth prospects given moderate volume of late.

Can't argue with you, and also, I apologize for my initial knee-jerk reaction.

You're right. This is a good company, and I see many reasons why the SP could continue north. Management seems very capable with wise investment choices made.
And I certainly acknowledge the strong growth they have had recently. Very strong. Obviously some see this strong growth continuing through this year. My pick is for more moderate growth, that's all. Still, placed high on my watchlist. Will trade ghost bananas for some apples.....

[Beagle]

No probs mate. I guess it all comes down to how one interprets the phrase strong growth / moderate growth. I think the obvious overuse of the "growth" term in the latest annual report probably gives the clear impression of how the directors see it and they're probably best placed to know