Scales - SCL

[bull....]

https://www.nzx.com/companies/SCL/announcements/306020

First significant fall in profit in a while.

Best is over for SCL for now?

was telegraphed in june so no surprise

[Ace]

was telegraphed in june so no surprise

Exactly, this was all quite expected, a pretty hefty fall - although profit guidance reaffirmed and within targets, nothing out of the ordinary.

The big unsaid is what has been happening with apple supply from places like Chile - this was a huge issue in the past and is becoming a big issue again.

I think it's not so much the demand of the apples, which may be the case with Chile that have fallen - moreso the production, packout rates, and 'unforeseen' weather circumstances increasing costs and decreasing efficiency. Can't really help the weather, I do hope however that having multiple 'cyclones' thundering through our apple producing regions doesn't become the norm.

[bull....]

hefty fall alright for something well telegraphed , must be to do with the technicals lol

anyway reason i liked it from the start were growth which could be made in logistics and storage also now appealing is the china market opportunity for which they will need to buy more apple supply

[winner69]

hefty fall alright for something well telegraphed , must be to do with the technicals lol

anyway reason i liked it from the start were growth which could be made in logistics and storage also now appealing is the china market opportunity for which they will need to buy more apple supply

Not really a hefty fall ...just a tad of record(?) highs

Reaffirming guidance means H2 is going to be at least as good or heaps better than last year .....when H1 was down 14%

Seems to be trend these days with many companies saying H2 is going to be great ...and not delivering on it

At least Scales have already made most of the years profit

[Beagle]

Agree.
Makes the current PE of 13.36 look high.a

http://www.4-traders.com/SCALES-CORP...61/financials/

Analysts have it valued at $3.78 but I am with you, this is too rich for my blood.
Forecast eps for FY18 is 25.5 cps. I would ascribe a PE of no more than 10 to any agricultural cyclical stock but other parts of their business like pet food, liquid storage, coolstore e.t.c. get's me to about 12 - 12.5 overall. I continue to see fair value around $3.20 and believe this got ahead of itself.

[bull....]

http://www.4-traders.com/SCALES-CORP...61/financials/

Analysts have it valued at $3.78 but I am with you, this is too rich for my blood.
Forecast eps for FY18 is 25.5 cps. I would ascribe a PE of no more than 10 to any agricultural cyclical stock but other parts of their business like pet food, liquid storage, coolstore e.t.c. get's me to about 12 - 12.5 overall. I continue to see fair value around $3.20 and believe this got ahead of itself.

i brought some more today looks cheap down the track with more bolt ons

[winner69]

Share price 340 a year ago and 340 today so probably priced about right (averaged about 340 the who year as well)

One day (sometime) it'll get to 400

[bull....]

http://www.4-traders.com/SCALES-CORP...61/financials/

Analysts have it valued at $3.78 but I am with you, this is too rich for my blood.
Forecast eps for FY18 is 25.5 cps. I would ascribe a PE of no more than 10 to any agricultural cyclical stock but other parts of their business like pet food, liquid storage, coolstore e.t.c. get's me to about 12 - 12.5 overall. I continue to see fair value around $3.20 and believe this got ahead of itself.

I find produce companies in nz are priced relativly low when compared to aus companies one of my favourites being costa grp au trades on a 28 pe so with companies in nz trading on like 8 - 12 odd i find them cheap in comparison with much bigger yields

[stoploss]

I think we have a lesson on the PE story with TIL & BWX ......

[bull....]

looks like buyers a getting a bargain well telegraphed profit affected by possibly one of events next yr could be better maybe