Scales - SCL

[Sideshow Bob]

pretty disappointing update

In providing Guidance for 2020, directors note:
• As previously advised, the Horticulture division’s forecast apple volumes will be impacted by the ongoing redevelopment work undertaken on Mr Apple’s orchards;
• A material increase in capital expenditure within the Horticultural division to address increasing domestic costs, including labour;
• The guidance range implies an Underlying EBITDA range of between $49m and $55m, which is unchanged from 2019;
• Interest income has reduced due to lower rates and the past interest benefit from the sale of the Storage business;
• A further update will be provided as part of the 2019 year end announcement scheduled for February 2020.

https://www.nzx.com/announcements/345440

and the fact they are wasting a lot of there cold storage money proceeds on maintaining dividends instead of buying growth opportunities and reducing the divs is not smart in my mind. the div will reduce when the net cash position is gone

I'm a little surprised they haven't updated the Meateor business. Loss of most/all the Silver Fern supply would be significant in terms of tonnage and throughput. Market for some of the ingredients have moved appreciably, meaning a significant loss on any stock they are left holding.

[bull....]

I'm a little surprised they haven't updated the Meateor business. Loss of most/all the Silver Fern supply would be significant in terms of tonnage and throughput. Market for some of the ingredients have moved appreciably, meaning a significant loss on any stock they are left holding.

interesting. also i think they should update on what they are going to do with sale proceeds ie are they looking for more businesses to buy ? the petfood business wont replace cold storage revenues for a long time. at the moment all i see is them wasting the money on maintaining the dividend ... which they cannot sustain going on there net cash position

[RTM]

interesting. also i think they should update on what they are going to do with sale proceeds ie are they looking for more businesses to buy ? the petfood business wont replace cold storage revenues for a long time. at the moment all i see is them wasting the money on maintaining the dividend ... which they cannot sustain going on there net cash position

Now you do have my interest.
The dividend is a modest 3.76% at current prices.
Are you saying it is only being covered by the proceeds of their sale of the cold storage business ?
If yes...then that is not a great scenario....and I will be gone.
More research needed at my end.

[bull....]

Now you do have my interest.
The dividend is a modest 3.76% at current prices.
Are you saying it is only being covered by the proceeds of their sale of the cold storage business ?
If yes...then that is not a great scenario....and I will be gone.
More research needed at my end.

this is from there announcement

The directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed interim cash dividend for the 2019 financial year of 9.5 cents per share, to be paid on 17 January 2020. The directors reiterate their commitment to paying an annual cash dividend level of no less than 19 cents per share whilst the company holds Net Cash

[RTM]

this is from there announcement

The directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed interim cash dividend for the 2019 financial year of 9.5 cents per share, to be paid on 17 January 2020. The directors reiterate their commitment to paying an annual cash dividend level of no less than 19 cents per share whilst the company holds Net Cash

Yes....I saw that. I wasn't sure it meant what you seem to be saying.

[bull....]

Yes....I saw that. I wasn't sure it meant what you seem to be saying.

i should have said i hope they dont use funds from sale to prop up the dividend. i think they need to be more transparent onwhat they are going to do with the funds.

[bull....]

t&g global updated today on trading conditions , saying Trading results have been trending stronger over the second half of the year compared to last year, mainly driven by a strong International Trading business offsetting a weather-related difficult New Zealand apples season with less and smaller fruit.

wonder if relevant to scales

https://www.nzx.com/announcements/346098

[bull....]

obviously getting to many. anyway looked like it was going to break higher above that 5 dollar long term resistance. be interesting what happens

price is really struggling to stay above that $5 dollar long term resistance level , fundamental announcement recently didnt help

[bull....]

price fallen quite abit from the $5 level now , coronavirus related chinese port problems or bad apples ?

[mondograss]

Potential acquisition target perhaps? https://www.nzherald.co.nz/business/...ectid=12305963