Scales - SCL

[Joshuatree]

Whats your reason sb9?. Im reviewing whether to do the same.They've had a great run with 2 or more near perfect growing seasons to boot.Newer varieties of apples seem a winner too.Odds that some weather, natural event may stuff it up somewhat are increasing.Management is excellent and the ducks have all been in row.Can/ Will Chinese investor increase holdings, make a takeover etc, keeping some upward/stable tension on s/p? Think now that ,they do tend to under promise (and so far over deliver) so scene set for something to go wrong?

[sb9]

Whats your reason sb9?. Im reviewing whether to do the same.They've had a great run with 2 or more near perfect growing seasons to boot.Newer varieties of apples seem a winner too.Odds that some weather, natural event may stuff it up somewhat are increasing.Management is excellent and the ducks have all been in row.Can/ Will Chinese investor increase holdings, make a takeover etc, keeping some upward/stable tension on s/p? Think now that ,they do tend to under promise (and so far over deliver) so scene set for something to go wrong?

No particular reason JT, am sure the sp can get close to $4 if certain things fall in place like more Chinese interest and good crop over next season.

Sometimes I tend to hang onto to a stock too long without realising actual gains and in this case my cut off date was always this results date. I personally like this company and been one of my star performers in my portfolio. And as they say, "leave some meat for next person in line"....

[h2so4]

The company’s balance sheet continues to be strong enabling us to take advantage of organic and inorganic growth opportunities. At the moment, we’re nding the best returns from investing in our own businesses. We expect to invest $16.7 million in capital expenditure during 2016, of which approximately $10 million are considered growth projects. This follows on from expenditure of $15.8 million in 2015 of which $11.3 million was for growth projects. These growth initiatives underpin expectations for improvements in earnings beyond the current nancial year.

[Beagle]

Underpromising?
"Looking ahead to the 2017 financial year, the directors expect EBITDA to be between $55 million and $62 million. This reflects:
• The inclusion of earnings from Longview.
• Lower budgeted yields and revenue from Mr Apple."

Underscores the cyclical nature of the horticultural industry in my opinion. Looks like they got all their ducks in a row this year but expectations are, (notwithstanding they have historically under promised and over delivered) that pricing may work against them next year.

I'm out.. had been great run with this since late 2014 when I picked up around 1.41 or so....GLTA.

Congrats, a stellar run.

[percy]

I sold out today and added to my HLG and TNR holdings.
Still think SCL is an extremely well run business,but as Roger points out, "they got all their ducks in a row this year",so eps growth full years' 2016/17 and 2017/18 may be negative.

[h2so4]

I sold out today and added to my HLG and TNR holdings.
Still think SCL is an extremely well run business,but as Roger points out, "they got all their ducks in a row this year",so eps growth full years' 2016/17 and 2017/18 may be negative.

You what?
No wonder the price went down.

[Beagle]

I sold out today and added to my HLG and TNR holdings.
Still think SCL is an extremely well run business,but as Roger points out, "they got all their ducks in a row this year",so eps growth full years' 2016/17 and 2017/18 may be negative.

Totally agree its extremely well run. Article on NBR behind the paywall (which mod's frown on cutting and pasting so I won't) but essentially what they were alluding too in terms of the lower FY17 forecast is that SCL uses a multi year average forecast yield when setting their forecast and the recent acquisition actually hindered the official FY17 forecast using their forecasting model.

They went on to say that they prefer to under promise and over deliver, which these days to be honest is an old fashioned forecasting methodology that I find most attractive and one many other companies would do well to consider adopting.

I sold a while back at circa $3.30 on the basis that any way you slice and dice it this is still a cyclical industry and prone to significant agricultural risks in addition to the normal cyclical commodity factors.

[Joshuatree]

Last December

Weather cleared now. Have just checked my back yard peach tree. The 2 green peaches are still on the tree (there were only 2 to begin with).

Looking like another great fruit set for apples; anyone got any info to verify?. Thought we could get a starter by how many peaches you have this year Noodles

[Joshuatree]

Scales announces acquisition of Longview New Ze... It is an exceptional operation Scales has bought and to under promise here is an almost surety of over delivering imo; weather events not forthcoming of course.

Listenduration 1′ :44″

Another price tension is the chinese re 15% holding; I'm thinking chances are very good they will want to increase their holding in this superb top quality premium apple co

[winner69]

So some of you have been selling out /down - and Harbour /FNZC been paying them

We usually get excited when isto's increase their holdings - but his time?